Today's Edition
MAYS IBRAHIM (ABU DHABI)
The UAE has launched an accelerator for energy-tech startups, aiming to help turn local innovations into commercial solutions as rising industrial and digital demand puts greater pressure on energy systems.
The programme, launched in partnership with Schneider Electric, will connect startups with government and private-sector networks, industry expertise and potential customers, Economy and Tourism Minister Abdulla bin Touq Al Marri said on Tuesday.
It aims to strengthen the UAE’s homegrown energy-tech sector.
“Resilience cannot be achieved without local capabilities,” the minister said, announcing the initiative at the Schneider Electric Innovation Summit in Abu Dhabi.
The programme is part of the UAE’s broader drive to build a technology-driven economy while meeting growing energy demand from industrial and digital expansion.
“The question is not whether we should move forward, but how do we do so in a way that is affordable and grounded in the needs of the economy,” Bin Touq said.
The UAE’s economy grew 6.2% in 2025, while its non-oil economy expanded 6.8%, according to official data. Meanwhile manufacturing accounted for 12.8% of non-oil GDP last year.
“Energy technology sits at the centre of that transformation,” Bin Touq said, pointing to smarter energy systems that can improve productivity, reduce costs and make more efficient use of resources.
Under the accelerator, business leaders and industry professionals will mentor startups as they move from early-stage ideas towards commercial applications, with support covering technical expertise, investor connections and access to potential customers.
Rising Regional Demand
The programme comes as electricity demand across the Middle East and Africa is expected to rise sharply, driven partly by the expansion of AI and digital infrastructure.
Walid Sheta, Schneider Electric’s Zone President for the Middle East and Africa, said regional power demand is expected to increase 70% by 2040, while renewable-energy capacity is projected to grow 12-fold over the same period.
Data-centre capacity in the region is also expected to grow about fourfold by 2030, he said. Utilities currently report transmission and distribution losses of around 15%, Sheta said, adding to the challenge of meeting future demand.
He also pointed to the emergence of AI “factories” in the region, which could reach between 6GW and 10GW in capacity and put further pressure on power networks.
“This is where the innovation tech comes in,” Sheta said, arguing that the region will need greater efficiency, resilience and technology alongside additional generation capacity.
He said building resilience would also require stronger local capabilities, including through partnerships with regional companies and local manufacturing.
For the UAE, Bin Touq said the longer-term goal is to create an ecosystem in which startups, manufacturers, laboratories and larger businesses can develop technologies serving both the domestic economy and international markets.
“We believe in building domestic capabilities so that the UAE participates in the global energy economy not only as a consumer, but as an investor, manufacturer, and innovator,” he said.
