Kuwait 2017 | INDUSTRY | COLUMN

TBY talks to Nader H. Sultan, Chairman, Ikarus Petroleum Industries on the sector.

Nader H. Sultan

What are Ikarus' activities in the renewables sector?

We are currently conducting studies to understand how we can add value and get into the renewables business. The reality is that in our part of the world renewables are mainly solar; it is not water, wind, and biomass. Even at lower oil prices, renewables are, in fact, becoming very competitive and, on a global scale, renewable companies are actually making money. The region's energy mix is changing and COP 21 is going to change that for the whole world. In a way, we have as much reserves in Kuwait from solar energy as we have from oil, so solar has the potential to provide much more energy to meet growing demand.

How do you evaluate the long-term impact of OPEC's agreement to cut production on Kuwait's downstream segment?

The downstream will not be impacted, but rather the volumes that the countries are allowed to export. One positive impact of the agreed cut in production is that as oil prices rise, national revenues will rise. It is expected that business confidence will also increase. This should positively impact the stock markets in the region.