The United Arab Emirates (UAE) has announced a major $1 billion commitment to support the rehabilitation and development of Yemen’s struggling energy sector. This significant pledge comes at a critical time for the country, where years of conflict, fuel shortages, and deteriorating infrastructure have left millions facing daily power outages and unreliable access to electricity. The UAE’s investment aims to stabilize electricity production, enhance renewable energy capacity, and lay the foundation for long-term economic recovery in Yemen.
For decades, Yemen’s electricity grid has suffered from extensive damage due to conflict and limited maintenance. Many power plants either operate at minimal capacity or have gone offline entirely. As a result, households and businesses throughout the country often rely on expensive diesel generators or small solar setups to meet basic needs. In several regions, residents receive only a few hours of electricity per day, placing immense pressure on essential services such as hospitals, water stations, and schools. The UAE’s funding seeks to reverse this trend by delivering modern, reliable, and sustainable energy solutions that can support Yemen’s recovery.
The newly announced package will be implemented through Global South Utilities (GSU), a UAE-based company specializing in energy infrastructure and renewable power projects. The investment includes the construction and rehabilitation of major power plants, expansion of electricity transmission networks, and the installation of modern distribution systems. A core part of the initiative focuses on renewable energy, especially solar and wind power, which offer cost-effective and environmentally friendly alternatives to traditional fuel-based generation. This approach aligns with global trends toward clean energy and supports Yemen’s transition away from dependency on imported fossil fuels.
In addition to new generation capacity, the UAE’s funding will help introduce battery energy storage systems designed to stabilize the grid and ensure consistent power supply. These systems can store excess energy from solar and wind sources, allowing communities to benefit from electricity even during cloudy conditions or peak usage hours. This technology is especially valuable for Yemen, where weather patterns vary widely across regions and grid reliability has long been a challenge.
The UAE has already played a significant role in supporting Yemen’s energy infrastructure in recent years. Previous projects include the development of large-scale solar power plants in Aden and other governorates, which have provided clean and affordable electricity to thousands of households. The new $1 billion commitment builds on these earlier successes and signals a long-term vision for sustained development and improved living conditions for the Yemeni population.
Beyond improving electricity access, the initiative is expected to have broad economic and social impact. Reliable power will help revive industries, lower the cost of production, and encourage investment in local businesses. It will also enhance the functionality of hospitals, schools, and public institutions, contributing to better health services, education, and overall stability. For millions of Yemenis, the UAE’s support represents not only improved energy infrastructure but also renewed hope for a brighter and more secure future.
