Solar mirrors at the Noor 1 Concentrated Solar Power Station in Ouarzazate, Morocco. UAE's AMEA Power will build two solar plants with a capacity of 36 megawatts each. Photo: Dewa
Solar mirrors at the Noor 1 Concentrated Solar Power Station in Ouarzazate, Morocco. UAE's AMEA Power will build two solar plants with a capacity of 36 megawatts each. Photo: Dewa
Solar mirrors at the Noor 1 Concentrated Solar Power Station in Ouarzazate, Morocco. UAE's AMEA Power will build two solar plants with a capacity of 36 megawatts each. Photo: Dewa
Solar mirrors at the Noor 1 Concentrated Solar Power Station in Ouarzazate, Morocco. UAE's AMEA Power will build two solar plants with a capacity of 36 megawatts each. Photo: Dewa

UAE’s AMEA Power wins contract to build two solar plants in Morocco


Fareed Rahman
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Dubai-based AMEA Power has won a contract to build two solar power plants in Morocco as the North African country continues to boost its renewables portfolio.

The solar projects were awarded to AMEA Power as part of a large international tender launched by the Moroccan Agency for Sustainable Energy (Masen) and the Ministry of Energy Transition and Sustainable Development to construct the first phase of the multi site solar energy Noor PV II programme, which has a total capacity of 330 megawatts.

As part of the contract, AMEA Power will build two solar plants with a capacity of 36 megawatts each, at Taroudant, in the Souss-Massa region, and in El Hajeb, in the Fes-Meknes region, state news agency Wam reported on Wednesday.

"The Noor PV II programme supports Morocco's target to increase its renewables share to 52 per cent by 2030,” said AMEA Power's chairman Hussain Al Nowais.

“We look forward to supporting the country in achieving its objective and diversifying its energy mix."

The award of the new contract comes as countries around the world continue to focus on building new renewable plants to cut emissions. Global renewable generation capacity rose 9 per cent to 3,064 gigawatts in 2021 amid the green transition push, a report by the International Renewable Energy Agency this month said.

Morocco aims to attract about $30 billion in investment to its energy sector by 2030, and hopes to add 10 gigawatts of renewable capacity and develop a liquefied natural gas plant to meet its growing power needs.

AMEA Power, which currently produces about 2,000 megawatts of clean energy through solar and wind energy plants in 15 countries, plans to raise its output to 5,000MW in the next three years. It is also building a 100MW solar plant in Tunisia.

Abu Dhabi-based Masdar is also investing in Morocco. The clean energy company, in partnership with the National Office of Electricity and Drinking Water, has set up a Solar Home System Project to provide energy to nearly 20,000 homes in more than 1,000 rural towns across Morocco.

Masdar is also part of an international consortium that won a tender to construct an 800MW solar power plant in Morocco.

The consortium, which includes France's EDF Renewables and Green of Africa, based in Casablanca, won the award for the design, financing, construction, operation and maintenance of the first phase in the Noor Midelt project.

Anghami
Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
Sector: Entertainment
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Stage: Series C
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: April 20, 2022, 1:50 PM