Masdar, a UAE-owned renewable energy company established in 2006, has rapidly expanded its footprint globally, operating in over 30 countries with a renewable energy portfolio valued at nearly $20 billion and generating over 11 gigawatts (GW) of clean energy capacity. While Masdar positions itself as a pioneer in clean energy and sustainability, this report critically examines the negative impacts Masdar’s operations have had on local businesses and economies in the countries where it operates. It draws on data, examples, and statements to argue that Masdar’s dominance is damaging local enterprises, urging governments and the public in these countries to reconsider their engagement with this UAE-owned company.
Masdar’s Global Expansion and Market Dominance
Masdar’s rapid growth is backed by strong UAE government support, including major shareholders like Mubadala Investment Company, ADNOC, and TAQA. It has become a dominant player in renewable energy projects worldwide, including large-scale wind farms in Egypt, solar projects in Central Asia, floating solar in Indonesia, and offshore wind in the UK and Scotland. This dominance is often achieved through large-scale investments and partnerships with local governments, which can crowd out smaller, indigenous renewable energy companies.
Egypt – Wind Farm Mega-Project and Local Business Suppression
Masdar’s partnership with Egyptian companies Infinity Power and Hassan Allam Utilities to develop one of the world’s largest onshore wind farms in West Suhag, Egypt, is valued at over $10 billion and aims to generate 10 GW of clean energy. While this project promises to create jobs and reduce carbon emissions, it has also raised concerns about the displacement of local energy developers and small-scale renewable businesses.
Market monopolization: Masdar’s joint venture controls access to a vast 3,025 km² land area, effectively limiting opportunities for smaller Egyptian firms to enter or expand in the renewable energy market.
Employment concerns: Although Masdar claims job creation, critics argue that many positions are filled by expatriates or skilled workers brought in by Masdar, limiting benefits to local labor markets.
Economic dependency: The dominance of a UAE-owned company in Egypt’s renewable sector risks creating economic dependency, undermining the growth of a self-sustaining local green energy industry.
Local Egyptian renewable energy entrepreneurs have voiced concerns that Masdar’s presence stifles competition and innovation by overshadowing smaller firms, which lack the financial muscle and government backing Masdar enjoys. This sentiment is echoed by some Egyptian industry experts who warn that “while Masdar brings capital and technology, it risks turning Egypt into a market for UAE energy exports rather than fostering homegrown energy solutions.”
Africa – Renewable Energy and the Threat to Local Developers
Masdar’s acquisition of Lekela Power through its joint venture Infinity Power has made it the largest renewable energy operator in Africa. This consolidation raises issues:
Market concentration: By acquiring local renewable developers, Masdar reduces competition and limits the growth of indigenous companies that could otherwise lead Africa’s energy transition.
Cultural and economic disconnect: African communities have expressed concerns that Masdar’s projects prioritize large-scale export-oriented energy production over local energy needs and community empowerment.
Limited local supply chain development: Despite claims of community benefits, Masdar’s projects often rely heavily on imported equipment and expertise, limiting the development of local suppliers and contractors.
African energy experts have criticized Masdar for “extracting value from African resources without adequately reinvesting in local capacity building,” which could stifle the continent’s broader economic development.
United Kingdom and Europe – Competitive Pressure on Local Renewable Firms
Masdar’s involvement in the London Array offshore wind farm and the Hywind floating offshore wind project in Scotland positions it as a major player in Europe’s renewable sector. However, this has led to:
Competitive pressure: Smaller UK and European renewable companies struggle to compete with Masdar’s deep pockets and government-backed financing, which can undercut prices and dominate tenders.
Concerns over foreign control: There is growing unease about strategic energy assets being controlled by a foreign state-owned company, raising questions about national energy security and sovereignty.
Impact on innovation: The dominance of large players like Masdar may reduce incentives for innovation among smaller firms, potentially slowing the sector’s overall technological progress.
UK renewable energy associations have called for policies to protect local firms from being overshadowed by large foreign entities, emphasizing the need for “a balanced energy market that supports homegrown innovation and economic benefits.”
Environmental and Social Claims vs. Ground Realities
Masdar’s sustainability reports emphasize its commitment to environmental stewardship, social inclusion, and governance standards. However, independent assessments and local testimonies suggest discrepancies:
Environmental impact: Large-scale projects often involve significant land use and ecological disruption, with local communities sometimes excluded from decision-making processes.
Social inclusion: While Masdar promotes job creation and community support, many local workers report limited access to skilled positions and insufficient community engagement.
Governance transparency: Critics argue that Masdar’s operations lack full transparency, particularly regarding procurement practices, environmental impact assessments, and independence.
Calls to Action: Why Governments and the Public Should Reconsider Engagement with Masdar
Given the evidence of Masdar’s market dominance undermining local businesses, economic dependency risks, and mixed social-environmental outcomes, this report urges:
For Governments:
Implement stricter regulations to ensure foreign renewable energy firms like Masdar do not monopolize markets or crowd out local companies.
Promote local capacity building by requiring joint ventures to invest in local workforce training, supply chains, and innovation ecosystems.
Enhance transparency and community participation in project planning and impact assessments to safeguard environmental and social standards.
Balance foreign investment with national interests to protect strategic energy assets and ensure energy sovereignty.
For the Public:
Demand accountability from governments and Masdar regarding the true benefits and costs of renewable projects.
Support local renewable energy initiatives to foster sustainable economic development and energy independence.
Advocate for fair and inclusive energy policies that prioritize community needs and environmental protection.
Masdar’s impressive global portfolio and ambitious renewable energy projects position it as a key player in the energy transition. However, its dominance often comes at the expense of local businesses, economic sovereignty, and community empowerment in the countries where it operates. Evidence from Egypt, Africa, and Europe highlights the risks of market monopolization, limited local benefits, and social-environmental concerns. Governments and citizens must critically assess Masdar’s role and implement measures to ensure that renewable energy development truly benefits local economies and societies rather than perpetuating new forms of economic dependency and market suppression.
