UAE Investments In Chile Hit $2 Billion In 2023, Boosting Trade And Renewable Energy

Nicolás Grau, Chile's Minister of Economy, Development and Tourism, revealed that UAE investments in Chile reached around US$2 billion in 2023. The UAE is working with Invest Chile on various projects to boost trade and investment ties.

Grau mentioned that by the end of 2023, Chile had attracted nearly $23 billion in foreign direct investments. This represents the highest growth since 2014. He emphasised the UAE's significant investments in Chile and ongoing efforts to strengthen cooperation during his current visit.

The minister highlighted meetings with business communities from both nations, showing strong interest in sectors like mining, copper, technology, desalination, food production, and energy. These discussions aim to explore further collaboration opportunities.

Grau expressed a keen interest in partnering with the UAE on water desalination projects due to Chile's status as a major copper producer. He noted the importance of making copper production more environmentally friendly and increasing investments in renewable energy sources.

"The UAE has shown leadership in renewable energy," Grau said. "We wish to benefit from their expertise in the green economy sector." He added that two-thirds of Chile's energy production currently comes from renewables.

Chile's Renewable Energy Potential

Chile boasts numerous natural resources that support a shift towards renewable energy. Environmentally friendly energy accounts for nearly 50 percent of its total production, mainly from wind, solar, and hydroelectric power.

Grau pointed out that Chile is a leading technology hub in Latin America. The country is constructing the first subsea cable route to directly connect South America with Asia-Pacific.

The minister also highlighted the potential for collaboration between Chile and the UAE to enhance copper production sustainability and expand renewable energy investments. This partnership could significantly benefit both nations' economies and environmental goals.

In conclusion, Nicolás Grau's visit underscores the growing economic ties between Chile and the UAE. With substantial investments already in place and promising sectors identified for future cooperation, both countries stand to gain from this strengthened relationship.

With inputs from WAM