July 17, 2023 | Arabian Gulf Business Insight | 1 minute read

Bracewell’s Andrej Kormuth recently confirmed to AGBI that its developer clients are having to allocate bigger budgets to complete projects due to the increased cost of renewables.

“Inflation has created the potential for greater margin of error, particularly in relation to the construction budget,” Kormuth said.

The Renewables 2023 Global Status Report showed that Africa and the Middle East combined represented less than 2 percent of worldwide investment last year, amounting to $8.4 billion. The Middle East’s renewable generation capacity also stands at only 29 GW or about 1 percent of the global total.