Countries in the region, especially the Gulf, depend heavily on fossil fuels, especially oil and gas, which constitute more than 90% of the total installed capacity.

The region is characterized by high levels of energy consumption, and due to rapid economic growth, industrial expansion, and high incomes of citizens, in addition to subsidized energy prices, the rate of per capita energy consumption has become among the highest in the world.

A previous report by Fitch confirmed that long-term loans from capital markets are of great importance to Gulf countries, as these loans are considered an essential part of their strategies to support ambitious infrastructure plans.

These plans aim to enhance economic growth, diversify sources of financing, and increase the ability to borrow, which reflects the countries’ commitment to shifting toward more diversified and sustainable economies in the long term.