UAE unveils $1bn Yemen energy rebuild, signalling new opportunities for European renewables and grid partners

The UAE has announced a $1 billion package to help rebuild Yemen’s electricity sector, a move that analysts in Europe say could open new avenues for European renewable-energy firms seeking entry points into high-impact stabilisation projects across the Middle East.

According to the UAE’s Ministry of Foreign Affairs, the decision was disclosed during the UAE’s participation in the first Yemen National Energy Conference (YFNEC 2025) recently. UAE’s Ambassador to Yemen Mohamed Hamad Al Zaabi reaffirmed the country’s commitment to advancing sustainable energy in Yemen, addressing longstanding grid challenges and strengthening public–private partnerships to stimulate future investment.

The country’s renewed intervention arrives as Europe accelerates its engagement with Gulf partners on energy security, climate resilience and regional stabilisation. Brussels has repeatedly stressed that restoring essential services in conflict-affected regions is central to reducing forced displacement, protecting Red Sea shipping routes and supporting long-term peacebuilding efforts. Yemen – situated at the southern mouth of the Red Sea – remains a critical part of that equation.

"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," said Akul Raizada, a Paris-based energy policy consultant advising EU stakeholders.

The UAE’s allocation includes plans to build solar, wind and conventional power plants, part of a wider effort to restore reliable power in a country where many areas receive fewer than four hours of electricity per day. 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.

Yemen’s Prime Minister Salem bin Braik praised the UAE’s sustained support during a period in which Yemen’s infrastructure has been severely damaged by more than a decade of conflict. For Europe, the UAE’s renewed engagement strengthens broader efforts to stabilise supply chains, safeguard maritime trade lanes and expand sustainable partnerships across the region – priorities increasingly embedded in the EU’s long-term geopolitical and energy strategy.