In the aftermath of the global economic crisis, as the world focuses on the effects of global warming and the need to develop long-lasting, clean, but affordable energy sources, the Gulf's energy sector is excellently placed to engage with emerging opportunities, create new ones and position itself at the forefront of the new wave of clean energy solutions, which will ensure future growth and prosperity, said Badr Jafar, CEO of Crescent Investments on Thursday. “In the wake of the crisis, companies within all sectors are being forced to re-evaluate their objectives and strategies,” he said, noting that “companies in the energy sector are no exception.” Now is a great time for regional investors to commit capital to the energy sector, Jafar said. “The UAE is emerging as a global hub for Clean Energy. For example in the UAE's capital, Abu Dhabi, the Masdar City project will be the world's first carbon-neutral zero-waste city and was chosen last year as the future global headquarters of the International Renewable Energy Agency (IRENA). Now is an excellent time for companies within the energy sector to look for new ways to improve growth and performance, and for investors - current and potential - to take stock of the opportunities available.” “I believe that we can expect to see a number of investment opportunities within the energy sector to become available in the course of 2010,” he said. “With ever-increasing populations and demands for energy and technology, this is definitely a sector set for growth for many years to come,” he added. As companies and investors involved in the energy sector look towards long-term, cost effective “green” energy sources, it is becoming clearer that natural gas comes to the fore as the natural choice. “Natural gas demand among the Gulf Cooperation Council's members has increased by 72 percent over the last decade alone, and is expected to grow faster yet in future, with hundreds of billions of dollars of investments required by the natural gas industry across the region,” Jafar further said. “So this is certainly one of the areas in which I expect to see new investment opportunities over the next few years.” Jafar cited GASCITIES Ltd, a firm he chairs, which is working on establishing a number of self-sustaining, fully integrated industrial gas cities throughout the Middle East, North Africa and South Asia (MENASA) region, with the common purpose of maximizing the economic benefit of locally produced natural gas, developing local industry, creating jobs and stimulating foreign direct investment. Increasingly, companies and governments are seeking alternative, “green”, sources of power, in line with the global movement to reduce greenhouse emissions. While much of the focus has been on wind, water, and solar power, another energy source should not be overlooked, like natural gas. “Gas is an efficient, clean, cheap energy source and is abundant in the Gulf region, with Gulf Cooperation Council members holding approximately 23 percent of the world's proven gas reserves,” he pointed out. “Power plants driven by natural gas cost less than half that of nuclear plants, emit less than half the CO2 emissions of coal and can be built at a material scale faster than any other power source,” Jafar explained. Crescent is an investment company with interests in the energy sector and a diverse range of other industries.
