Emirates announces $127 billion investment plan to strengthen its position as oil and gas competitor
The United Arab Emirates aims to strengthen its position as a global competitor in oil and gas reserves, at least with this objective in mind, the Abu Dhabi National Oil Company (ADNOC) has approved an investment plan of 127 billion dollars. The move is intended to strengthen domestic oil and gas reserves to make the UAE a major player in the Organisation of Petroleum Exporting Countries (OPEC) and to establish a sustainable economy and a leader in renewable energy. This investment plan has been carried out by ADNOC, together with Mubadala, a UAE investment fund, and TAQA, a national energy company in Abu Dhabi.
The ADNOC board meeting was chaired by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayeb al-Nahyan, who described the move as a great opportunity to make the UAE a leader in the energy sector. "Today we are launching a strategic partnership between ADNOC, Mubadala and TAQA to become a world leader in the field of renewable energy and hydrogen," said the crown prince, adding that he is confident in the future and in his national competencies to achieve such aspirations.
According to OPEC, the UAE ranks sixth in oil reserves and seventh in gas reserves, reflecting Abu Dhabi's oil and gas growth. The new investment plan is expected to further increase these figures and strengthen its presence, especially in the gas market, which is dominated by Qatar and Russia.
On the other hand, investment in renewables, hydrogen and other low-carbon fuels is one of the priorities of the UAE's new investment plan. The goal to reduce the carbon footprint is also to lead in clean energy to achieve net zero emissions by 2050. Such is the commitment that the three companies in this strategic plan, ADNOC, TAQA and Mubadala will work under the name Abu Dhabhi Clean Energy.
All this comes after tough negotiations between OPEC and the United Arab Emirates on cutting its production, which was finally dropped after Abu Dhabi managed to increase its production to 3.5 million barrels per day from May 2022. With this, the UAE aims to increase its production before oil reaches its peak demand, which is estimated to be in 2030, according to the International Energy Agency. This is also why the UAE aims to diversify its revenue sources, something it intends to achieve with the proceeds of the recently approved plan.
The upturn in renewable energy is the new reality in which the UAE has placed its investment focus in order to diversify its economy and obtain alternative sources of income other than oil, foreseeing that the so-called black gold will lack buyers in the future.