Why is the UAE’s renewable energy sector attracting more private equity funding?

Andrea Zanon Confidente
5 min readFeb 28, 2024
https://www.thenationalnews.com/business/energy/2024/02/23/why-is-the-uaes-renewable-energy-sector-attracting-more-private-equity-funding/

A growing number of private equity funds are investing in the UAE’s renewable energy projects and energy transition initiatives, encouraged by an abundance of capital and geopolitical stability.

The Emirates, the Arab world’s second-largest economy, plans to achieve carbon neutrality by 2050.

It hosted the Cop28 climate conference in December, and this introduced many companies and funds to the opportunities in the UAE’s fast-growing clean energy industry, according to experts and officials.

The Emirates is also home to some of the world’s largest sovereign wealth funds, such as the Abu Dhabi Investment Authority and Mubadala Investment Company, that want foreign investors to co-invest in large projects.

“We’re seeing a lot of hedge funds wanting to come here in Abu Dhabi, and Dubai,” said Massimo Falcioni, chief competitiveness officer at the Abu Dhabi Investment Office (Adio).

“Cop28 has put the UAE at the top spot” and “convinced [everyone] that this is the place to be for energy”, Mr Falcioni told The National.

“The geopolitical stability of the country guarantees stability in investment,” he added. “Long-term investments require a safe haven to put the money, and this is exactly the place.”

Adio is responsible for attracting and facilitating investment in Abu Dhabi. The government body oversees the investor process from the creation of new legal entities, to the relocation of employees and the initiation of companies’ operations in the emirate.

Mr Falcioni said investors from the US, South Korea and Japan had recently shown interest in investing in Abu Dhabi, particularly in its energy sector.

He also said the Abu Dhabi government may set up a development finance institution to provide funding at concessional rates to projects and prototypes.

Abu Dhabi, responsible for nearly all the UAE’s oil and gas production, has been investing heavily in solar, wind and electric vehicle infrastructure to become net-zero by 2050, and shift away from fossil fuel production.

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Andrea Zanon Confidente

Performance advisor with over 20 years experience across entrepreneurship, sustainability and partnership. Now focusing helping people investing in themselves