The Covid-19 pandemic is disrupting every aspect of life and work around the world. It is certain to have a significant and far enreaching impact on the major projects across the Middle East and North Africa.
In the near-term, governments are fully focused on stopping the spread of the disease in order to protect public healthcare systems and ensure business continuity through the crisis. Monetary easing policies are providing liquidity to the financial sector, while planned budget expenditure in 2020 is being diverted to critical sectors such as healthcare.
The collapse in oil prices however is set to have a longer term impact on the market. Lower oil revenues and increased debt will result in a review of capital spending priorities. This will have a significant impact on projects across the region. For the projects industry the questions are: Which projeccts will be given priority? And which projects will be placed on the back burner?