UAE shows interest in investing in EU nuclear energy

The United Arab Emirates has approached several European countries with an offer to invest in nuclear assets. Three independent anonymous sources confirmed this to Reuters. The country wants to further diversify its economy, which is dependent on fossil fuels.

The UAE is reportedly interested in investing in Europe’s nuclear energy sector. According to Reuters, private discussions are reportedly taking place about investment through state-owned Emirates Nuclear Energy Company (ENEC). The company could become a minority investor in nuclear assets located in Europe.

ENEC aims to become an international nuclear energy company holding minority stakes in other countries’ nuclear energy infrastructure, without managing or operating it. The company, which is owned by Abu Dhabi’s ADQ, is among those holding talks about investments in the United Kingdom, anonymous sources familiar with the situation said. The investments would form part of the UAE’s strategy to diversify its economy away from fossil fuels. At the same time, Britain is seeking further private investment for the Sizewell C nuclear project. The project in southeast England is being led by French company EDF.

"Sizewell C is a key part of the UK’s new nuclear programme, which is central to our plans to deliver low-cost, clean and secure energy," a spokesperson for the UK Department for Energy Security and Net Zero told Reuters. "The project’s commercial structure is subject to ongoing development and commercially sensitive discussions," the spokesperson added, saying they could not comment further on speculation.

Completing Sizewell C is crucial for the country. Sources told Reuters that ENEC is among the proposed investors. The company has relatively recent experience in building a nuclear facility: it oversaw construction of the UAE’s only nuclear power plant, built in Abu Dhabi by Korea Electric Power Corp (KEPCO). The plant began commercial operations in 2021.

Other European countries are also seeking to expand nuclear energy, which recently received explicit backing from the European Commission. Foreign investment partners could therefore be of interest to other EU countries as well. Nuclear projects are notoriously plagued by a lack of investment, cost overruns and construction delays.

Support from a wealthy Gulf state could help overcome investment challenges. However, political opposition can also be expected, given that this is critical infrastructure. In Britain, for example, the UAE’s state investment in the conservative newspaper the Telegraph recently prompted concern, and the government ultimately decided to block it. The UK government also ruled that a recent investment by UAE-linked telecoms company e& raised national security concerns, but approved the transaction.