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Rabat – The Middle East and North Africa (MENA) region is set to invest $879 billion in energy projects, a 9% increase from previous valuations of $805 billion.
Of the total investments, MENA countries have already entered the execution phase for 30% of the committed projects, while projects in the planning phase constitute 70% of total investments, according to a report from the Arab Petroleum Investment Corporation (APIC).
Breaking down the investments by sector, the report details that Saudi Arabia, Morocco, Algeria, and the UAE are topping the list of countries that are ramping up efforts for renewable projects to meet their national renewable energy targets.
Regarding renewable energy power, Morocco has the highest share of renewable energy projects planned out of the total energy investments.
The 2022-2026 outlook points out that 82% of Morocco’s total energy investments are targeting renewable energy ventures, followed by Lebanon at 73%.
In terms of the actual investment volume, Morocco has committed the second-largest volume of investments to renewable energy projects with approximately $26 billion, trailing behind Saudi Arabia’s over 30 billion investments in renewable energy ventures.
APIC’s data suggest that Morocco also leads the way in terms of the private sector’s share of total energy investments within the outlook with 74%, followed by Jordan’s 62%.
The report further notes that green financing in the MENA region gained significant traction over the past six years, going from $0.92 billion in 2016 to $18.64 billion in 2021.
Of Morocco’s energy transition, the report notes that the country has made significant strides in transitioning away from carbon-intensive energy sources.
It indicates, in particular, that Morocco sourced 55% of its energy from coal in 2021, down from 68% in 2020.
Read Also: Morocco, Saudi-Arabia to Intensify Renewable Energy Cooperation
