UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% | UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% |

UAE Solar Energy: Capacity, Projects, and Growth Forecast

Comprehensive overview of UAE solar energy development, including installed capacity, major solar projects, cost benchmarks, policy targets, and growth projections under the UAE Energy Strategy 2050.

Installed Solar Capacity

The UAE’s total installed solar photovoltaic capacity reached approximately 5.6 GW by the end of 2024, making it the largest solar market in the GCC region. Solar energy accounted for roughly 14% of total installed electricity generation capacity and contributed an estimated 7.5% of actual electricity generation, reflecting the high capacity factors achieved in the UAE’s desert climate.

Major Solar Projects

ProjectLocationCapacity (MW)StatusCommissioning
Noor Abu Dhabi (Sweihan)Abu Dhabi1,177Operational2019
Al Dhafra Solar PVAbu Dhabi2,000Operational2023
Mohammed bin Rashid Solar Park (Phase V)Dubai900Operational2023
Mohammed bin Rashid Solar Park (Phase VI)Dubai1,800Under construction2025
EWEC Solar Programme (Phase 2)Abu Dhabi1,500Tendering2027

Tariff Benchmarks

The UAE has achieved some of the lowest solar energy tariffs globally, driven by high irradiation levels, economies of scale, and competitive procurement processes.

ProjectYear AwardedTariff (USD cents/kWh)
Noor Abu Dhabi20172.42
Al Dhafra20201.35
DEWA Phase V CSP20197.30 (CSP component)
DEWA Phase VI PV20231.62

Capacity Growth Trajectory

YearInstalled Solar Capacity (GW)Solar Share of Generation (%)
20202.63.8
20223.85.4
20245.67.5
2030 (target)14.218.0
2050 (target)40+44.0

Policy Framework

The UAE Energy Strategy 2050 targets a clean energy share of 44% in the national power mix by 2050, with solar PV expected to be the primary contributor. The strategy is complemented by emirate-level initiatives, including Dubai’s Clean Energy Strategy 2050 targeting 75% clean energy in the emirate’s power mix.

Net metering regulations, green building codes, and rooftop solar incentive programmes are gradually expanding distributed solar deployment alongside utility-scale procurement.

Outlook

Solar deployment is expected to accelerate through the late 2020s as Phase 2 EWEC procurements materialise and Dubai scales its Mohammed bin Rashid Solar Park toward its ultimate 5 GW capacity target. Battery storage integration and green hydrogen production from solar-powered electrolysis will further expand the role of solar energy in the UAE’s energy system.