Arab states still need Western money to hike oil production

Thursday, August 26, 2004

ABU DHABI Arab states require international funding to finance energy projects.

A report said Arab governments will continue to rely on Western banks to finance crude oil, natural gas and petrochemical projects. The study, prepared by the Arab Petroleum Investments Corp., cited the limited financial capabilities of Arab banks. Arab Petroleum Investments was established in 1975 with the participation of 10 Arab governments.

The study, authored by the corporation's director of projects management, Abdullah Ibrahim, estimated energy and petrochemical investments in the Arab world to reach $63.5 billion from 2002 to 2006. The report said $36.5 billion would be invested in gas projects.

The investments would take place in Algeria, Egypt, Kuwait, Libya, Oman, Qatar, Saudi Arabia and the United Arab Emirates. The study said the Arab states would require $49 billion from 2002-2006 to increase oil output.

About $5.5 billion would be required to increase oil production in Iraq.

Copyright 2004 East West Services, Inc.

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