MoU Inked During Anwar’s Trip To See UAE Jointly Develop Renewable Power In Malaysia
The UAE and Malaysia have agreed to jointly establish renewable energy capacity of 10 gigawatts worth $8 billion in Malaysia by 2025, Anwar Ibrahim said.
The Malaysian prime minister noted in a Facebook post the plans were part of a Memorandum of Understanding inked between Abu Dhabi Future Energy Company (Masdar) and the Malaysian Investment Development Authority during his visit to the Emirati capital on Thursday.
Anwar met with UAE President Sheikh Mohamed bin Zayed Al Nahyan during his trip and also attended a roundtable meeting with major UAE companies.
UAE’s Landmark Wind Project In Focus
Malaysia plans to have 70% of its energy supply come from renewable sources by the middle of the century, compared with around 25% at the end of March.
To meet the goal, the government has estimated it would need $135 billion of investment. Meanwhile, the UAE has also been intensifying its efforts to achieve net zero emissions by 2050 and diversify its energy mix, launching its first wind programme recently.
The 103.5 MW landmark wind project developed by Masdar is expected to power more than 23,000 homes a year and displace 120,000 tonnes of carbon dioxide.
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Malaysian PM In Abu Dhabi For Free Trade Pact
Anwar arrived in the UAE on Thursday for a two-day visit aimed at striking a free trade deal. The two sides reviewed existing co-operation and discussed ways to build on these ties.
Negotiations on a Comprehensive Economic Partnership Agreement (CEPA) between the two countries began in May. Malaysia has been seeking to attract more foreign investors, with the country losing out to neighbouring Indonesia in the race to attract capital.
A free trade agreement between the UAE and Indonesia went into force last month. It is expected to increase the annual two-way trade to $10 billion within five years.
Malaysia’s Growing Competition With Indonesia
During Anwar’s trip, the two sides focused on key areas that serve both countries’ vision for a sustainable and prosperous future, according to Emirati state news agency WAM.
“From Malaysia’s point of view, they are obviously hoping for investment … Malaysia is competing with Indonesia,” Dr James Dorsey, adjunct senior fellow at S Rajaratnam School of International Studies in Singapore, told Arab News.
The Emirates remains Malaysia’s largest trading partner among west Asian countries, with two-way trade increasing from $5.4 billion in 2021 to $8.8 billion in 2022.
UAE Hosting COP28 in November
The UAE, the second-largest economy in the Arab world, is all set to host the COP28 climate conference beginning in November in Dubai.
The country has been investing heavily in renewable power as it aims to meet net zero goals. “The UAE wind programme is a great source of national pride and a demonstration of Masdar’s ability,” said Dr Sultan Al Jaber, COP28 President-Designate and Chairman of Masdar.
While wind energy used to be unviable in the country due to low wind speeds, innovations made the promising project “scalable and economically viable”, Masdar said.
