Mensha Ventures, a Dubai-based technology investment company, has signed a preliminary agreement with a number of Chinese companies to invest $1 billion in sustainable energy projects in Gulf Co-operation Council countries.
The partnership, discussed on Tuesday at the Annual Investment Meeting in Abu Dhabi, aims to boost the UAE's sustainable capabilities and capacity by developing green energy infrastructure projects.
The Chinese companies include Asia Development & Investment Bank, Hoover Investment Group and Shenzhen Sinomaster Investment Group.
A highlight of the agreement is the new Green Tech Fund developed between Mensha Ventures and Asia Development & Investment Bank, which aims to build portfolio companies in the green technology sector that will primarily focus on the GCC, it said.
The fund will concentrate on innovation, specialised manufacturing, new energy, electric vehicle infrastructure, engineering, storage, transport and other sustainable solutions, and will emphasise the transition to clean energy by promoting electrical and green hydrogen energy, it said.
“While this partnership is expected to open up new avenues for sustainable investment opportunities in the region, it will also drive economic growth and contribute to the UAE's vision for a sustainable future,” Aim said.
“Overall, this partnership between Mensha Ventures and its strategic partners from China marks a significant milestone in the UAE's efforts to achieve a sustainable future.”
The UAE has been at the forefront of adopting alternative and cleaner forms of energy as the world transitions to a more sustainable future.
The wider GCC has also witnessed a significant push towards sustainable solutions in recent years, with countries in the region aiming to reduce their carbon footprint and achieve their renewable energy targets.
The proposed renewable energy capacity addition, the market opportunity for digital grids and associated solutions is projected to be between $35 billion and $45 billion, which would be realised over the next 10 to 15 years across the GCC, research company Frost & Sullivan reported.
“The Green Tech Fund aims to play a vital role in this transition by investing in innovative green technology projects and driving sustainable solutions into the region's ecosystem,” Aim said.
Organisations from the UAE and China have been collaborating to support programmes related to sustainable energy projects.
During a visit to China last week, Emirates Nuclear Energy Corporation signed three agreements with China National Nuclear Corporation and its subsidiaries that will focus on possible collaboration in nuclear energy operations and maintenance.