Dewa’s Q4 2023 profits surge 14.6 percent

Robust financial performance driven by increased demand and clean energy initiatives
Dewa’s Q4 2023 profits surge 14.6 percent
Clean power accounted for 11 percent of the total electricity Dewa generated in 2023

The Dubai Electricity and Water Authority (Dewa) has announced a substantial 14.6 percent surge in its fourth-quarter profit for 2023. The authority attributed the boost to the increase in demand for its essential services amidst Dubai’s ongoing economic momentum. This remarkable performance underscores Dewa’s pivotal role in supporting the UAE’s growth trajectory.

Dewa reported a notable increase in profit before other comprehensive income, reaching AED1.8 billion ($490 million) in the final quarter of 2023. This surge was fueled by a 5.5 percent rise in revenue, totaling AED7.1 billion. In 2023, however, Dewa recorded a 1.4 percent decrease in net profit to AED7.9 billion despite a 7 percent increase in revenue totaling AED29.2 billion.

Rising demand

The authority’s total power generation and desalinated water production also saw significant upticks, reflecting the growing demand for essential services in Dubai. Dewa stated that demand for electricity recorded a new high of 56.5 terawatt-hours last year, a 6.3 percent increase compared to 2022.

The authority’s total power generation in the fourth quarter reached 13.4 terawatt-hours. That is nearly an 8 percent increase compared to the same period in 2022. Moreover, its desalinated water production reached 36.2 billion imperial gallons, a 5.3 percent increase compared to the same period in 2022.

In addition, Dewa continued to expand its customer base, adding 11,163 customers in the fourth quarter alone. With total customers exceeding 1.2 million, the authority reaffirms its position as a cornerstone of Dubai’s infrastructure landscape.

Read: UAE’s outlook soars as S&P predicts 5.3 percent GDP growth in 2024

Population growth

Dubai has maintained its growth momentum following the slowdown it witnessed during the COVID-19 pandemic. With it being one of the main commercial, tourism, and financial hubs of the Middle East, it has witnessed an economic resurgence and population growth. Dubai recorded 100,240 new residents in 2023.

According to the Dubai Statistics Center, the city currently has more than 3.65 million residents. Therefore, demand for water, electricity, and cooling services in Dubai is rising amidst the population boom.

Clean energy initiatives

Clean power accounted for 11 percent of the total electricity Dewa generated in 2023. Dewa’s commitment to sustainability is also evident through its ambitious clean energy projects. Notably, the Mohammed bin Rashid Al Maktoum Solar Park stands as a testament to Dewa’s dedication to renewable energy. With a planned capacity of 5,000 megawatts by 2030 and a total investment of AED50 billion, this project underscores Dewa’s contribution to reducing carbon emissions and achieving environmental sustainability goals. When completed, the solar park is expected to reduce 6.5 million tonnes of carbon emissions annually.

Future outlook and energy transition

Looking ahead, Dewa remains optimistic about its operational and financial prospects for 2024 and beyond. The authority’s focus on renewable energy initiatives, including hydrogen mobility projects and battery integration, aligns with the UAE’s broader vision of achieving net-zero emissions by 2050. By leveraging innovative technologies and strategic investments, Dewa aims to spearhead Dubai’s transition towards a sustainable and energy-efficient future.

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