BMI View: We continue to hold an upbeat outlook for the UAE power sector as reflected in our new Risk/Reward Index, where the UAE is ranked the most attractive power market globally owing to the wideranging investment opportunities across the nuclear, gas and solar sectors, and in areas such as energyefficiency. We expect the UAE to maintain its focus on expanding its nascent nuclear and solar industries,which will result in these two sectors making a much greater contribution to the electricity capacity andgeneration mix over our forecast period. While solar and nuclear gain traction, the role of natural gas inthe power mix will become less, freeing up gas for export. But we remain sceptical about the ability of thecountry to meet its targets with the expected speed.
Key Trends And Developments
The UAE offers widespread investment opportunities across many segments of its power market,including the nuclear, gas and solar sectors, as well as in the energy efficiency sector. Strong demand forpower - driven by a growing population, water desalination requirements and rising urbanisation - willnecessitate the build-up of power capacity in the country. The UAE is currently developing four nuclearreactors with a cumulative capacity of 5,600MW at the Barakh nuclear power plant and the UAE hasemerged as a global solar power outperformer, due to the cost-competitiveness of the technology and thegovernment's commitment to expanding the solar sector. As such, we expect installed power capacity inUAE to grow by an annual average rate of 4.9% between 2017 and 2026.