New projects in the GCC – already at a record high – will continue to grow by up to 50 per cent in 2006, according to industry leaders speaking at a MEED forum on project finance in the Middle East.

The increasing role of the private sector in the infrastructure of GCC countries, as well as a rapid rise in the number of privatisations, has seen the number of projects grow exponentially, the forum observed.
The Middle East has the second largest share of project finance in the world – an industry worth $100 to 150 billion globally – with the region achieving critical mass, especially in the fields of power and water, and oil and gas.
Tony Boon, director of project finance for Dolphin Energy, said: “This region is seeing massive investment requirement alongside liquidity growth and a broad range of investors and lenders.
“We are seeing the rapid evolution of traditional limited recourse financial models. We have seen convertible sukuk and will see the development of other mezzanine securities as the capital markets develop around the region.”
Dolphin Energy has the largest financing deal in the UAE, with the $3.5 billion deal in September to fund the construction of its Bridge 1.
Steve Martin, head of corporate communications and marketing for Qatar Financial Centre Authority, said: “Qatar has massive natural wealth, thanks in part to 900 trillion cu ft of gas.”
“Currently, there are more than $130 billion worth of projects on the table, driven by the government’s initiative to promote public and private sector co-operation,” he added.