The workforce is short by 100,000 engineers and contractors, and
another 600,000 labourers and construction workers, she said.
“That looks like a very difficult challenge,” she said. “Most of
these projects will go ahead, but just not on their current
schedules. They will be phased.”
The number of workers needed across the whole economies of the
region was even larger. The downstream energy projects make up only
a third of the $1.2tn of engineering and construction schemes
planned across the region’s economies.
The global oil and gas industry is struggling to bring online new
capacity to meet rapidly growing energy demand.
Tight energy service and labour markets and rising costs of raw
materials have pushed costs up, and the Middle East has seen
particularly fast inflation, she said.
“Middle East project costs have increased by 50-60% or more over the
last two years,” she said. “This is more than in the rest of the
A new refinery project in Kuwait was delayed after the country
deemed bids for the scheme too high. Some of them were over twice
Kuwait’s initial budget estimate. – Reuters, Bloomberg