Arab Region Secures $351bn In Foreign Renewable Energy Projects: Report

JEDDAH: The Arab world attracted 360 foreign renewable energy projects between January 2003 and December 2024, with investments surpassing $351 billion and generating more than 83,000 jobs, according to a new report from the Arab Investment and Export Credit Guarantee Corp., known as Dhaman.

Five countries — Egypt, Morocco, the UAE, Mauritania and Jordan — accounted for 248 projects, or 69 percent of the total, with a combined investment value of $291 billion. These projects alone created nearly 68,000 jobs, representing 82 percent of employment in the sector.

The UAE led regional renewable energy investment over the past two decades, attracting 57 projects worth $88.5 billion, equivalent to a quarter of total investment and generating over 16,000 jobs.

At the corporate level, Saudi Arabia’s ACWA Power topped the list by project volume with 20 initiatives, while UAE-based Infinity Power led in value, with projects totaling $34 billion.

Dhaman’s report also highlighted cross-border cooperation, noting that Saudi Arabia, the UAE, Bahrain, Jordan and Egypt invested in 90 interconnected projects worth $113 billion, accounting for a quarter of all foreign-backed activity and creating 22,000 jobs.

Looking ahead, electricity generation across 15 Arab countries is projected to expand by 4.2 percent, exceeding 1,500 terawatt-hours in 2025 and rising to 1,754 terawatt-hours by 2030. Production will remain concentrated in Saudi Arabia, Egypt, the UAE, Iraq and Algeria, which together represent nearly three-quarters of output.

Consumption is expected to climb 3.5 percent to 1,296 terawatt-hours in 2025, led by Saudi Arabia, Egypt, the UAE, Algeria and Kuwait.

Trade in electricity and power generation equipment also surged, with foreign trade in the sector up 8 percent to $39.2 billion in 2024. Exports increased 9 percent to $7.6 billion, while imports rose 7.8 percent to $31.5 billion. Saudi Arabia, the UAE, Morocco, Iraq and Qatar accounted for 81 percent of this trade.

Turkiye emerged as the region’s top electricity exporter at $446 million, while the US dominated power equipment supply at $6.6 billion. On the import side, Libya was the largest regional buyer of electricity at $59 million, while France topped power equipment imports at $593 million.

Headquartered in Kuwait, Dhaman was established in 1974 as a joint Arab entity owned by member states and four regional financial institutions. Its latest report is the second 2025 sectoral study focused on electricity and renewable energy in Arab economies.