Abu Dhabi conglomerate International Holding Company has acquired a 50 per cent stake in Turkish renewable energy company Kalyon Enerji for Dh1.8 billion ($490 million) as it seeks to expand its clean energy portfolio.
IHC's subsidiary International Energy Holding will hold the stake, adding to IHC's international growth prospects.
Kalyon Enerji is owned by Turkish group Kalyon Holding, which is in the construction, energy and aviation industries.
The deal includes a solar power plant project with an installed capacity of about 1,348 megawatts peak — a unit of measurement for the output of power from renewable sources — in the Karapinar region, IHC said on Thursday.
The agreement also includes a wind power project in the Gaziantep region and other renewable projects in various cities across Turkey.
“This constitutes IHC's second-largest acquisition in the renewable energy sector to date,” IHC chief executive Syed Shueb said.
“With this transaction, IHC is further accelerating its growth in the renewable energy sector by partnering with Kalyon Enerji, and this will complement our renewable energy portfolio, which we will continue to grow across different markets.”
In May, IHC completed a Dh7.3bn strategic investment deal in the green energy sector with India's Adani Group.
This was one of the largest deals between the UAE and India, representing 4.8 per cent of the total trade between the two countries, the company said at the time.
The deal is of “great importance” to the two countries and regional markets, said Cemal Kalyoncu, chairman of Kalyon Holding.
“This strategic co-operation is of historical importance in terms of realising both potential projects in Turkey, and new markets and business fields in geographies that we plan to enter,” he said.
Turkey's Kalyon Karapinar Solar Power Plant, which is included in the deal with IHC, is expected to meet the annual electrical energy needs of about two million people.
Additionally, two million tonnes of fossil waste and carbon emissions will be prevented.
The plant, located on about 2,000 hectares in Konya's Karapinar district, is scheduled to be completed in 2023.
The deal comes at a time when the UAE and Turkey have been increasingly strengthening ties.
The two countries are exploring new investment opportunities and areas of potential collaboration in projects across various sectors to expand economic ties, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, said last month after a two-day visit to Turkey.
Areas of potential collaboration include gas, energy infrastructure, renewable energy, health care, biotechnology, agriculture technology, defence, logistics, digital communication, e-commerce and financial services, the ministry said.
Dr Al Jaber's visit followed UAE President Sheikh Mohamed’s tour to Turkey at the end of 2021, and the subsequent visit of Turkish President Recep Tayyip Erdogan to the Emirates in February.
In November, the UAE formed a $10bn fund to support investment in Turkey after talks between Sheikh Mohamed and Mr Erdogan.