25 October 2017

Dubai Green Fund raised $650 million for investment in sustainability projects

During the opening keynote at the World Green Economy Summit (WGES) taking place in Dubai, Dubai’s Electricity and Water Authority (DEWA) announced that through its Dubai Green Fund, it has already secured more than $650 million for green projects.

Saeed Al Tayer, Managing Director and CEO of DEWA said: “In collaboration with national banks, we are pleased to announce that Dewa has raised Dh2.4 billion ($650 million) for the Dubai Green Fund”.

He added: “The world today is witnessing a lot of change, and is feeling the impact of climate change. We are in dire need of adapting to these changes”.

The Dubai Green Fund constitutes the investment arm of DEWA and it was established in 2016 to offer loans to companies in the clean energy sector with favourable interest while also investing directly into green projects acting like a traditional fund.

The Fund’s intention is to invest in multiple types of projects, including renewable energy, retrofitting existing fossil fuel based energy systems, energy efficiency and balancing technologies between electricity demand and supply.

National Bonds, a local savings scheme wholly owned by Dubai’s sovereign wealth fund and the Investment Corporation of Dubai are among the fund’s principal investors.

Samy Ben-Jafaar, Private Sector Investments at Green Climate Fund said that “the intention of the fund is not profit maximisation”.

He added: “It is to demonstrate that, firstly, it is possible to invest in green projects in a profitable manner, and secondly to show it is possible to de-risk some of the smaller projects, and thirdly, once you do that, you will crowd in the bigger institutional money”.

Last week, Samy Ben-Jafaar revealed that Dubai Green Fund has set an ambitious target to raise a total of approximately £20 billion for green investment.

Al Tayler said during a press conference last week that a full investment roadmap will be announced during the World Green Economy Summit (WGES).

Saeed Al Tayer revealed that there was interest in the Fund from actors in Europe and Asia and that they were already in talks with a state-owned Chinese bank.

Lars Kroijer, a veteran hedge fund investor and CEO of AlliedCrowds applauded the initiative by saying that it is a “watershed moment in sustainable investing”.

He said: “It sends a hugely positive message to institutional investors that there’s nothing wrong with getting involved in the green space, and it sends a hugely positive message to other sovereign wealth funds, who will say, ‘Why aren’t we doing these things?”.

He stated that the Green Fund constituted a progressive step for Dubai, which aims to become a sustainability hub for companies and investors. 

Dubai’s Electricity and Water Authority (DEWA) is a Strategic Partner for the 8th Sustainable Innovation Forum, taking place alongside COP23, in Bonn, Germany 13-14 November. His excellency Saeed Al Tayer, Managing Director  & CEO of DEWA will be delivering the High-Level Business Address on the first day of the event. To learn more about the event and how to register, visit the official SIF website here

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