Arab Energy Sector Attracts $351 Billion In Investments

The Arab Investment and Export Credit Guarantee Corporation, also known as Dhaman, has released a new report on the energy sector in Arab countries. The report highlights that from January 2003 to December 2024, the Arab electricity and renewable energy sector attracted 360 foreign direct investment (FDI) projects. These projects were worth more than $351 billion and created over 83,000 jobs. The findings show how important the energy sector has become for foreign investors.

Five Countries Lead the Way

According to the report, five Arab countries accounted for most of the investment. These countries are Egypt, Morocco, the United Arab Emirates, Mauritania, and Jordan. Together, they represented nearly 69% of the projects, around 83% of the total investment capital, and more than 82% of the jobs created. This shows that a small group of countries is taking the lead in building strong energy industries.

UAE as the Top Investor

The United Arab Emirates stood out as the leading investor in renewable energy. Over the past 22 years, the UAE contributed to 57 projects, which is about 16% of the total. Its investment value was more than $88.5 billion, making up 25% of the total investment. The UAE’s projects also created over 16,000 jobs. These numbers place the country at the top of the regional rankings in investment, project count, and job creation.

Role of Major Companies

The report also looked at the role of companies in the sector. It found that the top 10 companies were responsible for around 25% of all projects. They also contributed to 40% of the total investment capital and 38% of all jobs created. Saudi Arabia’s ACWA Power led in the number of projects, with 20 projects, representing 6% of foreign renewable energy projects. Meanwhile, the UAE’s Infinity Power was the top company in terms of investment value, with $34 billion, making up 10% of the total.

India and Job Creation

Interestingly, an Indian company named Acme stood out for creating the highest number of jobs. It was responsible for more than 4,000 jobs, representing 5.2% of the total jobs created in the Arab renewable energy sector. This highlights how not only Arab but also foreign companies are playing a role in shaping the industry.

Inter-Arab Energy Projects

The report also highlighted cooperation between Arab countries themselves. It stated that five countries—the UAE, Saudi Arabia, Bahrain, Jordan, and Egypt—invested in 90 joint renewable energy projects across the region. These projects represented nearly 25% of the sector’s total projects and were worth about $113 billion. They also created around 22,000 jobs, showing that collaboration within the region is also a strong factor in growth.

Most Attractive Markets for 2025

According to Fitch Ratings, the most attractive countries for power and energy investment in 2025 are the UAE, Saudi Arabia, Qatar, Kuwait, and Oman. Morocco, Egypt, and Algeria followed in the rankings. These countries were judged based on both risks and rewards in the energy market, making them the best destinations for future investors.

Growth in Electricity Generation

The report noted that electricity generation across 15 Arab countries is expected to increase by 4.2% in 2025, reaching more than 1,500 terawatt-hours. By 2030, this figure is projected to climb to 1,754 terawatt-hours. Five countries—Saudi Arabia, Egypt, the UAE, Iraq, and Algeria—will make up 74% of the region’s power generation by the end of 2025.

Increase in Electricity Use

Along with power production, electricity use is also on the rise. Consumption across Arab countries is expected to increase by 3.5% in 2025, reaching around 1,296 terawatt-hours. Saudi Arabia, Egypt, the UAE, Algeria, and Kuwait will account for most of this consumption, totaling about 958 terawatt-hours, which equals 74% of regional usage.

Trade in Power Equipment

The energy trade sector also showed strong growth. Arab foreign trade in electricity and power generation equipment rose by 8% in 2024, reaching around $39.2 billion. The UAE, Saudi Arabia, Morocco, Iraq, and Qatar made up 81% of this trade. Exports increased by 9% to $7.6 billion, while imports rose by 7.8% to $31.5 billion.

Exporters and Importers in the Region

The report said that Türkiye was the top electricity exporter to Arab countries, with a value of $446 million. The United States ranked as the largest exporter of power generation equipment, with $6.6 billion. On the other hand, Libya was the region’s largest importer of electricity, worth $59 million, while France was the biggest importer of power generation equipment, valued at $593 million.