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SAFER, SMARTER, GREENER

Solar energy market in the Middle East Where is the market going?

Country potential Potential in long term Country Countrypotential potential

DNV GL has conducted a survey among a selected number of actors of the solar market in the Middle East. The purpose of the survey was to assess the direction of the solar market in UAE, Saudi Arabia, Jordan, Oman, Kuwait and Qatar. The survey was conducted by means of a questionnaire sent by email to the actors that previously accepted to participate. The first part of the questionnaire dealt with the assessment of the potential, the strategy, the stability and the opportunities for the development of a solar market in the selected countries. The second part was concerned with the phases of the solar project life cycle and the services that DNV GL could offer to support the development on the market. Presented here are the results issued from the survey that reflect the opinions of the surveyors.

Assessment of the solar market development

Assessment of the countries opportunities

Kuwait

Oman Oman

SAUDI ARABIA

1,0

OMAN 1,0

2 = potential 3 = great potential

Qatar Qatar

18%

0,0 0,0

0,5 0,5

1,0 1,0

Maturity of of regulatory regulatory network network Maturity

1 = not mature 2 = mature 3 = very mature

Dubai Dubai

1,5 1,5

2,0 2,0

Government support Government support

1 = no support 2 = support 3 = high support

2,5 2,5

3,0 19%3,0

1 = no opportunities 2 = few opportunities 3 = a lot of opportunities

3,0

Regulator 20%

Maturityof ofregulatory regulatory Maturity network network

1,5

Potential in short term

Potential in short term

1,0 bi

Investor 10%

EPC Contractor 20%

Developer 20%

Manufacturer 10%

bu

ia

b ra

ha

D

A

au

S

ai

ub

D

an

n

a rd

Jo

m

O

r

a at

Q

t

ai

w Ku

5%

Kuwait 19% Qatar 14%

Saudi Arabia 24% Dubai 3% Jordan 24%

Compared to other countries, Saudi Arabia, Jordan and Kuwait are considered having a more important geopolitical risk.

24%

18%

20%

20%

21%

Surveyors had to accord a score (1 to 3) indicating the relevance of each phase of a project to the needs and current situation of each country. Oman, Qatar and Kuwait received a maximum score for the prospection phase.

19% 19%

When comparing these results, countries that can count on the government support are those with the greatest potential in the short term.

Financing Financing opportunities opportunities

114%

21%

Prospection

JORDAN

Development 22% Construction Operation Prospection Prospection

27%

14% 17%

22% 25%

Feasibility Feasibility

ABU DHABI

Development Development

DUBAI

Construction Construction

18% 19%

GeopoliticalAbu riskDhabi Geopolitical risk

Oman 11%

Ten actors from the solar market in the Middle East have participated in this survey.

A di

17%

Feasibility

Governmentsupport support Government

2,0

Other 20%

19%

SAUDI ARABIA

2,5

QATAR

26%

17%

Financing opportunities Financing opportunities

According to the maturity of the regulatory network, the government support to the development of solar projects and the existing financing opportunities. Jordan and Dubai are the countries perceived as having the greatest stability for the development of solar projects.

Jordan and Dubai are the countries with the greatest potential in the short term. Saudi Arabia the long term. Oman takes the lead in Jordan Oman Jordan

Prospection Prospection Prospection Feasibility Feasibility Feasibility Development Development Development Construction Construction Construction Operation Operation Operation

KUWAIT

AbuDhabi Dhabi Abu

0,0 1 = low potential 0,0

21%

17%

Dubai Dubai

JORDAN

24%

19%

Saudi SaudiArabia Arabia

Saudi Saudi DUBAI Arabia Arabia

0

2,0 2,0

Kuwait QATAR Kuwait

19%

Jordan Jordan

Abu Abu 2 Dhabi Dhabi 3,0 1 3,0

KUWAIT

Qatar Qatar

ABU DHABI

3

OMAN

Kuwait

Potential in short term (< 2 years)

Potential in long term Potentialin in long long term Potential term Potentialin in short short term 2 years) Potential term(<(< 2 years) Potential in short term (< 2 years)

Impact frompetroleum petroleum prices fallfall Impact from prices

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

19% Negative impact

21%

23%

Operation Operation

19% 15% 18% 24% 24%

Neutral impact Positive impact

Saudi Arabia

Abu Negative Dubai impact Dhabi

Jordan Neutral impact

Qatar Oman Positive impact

Kuwait

The impact from the petroleum prices fall on the development of the solar energy market in these countries has been generally perceived as neutral. Saudi Arabia, Qatar and Kuwait would be more affected in the long term.

Jordan and Dubai cover a large part of the project life cycle: development, construction and operation are the phases that get the maximum scores. Abu Dhabi reaches a maximum score for the development phase. Saudi Arabia's results are unexpected, as the development phase gets the maximum score. This could reflect the expectations of the surveyors for this country.

DNV GL is a global classification, certification, technical assurance and advisory company. Our purpose: to safeguard life, property and the environment. For any questions or information please contact Elisa Brutto at elisa.brutto@dnvgl.com, mobile: +971 56 404 8690

Solar energy market in the Middle East April 2015 summary  

Market survey report April 2015

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