Kuwait city: The Arab Investment and Export Credit Guarantee Corporation (Dhaman) has reported significant foreign direct investment (FDI) in the Arab electricity and renewable energy sector, with over 360 projects worth more than $351 billion and creating over 83,000 jobs from January 2003 to December 2024.
According to Emirates News Agency, Dhaman's latest report identifies Egypt, Morocco, the UAE, Mauritania, and Jordan as leading in project numbers, capital expenditure, and job creation. These countries account for approximately 69% of the projects, 83% of capital expenditure, and 82% of new jobs in the sector.
The report, anchored on four main pillars, highlights the UAE as the top regional investor in renewable energy. With 57 projects, the UAE represents 16% of the total projects, with investments exceeding $88.5 billion and generating over 16,000 jobs.
In the power sector, Saudi Arabia's ACWA Power leads in project numbers with 20 projects, while the UAE's Infinity Power is the largest investor based on capital expenditure at $34 billion. The Indian company Acme leads in job creation, offering more than 4,000 jobs.
Five Arab nations, including the UAE, have invested in 90 inter-Arab renewable energy projects, accounting for 25% of the sector's foreign projects, with capital expenditure of approximately $113 billion and providing around 22,000 jobs.
Based on Fitch Ratings, the UAE, Saudi Arabia, Qatar, Kuwait, and Oman are the most attractive Arab countries for power and energy investment in 2025. They are followed by Morocco, Egypt, and Algeria.
Electricity generation in the Arab region is projected to increase by 4.2%, reaching over 1,500 terawatt-hours by 2025. Saudi Arabia, Egypt, the UAE, Iraq, and Algeria are expected to account for 74% of the region's total electricity generation.
Electricity consumption is expected to rise by 3.5% to 1,296 terawatt-hours by 2025, with Saudi Arabia, Egypt, the UAE, Algeria, and Kuwait making up 74% of total consumption.
The foreign trade of Arab countries in power generation equipment and electric current surged by 8% to $39.2 billion in 2024. The UAE, Saudi Arabia, Morocco, Iraq, and Qatar account for 81% of this total trade. Trkiye and the United States are noted as top exporters of electricity and power generation equipment, respectively.
The report also indicates Libya as the largest importer of electricity and France as the largest importer of power generation equipment in the region.