To meet zero emissions targets and decouple its economy from hydrocarbons, the UAE is providing grants and investment to all companies that include the production and use of renewable energy, such as solar and wind power, in their business plans, and is encouraging research and development of clean and sustainable technologies.
The statistics are not misleading. The data shows that, in 2024, new companies entering this field received state funding, demonstrating that investment in renewable energy is higher than investment in traditional energy sources, reflecting the growing awareness of the importance of reducing the carbon footprint and mitigating climate change.
According to data collected by the International Energy Agency (IEA), 7 billion dollars of investment was reached in the first half of 2024. In addition, the IEA reported that renewable energy start-ups represent only 2.1% of global start-ups, although they received large funding.
Of this amount, more than 5.9 billion dollars went to clean energy and 1.4 billion dollars to start-ups operating in the digital space. 2022 was a record year with total investments of more than 24.8 billion dollars. This shows that investment in renewable energy and digital technology is increasing rapidly.
Energy-related startups are divided into 12 activities or sectors, the most popular being solar, wind, energy efficiency, energy storage and batteries. The proportion of companies operating in the renewable energy sector is very significant and, in 2023, this figure reached 32.2% of all startups.
Among them, the most important renewable energy sectors are solar energy and wind energy, with a share of 8.2% and 0.6% respectively. This may indicate that these technologies are becoming increasingly popular and are in high demand by businesses and consumers. In addition, energy efficiency and energy storage are also important areas: 16.8% and 10.3% respectively.
The report highlights the growth of digital start-ups operating in information and communications technologies, Internet of Things and other digital and IT fields. The most popular sectors for startups in the UAE are financial technology (Fintech), e-commerce, healthcare and wellness, renewable energy, artificial intelligence (AI), data analytics and cybersecurity. These industries benefit from the UAE’s strategic location and the availability of resources and support for entrepreneurship and innovation.
With more than one million companies worldwide, the sector revolutionises the way businesses work and communicate. Overall, the report shows that the energy industry is undergoing tremendous growth and change, with a particular focus on sustainability and digitisation. The United Arab Emirates (UAE) is a popular destination for startups and tech companies thanks to its strategic location, modern infrastructure, tax incentives and access to new emerging markets, and the startup ecosystem is constantly growing.
The country launched a number of initiatives to support innovation and entrepreneurship, with a focus on simplifying procedures and reducing costs. In addition, the UAE is a popular destination for foreign investment and has a large number of investment funds and companies willing to invest in startups and technology companies.
In terms of digitalisation, startups, since their birth, have revolutionised traditional concepts of business. The concept of enterprise increasingly encompasses modes of collaboration and communication, how companies interact and do business, offering revolutionary innovations and solutions that transform how we live and work, and creating new business models and opportunities for economic growth.
Read More
