United Arab Emirates

Up to 100% foreign ownership in free zones 100% foreign

No minimum capital requirement for business setup Competitive financing costs

With 12 active and planned clean energy projects representing a total potential investment value of US$4.2bn, the UAE ranks third in the GCC in terms of capital expenditure.

The country launched its Hydrogen Leadership Roadmap during COP26 in 2021, setting a target to capture a quarter of the world’s clean hydrogen market by 2030. To explore the opportunities of the hydrogen sector, the UAE has formed the Abu Dhabi Hydrogen Alliance, which consists of Mubadala Investment Company, ADQ, ADNOC and the Ministry of Energy and Infrastructure.

As well as actively pursuing clean energy strategic partnerships with countries including Brazil, the Netherlands, the UK and the US, the UAE has formed partnerships with countries such as Japan, India and Germany to export hydrogen. It also formed a partnership with South Korea for the ADNOC blue ammonia production, a facility joint research and a demonstration project located in Ruwais. To test its capabilities as a hydrogen exporter, the UAE sold four test cargoes of blue ammonia in 2021 to Itochu, Idemitsu and INPEX, all based in Japan.

The UAE is also the home of the Al Reyadah Carbon Capture, Utilisation and Storage (CCUS) Plant, the Middle East’s first commercial-scale CCUS plant, which currently captures 0.8mtpa of CO2. As part of its US$15bn to advance an array of projects across its diversified value chain by 2030,

ADNOC plans to expand the plant’s capacity by over 500%, reaching 5mtpa of CO2 by 2030.

Who are the key players?

Major companies active in UAE’s energy transition sector include ADNOC, Brooge Renewable Energy, bp, Helios Industry, Masdar and TotalEnergies. During the past 12 months, contractors winning contracts in the hydrogen and carbon capture sectors included KBR, ThyssenKrupp, Tecnimont and Wood.

A global leader in hydrogen?

The UAE is positioning itself as a leader in hydrogen technology as part of its economic and energy diversification strategies. It is working with international partners and fostering collaborations among public and private sector stakeholders, locally and globally, to break down the barriers to the hydrogen economy in line with the UAE Energy Strategy 2050 and the UAE Net Zero by 2050 Strategic Initiative.

Why invest?

The UAE has created a modern investment environment and set policies that facilitate and speed up the establishment of companies through electronic platforms. The UAE also offers various funding options and incentive programmes for foreign businesses. Industrial investors, innovators and entrepreneurs can receive significant financial and advisory support from the Emirates Development Bank via the UAE’s Make it in the Emirates initiative. The UAE has also introduced initiatives including the Technology Transformation Programme and the Emirates Research and Development Council to stimulate the development of enabling technologies that will help scale hydrogen technology.

UAE

Habshan 5 Gas Plant

Carbon Capture Project

Value: US$500m

Start up: 2026

Stage: EPC

Status: Tendering & bidding

Operators: ADNOC

Brooge Renewable Energy

Green Hydrogen & Green

Ammonia Plant

Value: US$300m

Start up: 2026

Stage: Feasibility study

Status: Contract awarded

Operators: Brooge

Renewable Energy

ADNOC Blue Ammonia

Production Facility –

Ruwais

Value: US$200m

Start up: 2025

Stage: EPC

Status: Contract awarded

Operators: ADNOC, Fertiglobe, Mitsui & Co, GS Energy

SOURCE OF PROJECT INFORMATION: EICDATASTREAM