CEO Message

Why we should ​manufacture our ​own solar cells in ​the UAE

Why the UAE Should Manufacture Its Own Solar Cells

Since 2013, the UAE has been at the forefront of the renewable energy revolution, ​with Abu Dhabi, Dubai, and Ras Al Khaimah investing billions of dollars in massive ​solar energy farms. Today, these investments have resulted in a solar power ​generation capacity of 12 gigawatts (GW) and growing. However, despite these ​impressive achievements, a significant portion of the investment is flowing out of ​the country, primarily to China and other global manufacturers of solar cells and ​panel assembly plants.

While in the UAE we have made strides in solar panel manufacturing, we currently ​lack the capability to produce solar cells—the most crucial and expensive ​component of solar panels. This gap in the domestic supply chain represents a ​missed opportunity for the UAE to not only retain more of its investment within the ​country but also to establish itself as a significant player in the global solar ​market.

The Strategic Importance of Domestic Solar Cell Manufacturing

Economic Retention and Value Creation

By manufacturing solar cells locally, the UAE can retain a substantial portion of ​the billions it currently spends on importing these components. This would not ​only create value within the country but also generate jobs, foster technological ​innovation, and enhance the overall economic resilience of the UAE.

Energy Security and Self-Reliance

Dependence on foreign suppliers for critical components like solar cells can ​expose the UAE to supply chain disruptions, geopolitical risks, and price ​fluctuations. By establishing a domestic solar cell manufacturing industry, the ​UAE can enhance its energy security and ensure a steady supply of solar panels ​for its rapidly growing solar farms.

Expanding into Global Markets

The global solar market is booming, with Europe and the United States leading ​the charge. However, recent tariffs and trade policies against Chinese-made ​solar cells have created an opportunity for new players to enter these markets. ​By producing high-quality solar cells locally, the UAE can position itself as a ​competitive alternative to Chinese manufacturers, capturing a share of the ​lucrative EU and US and global markets.

The KIZAD Solar Cell Manufacturing ​Initiative

In response to these strategic ​imperatives, we have embarked on a ​mission to establish the UAE’s first 2GW ​wafer-to-cell manufacturing plant in ​KIZAD, Abu Dhabi.

This plant represents the first phase of a broader plan to expand the UAE’s solar ​cell manufacturing capacity to 10GW or more, with additional facilities planned ​for Dubai and Ras Al Khaimah.

The initial investment of $120 million for the KIZAD plant will be doubled in the ​second year to support expansion, with further investments earmarked for the ​development of new plants. Although the UAE is still far behind China’s 160GW ​solar cell manufacturing capacity—which accounts for over 75% of the global ​market share—this initiative marks a significant step forward in reducing the ​country’s reliance on imports and enhancing its competitive position on the ​world stage.

Conclusion: A Vision for the Future

The UAE’s commitment to renewable energy has already placed it among the ​world’s leaders in solar power generation. However, to fully capitalize on its ​investments and secure its place as a global leader in the solar industry, the ​country must develop its own solar cell manufacturing capabilities. By doing so, ​the UAE can ensure greater economic retention, enhance its energy security, ​and seize emerging opportunities in global markets.

This ambitious initiative is not just about reducing reliance on imports; it’s ​about establishing the UAE as a key player in the global energy transition, ​driving innovation, and creating a sustainable future for generations to come. ​Though the challenges are significant, the rewards—both for the UAE and the ​world—are far greater. Better late than never, the UAE is poised to take a bold ​step toward a brighter, more sustainable future.

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