Infrastructure opportunities in the Middle East & Africa
The infrastructure sectors of the Middle East & Africa present many opportunities for U.S. companies to sell their products and services. Both regions have rapidly growing populations, expanding urbanization, and increasing demand for infrastructure development, making them attractive markets for U.S. companies. Some of the key sectors include the following.
Energy Infrastructure
Both regions have abundant energy resources, including oil, natural gas, and renewable energy sources such as solar, wind, and hydro. According to the International Energy Agency (IEA), Africa alone is home to some of the world's largest untapped renewable energy resources and has the potential to supply up to 9 terawatts of solar energy, 15 terawatts of wind energy, and 350 gigawatts of hydroelectric power and the Middle East will account for 63% of global oil production growth and 42% of gas production growth by 2040. There are numerous opportunities for U.S. companies to sell products and services to support energy infrastructure development, across the full spectrum of power generation, transmission, and distribution.
The Middle East and North Africa (MENA) region is expected to see $1.4 trillion in energy investment by 2050, with renewable energy investments accounting for 41% of the total. (International Renewable Energy Agency)
The Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) are expected to invest $185 billion in renewable energy projects by 2025. (PWC)
The U.S. government's Power Africa initiative has facilitated over $40 billion in investment commitments in sub-Saharan Africa's energy sector.
Transport infrastructure
The current transport infrastructure in both the Middle East and Africa is inadequate, limiting regional trade and economic growth. The African Union's African Continental Free Trade Area (AfCFTA) agreement aims to improve intra-African trade by developing transport infrastructure, including new road, rail, and air connections. Meanwhile, serving as a major hub for the transport of people and goods between Europe, Asia and Africa, Middle Eastern countries continue to make significant investments in transport infrastructure, including airports, seaports, railways and highways, to support their growing role in global trade.
The Middle East and North Africa (MENA) region is expected to spend $1 trillion on transport infrastructure projects over the next decade. (MEED, 2020)
The Gulf Cooperation Council (GCC) countries are investing $400 billion in transport infrastructure projects, including roads, ports, and airports. (Arabian Business, 2021)
Africa needs to invest $130-$170 billion annually in transport infrastructure projects to meet the continent's transport needs (The African Development Bank - AfDB)
Water sanitation infrastructure
Many people in both regions lack access to clean water and sanitation services, which hinders economic development and negatively affects public health. According to the World Bank, 60% of the population of the Middle East and North Africa region, lacks access to safely managed sanitation services, while according to the World Health Organization (WHO), over 50% of the population in Sub-Saharan Africa lack access to basic water supply services, and over 70% of the population lack access to basic sanitation services. There are many opportunities for U.S. companies to sell products and services to support water and sanitation infrastructure development, especially in the areas of water treatment, distribution, and sewage systems.
The Middle East and North Africa (MENA) region is expected to invest $116.6 billion in water and wastewater infrastructure projects between 2020 and 2030 (Frost & Sullivan)
The Gulf Cooperation Council (GCC) countries are projected to spend $320 billion on water and wastewater projects by 2030 (MEED)
The African Development Bank has launched a $12.5 billion initiative to improve water and sanitation infrastructure in Africa. (African Development Bank)
The statistics above are just a few examples that demonstrate the massive investments that governments and development banks are making in Middle East & African infrastructure. ISI continuously tracks infrastructure projects across the region and has an extensive network of contacts with governments and key stakeholders as well as local resources throughout the region. We can support U.S. companies with products and services targeted at the infrastructure sector to take advantage of these opportunities and generate significant revenue while contributing to the development of the region.