UAE Launches 11 Green Energy Projects Worth $43 Bn

The UAE Minister of Energy, Suhail al-Mazrouei (AFP)
The UAE Minister of Energy, Suhail al-Mazrouei (AFP)
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UAE Launches 11 Green Energy Projects Worth $43 Bn

The UAE Minister of Energy, Suhail al-Mazrouei (AFP)
The UAE Minister of Energy, Suhail al-Mazrouei (AFP)

The UAE Minister of Energy, Suhail al-Mazrouei, said on Monday that several factors will drive oil prices in 2023, mainly the end of China's zero-COVID policy, the US decision to refill the Strategic Oil Reserve, the sanctions imposed on Russian seaborne oil products, and ongoing global inflation.

Mazrouei also said that other factors may negatively affect oil prices, including the global recession, China's decreasing demand for oil, and the resumption of trade between Russia and Europe.

UAE has launched 11 environmentally friendly energy projects worth $43.2 billion in 2022, announced the Minister.

Mazrouei stated that the UAE's clean energy production in 2021 totaled 7,035.75 megawatts (MW), underscoring the country's pioneering efforts in the clean energy sector.

He told Emirates News Agency (WAM) that the launch of the UAE Energy Strategy 2050, the first unified energy strategy by the UAE, aims to integrate renewable and clean energy mix to achieve a balance between economic needs and climate goals.

It also aims to reduce dependency on other fuel sources over the next three decades.

The Minister added that the UAE has adopted the latest innovations that drive sustainable development, to ensure the renewable energy sector's sustainability. He said that the UAE was among the first countries to ratify the Paris Agreement.

He pointed out that the Ministry of Energy and Infrastructure established the features of the energy sector's future for the upcoming 50 years.

Mazrouei stressed that the contribution of clean energy to the energy mix in 2021 reached 19.63 percent, while the contribution of renewable energy reached 12 percent, and the contribution of peaceful nuclear power reached 7.55 percent by the end of 2021.

The global turmoil in energy supplies has created challenges related to energy security and will, therefore, lead to a focus on using the lowest-priced resources available locally, to meet the country's energy requirements, with an increase in exports in the non-oil sector from the UAE, he added.

He noted that the UAE has considerable potential in the field of solar power, and that its low cost will improve the country's energy security and competitiveness.

He explained that the progress achieved during the process of developing the four Barakah reactors, play a crucial role in reducing the carbon footprint of the UAE's energy sector, in reaching climate neutrality by 2050.

Mazrouei stressed that the Barakah Nuclear Power Plant is a leading innovative energy project in the energy transition process.

Once fully operational, Barakah’s four reactors would offset 22.4 million tons of carbon emissions annually, the leading cause of climate change.



Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.