The UAE has emerged as a major player in the global solar energy market with the country second in the world in terms of solar energy consumption, as it continues to push towards green energy transition, according to an analysis of data from the Statistical Review of World Energy.
The country ranked second globally last year, behind Australia, in terms of per capita solar energy consumption. The Emirates consumed 1,921 kilowatt hours of solar energy per capita, compared to 3,868 kilowatt hours consumed by Australia last year.
In the previous year, too, the UAE was the second highest consumer of solar energy per capita. In 2021, the country’s per capita solar energy consumption stood at 1,747 kilowatt hours, while Australia topped the ranking at 3,149 kilowatt hours.
The UAE is investing heavily in clean energy projects and has announced several projects as it seeks to reach net-zero emissions by 2050.
The country is developing new clean energy projects such as the Barakah nuclear plant, as well as new solar projects, including the world’s largest solar plant in Al Dhafra region of Abu Dhabi, with a total capacity of two gigawatts, and the five-gigawatt Mohammed bin Rashid Al Maktoum Solar Park in Dubai.
The Arab world’s second-largest economy announced the updated version of the UAE Energy Strategy 2050 and the development of the National Hydrogen Strategy that were approved by the UAE Cabinet in July.
Under the updated objectives of the UAE Energy Strategy 2050, the country will invest between Dh150 billion and Dh200 billion by 2030 to ensure energy demand is met while sustaining economic growth in the UAE.
The UAE is best placed when it comes to utilising solar power potential in the world. More than 90 per cent of the country’s land mass has the capability to produce solar energy.
A growing portfolio of renewable and clean energy projects in the Emirates is significantly accelerating the decarbonisation of the country’s energy sector in line with the UAE Net Zero by 2050 strategic initiative.
Last week Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, and Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Minister of the Presidential Court, witnessed the signing of an agreement between the Dubai Electricity and Water Authority and Masdar to implement the sixth phase of the project to develop the world's largest single-site solar photovoltaic power plant.
The sixth phase will use PV solar panels based on the independent power producer model, and has an estimated cost of Dh5.51 billion ($1.4 billion).
Being awarded the project is "testament to Masdar’s track record in pioneering clean energy projects as we continue to support the UAE's Net Zero by 2050 strategic initiative", said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, chairman of Masdar and Cop28 President-designate.
"Ahead of our nation hosting Cop28 later this year, it is vital that the world triples global renewable energy capacity by 2030 to keep the ambition of 1.5 degrees within reach. This landmark project demonstrates definitive action in our shared journey towards a cleaner, greener future."
Masdar was selected from 23 international bidders and offered a levelled cost of energy of $1.6215 cents per kilowatt hour (kWh), the lowest of any of Dewa’s solar IPP model projects to date.
The 1,800 megawatt sixth phase of the solar park will increase total production capacity to 4,660MW.
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
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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