IslamicFinance.de

Fiscal pressures exerted by low oil price are expected to increase the role of private sector and capital markets in the financing of hundreds of billions worth of project financing in the GCC countries. Standard & Poor’s estimate that $604 billion (Dh2.2 trillion) worth of project contracts need funding through 2019. Assuming there are no further cancellations, reprioritisations, or deferrals of projects through 2019, the rating agency expects $140 billion-$160 billion in contract awards per year. The countries awarding the most projects will be Saudi Arabia, the UAE, Kuwait and Qatar. Out of the projects planned and under way in 2016 of $140 billion, about 48 per cent involve real estate; oil and gas, 17 per cent; and infrastructure, 17 per cent.