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Azerbaijan among most attractive markets for Arab companies: MEED Projects

Oil&Gas Materials 23 May 2017 19:03 (UTC +04:00)

Baku, Azerbaijan, May 23

By Azad Hasanli – Trend:

Azerbaijan, Kazakhstan and Turkmenistan are the most attractive markets for companies from the Persian Gulf, according to a report of MEED Projects.

The report says that the three Caspian states can offer Arab companies the opportunity to participate in projects worth $165 billion in the fields of energy and infrastructure.

In this context, Kazakhstan ranks first in terms of number of projects, total cost of which reaches $69 billion, says the report.

Azerbaijan ranks second ($60 billion) and is followed by Turkmenistan ($37 billion).

Director of Content and Analysis at MEED Projects Edward James noted that over the past 18 months, the value of active projects in the Persian Gulf has decreased by 40 percent due to low oil prices.

Despite the fact that the Caspian states were also not protected from the decline in oil prices, they can offer alternative opportunities for Middle Eastern companies, said James.

Gas, oil and transportation are the main sectors in Azerbaijan, Turkmenistan and Kazakhstan, says the report.

Over the past two decades, governments of Azerbaijan, Turkmenistan and Kazakhstan have been able to use the oil and gas revenues for big infrastructure projects, including the creation of new railway facilities and airports, added James.

Currently, the biggest energy project being implemented by Azerbaijan is the Southern Gas Corridor (SGC). The project’s total cost is $40 billion. SGC is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.

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