A growing number of private equity funds are investing in the UAE’s renewable energy projects and energy transition initiatives, encouraged by an abundance of capital and geopolitical stability.
The Emirates, the Arab world’s second-largest economy, plans to achieve carbon neutrality by 2050.
It hosted the Cop28 climate conference in December, and this introduced many companies and funds to the opportunities in the UAE’s fast-growing clean energy industry, according to experts and officials.
The Emirates is also home to some of the world’s largest sovereign wealth funds, such as the Abu Dhabi Investment Authority and Mubadala Investment Company, that want foreign investors to co-invest in large projects.
“We're seeing a lot of hedge funds wanting to come here in Abu Dhabi, and Dubai,” said Massimo Falcioni, chief competitiveness officer at the Abu Dhabi Investment Office (Adio).
“Cop28 has put the UAE at the top spot” and “convinced [everyone] that this is the place to be for energy”, Mr Falcioni told The National.
“The geopolitical stability of the country guarantees stability in investment,” he added. “Long-term investments require a safe haven to put the money, and this is exactly the place.”
Adio is responsible for attracting and facilitating investment in Abu Dhabi. The government body oversees the investor process from the creation of new legal entities, to the relocation of employees and the initiation of companies' operations in the emirate.
Mr Falcioni said investors from the US, South Korea and Japan had recently shown interest in investing in Abu Dhabi, particularly in its energy sector.
He also said the Abu Dhabi government may set up a development finance institution to provide funding at concessional rates to projects and prototypes.
Abu Dhabi, responsible for nearly all the UAE’s oil and gas production, has been investing heavily in solar, wind and electric vehicle infrastructure to become net-zero by 2050, and shift away from fossil fuel production.
State-run energy company Adnoc aims to become net-zero by 2045, while Masdar plans to have 100 gigawatts of renewable energy capacity by the end of the decade.
As part of efforts to strengthen its industrial sector, the UAE is also focusing on localising the production of equipment and raw materials needed to build a robust renewable energy supply chain.
Global funds are expected to play a role in this.
This month, the Abu Dhabi Department of Economic Development (Added) said it was teaming up with UK-based private equity fund Hycap Group on the production, storage and transport of green hydrogen in the emirate.
Hycap opened its regional headquarters in the Abu Dhabi Global Market (ADGM) in November last year.
“Our venture into the UAE is a strategic decision to place Hycap at the nexus of the world’s emerging green hydrogen hubs,” Jo Bamford, chairman and founding partner of Hycap Group, told The National.
“We are committed to supporting these initiatives by catalysing the hydrogen market.”
The UAE aims to reach hydrogen production of 1.4 million tonnes annually by 2031, and 15 million tonnes a year by 2050.
In December, BlackRock, the world’s largest asset manager, said it would invest up to $400 million in Dubai-based decarbonisation company Positive Zero through a diversified infrastructure fund.
BlackRock is among the institutional investors backing the UAE’s $30 billion climate fund, Alterra, which aims to raise $250 billion globally in the next six years.
Positive Zero, which offers an integrated energy transition platform to its customers, said the UAE has been the company’s most active market, followed by Saudi Arabia and Bahrain.
David Auriau, chief executive of Positive Zero, said the Cop28 climate summit had created a “lot of momentum” in the region with clear mandates for phasing out fossil fuels and tripling renewables by 2030.
“The GCC governments have taken great steps towards adopting favourable regulations that enable businesses to adopt the latest decarbonisation initiatives,” Mr Auriau said.
In January last year, Paris-based private equity firm Ardian opened an office in the ADGM as part of its regional expansion plans.
The firm, which has $160 billion of assets under management worldwide, is exploring opportunities to deploy capital in Mena’s hydrogen industry through Hy24, a hydrogen-focused fund, a senior executive said last year.
“Organisations that have begun navigating their way through the energy transition will need ready access to investment funds,” said Cristopher Sagar, chief engineer, nuclear, Middle East at AtkinsRealis.
“A strong supply of investment funds will enable capital to be spread across required clean energy technologies, which have the most merit financially and the highest carbon dioxide emissions-savings potential,” Mr Sagar said.
Private equity and venture capital transactions in the Middle East renewable energy sector reached $520 million in 2022, up from $100 million in 2021, according to investment data company Preqin.
International funds are no longer coming to the Middle East to raise capital, but to deploy existing capital as the region presents “lucrative opportunities”, said Andrea Zanon, chief executive of WeEmpower Capital.
Growing tension between the US and China – the world's largest economies – will make the Mena region an even more attractive market for cash-rich global investors, Mr Zanon told The National.
They can partner with local investors such as Saudi Arabia's Public Investment Fund and Abu Dhabi's Mubadala to risk-proof their investment, while gaining a “strategic advantage” in the Mena clean energy sector, he added.
Energy transition plans
GCC countries, especially the UAE and Saudi Arabia, have announced ambitious decarbonisation plans which involve phasing out coal and higher spending on solar and hydrogen.
Renewables have become cost-effective in the region with successful project bids in Saudi Arabia and the UAE over the last few years, resulting in record low prices for solar PV and wind.
The UAE aims to triple the share of renewable energy capacity to 14 gigawatts by 2030, while Saudi Arabia plans to have 50 per cent of electricity coming from renewables by the decade’s end.
“Despite their dependence on the oil and gas industry, the Gulf nations have all announced new targets, or renewed their commitments to the Paris Agreement in the past few years,” said Sofia Bensaid, director, infrastructure and project finance ratings at S&P Global Ratings
“And as one of the largest sources of emissions, the power sector looms large in most national plans for decarbonisation,” she said, during an event on Wednesday.
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Rock in a Hard Place: Music and Mayhem in the Middle East
Orlando Crowcroft
Zed Books
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10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
FIGHT CARD
Sara El Bakkali v Anisha Kadka (Lightweight, female)
Mohammed Adil Al Debi v Moaz Abdelgawad (Bantamweight)
Amir Boureslan v Mahmoud Zanouny (Welterweight)
Abrorbek Madaminbekov v Mohammed Al Katheeri (Featherweight)
Ibrahem Bilal v Emad Arafa (Super featherweight)
Ahmed Abdolaziz v Imad Essassi (Middleweight)
Milena Martinou v Ilham Bourakkadi (Bantamweight, female)
Noureddine El Agouti v Mohamed Mardi (Welterweight)
Nabil Ouach v Ymad Atrous (Middleweight)
Nouredin Samir v Zainalabid Dadachev (Lightweight)
Marlon Ribeiro v Mehdi Oubahammou (Welterweight)
Brad Stanton v Mohamed El Boukhari (Super welterweight
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.”
$1,000 award for 1,000 days on madrasa portal
Daily cash awards of $1,000 dollars will sweeten the Madrasa e-learning project by tempting more pupils to an education portal to deepen their understanding of math and sciences.
School children are required to watch an educational video each day and answer a question related to it. They then enter into a raffle draw for the $1,000 prize.
“We are targeting everyone who wants to learn. This will be $1,000 for 1,000 days so there will be a winner every day for 1,000 days,” said Sara Al Nuaimi, project manager of the Madrasa e-learning platform that was launched on Tuesday by the Vice President and Ruler of Dubai, to reach Arab pupils from kindergarten to grade 12 with educational videos.
“The objective of the Madrasa is to become the number one reference for all Arab students in the world. The 5,000 videos we have online is just the beginning, we have big ambitions. Today in the Arab world there are 50 million students. We want to reach everyone who is willing to learn.”
Mountain%20Boy
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Zainab%20Shaheen%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Naser%20Al%20Messabi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3C%2Fstrong%3E%3A%203%2F5%3C%2Fp%3E%0A
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
DUBAI SEVENS 2018 DRAW
Gulf Men’s League
Pool A – Dubai Exiles, Dubai Hurricanes, Bahrain, Dubai Sports City Eagles
Pool B – Jebel Ali Dragons, Abu Dhabi Saracens, Abu Dhabi Harlequins, Al Ain Amblers
Gulf Men’s Open
Pool A – Bahrain Firbolgs, Arabian Knights, Yalla Rugby, Muscat
Pool B – Amman Citadel, APB Dubai Sharks, Jebel Ali Dragons 2, Saudi Rugby
Pool C – Abu Dhabi Harlequins 2, Roberts Construction, Dubai Exiles 2
Pool D – Dubai Tigers, UAE Shaheen, Sharjah Wanderers, Amman Citadel 2
Gulf U19 Boys
Pool A – Deira International School, Dubai Hurricanes, British School Al Khubairat, Jumeirah English Speaking School B
Pool B – Dubai English Speaking College 2, Jumeirah College, Dubai College A, Abu Dhabi Harlequins 2
Pool C – Bahrain Colts, Al Yasmina School, DESC, DC B
Pool D – Al Ain Amblers, Repton Royals, Dubai Exiles, Gems World Academy Dubai
Pool E – JESS A, Abu Dhabi Sharks, Abu Dhabi Harlequins 1, EC
Gulf Women
Pool A – Kuwait Scorpions, Black Ruggers, Dubai Sports City Eagles, Dubai Hurricanes 2
Pool B – Emirates Firebirds, Sharjah Wanderers, RAK Rides, Beirut Aconites
Pool C – Dubai Hurricanes, Emirates Firebirds 2, Abu Dhabi Saracens, Transforma Panthers
Pool D – AUC Wolves, Dubai Hawks, Abu Dhabi Harlequins, Al Ain Amblers
Gulf U19 Girls
Pool A – Dubai Exiles, BSAK, DESC, Al Maha
Pool B – Arabian Knights, Dubai Hurricanes, Al Ain Amblers, Abu Dhabi Harlequins
more from Janine di Giovanni
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The Uefa Awards winners
Uefa Men's Player of the Year: Virgil van Dijk (Liverpool)
Uefa Women's Player of the Year: Lucy Bronze (Lyon)
Best players of the 2018/19 Uefa Champions League
Goalkeeper: Alisson (Liverpool)
Defender: Virgil van Dijk (Liverpool)
Midfielder: Frenkie de Jong (Ajax)
Forward: Lionel Messi (Barcelona)
Uefa President's Award: Eric Cantona
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
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Where to Find Me by Alba Arikha
Alma Books
match info
Maratha Arabians 138-2
C Lynn 91*, A Lyth 20, B Laughlin 1-15
Team Abu Dhabi 114-3
L Wright 40*, L Malinga 0-13, M McClenaghan 1-17
Maratha Arabians won by 24 runs
Brief scores:
Scotland 371-5, 50 overs (C MacLeod 140 no, K Coetzer 58, G Munsey 55)
England 365 all out, 48.5 overs (J Bairstow 105, A Hales 52; M Watt 3-55)
Result: Scotland won by six runs
MATCH INFO
Day 1 at Mount Maunganui
England 241-4
Denly 74, Stokes 67 not out, De Grandhomme 2-28
New Zealand
Yet to bat
