$30 Million Invested in UAE Energy Startups in First Half of 2024

Investor confidence in UAE energy startups has surged, with these companies securing $30 million in the first half of 2024, surpassing the $24 million raised in the entirety of 2023, according to a recent analysis.

The International Energy Agency (IEA) reported that companies specializing in energy storage and batteries received the largest share of total financing, accounting for about 33.3 percent. Solar energy firms followed, capturing 25 percent of the funds.

This boost in funding for renewable energy startups underscores the UAE’s commitment to accelerating its energy transition, aiming for net-zero emissions by 2050.

The IEA also highlighted that UAE wind energy companies received 8.3 percent of the overall financing in the first half of this year, while firms in other renewable and clean energy technologies accounted for the remaining 33.3 percent.

By the end of 2023, the total number of startups in the UAE’s energy sector had reached 54, with 21 in the renewable sector, 12 in energy storage and batteries, nine in energy efficiency, and 12 in other energy-related fields.

In addition to energy initiatives, UAE startups are addressing critical challenges such as water security. In May, Airwater Co., a firm specializing in air-to-water technology, received a strategic investment from Abu Dhabi-based venture capital firm Tau Capital. The investment, for an undisclosed amount, will help Airwater Co. expand its manufacturing, infrastructure, and distribution capabilities, particularly for large-scale commercial and industrial atmospheric water generation facilities.

Bill Murray, managing director of Tau Capital, praised Airwater Co.'s innovative approach to water security, calling it a prime example of the transformative innovation needed for sustainable global development.

This investment followed another in December 2023, when UAE-based Zeroe secured $2.3 million in seed funding from the VOYAGERS ClimateTech Fund. This funding is intended to help Zeroe expedite the development of its AI-integrated SaaS platform, which optimizes carbon emission calculations to aid companies in their net-zero transition efficiently and cost-effectively.

Source: Arab News