Tag Archive | "growth"

Qatar’s power reserves among biggest in GCC

With one of the biggest power reserve margins in the GCC, Qatar is able to keep up with growing demand for power and water as preparations for the 2022 FIFA World Cup accelerate.

Even though power demand growth has regularly exceeded 10% over the past five years, Qatar’s installed capacity of 8,761MW was comfortably able to deal with the peak usage of 6,255MW recorded in 2012.

Having a reserve cushion is part of Qatar’s long-term initiative toward developing a sustainable energy and water strategy, which will be one of the highlights of the discussions at the forthcoming Qatar Energy and Water Efficiency Conference to be held on December 8-10 at the Hilton Hotel Doha.

Qatar’s power reserves have enabled it to sell electricity to neighbouring countries in the GCC which have struggled to meet rising domestic demand. However, although it currently has a healthy reserve margin, Qatar General Electricity & Water Corporation (Kahramaa) is aware that growing demand must be adequately met with appropriate planning and preparations, as well as promoting efficient use of electricity and water.

“Current indications in our strategic and technical planning show that in the next five years, there will be a need for additional capacity – with huge schemes planned everywhere – particularly in preparation for the [FIFA 2022] World Cup. For the past three years, many of the projects were in the planning stage, but now we are seeing them start, including port and metro schemes and many others,” said Kahramaa’s technical director, Ahmed al-Naser.

Qatar’s next planned independent water and power plant (IWPP) is known as Facility D and will be located at the Qatar Economic Zone near Doha. It is expected to have a power generation capacity of 2,400MW and a desalination capacity of 130 million g/d. The desalination component will partly use reverse osmosis (RO) technology; it will be the first time the country has employed it on a large-scale scheme.

While its power situation is comfortable, Qatar in contrast has some of the smallest water reserves in the world and is therefore addressing the equally important issue of water security.

In an effort to ensure water security, Kahramaa is undertaking an ambitious $3 billion Water Security Mega Reservoirs project. The scheme has been designed to provide seven days of strategic water storage within its network, which will shore up the country’s reserve supplies and protect against any future disruptions in provision.

“The reservoirs project is one of the largest in the world in terms of the size of reservoirs and will increase the capacity of water storage [in Qatar] by 10 times. So the storage capacity will be about 3,500 million gallons,” explained al-Naser.

In hosting the Qatar Energy and Water Efficiency conference, Kahramaa hopes to continue to refine the country’s water and energy efficiency strategy. In addition to Qatar’s utility authority, the event is also supported by the Clean Energy Business Council, the Qatar Green Building Council and GORD; as well as by Schneider Electric as Gold Sponsor and Parsons as Networking Sponsor.

For more information on how to be a part of the event, visit www.energyefficiencyqatar.com

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Economic growth to reaccelerate in Dubai

According to a new medium-term outlook Bank of America Merrill Lynch Global Research Report ‘GCC 2020: Time to Shift Gears’, Dubai’s superior infrastructure investment and robust population growth have established solid foundations for its economic trajectory.

The report suggests that the emirate is set on course to outperform growth projections driven by job creation, improved funding and solid execution of its diversification strategy.Stephen Pettyfer, head of MENA Research at BofA Merrill Lynch Global Research said, “Dubai has the right mix to re-accelerate growth. Given that there is a certain degree of duplication, competition or lack of distinct differentiation among various projects in the GCC, Dubai’s model of diversification stands out, having already achieved a critical mass, scale and a degree of competitiveness.”Jean-Michel Saliba, MENA economist at BofA Merrill Lynch Global Research added, “Dubai’s status as a regional financial, transport and logistics hub places it in a position to benefit from growth in neighbouring countries in a self-sustaining fashion.”

According to the report, Dubai’s vision has relied on an historical factor of path dependence, as well as an element of risk-taking in enacting forward-looking policies. It used its oil revenues early on to help fund the construction of Jebel Ali Port Complex to supplement Port Rashid, and its diversification efforts predate most other GCC country initiatives.

The report suggests that while the economy slowly recovers, Dubai is one of the best GCC cities in which to develop business. Its relatively small population of 2.1 million people and the ambitious objectives of the major Dubai-based corporates mean job creation should accelerate and support the real estate market.

Although the current working population in Dubai stands at 1.3 million, the emirate aims to create 950,000 new jobs by 2020, with retail, tourism and related sectors fueling growth. This is an ambitious but realistic goal which would see the population increase on average by 4%, which will, in turn, drive further economic growth by creating:

• Incremental housing demand of 317,000 units which represents 94% of current stock.
• Retail sales increase of 5% per annum.
• More than 15 million tourists, up from a total of 8 million visitors in 2011.
• Air traffic levels to increase by 7.2% CAGR.
• A 35 percent increase in hotel occupancy.
• An additional 18,868 hotel rooms.

Pettyfer concluded by stating, “Dubai’s diversification model has proved successful in developing both infrastructure assets faster than other GCC countries, and a non-oil-based economy more geared towards trade and tourism. That gives the emirate a key regional competitive advantage in attracting talent and boosting non-hydrocarbon-related activities.”

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