Unlike the US and Europe, the Gulf is developing new key infrastructure assets at a robust pace. Why? The main reason is that it does not suffer from crumbling infrastructure, in part, because the Gulf region had little infrastructure to speak of 50 years ago.
Older economies (the US and EU) have had trouble gaining momentum and public acceptance to raise funds to repair an old infrastructure, whereas the Gulf is built on limited infrastructure from pre 1960.
More recently this region has invested heavily in diversifying its economy away from oil and gas. Today the region continues to grow…
The region’s sovereign debt crisis, such as in Ireland and Spain, led to deep cuts to infrastructure investment as governments sought to balance the books.
According to Statista, the percentage of GDP spent on infrastructure for UK, France and Germany ranged between 2% and 2.2% in 2013 marginally below USA who has been spending 2.4%. This is very much in the shadows of the growing economies of China (8.8%) and India (5.2%). Australia (4.7%) also outshone other developed nations.
However, while there may be signs of recovery as spending on infrastructure for the region as a whole is no longer…
Co-Authored with Cherian George, Head of Infrastructure North America and LatAM.
Today, joining banks, are pension funds, insurance companies and sovereign wealth funds that have been attracted to infrastructure investment that can offer long term and stable returns. Interestingly, politicians around the world are promising to address and invest more in ageing and new infrastructure projects as a public policy tool to create and support growth.
The asset class evolved over the last two centuries. The UK, in the Victorian era, developed key civil infrastructure including the railways as well as the water and sewer networks around the globe —…
Managing Director and Analytical Head of EMEA and APAC Infrastructure & Project Finance Group at Fitch Ratings