MARRAKESH, Morocco, Oct. 27 (UPI) -- An economic growth model in the Middle East and North Africa based on oil and natural gas is unbalanced, a report released in Morocco said.
A report from the World Economic Forum and consulting group Oliver Wyman found that growth strategies in the Middle East and North Africa are endangering energy security. The report found that competing demands on energy, water and infrastructure might not be sustainable.
Hans-Kristian Bryn, a partner at Oliver Wyman, said the intensive growth strategy in the region might actually hurt economic progress and increase the danger of failures in essential services.
"Energy security is an increasingly urgent risk despite extensive fossil fuel reserves in some Middle East and North African countries," he said in a statement. "The region's highly energy intensive growth model is heightening the impact of resource depletion, limited conversion capacities and unbalanced regional distribution of fossil fuels."
The report adds that underinvestment in regional infrastructure, energy security and water scarcity are "chronic risks" in the area.
Despite the region holding more than half of the world's proven oil reserves, the long-term forecasts aren't good in terms of energy security, the report says.
"Environmental degradation, resource depletion, limited conversion capacities and unbalanced regional distribution of fossil fuel resources, therefore, have strong constraining effects on MENA economies," the report adds.
