London, UK— The UAE is looking to invest US$160 billion in the new economy sectors like renewable energy over the next three decades.
This was stated by Abdullah bin Touq Al Marri, Minister of Economy, in his address at the 13th edition of the City Week 2023 Forum, in London, which is running from April 24 to 26.
Addressing the Climate Change, Green Financing, and Sustainability Summit, Bin Touq said: “The creation of investment opportunities in new economy sectors such as the space industry, renewable energy, circular economy and advanced technology is key to ensuring sustainable global economic growth. These sectors have the potential to contribute to building a more prosperous future for humanity.”
He noted that the UAE began financing clean energy projects more than 15 years ago, and has made investments to the tune of $40 billion. “By investing in new economy sectors including renewable energy, the UAE has made significant strides in its transition towards a more flexible and diversified, knowledge-based economic model. Besides, the UAE plans to invest additional USD 160 billion over the next three decades to explore more promising investment opportunities in this key sector. These efforts will help solidify its position as an attractive destination for investments in new economy sectors in line with the UAE’s goal to attract AED 550 billion in FDI to these sectors by 2030.”
City Week 2023 Forum discusses the issues of climate change, green financing and sustainability; institutional adoption; regulation of digital assets; and digitisation and innovation in capital markets.
The minister informed the gathering that the UAE has begun many initiatives to enhance reliance on new economy sectors to drive growth of the national economy.
“These include the UAE Circular Economy Policy 2021-2031, which contributed to advancing the comprehensive and sustainable economic and social development in the country. Also noteworthy is the UAE Green Agenda 2030, which enhanced the competitiveness of the national economy and supported the sustainable use of natural resources. All these strategies are currently contributing to the national GDP growth. According to the Central Bank, the UAE’s real GDP is expected to grow by 7.6 per cent in 2022, and by 3.9 per cent in 2023 before rising to 4.3 per cent in 2024.”
Bin Touq explained that the UAE realized that the climate change challenge also present promising opportunities to advance global economic growth and create more investment opportunities for governments and the private sector.
Based on this belief, the country harnessed modern technology to create new economic opportunities in the solar, wind, Hydrogen energy and electric vehicles. These initiatives support the UAE’s strategic plans to build a clean economy as part of its efforts to achieve climate neutrality by 2050.
The UAE minister emphasized that the future of financing and investment must be based on sustainability, adding that the UAE is one of the largest investors globally in renewable energy projects, with investments worth $50 billion in more than 70 countries.
He pointed out that the country has also allocated nearly $50 billion to accelerating clean energy transition over the next decade. In addition, a $100 billion strategic partnership has been signed with the USA to fund the deployment of 100 gigawatts of clean energy globally by 2035.
Bin Touq also pointed out that the UAE is working on strengthening its historical ties with the United Kingdom. He said stated that the ‘Partnership for the Future’ framework established by Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, and former British Prime Minister Boris Johnson, has helped facilitate financing and innovation in new economic sectors.
City Week is an annual global forum that is held in the British capital, London. The event brings together more than 1,000 senior decision-makers and economic officials in the United Kingdom and the world to create more effective solutions to political issues and economic challenges that face the world.