UAE's $1 Billion Investment In Yemen To Deliver Clean Energy For Millions Of Homes

The UAE has unveiled a US$1 billion investment portfolio aimed at enhancing Yemen's energy sector. This initiative will provide clean energy to between two and three million homes through solar and wind projects. Ali Alshimmari, Managing Director and CEO of Global South Utilities (GSU), highlighted the significant environmental benefits, including a reduction of over 17 million tonnes of carbon emissions.

Alshimmari noted that this investment is expected to generate more than 6,000 direct and indirect jobs in Yemen. The initiative will also save over 1.25 billion kWh of conventional fuel consumption, equating to more than 330 million litres of diesel. These efforts are part of a broader strategy to modernise Yemen’s electricity infrastructure.

During the Yemen First National Energy Conference, GSU outlined a comprehensive plan to rebuild the country's electricity sector on modern foundations. Alshimmari stressed that stable power is crucial for economic growth, enabling hospitals, schools, and industries to function effectively. The company’s approach encourages private-sector involvement through joint implementation with Yemeni entities.

Global South Utilities has already completed two major solar projects in Aden and Shabwa governorates. The Shabwa plant is operational, supplying clean electricity to about 330,000 homes. Meanwhile, the Aden plant is set for completion in 2026 and will serve around 687,000 homes. Together, these projects aim to deliver clean electricity to over one million homes.

Alshimmari revealed that GSU's expansion aligns with the UAE's new investment portfolio across various Yemeni governorates. This includes additional solar projects, enhanced storage capacity, and upgrades to distribution networks. These efforts aim to establish a reliable energy system capable of serving millions of homes in the future.

The company is also expanding its reach into Asia and Africa through solar projects and distribution networks. Notably, GSU has acquired a 51 percent stake in Uzbekistan’s Yashil Energiya. This marks the first entry by a UAE company into the renewable energy sector within the Commonwealth of Independent States (CIS) region.

Focus on Economic Growth

The objective is to create a stable energy base that supports economic growth in Yemen's electricity sector. Long-term partnerships between Yemeni institutions and international private-sector partners are key to attracting new investments. Alshimmari emphasised that GSU remains committed to building scalable energy systems with clear economic benefits.

"Stable power is not merely a technical service but an economic driver," Alshimmari stated during his address at the conference. He reiterated that GSU's participation highlights their commitment to sustainable growth through local partnerships.

In summary, Global South Utilities aims to transform Yemen’s energy landscape by leveraging UAE’s substantial investment portfolio. Through strategic partnerships and innovative projects, they seek to ensure long-term sustainability and economic development in the region.

With inputs from WAM