The United Arab Emirates has announced a major new commitment to support Yemen’s devastated power sector, unveiling a $1 billion package of renewable energy and grid-strengthening projects to be implemented by Abu Dhabi-based Global South Utilities (GSU). The move marks one of the most significant foreign investments in Yemen’s energy infrastructure in decades and signals a renewed effort to stabilise essential services in a country still recovering from years of conflict. The initiative builds on earlier Emirati support for Yemen’s renewable energy transition, including financing for the country’s first utility-scale solar plant in the southern city of Aden. With the new investment, the UAE aims to accelerate the expansion of clean power capacity while helping restore the backbone of the national grid.

A Large-Scale Clean Energy Push Amid a Fragile Power System

GSU confirmed that the portfolio will include a mix of solar and wind projects, alongside work to rebuild and expand distribution networks destroyed or weakened during years of unrest. Yemen has suffered chronic electricity shortages for nearly three decades, with fuel scarcity, war-related infrastructure damage and operational breakdowns leaving millions without reliable access to power.

The newly announced investment is intended to create a more stable energy foundation, with GSU stating that the programme is designed to “support a larger economy and a more active market in Yemen.” The company’s chief executive, Ali Alshimmari, emphasised that the scale of the package reflects the urgency of rebuilding Yemen’s power sector and enabling long-term economic recovery.

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A Country Still in the Dark: Understanding Yemen’s Energy Challenge

Yemen’s national grid has been deeply fragmented since the outbreak of civil war in 2014. Many regions rely on small diesel-powered generators, which are costly, polluting and increasingly unreliable due to fuel shortages. Against this backdrop, renewable energy has begun to emerge as one of the few pathways for stabilising electricity access. Solar power currently accounts for just over ten percent of Yemen’s electricity generation, according to the International Energy Agency. The share is expected to rise as the second phase of the Aden Solar Power Plant moves forward in 2026, doubling its capacity and helping meet growing urban demand. The UAE-funded Aden project has already demonstrated the role that external financing can play in easing Yemen’s power constraints, and the new GSU-led portfolio is expected to scale that impact significantly.

Strengthening Yemen’s Path Toward a Clean Energy Transition

Beyond increasing generation capacity, the new investment has the potential to address critical structural gaps in Yemen’s energy system. Distribution failures remain one of the most significant bottlenecks preventing reliable supply, and rebuilding these networks will be essential for connecting communities to new renewable installations.

Prime Minister Salem bin Braik, speaking earlier on Wednesday, confirmed that the UAE’s pledge will focus on both immediate energy relief and longer-term resilience. Officials expect that the mix of solar and wind development could offer a more secure alternative to fuel-dependent systems that have repeatedly collapsed under economic and political pressure.

A Regional Example of Energy Diplomacy

The UAE has increasingly positioned itself as a regional leader in renewable energy investment, backing large-scale solar and wind projects across the Middle East, Africa and Asia. The Yemen initiative aligns with this broader strategy while also reinforcing diplomatic ties and contributing to humanitarian stabilisation. If implemented effectively, the $1 billion portfolio could become a blueprint for delivering climate-aligned infrastructure in fragile or conflict-affected contexts, where traditional grid rebuilding models often fall short.

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Looking Ahead

As Yemen continues to navigate a complex post-conflict recovery, the energy sector will play a decisive role in economic revival, service delivery and community well-being. The GSU-led programme represents one of the clearest signals yet that external partners are willing to help rebuild the country’s power backbone with a focus on long-term sustainability.

The coming months will determine how quickly projects can break ground, how local institutions will be involved and whether this investment will catalyse broader efforts to modernise Yemen’s energy landscape. What is clear, however, is that the Emirati pledge marks a major turning point in a country where reliable power has been out of reach for far too long.

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