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UAE, International Partners Consortium to Develop World's Largest Solar Power Plant

Solar power plant set to increase Abu Dhabi’s solar power capacity to approximately 3.2 GW. WAM
Solar power plant set to increase Abu Dhabi’s solar power capacity to approximately 3.2 GW. WAM
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UAE, International Partners Consortium to Develop World's Largest Solar Power Plant

Solar power plant set to increase Abu Dhabi’s solar power capacity to approximately 3.2 GW. WAM
Solar power plant set to increase Abu Dhabi’s solar power capacity to approximately 3.2 GW. WAM

The Emirates Water and Electricity Company, EWEC announced the award for the world’s largest solar power plant in Abu Dhabi which went to a consortium led by the Abu Dhabi National Energy Company, TAQA, and Masdar, with partners French electric utility company, EDF, and JinkoPower, for the development of world's largest solar power plant.

The 2 GW Al Dhafra Solar Photovoltaic, PV, Independent Power Producer, IPP, project, will be located approximately 35 kilometres from Abu Dhabi city.

The project’s power purchase agreement, PPA, and shareholders’ agreement were signed with EWEC, said a press release issued by EWEC on Sunday, WAM reported.

Upon full commercial operation, the plant is expected to reduce Abu Dhabi’s CO2 emissions by more than 2.4 million metric tonnes per year, equivalent to removing approximately 470,000 cars from the road.

Speaking about the milestone, Othman Al Ali, Chief Executive Officer of EWEC, said, "We are delighted to work with our partners and sign a PPA with a record-low tariff for solar power. We are working to secure long-term energy supply and reinforce solar power’s integral role in meeting current and future energy needs. Combined with key technological advances, the Al Dhafra Solar PV project will have a significant impact on diversifying the approach to our current electricity supply, and drive our strategic plan to further contribute towards the sector’s transformation in water and electricity production, as we develop a low-carbon grid in the UAE."

For his part, Jasim Husain Thabet, Group CEO and Managing Director at ‎TAQA, said: "The Al Dhafra Solar PV plant is a benchmark project for our nation and the global energy sector. The project’s low tariff and utilisation of best-in-class technology further demonstrate the feasibility of utility-scale renewable energy projects that are accelerating our nation’s progress on meeting the ambitious energy objectives outlined in the UAE Energy Strategy 2050.

"Once fully operational, the plant will increase Abu Dhabi’s solar power capacity to approximately 3.2 GW," he added.

According to WAM, the Al Dhafra Solar PV project is expected to provide approximately 160,000 households across the UAE with electricity. It will be larger than TAQA’s existing 1.2 GW ‘Noor Abu Dhabi’ solar plant, which is currently the world’s largest operational single-project solar PV plant.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said, "Through the award of the Al Dhafra project, the UAE is affirming once again its determination to lead the global transition to cleaner energy sources, deploying the latest advances in solar power technology at tremendous scale cost efficiently."

"We are excited to be working with them to realize the world’s largest single-site solar power plant in Abu Dhabi," he added.

The project’s financial closure is expected to occur in Q3 2020, enabling initial power generation in H1 2022 and full generation by H2 2022. Once fully operational, the plant will increase Abu Dhabi’s solar power capacity to approximately 3.2 GW, the press release said.

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Business

Al Dardari to Asharq Al-Awsat: War Escalation Drives Huge Surge in Losses

Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)
Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)
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Al Dardari to Asharq Al-Awsat: War Escalation Drives Huge Surge in Losses

Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)
Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)

With the release of a special report by the Development Programme on the economic fallout of escalating tensions in the region, Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States said the region is facing an “accelerating economic shock” hitting energy markets, growth, and livelihoods.

Speaking to Asharq Al-Awsat, he warned nearly 4 million people could fall into poverty within a month, calling it an unprecedented indicator of the economic toll of war.

Losses, he said, could rise rapidly if fighting continues, alongside shifts in energy routes, supply chains, and development models.

Estimates based on simulations

Al Dardari said the shock has been sharp and sudden, with losses expanding rapidly over a short period. Current estimates remain based on simulation models, as there has not been enough time to measure real impacts precisely.

The methodology draws on models used in past crises, including Gaza and Lebanon, which later proved highly accurate. The report focuses on broad trends rather than precise figures, particularly in GDP, to track the direction of economic impact.

Losses mounting

The report outlines wide-ranging effects, including declining trade, disruptions in petroleum flows, a worsening investment climate, and growing pressure on public finances.

“After four weeks of war, the impact is very large,” Al Dardari said.

“The Strait of Hormuz is closed, oil exports have been severely affected, and we are moving toward the worst-case scenario.”

He said production inputs have been severely disrupted and infrastructure has been damaged, pushing expected losses closer to $194 billion than $120 billion.

The scenarios are based on one month of fighting. If the conflict continues even one more week, losses would not rise incrementally but multiply, he warned.

GDP losses are highest in Gulf economies due to the hit to oil and energy, while poverty is expected to surge most in the Levant, where rising energy costs quickly drive up food prices.

“The number of poor could increase by around 4 million in a single month,” he said, noting such a jump would normally take years.

Energy routes shifting

Countries are scrambling to contain the shock, repair damage, and secure alternative supply lines.

Saudi Arabia is relying more on pipelines to Yanbu on the Red Sea, while Iraq and Syria are holding serious talks to move crude and petroleum products overland.

“This is a shift toward building alternatives and more diversified, resilient supply chains,” Al Dardari said, adding that the UNDP is supporting efforts to strengthen regional connectivity and trade routes.

Syria’s corridor role

On proposals to bypass the Strait of Hormuz through Syria, Al Dardari said the country has historically served as a regional transit hub linking trade routes.

He pointed to Syria’s “Five Seas” strategy in 2007–2008, which aimed to connect the Caspian, Black, Red, and Mediterranean seas, and the Arabian Gulf through pipelines, rail, roads, and energy grids.

At the time, the plan was backed by a comprehensive development strategy and relatively mature institutions. Today, however, regulatory and legal frameworks for cross-border investment remain underdeveloped, despite ongoing efforts to improve them.

He said the UNDP is ready to support countries in building the technical and institutional capacity needed to pursue such projects.

Opportunity amid crisis

Despite the downturn, Al Dardari said Syria, Jordan, and Lebanon have an opportunity to form a quasi-regional bloc and revive their role as a bridge linking Gulf economies with Türkiye and Europe through alternative supply chains.

But he cautioned this would require more than infrastructure, including stronger institutions, financial systems, and coordination across sectors and borders, as well as “regulatory convergence.”

Rethinking development

The crisis is also forcing a reassessment of development models.

“If 90% of oil and gas exports depend on the Strait of Hormuz, why were alternatives not developed?” he said, noting tensions in the region are not new.

He called for diversification of economies and labor markets, and deeper regional and global integration. While existing models delivered low poverty and strong growth, they have shown vulnerability to shocks.

“We face a more complex reality, with more shocks likely. We need more flexible and effective tools,” he said, adding that current strategies remain valid but may need more efficient pathways.

Rewriting reconstruction

Al Dardari said recovery in Gaza, Syria, and Lebanon can no longer rely on large external funding flows, shifting the burden to governments already facing rising poverty.

He questioned continued reliance on Gulf funding and called for innovative, sustainable recovery models.

The UNDP’s approach focuses on agriculture, local value chains, and affordable housing, drawing on global experience.

He said small and medium-sized enterprises offer a “sustainable alternative” due to their resilience, while strengthening education and healthcare is key to building a new social contract and stabilizing institutions.

Business

Euro Zone Inflation Surges Past ECB Target on Oil Shock

Shelves filled with fruit inside a supermarket in Berlin (Reuters)
Shelves filled with fruit inside a supermarket in Berlin (Reuters)
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Euro Zone Inflation Surges Past ECB Target on Oil Shock

Shelves filled with fruit inside a supermarket in Berlin (Reuters)
Shelves filled with fruit inside a supermarket in Berlin (Reuters)

Euro zone inflation soared past the European Central Bank's 2% target this month due to surging oil and gas prices, heightening a policy dilemma as expensive energy drags growth and risks generating a self-reinforcing inflation spiral.

Oil prices have nearly doubled as a result of the Iran war and the ECB is now debating whether to raise interest rates to prevent this surge from becoming entrenched in the price of other goods and services, Reuters reported.

Overall inflation in the 21 countries sharing the euro currency jumped to 2.5% in March from 1.9% a month earlier, below expectations for 2.6% in a Reuters poll of economists, as energy costs rose 4.9%.

"The previously price-stable environment is saying goodbye" said Alexander Krueger, chief economist at Hauck Aufhaeuser Lampe. "What matters is that this inflationary dirt does not feed through into the core rate." A closely-watched figure on underlying inflation, which excludes volatile ⁠food and energy, ⁠meanwhile, fell to 2.3% from 2.4%, data from Eurostat, the EU's statistics agency showed on Tuesday.

Basic economic theory argues that central banks should look past one-off price shocks generated by supply disruptions, especially because monetary policy works with long lags.

But a quick rise in energy inflation can easily broaden out if companies start building this into selling prices and workers begin demanding higher wages for the loss of disposable income.

High energy prices should increasingly make other goods more expensive and push up core inflation, said Commerzbank's chief economist ⁠Joerg Kraemer, forecasting headline inflation will rise above 3% by May unless the war ends quickly. The public may also start doubting the ECB's resolve if it remains idle, firming the case for rate hikes even in the event of large but not so persistent inflation episodes, ECB President Christine Lagarde said last week.

Financial markets now see three interest rate hikes from the ECB this year, with the first in either April or June.

"The mounting inflation pressure suggests that the ECB will raise its key interest rates in April or, at the latest, in June," Kraemer said. While some policymakers, such as the influential Bundesbank head Joachim Nagel, said that a rate hike as soon as April was an option, others, including ECB board member Isabel Schnabel, have warned against hasty action.

But policymakers agree that the ECB must act if energy starts ⁠generating second round ⁠price pressures, especially since domestic inflation had been above 2% for years.

Services inflation, the single largest item in the consumer price basket and the key gauge for domestic inflation, fell to 3.2% in March from 3.4% a month earlier.

Part of the issue is that the ECB was late in recognizing the inflation problem in 2021/22, arguing for months that the surge was transitory and would pass. It only raised rates when price growth hit 8%, forcing the central bank into its steepest tightening cycle in its history.

But the bloc is now in a very different position, so comparisons with 2022 are not entirely valid.

Rates are already higher, budget policy is tighter, the labor market has been weakening for months and there is no pent-up demand created by pandemic-era lockdowns.

The ECB will next meet on April 30.

"We find it hard to see the ECB moving at the next meeting at the end of April," said Carsten Brzeski, global head of macro at ING. "Unless the ghosts of 2022 are really keeping policymakers awake at night."

Business

China Expresses 'Gratitude' after 3 Ships Transit Hormuz Strait

FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)
FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)
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China Expresses 'Gratitude' after 3 Ships Transit Hormuz Strait

FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)
FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)

Beijing expressed "gratitude" on Tuesday as it said three Chinese ships had transited the crucial Strait of Hormuz, which Iran has all but closed during the war in the Middle East.

"Following coordination with relevant parties, three Chinese vessels recently transited the Strait of Hormuz; we express our gratitude to the relevant parties for the assistance provided," foreign ministry spokeswoman Mao Ning told a regular press conference.

Mao did not offer ‌details about the ‌Chinese ships.

Ship-tracking data showed two Chinese container ships sailed through the Strait of ⁠Hormuz on Monday ⁠on their second attempt to leave the Gulf after turning back on Friday.

The vessels sailed in close formation out of the strait and into open waters, data on the MarineTraffic platform showed.

"Both vessels successfully crossed on a second attempt today, marking the first container vessels to leave the Persian Gulf since the start of the conflict, excluding Iranian flag vessels," said Rebecca Gerdes, data analyst with Kpler, which owns MarineTraffic.

"Both vessels are steaming at an elevated speed toward the Gulf of Oman at the moment."

Officials from China's COSCO, the shipping group that operates ⁠the two vessels, did not respond to requests for comment. COSCO had said in a March 25 client advisory, that it had resumed bookings for general cargo containers for shipments from Asia to the Gulf including the United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Kuwait and Iraq.

Iran has launched attacks on Gulf shipping and threatened more, stranding hundreds of vessels and 20,000 seafarers inside the Gulf.