UAE among top Arab destinations for energy investment

The Arab Investment and Export Credit Guarantee Corporation (Dhaman) revealed that the Arab electricity and renewable energy sector attracted 360 foreign direct investment (FDI) projects costing more than $351 billion and providing more than 83,000 jobs during the period from January 2003 to December 2024.

In its second report for 2025 on the Arab power and renewable energy sector, issued from its headquarters in Kuwait today, the Dhaman explained that five countries: Egypt, Morocco, the UAE, Mauritania and Jordan, made up approximately 69% of the number of projects (248 projects), around 83% of the Capex ($291 billion), and 82% of the new jobs (approximately 68000 jobs).

The report is based on four key pillars: 1- Arab production capacities and consumption until 2030, 2- Foreign trade in power and energy generation equipment for 2024, 3- Foreign investments in the renewable energy sector, and 4- Assessment of the sector’s investment and business risks. The report showed that the UAE has topped the list as the region’s top investor in renewable energy over 22 years, based on the number of projects, investment costs and jobs, with 57 projects, or 16% of the total, a value exceeding $88.5 billion, or 25%, and more than 16000 jobs.

It added that the top 10 companies investing in the power sector in each index accounted for around 25% of the number of implemented projects, 40% of Capex, and 38% of the total new jobs.

Saudi Arabia’s ACWA Power topped the list in terms of the number of projects with 20, accounting for around 6% of foreign projects in renewable energy, while the UAE’s Infinity Power ranked as the largest investor in the sector based on Capex, with a value of $34 billion, or 10% of the total. The Indian company Acme also led in terms of the number of new jobs, with more than 4000 jobs, representing 5.2% of the total, according to the report.

Five Arab countries: UAE, Saudi Arabia, Bahrain, Jordan and Egypt, invested in 90 inter-Arab renewable energy projects, accounting for roughly 25% of the sector’s foreign projects over 22 years. These projects were implemented with Capex of approximately $113 billion, or more than 32% of the total Capex of the FDI projects in the sector, providing approximately 22000 jobs.

Based on Fitch Ratings’ assessment of investment and business risks and rewards in the electricity and energy sector in 14 Arab countries, by monitoring and measuring two main indicators, the UAE, Saudi Arabia, Qatar, Kuwait and Oman topped the Arab rankings as the best and most attractive Arab countries for investment in the power and energy sector in 2025. They were followed by Morocco, Egypt and Algeria respectively.

Generated electricity in the Arab region (15 countries) is likely to surge by 4.2% to exceed 1,500 terawatt-hours by the end of 2025 and is even projected to keep rising to 1,754 terawatt-hours by 2030. Electricity generation is largely concentrated geographically, with five countries - Saudi Arabia, Egypt, the UAE, Iraq and Algeria - making up 74% of the region’s total electricity generation by the end of 2025, it said.

The report noted that electricity consumption in Arab countries is forecast to edge up by 3.5% to 1,296 terawatt-hours by the end of 2025, with Saudi Arabia, Egypt, the UAE, Algeria and Kuwait accounting for 74% of the region’s total electricity consumption: around 958 terawatt-hours.

It added that average per capita electricity generated in Arab countries is forecast to go up by 3.1% to 8.6 thousand kilowatt-hours by the end of 2025, amid forecasts of a hike to roughly 9.6 thousand kilowatt-hours by 2030.

Arab foreign trade in power generation equipment and electric current shot up by 8% to approximately $39.2 billion in 2024, with five countries - the UAE, Saudi Arabia, Morocco, Iraq and Qatar - making up 81% of the total. This is the result of a surge in power generation equipment and electric current exports of Arab countries by 9% to roughly $7.6 billion and its imports by 7.8% to more than $31.5 billion in 2024.

The list of the region’s top 10 exporting countries made up around 78% of total Arab electricity and power generation equipment imports, valued at $24.7 billion. Türkiye topped the list as the region’s top electricity exporter, with a value of $446 million, while the United States came as the largest power generation equipment exporter, with a value of $6.6 billion, according to the report. It noted that the list of the region’s top 10 importing countries represented 58% of total Arab electricity and power generation equipment exports worth $4.4 billion. Libya topped the list as the region’s largest importer of electricity, with a value of $59 million, while France ranked as the region’s largest power generation equipment importer with a value of $593 million.

WAM