Transform your business dream into reality with Charles & Darwish Associates. Optimize your Dubai business setup effortlessly in the Free Zone, Mainland, and Offshore ensuring flexibility and growth opportunities. Leverage Dubai's growth with our tailored business setup solutions.
Get Free Consultation
Although the UAE, like its neighbours, is known for oil, the UAE is already planning to diversify its presence in the global economy. But the UAE is trying to do this in a sustainable way, focusing on the environment. The government set in motion the “UAE Energy Strategy 2050.” Which aims to further the energy economy while caring for the environment. UAE’s vision includes an initial investment of around 200 billion AED to meet their growing energy requirements. They are doing this all while ensuring sustainable growth. The UAE Energy Strategy 2050 is a vision for the future and is pioneering in the Middle East. There’s also the “Dubai Clean Energy Strategy,” which is an ambitious project that aims to produce 75% of energy requirements from clean energy sources. To make this all possible, the UAE is offering various incentives to attract investments in the clean energy sector. This presents a great opportunity for anyone who is looking to start or expand their business in the energy sector.
The areas of opportunity in the clean energy sector in Dubai for the entrepreneurs are as follows:
UAE is one of the top countries that receives the most sunshine in the world due to its position near the Tropic of Capricorn. This alone makes it suitable for your next venture in solar energy. The RAK Energy Efficiency and Renewable Energy Strategy 2040 entails solar programs that target achieving renewable energy generation. These solar programs aim to provide regulatory support, pilot projects, and capacity-building initiatives in the initial years while preparing for larger-scale developments in the future. There are also other government incentives, such as net metering and feed-in tariffs, to encourage individuals and businesses to adopt solar power. This presents a great opportunity for anyone who is looking to do business in manufacturing, supply chain, project development, management, and storage solutions.
Although the country’s obvious potential in solar energy has been shadowing other forms of renewable energy, it is changing thanks to government initiatives like the “UAE Wind program,” which aims to power households and reduce emissions. This is a step in the UAE’s commitment to decarbonization efforts and achieving net zero emissions by 2050. The country has many sites for wind power generation, particularly in the northern emirates, coastal areas, and offshore locations. While compared to solar, wind power generation presents challenges like weak wind speed. Siemens (the turbine manufacturer) estimates that the total cost of providing wind power has fallen while the power generated has increased. MASDAR, the biggest player in wind energy in the UAE, is implementing wind power generation spanning 4 locations, including Sir Bani Yas Island in the emirate of Abu Dhabi. Business opportunities in wind energy include turbine manufacturing, offshore wind farm operations, and maintenance. The businesses planning to enter the wind energy sector can take advantages of the policies set by the UAE government.
A budding field in clean energy generation is converting waste to energy, which has a twofold effect of reducing waste and generating energy. This entails converting municipal solid waste into electricity, heat, or fuel in the UAE. There’s an Energy from Waste program in RAK Energy Efficiency and Renewable Energy Strategy 2040, signalling government interest in this. Initiatives in this include the use of alternative fuels in cement production. If you are a technology provider or interested in project development, this presents a solid opportunity to venture into something novel in UAE.
The UAE aims to become one of the largest producers of hydrogen by 2031. To achieve this, they set into action the “National Hydrogen Strategy,” which aims to support low-carbon industries and contribute to achieving climate neutrality. These initiatives contribute to investments in research and development to improve the cost-effectiveness of hydrogen production, transport, and utilization, presenting lots of business opportunities. The businesses planning to enter this sector have multiple potential opportunities waiting for them in the UAE.
CCS offers a way to dispose of carbon dioxide without it contributing to global warming. While it is a complex and expensive technology, this is crucial for the UAE, as it is on their agenda to reduce their carbon footprint by building an industrial-scale CCS network to reduce and manage their emissions. Companies in this field can make use of this and collaborate with the government to implement and manage these technologies.
To know more about setting up a business in the UAE, click here.
The world has realized that climate change is actually real and its ramifications are severe. We should understand that it’s in our hands to preserve this world while making the best of it. Generating clean energy is ideal for thwarting climate change, and the UAE is already implementing these. UAE’s clean energy sector offers vast opportunities for entrepreneurs and businesses. While challenges are present because of the UAE’s commitment to the environment and investors, most of these are mitigated. Moreover, ventures in the clean energy sector are sure to reap benefits in the future because more countries are taking this seriously. With strong government support and a clear vision for the future, the UAE is destined to become a global leader in clean energy. Businesses interested in the clean energy sector in the UAE can take their businesses to the next level.
Starting a business in the UAE might be a dream of multiple investors, as the friendly exposure of the UAE provides all the nurture for a business to flourish. During the process of setting up a business, the entities might require some support and guidance from professionals like CDA regarding the procedures for getting the licenses, setting up an office, selecting a name, etc. The professional business setup consultants in Dubai like CDA are always on standby to serve these requirements of the businesses.
To know more about our services, contact the CDA now.
