The United Arab Emirates (UAE) has received a substantial boost for its green energy initiatives through foreign direct investment (FDI). In 2022, the FDI inflow for the country’s renewable energy projects totaled $36 billion.
One of the most notable endeavors that attracted FDI is the establishment of a green hydrogen facility worth $1 billion. Korea Electric Power will lead the construction of the plant at Abu Dhabi’s Khalifa Industrial Zone.
This development solidifies the UAE’s position as the world’s fourth-largest recipient of greenfield projects.
Read: UAE gathers experts to intensify sustainability initiatives
Catalyzing economic partnerships
In the past decade, more than 170 countries injected significant investments into the UAE, underscoring the country’s appeal as a destination for investment, growth, and expansion. This was highlighted by His Excellency Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development (ADDED).
Al Zaabi was speaking at the 8th World Investment Forum (WIF). The United Nations Conference on Trade and Development (UNCTAD) organized the event. Meanwhile, Abu Dhabi served as this year’s venue.
“The UAE’s dedication to building bridges between nations and fostering economic relationships is set to unlock a world of opportunities,” the chairman said, stressing the country’s role in fostering various economic collaborations.
“As a global hub for business and finance, the UAE has also made bilateral trade agreements, cementing our reputation as a reliable partner for international trade and cooperation,” he further continued.
UAE’s FDI achievements
In 2022, the UAE successfully enticed an impressive $23 billion worth of FDIs. This marks a 10 percent increase compared to 2021 levels. With this figure, the country now ranks 16th globally when it comes to FDI inflows. Its FDI attraction last year further accounted for 60 percent of the total FDI that Gulf Cooperation Council (GCC) countries received.
While the country recorded FDI growth, the global FDI decreased by 12 percent to $1.3 trillion in the same period.
In terms of FDI outflows, the UAE remains an active investor, contributing to growth in 122 countries across diverse sectors in the last five years. The country’s FDI is particularly supporting various green energy endeavors.
Al Zaabi said, “Our commitment to sustainable development is clearly demonstrated by substantial investments of nearly $45 billion in renewable energy. In 2022, the UAE FDI outflows dedicated nearly $36 billion to renewable energy projects.”
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