Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.
Perhaps more than anywhere else in the world, rapid urbanisation in the MENA region will create significant investment opportunities for a variety of domestic and foreign firms. North Africa will see high-volume, low-tech developments, while capital-intensive projects such as rail and smart cities will be concentrated in higher-income nations in the Gulf. Elsewhere, a widening urban infrastructure deficit will stoke social instability.