Most of the countries in the Middle East today have developed primarily due to the high amount of oil, gas and energy reserves available with them. Markets over the world are highly dependent on oil reserves to grow their economies which are required for power, infrastructure development, and construction amongst other sectors. Every business directly or indirectly is dependent on oil, gas, and energy and therefore, this sector plays a major role in the growth of every economy. Therefore, the investment opportunities in this sector are multifold.
Another benefit that an investor can obtain from investing in this sector is the opposite correlation this sector has on the rest of the businesses and sectors. When the price of crude oil reduces, there will be a boom in other businesses and therefore, the economy. Whereas, a rise in the prices; will impact and result in a slowdown in the economy. Therefore, having this sector in your investment portfolio balances and diversifies your risks.
Energy has positively impacted the growth of every country and economy. Therefore, government support in this sector is always encouraged during the budget. To add to this, investors get numerous tax incentives and benefits by having this sector as a part of their portfolio. These include:
- Numerous economies offer tax incentives and holidays for investment in oil and gas production domestically;
- Accelerated depreciation benefits are often availed under the energy sector;
- Energy sector mainly renewable energy has gained huge popularity in recent times and therefore, businesses are offered many advantages under this. Also, carbon credits are collected;
- Oil and gas offer huge profitability margins when global prices rise.
Lastly, oil, gas, and energy are the primary raw materials for most businesses and therefore, no business can run without them. The need for these will never conclude making it the ideal investment opportunity for any investor. Trust Corner facilitates the growth of your revenues by assisting you to make investments in the ideal and revenue generating sector.