Implementing Islamic Financing for Renewable Energy Projects -

The Middle East and North Africa (MENA) region has recently seen a surge of interest in developing renewable energy, in particular solar energy projects. Led by Morocco and Jordan which have successfully implemented numerous projects, the region is looking to considerably increase the proportion of electricity generated from solar energy. This includes the ambitious 9.5 gigawatts (GW) of renewable energy Saudi Arabia hopes to install as part of its “Vision 2030” programme, the further development in Dubai following the success of the Sheikh Makhtoum Solar Park which, when complete, will have a total capacity of 1,000 MW. In Egypt, the government hopes to procure 2,000 MW of solar energy through its “feed-in-tariff” programme and hopes to confirm a second round of the programme.

Waste-to-energy projects are also expected to be developed in the region and will form a key part of the integrated waste management strategy. Already in the UAE, there have been two publicly announced projects (in Dubai and the Northern Emirates) and others in Sharjah and Abu Dhabi are expected. In Saudi Arabia, there is an interest in developing such projects including in the Royal Commission of Yanbu.