As policy makers accelerate their climate change mandate and new technologies continue offering smart clean energy solution, we see the energy industry to be one of the biggest investment beneficiaries across the globe. By one estimate, the annual clean energy investments need to triple to over US$ 4 trillion by 2030 to meet the world’s 2050 net zero goals.
Notably the UAE has also adopted a comprehensive energy transition strategy and the country plans to invest around US$ 160 billion over the coming decades.
This opens a lot of opportunities across the entire energy value chain including generation, storage, and smart grid technologies.
However, the level of disruption across these industries raises some questions about the durability of some businesses and technologies. Besides, the payback period is also stretched across some sub-sectors. Therefore, it is very crucial to balance these opportunities with the right economics to maximize shareholder return. So we see a lot of value in businesses which offer high earning stability, especially in the current uncertain macroeconomic backdrop. And yet these businesses are very well positioned to grow rapidly on the back of this energy transition.
This to a large extend explains our recent transactions in this space and plans to continue growing our utilities vertical.
Chief Economist at Multiply Group