UAE to Boost US Energy Investments to $440 Billion by 2035

In an ambitious move set to reshape energy investments, the UAE has unveiled plans to significantly amplify its financial footprint in the US energy sector to $440 billion by 2035. This strategic decision aligns with broader US-UAE economic cooperation initiatives.

During President Donald Trump’s recent visit to the Gulf, Sultan Al-Jaber, CEO of the Abu Dhabi National Oil Company (ADNOC), presented this expansion plan. This announcement comes as a part of the UAE's ongoing commitment to strengthening economic ties with the US, along with major financial contributions from Gulf allies such as Saudi Arabia and Qatar.

Currently, UAE investments in US energy are valued at $70 billion. Al-Jaber conveyed that this figure is set to surge, and emphasized that American energy companies will reciprocate by investing in the UAE market.

“Our partners have committed new investments worth $60 billion in upstream oil and gas, as well as new and unconventional opportunities,” stated Al-Jaber, highlighting collaborations with firms such as ExxonMobil, Oxy, and EOG Resources.

Previously, in March, senior UAE officials and Trump had agreed upon a 10-year, $1.4 trillion investment framework aimed at reinforcing reciprocal economic engagements. This framework encompasses sectors like AI infrastructure, semiconductors, energy, and manufacturing, according to White House sources.

Significant Developments

Trump, speaking in Abu Dhabi, highlighted the substantial developments achieved under this $1.4 trillion investment plan. His Gulf tour, which prioritized economic agreements, underscored a pivotal deal concerning AI semiconductors. “Yesterday the two countries also agreed to create a path for UAE to buy some of the world’s most advanced AI semiconductors from American companies, a very big contract,” he noted.

This initiative is expected to not only generate substantial revenue but also bolster the UAE's aspirations in artificial intelligence, complementing its oil and gas endeavors. Trump remarked, “And I read where — the oil and gas and all is great but you’re going to have equally big, and maybe even bigger — at some point, you’ll be surpassing it with AI and other businesses, so that’s a great tribute to the job you’ve done here.”

The international investment division of ADNOC, XRG, is eyeing a notable investment in US natural gas, as commented by Al-Jaber, who also serves as XRG’s executive chairman and minister of industry and advanced technology.

ADNOC has transferred its interests in ventures such as the Rio Grande LNG export facility owned by NextDecade and a planned ExxonMobil hydrogen plant in Texas to XRG. Established last year, XRG possesses $80 billion in assets and is authorized to pursue global opportunities in chemicals, natural gas, and renewables.

Adding to these initiatives, Mubadala Energy, another significant Abu Dhabi investment entity, recently formed a partnership with US-based Kimmeridge, securing stakes in American gas assets.
Source: Reuters