Abu Dhabi and China are teaming up to invest up to $2.8bn in renewable energy projects.
Abu Dhabi Future Energy Company (Masdar) and China’s Silk Road Fund (SRF) have signed a Memorandum of Understanding to explore potential co-investment opportunities in renewable energy projects in Belt and Road Initiative (BRI) countries, primarily in the developing world and global south.
The MoU was signed at COP29 by Masdar Chief Executive Officer Mohamed Jameel Al Ramahi and the Silk Road Fund Chairwoman ZHU Jun.
Abu Dhabi and China renewable energy projects
Under the MoU, Masdar and Silk Road Fund will establish a strategic partnership to pursue co-investment opportunities in renewable energy projects developed, invested in or operated by Masdar.
Silk Road Fund plans to invest up to RMB20bn ($2.8bn) in projects alongside the UAE energy company.
The Abu Dhabi Future Energy Company has significant investments in the Middle East, Central Asia, Southeast Asia and Africa, many of which are participants in the Belt and Road Initiative.
The company will continue to invest in these regions as part of its strategy to reach 100GW of renewable energy capacity by 2030.
SRF’s renewable power portfolio totals more than 7GW in Belt and Road regions, including the Middle East, Africa, Southeast Asia and Latin America.
Al Ramahi said: “This collaboration between two companies with significant investments in renewable energy projects in emerging markets and the global south will provide a major impetus to efforts to advance the energy transition. We look forward to a successful and rewarding partnership with Silk Road Fund.”
Zhu Jun said: “The UAE is a key Belt and Road Initiative participant and one of the most important investment and trading partners for China.
“The partnership between Silk Road Fund and Masdar is a strong testament to both parties’ commitment to the development of sustainable energy on a global scale, and will act as an enabler to help further strengthen investment collaboration between the two countries.”
The BRI connects Asia, Europe, Africa and other parts of the world through a network of infrastructure and trade projects. It serves as a vital link to bolster economic, trade, and investment interactions among the participating countries and regions.
The UAE has been an active partner in the BRI since the initiative was launched and has already invested $10bn in a joint China-UAE investment fund to support BRI projects in East Africa.
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