UAE's remarkable investment in renewable energy - A path to sustainability

The United Arab Emirates (UAE) has been making waves in the world of sustainable energy with substantial investments and ambitious plans for the future. What’s new? A new path to sustainability is being built with an investment in a plan toward renewable energy.

Let us break it down.

In 2022, the UAE invested a whopping $36 billion in overseas renewable energy projects, highlighting its commitment to a greener future.

These investments are not only beneficial for the environment but are also attracting international interest. Over the past decade, investors from more than 170 countries have chosen the UAE as a destination for investment and growth. This reflects the global investment community's trust in the UAE's strong fundamentals and positive economic outlook.

During the 8th World Investment Forum, organised by the United Nations Conference on Trade and Development (UNCTAD), Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), emphasised Abu Dhabi and the UAE's dedication to fostering collaboration, strengthening economic partnerships, and addressing global challenges.

Al Zaabi stated, "The UAE's dedication to building bridges between nations and fostering economic relationships is set to unlock a world of opportunities. As a global hub for business and finance, the UAE has also made bilateral trade agreements, cementing our reputation as a reliable partner for international trade and cooperation."

The UAE's success in attracting foreign direct investment (FDI) is impressive. In 2022, it attracted $23 billion (AED 84.6 billion), a 10% increase from the previous year, ranking 16th globally in FDI attraction. Furthermore, the UAE is now the world's fourth-largest recipient of greenfield projects, with a remarkable 84% increase in ambitious ventures announced in the previous year.

But the UAE doesn't just attract investments; it's also an active investor overseas. Over the past five years, the UAE has contributed to the growth of 122 countries and 35 diverse sectors, investing nearly $45 billion (AED 165.6 billion) in renewable energy.

"In 2022, the UAE's FDI outflows dedicated nearly $36 billion (AED 132.5 billion) to renewable energy projects," said Al Zaabi.

The UAE's commitment to sustainable development and renewable energy is evident. In the past 15 years, the country invested more than $40 billion (over AED 147 billion) in clean and renewable energy sources. Looking ahead, the UAE plans to invest an additional $160 billion (AED 589 billion) over the next three decades on the road to achieving net-zero emissions.

Ahmed Jasim Al Zaabi mentioned, "The UAE was one of the first countries to commit to Net Zero by 2050, and as we prepare to host COP28, we have been clear on the urgent need for actions, with industry playing their full part in finding solutions to the global climate and energy challenges we face."

The UAE's efforts to transition to sustainable energy are not limited to investments. Several national champions, like the Abu Dhabi Investment Authority (ADIA) and Masdar, are actively participating in renewable energy projects around the world.

ADIA has invested in over 40 gigawatts of renewable energy projects, which can power 17 million homes. Masdar, the Abu Dhabi Future Energy Company, is not only reshaping sustainability in the UAE but is also a significant investor in more than 40 countries, with a total value of more than $30 billion.

The UAE's journey toward sustainability, renewable energy, and economic diversification is not only vital for its own future but also holds global significance. The country's commitment to sustainable development and net-zero goals reinforces its role as a leader in investments that foster growth and prosperity in other nations.

The UAE is gearing up to host COP28 in November and December, an event where the global community will come together to address climate and energy challenges. This transformation aligns perfectly with the UAE's rapid diversification efforts, enhancing global connectivity, and transitioning into a more sustainable and renewable energy-based economy.

Impressive, isn’t it?

Curious to know more about Dubai’s economy and the upcoming COP28?

Take a read here on the economy’s budget for the years ahead here. And if you are looking to know more on COP28 - click here to unlock everything we know!