UAE allocates $1 billion to support energy sector in Yemen

ABU DHABI Following the directives of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, with the close follow-up by His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice-President, Deputy Prime Minister and Chairman of the Presidential Court, the UAE announced a commitment of $1 billion to support the development of the energy sector in Yemen.

This initiative aligns with the UAE’s continuous efforts to advance sustainable development in Yemen, reflecting its steadfast commitment to providing a dignified life for the brotherly people of Yemen.

The announcement was made during the UAE’s participation in the first Yemen National Energy Conference (YFNEC 2025), where Mohamed Hamad Al Zaabi, UAE Ambassador to Yemen, participated.

He affirmed the UAE’s commitment to advancing the development of the sustainable energy sector and addressing the existing challenges, in addition to strengthening constructive partnerships between the public and private sectors and exploring future investment opportunities in Yemen.

For his part, Salem bin Braik, Prime Minister of Yemen, commended the long-standing bilateral ties, and the UAE’s continuous support for the Yemeni people’s aspirations toward growth, development, and stability.

The event witnessed broad international participation, including permanent member states of the UN and representatives from the Office of the UN Envoy to Yemen - as part of international collective efforts to meet the needs of the Yemeni people in the energy and electricity sectors and reinforce stability and prosperity for the brotherly people of Yemen.

Meanwhile, Ali Alshimmari, Managing Director and CEO of Global South Utilities (GSU), said the UAE’s new $1 billion investment portfolio in Yemen will help provide between two and three million homes with clean energy through solar and wind projects.

He noted that the portfolio is expected to create more than 6,000 direct and indirect jobs in the Yemeni market and deliver major environmental gains, including reducing over 17 million tonnes of carbon emissions and saving more than 1.25 billion kWh of conventional fuel consumption, equivalent to more than 330 million litres of diesel.

In statements to the Emirates News Agency (WAM), Alshimmari said the company outlined during the Yemen First National Energy Conference a practical plan to rebuild the country’s electricity sector on modern and scalable foundations. Stable power, he stressed, is not merely a technical service but an economic driver that enables hospitals, schools and industry to operate efficiently.

Partnership model

He said the company’s participation highlighted the new investment portfolio and its partnership model with Yemeni entities, based on joint implementation and developing local capabilities. The approach aims to create conditions that encourage private-sector involvement and ensure long-term growth and sustainability for energy projects.

Alshimmari explained that Global South Utilities has already implemented two major solar projects in the governorates of Aden and Shabwa. The Shabwa plant is ready to supply clean electricity to about 330,000 homes, while the Aden plant, scheduled for completion in 2026, will serve around 687,000 homes.

Together, the projects will deliver clean and stable electricity to more than one million homes and facilities, marking the largest transformation of its kind in Yemen’s energy sector. They will also reduce hundreds of thousands of tonnes of emissions annually and lower dependence on costly fuel.

Expansion plans

He revealed that the company’s expansion plan aligns with the UAE’s new investment portfolio across several Yemeni governorates and includes additional solar projects, enhanced storage capacity and upgrades to distribution networks. These efforts aim to build a modern, reliable energy system capable of serving millions of homes in the coming years.

The objective, he said, is to establish a stable energy base that supports economic growth and attracts new investment to Yemen’s electricity sector through long-term partnerships between Yemeni institutions and international private-sector partners.

Alshimmari added that Global South Utilities is also expanding in multiple markets across Asia and Africa through solar projects, storage solutions and distribution networks. This includes completing the acquisition of a 51 percent stake in Uzbekistan’s Yashil Energiya, marking the first entry by a UAE company into the renewable energy sector in the Commonwealth of Independent States (CIS) region.

He said the company remains focused on building scalable energy systems with clear economic benefits in cooperation with governments and investors.