Today's Edition
MUDHI ALOBTHANI (ABU DHABI)
The UAE’s long-term investment in renewable energy has evolved into a core pillar of its economic strategy, strengthening industrial competitiveness, attracting foreign investment, and positioning the country as a global hub for innovation and clean energy, experts said.
Their comments come after the McKinsey Global Institute’s report, “Boosting Competitiveness: Where Investment Happens and Why,” highlighted that national competitiveness is increasingly determined by countries’ ability to attract productive investment and deliver complex projects efficiently. The report identified the UAE among the world’s most competitive locations for investment in new nuclear energy projects, citing its strong execution capabilities.
Dr. Najla Alzarooni, Founder of the Global Influence Catalyst Platform, said the UAE has deliberately positioned renewable energy as an economic transformation agenda rather than viewing it solely through an environmental lens.
“Renewable energy has been embedded within the UAE’s broader economic diversification strategy, supporting the transition from a hydrocarbon-dependent economy to a knowledge-based, innovation-driven model,” she said.
According to Alzarooni, investments in clean energy have strengthened industrial development, attracted international capital, stimulated research and development, and created new value chains in advanced manufacturing, artificial intelligence, sustainable finance, hydrogen, and digital technologies.
She added that the UAE recognised early that long-term economic competitiveness depends on secure, affordable, and low-carbon energy systems.
“The UAE has also positioned renewable energy as an instrument of economic diplomacy. Through international partnerships and investments across emerging markets, it has strengthened its global economic relationships while reinforcing its role as a reliable partner in the global energy transition,” she said.
Mohsen Al Awadhi, Space Exploration and Capability Development Expert, said the UAE has treated renewable energy in much the same way it approached the space sector—by using it as a platform to build national capabilities and diversify the economy.
“The UAE treated clean energy the way it treated space, as an economic diversification engine and a capability-building platform,” Al Awadhi said.
He noted that the establishment of Masdar in 2006 reflected a strategic decision to diversify the economy while accelerating the deployment of renewable energy technologies.
“Today that investment exports capital, technology and Emirati expertise. Masdar has reached 65 gigawatts of global clean energy capacity and is targeting 100 gigawatts by 2030,” he said.
Looking at the policy framework behind the country’s progress, Alzarooni said the UAE’s competitiveness has been driven by consistent long-term planning through initiatives including the UAE Energy Strategy 2050, the Net Zero by 2050 Strategic Initiative and Operation 300bn.
She said one of the defining characteristics of the UAE model is its balanced approach to the energy transition.
“Rather than pursuing an ideological transition away from conventional energy, the UAE has invested simultaneously in renewable energy, nuclear power, natural gas, carbon capture, hydrogen and next-generation energy technologies,” she said.
Al Awadhi added that the country’s success also stems from early investment decisions supported by a long-term national vision.
“What distinguishes the UAE is that it builds national champions that compete globally. It is the same philosophy behind our space missions —developing Emirati capability that stands on the world stage,” he said.
Experts also pointed to renewable energy’s growing role in enhancing the UAE’s attractiveness to international investors.
Alzarooni said global investors increasingly assess countries based on their ability to provide sustainable infrastructure, reliable energy supplies and stable regulatory environments.
“Access to competitively priced clean electricity strengthens the country’s appeal for energy-intensive industries, advanced manufacturing, data centres, artificial intelligence infrastructure and technology companies,” she said.
She added that renewable energy has become a competitive advantage extending well beyond electricity generation by strengthening the UAE’s overall investment proposition and supporting compliance with evolving international sustainability standards.
Al Awadhi said reliable clean power has become essential infrastructure for future industries, noting that the UAE’s satellite programmes, including greenhouse gas monitoring, contribute to the broader clean energy ecosystem.
Alzarooni said the next phase of global competition will extend beyond renewable energy deployment towards leadership across the wider clean energy value chain.
She said the UAE is well positioned to become a global hub for green hydrogen, sustainable aviation fuels, advanced energy storage, smart grids, AI-enabled energy management and climate technology innovation.
Al Awadhi said the country also has an opportunity to integrate its strengths in both energy and space.
“Space-based monitoring is a natural UAE differentiator, linking our energy and space strategies,” he said.
However, he noted that increasing global competition for supply chains and skilled talent, expanding grid and storage infrastructure, and maintaining first-mover advantage will remain key challenges.
“The UAE must keep doing what it does best—moving before the trend, not with it,” he said.
