Chinese companies are ramping up their engagement in the burgeoning new energy sector within Arab nations, responding to the urgent energy transition needs in the region, said experts.
This strategic move entails a substantial push into renewable energy domains like solar and wind power, hydrogen energy and cutting-edge energy storage solutions. The anticipated future collaborations are poised to drive innovation and foster deeper cooperation throughout the entire energy value chain, said Loletta Chow, global leader of China overseas investment network at accounting firm EY.
Chow highlighted the proactive stance of several League of Arab States member countries in promoting economic diversification strategies to lessen reliance on traditional energy sources. Notable initiatives include Saudi Arabia's 'Vision 2030' targeting 50 percent of power generated from renewable energy sources by 2030, the United Arab Emirates' goal for a 50 percent clean energy share by 2050, and Egypt's ambition for 40 percent renewable energy generation by 2040.
"This shift has opened up avenues for Chinese renewable energy enterprises," Chow said.
A recent EY report underscores a significant surge in Chinese companies' involvement in the clean energy sector across LAS countries in recent years. Particularly prominent are investments in sectors such as solar and wind power, battery storage, green hydrogen and carbon capture, utilization, and storage.
According to EY data, Chinese investments in solar and wind energy within LAS countries surpassed $13 billion between 2018 and 2023, constituting 24 percent of China's total energy investment in the region.
