Digital platform targets Gulf green energy deal-making

• ‘Catalytic Investment Exchange’
• Connects investors and projects
• Aims for global scope

A new digital platform aims to facilitate deal-making between institutional investors and deal sponsors as Gulf states ramp up investment in green energy projects both at home and abroad. 

“When executives announce a pledge of X billion investment, and then start thinking, ‘Okay, how do we actually put that to work?’, they can go onto our platform and find a bunch of deals that might be of interest to them,” Rich Nuzum, global chief investments strategist at the US consulting firm Mercer told AGBI at the Cop28 summit in Dubai last week. 

• Arab alliance allocates $10bn for green energy projects
• Egypt strikes Cop28 deals to drive green energy goals
• Masdar expands renewables footprint to Jordan and Europe

Mercer launched the platform, known as the Catalytic Investment Exchange, in August this year with a focus on deals covering green infrastructure, green and clean technology, biodiversity and natural capital. 

Project sponsors are required to complete a list of 35 questions, the answers to which are made available to potential investors, so that investors can search through projects and conduct due diligence on them. 

Nuzum said that although Gulf states do not need the exchange to do green energy and infrastructure deals locally, given well-developed project finance frameworks and ample funding, he expects it to be more useful in a global context. 

The UAE is one of the largest investors globally in renewable energy, having invested more than AED183 billion ($36 billion) in renewable energy projects across 70 countries. 

On December 6 the Arab Coordination Group, an alliance of regional and international development institutions, allocated $10 billion until 2030 to support energy transition in developing countries.

Last month, the Emirates Development Bank and the International Renewable Energy Agency signed a partnership agreement under which the bank will invest AED1.3 billion ($350 million) in renewable energy projects in emerging economies. The projects will be endorsed by the agency.