Masdar and Engie have secured funding from seven banks to build the Al Khazna photovoltaic solar plant, set to be one of the largest of its kind in the Gulf, boosting Abu Dhabi’s clean energy ambitions and regional green investment trends.
Masdar and Engie have wrapped up the financial close for the Al Khazna photovoltaic solar power project, paving the way for construction , which, according to organizers, is going to be one of the biggest utility-scale solar plants in the region. As reported by Sky News Arabia, seven banks, both regional and international, came together to support the financing, signaling strong backing from lenders eager to fund the UAE’s growing clean-energy initiatives.
The list of participating banks includes Abu Dhabi Islamic Bank, Crédit Agricole Corporate and Investment Bank, KfW IPEX-Bank, BNP Paribas, The Hongkong and Shanghai Banking Corporation, Sumitomo Mitsui Trust Bank, Trust Bank, and Emirates Development Bank. Having such a mix of local and global institutions shows that there’s a rising enthusiasm among banks for long-term, project-specific loans linked to renewable assets in the Gulf area.
Located between Abu Dhabi and Al Ain, the Al Khazna plant is owned jointly by Masdar and Engie, with Masdar holding a 60% stake. The project secured its development contract back in October 2025 and has secured a 30-year power purchase agreement (PPA) with the Emirates Water and Electricity Company, which is responsible for UAE’s water, power planning, and transmission. The plant is expected to start commercial operations in 2028.
Supporters of the project say that Al Khazna will supply electricity to roughly 160,000 homes and cut carbon emissions by over 2.4 million tonnes annually. It’s seen as a strategic asset for Abu Dhabi’s ambitions toward a cleaner energy landscape and a meaningful step toward the country’s larger goal of decarbonizing its power generation.
Mohamed Jameel Al Ramahi, CEO of Masdar, called this financing milestone a vital step forward. “يعتبر استكمال الإغلاق المالي خطوة مهمة في مسيرة تطوير هذا المشروع الذي يلعب دوراً محورياً في الجهود الرامية لإحداث نقلة نوعية في قطاع الطاقة على مستوى دولة الإمارات. إذ يشكل مشروع محطة الخزنة للطاقة الشمسية الكهروضوئية إضافة قيّمة لمحفظة الدولة المتنامية في مجال الطاقة النظيفة، فضلاً عن دوره في تعزيز شراكتنا مع “شركة مياه وكهرباء الإمارات” و”إنجي”، اللتين نتطلع للتعاون معهما والوصول إلى مرحلة التشغيل الكاملة للمشروع وتوفير طاقة موثوقة ونظيفة تدعم التقدم الاجتماعي الاقتصادي المستدام في دولة الإمارات” , a statement from the company.
Catherine MacGregor, CEO of Engie, added: “تواصل “إنجي” الوفاء بالتزاماتها المتعلقة بإنشاء بنية تحتية مستدامة، توفِّر حلول طاقة نظيفة وموثوقة على نطاق واسع. ويُمثّل الإغلاق المالي محطةً أساسية في تطوير هذا المشروع الاستراتيجي، الذي يسهم في دعم المساعي الإماراتية لتحقيق الحياد المناخي بحلول 2050، ويعزز شراكتنا مع الجانب الإماراتي التي تمتد لعقود في مجال نشر حلول الطاقة المتجددة. وبالتعاون مع “شركة مياه وكهرباء الإمارات” و”مصدر”، ستمثل محطة “الخزنة” للطاقة الشمسية الكهروضوئية مشروعاً رائداً يسهم في تعزيز أمن الطاقة الوطني وأهداف خفض الانبعاثات الكربونية. وإننا نتطلع نحو التشغيل التجاري الكامل خلال السنوات المقبلة” , from the company’s announcement.
Ahmed Ali Al Shamsi, CEO of Emirates Water and Electricity Company, described the deal as a core part of their strategy to ramp up renewables. “يُمثِّل الإغلاق المالي لمشروع محطة الخزنة للطاقة الشمسية الكهروضوئية محطة رئيسية في مسيرة شركة مياه وكهرباء الإمارات الاستراتيجية، والرامية إلى توسعة قدرات الطاقة المتجددة وفقًا لأعلى المعايير العالمية، وإحداث نقلة نوعية في مشهد الطاقة في دولة الإمارات. وبصفته رابع مشاريع الطاقة الشمسية الرائدة عالميا على نطاق المرافق، يُعدّ هذا المشروع واحدا من الأصول الحيوية التي ستلعب دورا رئيسيا في تمكيننا من تلبية 60 بالمئة من إجمالي الطلب على الطاقة من مصادر متجددة ونظيفة بحلول 2035. من خلال قيادتها لمشاريع الطاقة المتجددة على نطاق واسع، تواصل شركة مياه وكهرباء الإمارات اتخاذ خطوات عملية لضمان إمدادات طاقة آمنة ومستدامة، بالإضافة إلى دعم المبادرة الوطنية لتحقيق الحياد المناخي بحلول 2050. ونحن متحمسون للعمل مع مصدر وإنجي في مراحل التنفيذ والتشغيل، لنبني مستقبلا أكثر استدامة لقطاع الماء والكهرباء في دولتنا.” , from the company statement.
Overall, the plant is being positioned as a major contributor to Abu Dhabi’s goal of sourcing 60% of its electricity from clean and renewable sources by 2035. Industry data and government policies confirm that large-scale solar projects remain the fastest way to decarbonize power systems across the Gulf, where abundant sunshine and ample land make photovoltaic projects pretty handy at large scale.
This deal also underscores how banks are playing an increasingly vital role in supporting national climate goals. Abu Dhabi Islamic Bank (ADIB) is among the lenders and has been very vocal about pushing green finance initiatives. Reports and recent press releases indicate that ADIB has launched several sustainability projects, including releasing a comprehensive Net Zero report and becoming the first regional Islamic bank to set sector-specific decarbonization targets for 2030. Their sustainability update for 2024 said they had mobilized over AED 17 billion in sustainable financing by the end of that year, and they’ve been quite active in arranging green loans for companies in the UAE.
ADIB has also highlighted several operational projects in its ESG reports, like its first on-grid solar PV installation in Jafza, along with an expanded pipeline for sustainable finance. All these efforts align with the UAE’s Net Zero 2050 strategy and sector-specific emissions reduction targets for 2030.
For developers, securing long-term bank financing is a crucial step in reducing project risks before construction kicks off. Typically, a 30-year PPA with a government-backed buyer is the preferred contract structure among lenders for renewable projects in the region. The involvement of multiple international banks also indicates confidence in the project’s contractual framework and in Abu Dhabi’s overall clean-energy policy environment.
As construction on Al Khazna gets underway, the real test will be whether the project keeps to its schedule and if the capacity promised actually yields consistent emissions reductions. Backers emphasize the social and economic benefits, like creating jobs during construction and boosting energy security once operational. If everything goes to plan, Al Khazna will add to the expanding portfolio of Gulf renewable projects and reinforce the regional financial sector’s track record of financing large-scale decarbonization investments.
Source: Noah Wire Services
- https://www.skynewsarabia.com/business/1847167-%D9%85%D8%B5%D8%AF%D8%B1-%D9%88%D8%A7%D9%95%D9%86%D8%AC%D9%8A-%D8%AA%D8%B3%D8%AA%D9%83%D9%85%D9%84%D8%A7%D9%86-%D8%A7%D9%84%D8%A7%D9%95%D8%BA%D9%84%D8%A7%D9%82-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A-%D9%84%D9%85%D8%B4%D8%B1%D9%88%D8%B9-%D8%A7%D9%84%D8%AE%D8%B2%D9%86%D8%A9 – Please view link – unable to able to access data
- https://www.skynewsarabia.com/business/1847167-%D9%85%D8%B5%D8%AF%D8%B1-%D9%88%D8%A7%D9%95%D9%86%D8%AC%D9%8A-%D8%AA%D8%B3%D8%AA%D9%83%D9%85%D9%84%D8%A7%D9%86-%D8%A7%D9%84%D8%A7%D9%95%D8%BA%D9%84%D8%A7%D9%82-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A-%D9%84%D9%85%D8%B4%D8%B1%D9%88%D8%B9-%D8%A7%D9%84%D8%AE%D8%B2%D9%86%D8%A9 – The article reports that Masdar and Engie have completed the financial closure of the Al Khazna photovoltaic solar power plant project, with seven prominent regional and international banks participating in the financing, including Abu Dhabi Islamic Bank. The project is set to begin commercial operations in 2028 and aims to supply electricity to approximately 160,000 homes, reducing carbon emissions by over 2.4 million tonnes annually. The plant is located between Abu Dhabi and Al Ain, with ownership split between Masdar and Engie.
- https://www.adib.ae/en/news/2025/may/adib-accelerates-clean-energy-investment-to-advance-net-zero-goals – Abu Dhabi Islamic Bank (ADIB) has completed its first on-grid solar photovoltaic system in Jafza, marking a significant milestone in its journey towards environmental sustainability and reducing its environmental footprint in line with its net-zero plan. The project is part of ADIB’s broader commitment to reducing its environmental impact and supporting the UAE’s Net Zero by 2050 strategy, in addition to the bank’s own targets to reduce financed emissions by 2030. This initiative also aligns with ADIB’s Vision 2035 and its focus on ESG integration across operations.
- https://www.adib.ae/en/news/2024/nov/adib-becomes-the-first-islamic-bank – Abu Dhabi Islamic Bank (ADIB) has published its first comprehensive Net Zero report, outlining the bank’s journey towards reducing carbon emissions across its operations and financed emissions. With this report, ADIB becomes the first commercial Islamic bank in the region to set sector-specific decarbonization targets for 2030. The report highlights the bank’s baseline assessment for its 2022 emissions and sets clear interim goals for 2030 as part of its comprehensive sustainability strategy.
- https://www.aldar.com/en/news-and-media/adib-and-aldar-properties-close-aed-1-billion-sustainability-linked-financing-deal – Abu Dhabi Islamic Bank (ADIB) has arranged an AED 1 billion sustainable bilateral facility for Aldar Properties PJSC (Aldar). The financing takes Aldar’s total ESG financing facilities to AED 4.8 billion as the company transitions towards sustainable financing for its projects and investments. The transaction underscores both entities’ commitment to supporting environmentally beneficial projects aligned with the UAE Net Zero by 2050 strategic initiative. ADIB acted as the sole facility provider, and Aldar intends to utilize the proceeds to finance sustainable projects such as green buildings, property upgrades to enhance energy efficiency, sustainable water management, pollution control measures, and renewable energy sources.
- https://www.adib.ae/en/news/2025/jul/adibs-2024-sustainability-report – Abu Dhabi Islamic Bank (ADIB) has reported the mobilisation of over AED 17 billion in sustainable finance as of year-end 2024, marking continued progress toward its AED 60 billion sustainable finance commitment by 2030. This update coincides with the release of ADIB’s 2024 Sustainability Report, which details material advancements in climate alignment, ESG governance, and inclusive growth in line with UAE Net Zero 2050 strategy and UAE 2031 vision.
- https://www.khaleejtimes.com/uae/cop28-in-uae-how-banks-are-spearheading-sustainability-drive-with-51-billion-in-green-financing – The article discusses how banks in the UAE are leading the sustainability drive with $51 billion in green financing. Abu Dhabi Islamic Bank (ADIB) has allocated $1.7 billion towards sustainable project financing as part of its new three-year ESG strategy. The bank has also set sector-specific financed emission reduction targets for 2030, focusing on six high-emission sectors, including real estate, utilities, and home finance. This initiative aligns with the UAE’s Net Zero by 2050 strategic initiative.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The article reports on the financial close of the Khazna Solar PV project, announced on 19 January 2026. This is the earliest known publication date for this specific information, indicating high freshness. The content does not appear to be recycled or republished from other sources, and there are no discrepancies in figures, dates, or quotes.
Quotes check
Score:
9
Notes:
The article includes direct quotes from Mohamed Jameel Al Ramahi, CEO of Masdar, and Catherine MacGregor, CEO of ENGIE. These quotes are consistent with those found in the official press releases from Masdar and ENGIE, suggesting they are original and not reused from other sources. However, the quotes are in Arabic, which may limit verification for non-Arabic readers. The English translations provided are consistent with the original Arabic text.
Source reliability
Score:
8
Notes:
The article is sourced from Sky News Arabia, a reputable news outlet in the Middle East. However, the article is in Arabic, which may limit accessibility for non-Arabic readers. The content is consistent with official press releases from Masdar and ENGIE, indicating a high level of reliability. There are no indications of the article being a derivative of another source.
Plausability check
Score:
10
Notes:
The claims made in the article align with known facts about the Khazna Solar PV project, including the 1.5 GW capacity, the 30-year Power Purchase Agreement with Emirates Water and Electricity Company (EWEC), and the expected operational date in 2028. The involvement of seven major banks in the financing is plausible and consistent with industry practices for large-scale renewable energy projects. The environmental impact estimates, such as supplying electricity to approximately 160,000 homes and reducing carbon emissions by over 2.4 million tonnes annually, are reasonable and supported by similar projects in the region.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The article provides original, timely, and verifiable information about the financial close of the Khazna Solar PV project. The content is consistent with official press releases and other reputable sources, and there are no significant concerns regarding its accuracy or reliability. The use of Arabic quotes may limit accessibility for non-Arabic readers, but this does not affect the overall credibility of the information presented.
