Masdar and Silk Road Fund co-invest in renewables projects

UAE energy company Masdar and China’s Silk Road Fund have teamed up to explore co-investment opportunities in renewable energy projects in Belt and Road Initiative (BRI) countries.

The companies signed a Memorandum of Understanding at COP29, which will focus primarily on project development in developing countries and the global south.

Silk Road Fund plans to invest up to RMB 20 billion ($2.8 billion) in renewable energy projects developed, invested in or operated by Masdar.

Commenting on the MoU, Masdar’s CEO, Mohamed Jameel Al Ramahi said: "This collaboration between two companies with significant investments in renewable energy projects in emerging markets and the global south will provide a major impetus to efforts to advance the energy transition. We look forward to a successful and rewarding partnership with Silk Road Fund."

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Silk Road Fund’s chairwoman, Zhu Jun said: "The UAE is a key Belt and Road Initiative participant and one of the most important investment and trading partners for China. The partnership between Silk Road Fund and Masdar is a strong testament to both parties’ commitment to the development of sustainable energy on a global scale, and will act as an enabler to help further strengthen investment collaboration between the two countries. We look forward to working with Masdar as well as other partners to jointly build ‘the Green Silk Road’ in the decades to come."

Masdar has significant investments in BRI regions, including the Middle East, Central Asia, Southeast Asia and Africa.

SRF’s renewable energy portfolio totals more than 7GW in Belt and Road regions, including the Middle East, Africa, Southeast Asia and Latin America.

The Belt & Road Initiative, launched by Chinese President Xi Jinping in 2013, aims to connect major Asian, European and African economies through infrastructure, trade and investment. The focus is to develop infrastructure and energy sector projects, including small-scale renewables, mining, power and transport projects.

The UAE has been an active partner in the BRI since its launch, having already invested $10 billion in a joint China-UAE investment fund to support various projects in East Africa.