Energy security is a key risk to the economic growth of the Middle East and North Africa, according to a new study from the World Economic Forum in collaboration with Oliver Wyman.
The Middle East and North Africa at Risk 2010, a report presented Oct. 26 at a World Economic Forum on the Middle East and North Africa in Marrakech, reveals that growth trends across the region are placing rising and competing demands on energy, water, and infrastructure. Together these risks have the potential to impede economic progress as well as exacerbate the danger of critical failures in essential services.
The report:
- Describes how energy security, water scarcity, and underinvestment in infrastructure are mutually reinforcing chronic risks driven by the MENA region's underlying growth trends.
- Argues that more integrated energy and water management strategies within and between MENA countries are absolutely critical, given the limited resources that must be shared across sectors and geographic boundaries.
- Identifies the tremendous opportunities in managing these risks at the regional level, such as increasing valuable investment prospects, lowering transaction costs for both businesses and governments, and catalyzing deeper cooperation among stakeholders across countries and sectors.
- Recommends the formation of regionally focused institutions aimed at increasing system resilience to mitigate risks and grasp opportunities.
About Oliver Wyman's Corporate Risk Practice
Oliver Wyman's Corporate Risk practice works closely with leading organizations to effectively manage risk, enabling them to make risk-adjusted strategy, investment, and capital allocation decisions that improve performance and optimize value creation.
