Money and business

The most attractive Arab Emirates for investment and business in the electricity and energy sector 2025

Kuwait, on September 28 / WAM / The Arab Investment Establishment and Export Credit Credit, “Warranty”, revealed that the renewable energy sector in the Arab region attracted 360 foreign projects, at an investment cost of more than 351 billion dollars and provided more than 83 thousand jobs, from January 2003 to December 2024.

The Foundation stated in its second sectoral report for the year 2025 on the electricity and renewable energy sector in the Arab countries, which it issued today, from its headquarters in the State of Kuwait, that 5 Arab countries included the UAE, Egypt, Morocco, Mauritania and Jordan during the same period that attracted 248 foreign projects with a share of 69%of the total, at an investment cost of about 291 billion dollars with a share of 83%, and these projects provided about 68 thousand jobs with a share 82% of the total.

The report, which focuses on 4 main axes represented in, added, “The capabilities of electricity and consumption in the Arab countries until 2030, foreign trade in electricity and power generation equipment for 2024, and foreign projects in the renewable energy sector, and evaluating the risk of investment and business in the electricity and energy sector in 2025”, added that the UAE has topped the introduction as the most important country invested in the region in the renewable energy sector within 22 years, According to the number of projects and investment costs and the number of jobs with 57 projects, which represented 16% of the total, with a value exceeding 88.5 billion dollars with a share of 25% of the total, and these projects provided more than 16 thousand jobs.

The report pointed to the acquisition of the first ten companies invested in the renewable energy sector in each indication of about 25% of the number of projects implemented, 40% of the investment cost, and 38% of the total new jobs, and the Saudi Akabawar company submitted according to the number of projects with 20 projects represented 6% of the total, while the Emirati Infiniti Power Company topped the provided as the largest investor in terms of estimated investment cost With a value of 34 billion dollars and a share of approximately 10% of the total, while the Indian company Akki came to the forefront according to the number of jobs developed with a number of more than 4 thousand jobs, which represented about 5.2% of the total.

The report pointed out that only 5 Arab countries are, the UAE, Saudi Arabia, Bahrain, Jordan and Egypt, invested in 90 clear projects in the renewable energy sector, representing about 25% of the total foreign projects in the sector during 22 years, and its investment cost amounted to about 113 billion dollars, representing about 32% of the total cost of foreign projects in the sector, and provided about 22 thousand job opportunities.

As for the risks and incentives of investment and business in the electricity and energy sector in 14 Arab countries, according to the Fitch agency, which were monitored through tissues to assess risks and incentives for 2025, the UAE, Saudi Arabia, Qatar, Kuwait and the Sultanate of Oman came at the forefront of the Arab arrangement as the most attractive Arab countries to invest in the electricity and energy sector, followed by Morocco, Egypt and Algeria, respectively.

The increase in the amount of electricity generated in the Arab region (15 countries) increased by 4.2% to exceed 1500 Taewat per hour by the end of 2025, with expectations that it continues to rise to 1754 Taewat in the year 2030, and also pointed to a great geographical concentration in generating electric energy in the region, where 5 countries are Saudi Arabia, Egypt, the Emirates, Iraq and Algeria on 74% of the total amount of electricity generated in the region by the end of a year 2025.

The report also clarified the increase in electricity consumption in the Arab countries at a rate of 3.5% to 1296 Teroat per hour by the end of 2025, with Saudi Arabia, Egypt, the Emirates, Algeria and Kuwait acquired 74% of the total electricity consumption in the region, equivalent to about 958 Teroat per hour.

The report expected the average per capita share of electricity generated in the Arab countries at a rate of 3.1% to 8.6 thousand kilowatts per hour by the end of 2025, with a continued rise to about 9.6 thousand kilowatts per hour in the year 2030.

On the level of the foreign Arab countries ’trade in electricity and power generation equipment, the report indicated its rise by 8% to about 39.2 billion dollars in 2024 (5 countries, the UAE, Saudi Arabia, Morocco, Iraq and Qatar, have 81% of them), as a result of the rise in Arab exports of electricity and power generation equipment by about 9% to about 7.6 billion dollars and imports at a rate of 7.8% to more than 31.5 billion dollars During the same year.

The report added that the 10 most important countries exporting to the region acquired about 78% of the total Arab imports of electricity and power generation equipment worth 24.7 billion dollars, and Turkey was issued as the largest electricity source for the region with a value of $ 446 million, while the United States topped the introduction as the largest source of power generation equipment for the region with a value of 6.6 billion dollars.

He explained that the 10 most important countries imported from the region acquired 58% of the total exports of Arab countries from electricity and power generation equipment of $ 4.4 billion, and Libya topped the front as the largest importer of electricity from the region with a value of $ 59 million, while France topped the introduction as the largest importer of power generation equipment from the region with a value of $ 593 million.

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