UAE announces $1bn package to rebuild Yemen’s electricity sector

Yemen’s infrastructure has been severely damaged by more than a decade of conflict and civil war.

The Houthis, aligned to Iran, control significant portions of Yemen’s northwestern regions and also hold the capital, Sanaa.

Meanwhile, the Yemeni army is loyal to the internationally recognised government and the Southern Transitional Council (STC).

Fighting against the government is mostly frozen currently.

The UAE’s Ministry of Foreign Affairs announced the funding package following the first Yemen National Energy Conference.

Many areas of Yemen currently average less than four hours of electricity per day. The UAE’s allocation includes plans to build solar, wind and conventional power plants, its embassy in Yemen said.

UAE’s ambassador to Yemen, Mohamed Hamad Al Zaabi, reaffirmed the country’s commitment to sustainable energy in Yemen and strengthening public-private partnerships to stimulate future investment.

The programme will be executed by Abu Dhabi-based Global South Utilities (GSU), which recently inaugurated a 53MW solar project in Shabwah and is doubling capacity at an Aden solar PV plant, now set to become one of the region’s largest.

The move creates an opportunity for European companies to get involved in the recovery effort, Akul Raizada, a Paris-based energy consultant said.

“This announcement creates a real opening for EU support and European companies to engage in Yemen’s power-sector recovery. With projects already moving ahead [Shabwah and Aden], the sector is shifting toward practical delivery. If supported by dependable off-take and basic risk-mitigation tools, the situation could offer workable entry points for European technology providers, financiers and engineering partners,” Raizada said.