Today's Edition
A SREENIVASA REDDY (ABU DHABI)
Masdar, Abu Dhabi’s renewable energy company, has no plans to pursue a public listing at present, its Chief Executive Officer Mohamed Jameel Al Ramahi told Bloomberg.
Al Ramahi said Masdar prefers to remain a private company as it is well funded. “If you have capital and it’s sufficient, why do you want to go public? It adds more complexity on management,” the Masdar CEO said in a detailed and candid interview with the international news agency.
Masdar is planning $50 billion of new investments to reach its target of 100 gigawatts of clean power. The company intends to use about $15 billion of its own cash for this outlay and is confident of securing the remainder without the need for proceeds from a share sale, Al Ramahi said.
The UAE has encouraged state-backed and private companies to list locally to strengthen its equity markets. Several ADNOC subsidiaries, state utilities and other firms have raised money through IPOs in recent years. The Abu Dhabi Securities Exchange (ADX) recently surpassed Dh3 trillion in market capitalisation and is on track to exceed $1 trillion on its own. Combined with the Dubai Financial Market (DFM), the UAE’s stock markets have already crossed the $1 trillion threshold.
Etihad Airways, Abu Dhabi’s state-owned carrier, is among several high-profile companies considering an IPO, initially expected as early as this year.
Masdar’s shareholders are ADNOC, Mubadala, Abu Dhabi’s sovereign wealth fund, and TAQA, the state energy company. “We are blessed with three strong shareholders, and we are blessed to have partners and financial institutions and investors through our bonds to back our growth story,” Al Ramahi said. “In essence, to achieve my 100 gigawatt target, I don’t need to go public.”
Currently, TAQA holds a 43% stake in Masdar, Mubadala owns 33%, and ADNOC has 24%.
Masdar has built an extensive portfolio of renewable energy companies worldwide through acquisitions, including major players in Spain and Greece. It also aims to expand its US portfolio to 25GW over the coming years. “Of the 25-gigawatts, the majority will come through Terra-Gen,” Al Ramahi said, referring to a US developer acquired last year. “But that doesn’t stop us from doing more on our own.”
However, Masdar has not ruled out an IPO in the future. “We could be ready for it at a moment’s notice. If the shareholders want it, we can go public tomorrow,” Al Ramahi said.
Meanwhile, Masdar has been assigned a ‘AA-’ credit rating with a stable outlook by S&P Global Ratings, underscoring its strong financial position.
In 2025, Masdar raised about Dh10 billion through green bond issuances at a coupon rate of just 5%, demonstrating investor confidence and the company’s strong access to capital markets. This aligns with the CEO’s assertion that raising funds is not a challenge for the state-backed entity, and there is no imminent need for a listing to finance its expansion.
“Unlike many of its peers, Masdar follows an investor-led approach, outsourcing operations and construction risks to third-party contractors,” S&P Global said in its report.
Masdar welcomed the latest rating decision. “We are delighted to share that Masdar has been assigned a credit rating of ‘AA-’ with a stable outlook by S&P Global Ratings. This recognition reflects the strong support of our three shareholders and the Government of Abu Dhabi, our solid global market position, and our prudent financial policies, including the allocation of green bond proceeds to fund the construction of new projects,” the company said in a LinkedIn post.
“This rating marks another milestone in our journey as a global clean energy leader, driving responsible growth and inclusive progress across key markets worldwide,” Masdar added.
