Infrastructure deals priming Mideast growth of renewables

Private capital infrastructure deals in the Middle East is becoming prevalent as the regions continues to turn towards to greener and more renewable sources of energy, power and beyond. 

This is based on information published by Preqin in its Middle Eastern Infrastructure Factsheet. Preqin is a world-renowned leader as far as alternative assets data, analytics and insights are concerned.

Preqin’s factsheet revealed that the total value of renewable energy deals completed from 2011 to date is US$13 billion. It also showed that 60% of that volume was recorded between 2017 and 2021.

Governments and oil producers in the Middle East have recently begun prioritizing energy transition, especially as they are faced with decreasing oil prices during the pandemic and a global desire to decarbonise energy generation. 

According to a recent analysis of Preqin’s report, “among private capital infrastructure deals in the Middle East in recent years, secondary transactions have seen their share rise from 19% in 2016 to 40% in 2019.” 

The key marker of the growing appeal of of traditional infrastructure assets in the region is the secondary sales of the Adnoc Oil Pipelines in 2019 and Gas Pipelines in 2020.

Latest figures put the total value of infrastructure deals in the UAE since 2016 stands at $83 billion, with 29% ($24 billion) of this volume credited to Barakah Nuclear Energy Project alone.