Arab Power and Renewable Energy Sector Draws USD 351 Billion FDI, Generates 83,000 Jobs

The Arab electricity and renewable energy sector has attracted 360 foreign direct investment (FDI) projects worth over USD 351 billion between 2003 and 2024, creating more than 83,000 jobs, according to Kuwait-based Arab Investment and Export Credit Guarantee Corporation (Dhaman).

The Dhaman 2025 report highlights that five countries, Egypt, Morocco, UAE, Mauritania, and Jordan, accounted for 69 percent of projects, 83 percent of total Capex (USD 291 billion), and 82 percent of new jobs (68,000). The UAE emerged as the top regional investor, contributing 57 projects valued at USD 88.5 billion and generating over 16,000 jobs.

Saudi Arabia's Acwa Power led in project numbers, while UAE’s Infinity Power topped Capex investment at USD 34 billion. Indian firm Acme created the most employment, adding over 4,000 jobs.

Five Arab nations, UAE, Saudi Arabia, Bahrain, Jordan, and Egypt, collaborated on 90 inter-Arab renewable energy projects, investing USD 113 billion and generating 22,000 jobs. Fitch Ratings ranked UAE, Saudi Arabia, Qatar, Kuwait, and Oman as the most attractive for energy sector investment in 2025.

Electricity generation in 15 Arab countries is expected to rise 4.2 percent to 1,500 TWh in 2025 and reach 1,754 TWh by 2030, with Saudi Arabia, Egypt, UAE, Iraq, and Algeria accounting for 74 percent of output. Consumption is forecast to grow 3.5 percent to 1,296 TWh, led by the same top countries.

Arab foreign trade in power equipment surged 8 percent to USD 39.2 billion in 2024, driven by exports of USD 7.6 billion and imports exceeding USD 31.5 billion, with UAE, Saudi Arabia, Morocco, Iraq, and Qatar dominating 81 percent of trade.