Economy Energy UAE

UAE, China strengthen energy ties with new clean energy and industrial platform deal

Photo Credit : WAM

The UAE’s Ministry of Investment has signed a strategic Memorandum of Understanding with Jereh Group to develop an integrated clean energy and industrial platform, reinforcing the country’s push to lead in next-generation energy and advanced manufacturing.

The agreement, signed by Mohammad Abdulrahman Alhawi, Undersecretary of the Ministry of Investment, and Li Weibin, Executive President of Jereh Group, aims to deepen economic cooperation between the UAE and the People’s Republic of China while positioning the UAE as a regional hub for emerging energy technologies.

Under the proposed plan, Jereh Group will invest in a multi-component platform that includes the deployment of small modular reactor (SMR) technology to deliver stable, zero-carbon baseload power. The project will also establish an anode material manufacturing facility with an annual production capacity of 100,000 tonnes, alongside lithium battery recycling capabilities.

The platform is designed as a fully integrated ecosystem, where clean energy generated through SMR technology will directly power the industrial operations, particularly the anode material plant. Development is expected to roll out in phases over the next three to five years.

Officials say the initiative supports the UAE’s broader industrial ambitions by strengthening domestic manufacturing capabilities while aligning with the UAE Energy Strategy 2050, which targets a higher share of clean and low-carbon energy in the national mix.

The project also highlights the UAE’s growing role as an early adopter of advanced energy solutions, enhancing its appeal as a destination for large-scale industrial and technology investments.

Alhawi said the partnership reflects the strength of long-standing UAE-China economic relations, which have evolved into a major two-way investment corridor over the past four decades. He noted that China remains the UAE’s largest trading partner, with bilateral trade exceeding $100 billion in 2024, and is also the fourth-largest source of foreign direct investment into the country.

Li Weibin described the agreement as a significant milestone in Jereh Group’s global expansion, highlighting the UAE’s strategic importance as a hub for innovation, trade, and investment. He added that the collaboration will support the company’s ambitions in clean energy, advanced manufacturing, and digital infrastructure, while contributing to the UAE’s long-term economic growth.

The agreement comes amid a steady rise in Chinese business presence in the UAE, with nearly 16,500 Chinese trade licenses active in the market by July 2025, marking an increase of more than 18 percent year-on-year across various sectors.

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