The UAE is setting up an investment vehicle within weeks to take stakes in the global nuclear industry as it gets ready to award a contract to develop the first civilian nuclear plants in the Arab World.UK newspaper Financial Times reported on Tuesday that the Emirates Nuclear Energy Corporation will oversee the development of the UAE’s nuclear programme and act as a government investment arm by making strategic investments in the sector, domestically and internationally.
The newspaper, quoting bankers and officials, said the UAE hopes an agreement with the United States will be finalised shortly, allowing civilian nuclear trade. Similar deals have been reached with France and Korea.
The UAE is then expected to award contracts - estimated to be worth about $20 billion - for the construction of the first nuclear power plants, which could produce between 4,000 and 5,500 megawatts of electricity by 2020.
Newswire Reuters reported late last month that the UAE could award a $40 billion deal to build nuclear reactors in early November but that it might take longer for the Gulf Arab state to decide on a winner.
The Financial Times reported that three different consortia are thought to be competing for a nuclear contract from the UAE, including one led by France’s Areva, another headed by General Electric of the United States and a South Korean team that includes Korea Electric Power Corporation and Hyundai Engineering & Construction.