Arab Power and Renewable Energy Sector Draws $351 Billion FDI, Creates 83,000 Jobs

Prime Highlight:

360 foreign direct investment projects worth $351 billionhave boosted the Arab electricity and renewable energy sector, creating over 83,000 jobs since 2003.
Egypt, Morocco, UAE, Mauritania, and Jordan accounted for 69% of projectsand 83% of investments, leading regional growth.

Key Facts:

The UAE led with 57 projectsworth $88.5 billion, generating more than 16,000 jobs, while Infinity Power’s $34 billion project marked the single largest capital investment.
Inter-Arab renewable projects across the UAE, Saudi Arabia, Bahrain, Jordan, and Egypt totaled $113 billion, creating 22,000 jobs.

Background

According to the Kuwait-based Arab Investment and Export Credit Guarantee Corporation (Dhaman), 360 foreign direct investment projects totalling over $351 billion in the Arab electricity and renewable energy sector have resulted in the creation of more than 83,000 jobs, over a period of 2003-2024.

Egypt, Morocco, the UAE, Mauritania, and Jordan led the region, making up 69% of the projects, 83% of the investment, and 82% of the new jobs. The UAE was the biggest investor with 57 projects worth $88.5 billion, creating over 16,000 jobs. The Saudi Arabia Acwa Power had the highest number of projects, whereas the UAE Infinity Power had the highest capital investment of $34 billion. Acme, an Indian company, created more than 4,000 jobs, the most jobs created by a single company.

Five Arab nations, the UAE, Saudi Arabia, Bahrain, Jordan, and Egypt, worked on 90 inter-Arab renewable energy projects, investing $113 billion and creating 22,000 jobs. Fitch Ratings ranked the UAE, Saudi Arabia, Qatar, Kuwait, and Oman as the top countries for energy investment in 2025.

Electricity generation in 15 Arab countries is expected to rise 4.2% to 1,500 TWh in 2025 and reach 1,754 TWh by 2030. Saudi Arabia, Egypt, UAE, Iraq, and Algeria will account for nearly three-quarters of output. Consumption is projected to grow 3.5% to 1,296 TWh.

Trade in power equipment increased 8% to $39.2 billion in 2024, with $7.6 billion in exports and $31.5 billion in imports. UAE, Saudi Arabia, Morocco, Iraq, and Qatar made up 81% of this trade, reflecting strong growth in the regional energy sector.