$40M renewable energy fund to launch in MENA

Large, established global corporations have dominated the renewable energy market in the MENA region. But many others who would participate haven’t yet done so. While the economic rationale for investing in alternative sources of energy is sound, the challenges associated with the successful deployment of investment capital across the region are substantial. For large global investors in new energy resources, viability is considered on a regional basis. The MENA market, for all of its growth potential, is notoriously fragmented from a regulatory point-of-view. These factors contribute to an environment that is ripe for the entry of nimble operators and new technologies – and a proposed new $40.5 million fund seeks to facilitate their development.

The logic of renewable energy

There are several economic and development goals driving the growth in renewable energy production in the fossil fuel-rich MENA region. The first goes to the relative benefits that regional governments can derive from those fuels: exporting oil and gas is preferable to allowing their domestic consumption. In other words, every liter of subsidized gasoline consumed by a Saudi driver is counted against the economic benefit of selling that liter at market price in China.

Establishing high-quality renewable energy facilities also contributes to the development of the technology and knowledge economy sectors. Engineers, technicians, researchers and others must be trained and deployed to build and improve on existing technologies. By cultivating the renewable energy industry, countries in the MENA region can help provide jobs and real economic growth for future generations.

Original article by Ahmed Moor

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$40M renewable energy fund to launch in MENA