Cleantech market in the United Arab Emirates

The United Arab Emirates (UAE) cleantech sector offers significant growth opportunities for sub-sectors including renewable energy, water management, waste-to-energy, and sustainable construction. This demand for cleantech development is driven by the country's push for sustainability and energy diversification through government initiatives like the UAE Energy Strategy 2050 and the Dubai Clean Energy Strategy 2050.

The UAE aims to increase the share of clean energy in its total energy mix to 50% by 2050. The UAE's water scarcity challenges also drive demand for innovative water desalination and management solutions. Waste management and recycling technologies are gaining traction as the UAE seeks to reduce its environmental footprint. Sustainable construction practices and green building technologies are increasingly important as the country focuses on creating smart and energy-efficient cities, especially after COP28 was hosted by Dubai.

Investors and businesses in the cleantech sector will benefit from government incentives, partnerships, and a supportive regulatory framework.

Key opportunities for Canadian cleantech companies in the UAE

• Renewable energy technologies
• Water management
• Waste management
• Sustainable construction
• Smart cities
• Environmental monitoring
• Clean hydrogen

Notable challenges for Canadian cleantech companies in the UAE

• Navigating the UAE regulatory environment
• Competition from foreign companies with similar solutions
• Technology adaptation to meet the specific needs and requirements of the UAE market including climate conditions, infrastructure, and local preferences.

The UAE's business landscape

The UAE's business landscape is diverse, provides a strategic geographical location, and offers a supportive environment. Key sectors like finance, real estate, tourism, and trade contribute significantly to the country's growing economy.

The UAE's strategic location at the crossroads of East and West, along with modern infrastructure and world-class amenities, attracts businesses from around the globe. The presence of free zones, favorable tax policies, and a strong regulatory framework make the UAE an attractive destination for foreign investment and business expansion. Moreover, the country's vision for innovation, sustainability, and economic diversification demonstrates its commitment to building a competitive business ecosystem for years to come.

Upcoming projects and events

• The sixth phase of the Mohammed bin Rashid Al-Maktoum Solar Park
• The Sweihan and Al-Dhafra solar power plants
• The Taweelah reverse osmosis facility, the UAE's first independent water production project
• Street lighting public-private partnership (PPP) opportunity in Abu Dhabi. Aim to replace over 176,000 streetlights with LED lights to reduce power consumption
• Anticipated UAE green hydrogen projects worth at least $12 billion. Projects include the 150MW green hydrogen-based ammonia production plan in Ruwais, $1 billion green ammonia facility in Khalifa Economic Zones Abu Dhabi, and the Masdar City green hydrogen and sustainable aviation fuel project.
• Abu Dhabi Sustainability Week, the region's largest annual sustainability show

Summary

The UAE has established a strong economic and trading hub to serve the greater region. The country continues to demonstrate high resiliency and agility in response to global economic and political changes, making the UAE an attractive and stable place to operate a global business. Its unique geographical location provides access to over 80% of the world's population within an eight-hour flight. Canada enjoys a strong reputation in the local market and high levels of bilateral trade.

For more information on cleantech in the UAE market please contact uaecommerce@international.gc.ca.