UAE foreign investment powers up Iran

The Damavand power plant in Iran.

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UAE companies invested US$720 million in Iranian power projects last year, becoming the largest foreign direct investor in the country’s energy sector.

Germany was second with an investment of US$445 million in Iran’s energy sector, taking the total to more than US$1.16 billion last year.

“The UAE invested in construction of a gas-powered plant, as well as a combined-cycle plant in Isfahan and Shiraz, while Germany invested in construction of the Pareh-Sar combined-cycle plant,” Iran’s Ministry of Energy said in a statement.

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The International Monetary Fund reports that foreign investment in Iran has increased by 87% to more than US$3 billion in 2009.

At present, 54 power plants are believed to be in the construction phase by the private sector, with a total capacity of 34,129 MW. This represents an investment of US$19 billion (on a build, operate and own basis). Further contracts for five plants with a total capacity of 4,267 MW have been awarded, representing an investment of US$2.4 billion.