As traditional sources of development finance recede, a new report from Clean Air Task Force (CATF) finds that countries in the Middle East, particularly the United Arab Emirates and Saudi Arabia, are emerging as some of the most influential actors shaping Africa’s clean energy and industrial future. The report, The Role of Middle East Leadership in Clean Energy Infrastructure Funding, examines how growing Gulf investment in energy and enabling infrastructure could help close Africa’s power gaps, support economic development, and advance global climate goals—if structured to deliver long-term, system-wide impact.
“Africa has the resources and the ambition to meet its energy needs—but what it lacks is patient capital willing to take on the required risks,” said David Yellen, Director, Climate Policy Innovation at CATF and coauthor of the report. “The UAE and Saudi Arabia are showing that a new investment model is possible—one built on partnership, market creation, and shared value rather than piling on debt. But realizing that at scale means funding projects in more countries, beyond those that have historically been repeat beneficiaries of development aid, and supporting initiatives beyond renewable power generation alone.”
According to the report, UAE and Saudi governmental and semi-governmental entities have announced more than $175 billion in clean energy investments and commitments in Africa since 2010, with the vast majority announced after 2022. Much of this capital is structured as direct project investment rather than sovereign lending, reducing debt burdens while enabling larger, faster-moving infrastructure projects.
The UAE has expanded its clean energy footprint through entities such as Masdar and the Abu Dhabi Fund for Development, investing across solar, wind, geothermal, and green hydrogen projects in North, East, and Southern Africa. Saudi Arabia, led by ACWA Power and the Saudi Fund for Development, has similarly ramped up activity, particularly in large-scale renewables and hydrogen projects in countries including Egypt, South Africa, and Morocco.
“However, current Gulf investment patterns risk replicating longstanding inequities,” added Nada Hamade, co-author of the report. “Most capital continues to flow to a small group of relatively well-capitalized countries, while nations with the greatest energy access gaps remain underserved. GCC investors have an opportunity to diversify both where and how they invest, ensuring their support reaches the places and projects that need it most.”
Key opportunities identified in the report include:
- Transmission and grid infrastructure to ensure reliable electricity access and renewable integration
- Clean firm power, such as geothermal and nuclear energy, to support industrial growth and stabilize grids
- System-level investments linking energy supply to new sources of demand, including industry and data centers
- Climate-smart investments in methane abatement and critical minerals, where Gulf expertise could deliver rapid climate benefits and economic returns
The report emphasizes that Gulf countries can distinguish themselves from legacy development institutions—not by replicating traditional models, but by investing in enabling infrastructure, adopting a longer-term view of risk, and partnering with a broader range of African countries. By diversifying support, fostering local value through workforce development and shared ownership, and aligning investments with national development priorities, Gulf investors could unlock energy access, industrial growth, and climate resilience at scale, reshaping global development finance and accelerating a just and durable clean energy transition.
More than 600 million people in Africa still lack reliable electricity, yet the continent receives only 2% of global clean energy investment. By 2030, Africa will require roughly $133 billion annually in clean energy funding to meet its development and climate goals. With development finance from the U.S., Europe, and China increasingly constrained, the report highlights that Gulf countries are uniquely positioned to help bridge this growing gap. A 2024 CATF analysis finds the average cost of capital for African energy projects is an alarming 15.6%—more than three times higher than in developed regions such as Western Europe and the U.S.