Updated March 29th, 2024 at 21:41 IST

UAE eyes european nuclear energy investments amid diversification drive

The recent memorandum of understanding on civil nuclear cooperation between the UAE and the UK inked during the U.N. climate summit in Dubai.

Reported by: Business Desk
British nuclear workforce | Image:Unsplash
Advertisement

UAE investing in Europe: The United Arab Emirates (UAE) is making bold strides into the European nuclear energy domain, signalling interest in potential investments in the region's nuclear power infrastructure. Sources familiar with the matter disclosed that the UAE has initiated discussions with European counterparts, including the UK, intending to secure a stake in their nuclear assets.

Under the lens is the Emirates Nuclear Energy Company (ENEC), a state-owned entity backed by Abu Dhabi's ADQ, which seeks to establish itself as a global player in the nuclear energy arena. ENEC's strategy revolves around acquiring minority shares in European nuclear projects, leveraging its financial prowess to drive international partnerships.

Advertisement

While specific details of the talks remain confidential, the discussions coincide with the UK's quest for private investment in pivotal projects such as Sizewell C, led by EDF. The move aligns with the UAE's broader economic diversification agenda, as the Gulf nation aims to reduce its reliance on traditional fossil fuels.

The recent memorandum of understanding on civil nuclear cooperation between the UAE and the UK inked during the U.N. climate summit in Dubai, underscores the shared commitment to advancing sustainable energy solutions.

Advertisement

Despite the potential financial infusion from UAE investors, the involvement of state-backed entities in critical infrastructure projects has raised eyebrows in some quarters. Recent scrutiny in the UK surrounding foreign state investments underscores the political sensitivity surrounding such deals.

Nonetheless, ENEC's robust financial backing could provide a viable solution to the investment challenges faced by nuclear projects in Europe. As the continent grapples with divergent views on nuclear energy, the UAE's entry into the fray could offer a fresh perspective and inject momentum into efforts to meet ambitious climate goals.

Advertisement

With Reuters Inputs

Advertisement

Published March 29th, 2024 at 21:41 IST