ABU DHABI, United Arab Emirates — Amid strained ties with the Kingdom of Saudi Arabia over supply of crude oil, The United States of America has found another strategic partner in the region—UAE.
On Tuesday, The United States and United Arab Emirates signed strategic partnership that will see $100 billion mobilized to develop 100 gigawatts of clean energy by 2035. The move is also being seen as Biden Administration’s clear intention to replace Saudi Arabia with the UAE in the region.
The representations of the USA and the UAE signed the deal on the sideline of the Adipec energy conference in Abu Dhabi,. According to the deal , two sides have agreed to undergo what can be called as “Partnership for Accelerating Clean Energy” (PACE) and encompasses four main pillars including the development of clean energy innovation and supply chains, managing carbon and methane emissions, nuclear energy, and industrial and transport decarbonization.
“The cooperation comes within the framework of the close friendship between the UAE and the United States of America” and “affirms the commitment of both sides to work to enhance energy security and advance progress in climate action,” according to a press statement issued by the UAE government published by state owned news agency WAM.
The White House described the new partnership as a major achievement for President Joe Biden’s climate agenda. The White House described the deal as a major achievement with regards to Biden administration’s Climate Policy.
“Today President Biden again demonstrated his deep commitment to ensuring a global clean energy future and long-term energy security as the United States and United Arab Emirates announced a robust partnership to ensure the swift and smooth transition toward clean energy and away from unabated fossil fuels,” The CNBC reported quoting the White House statement.
The two countries will set up an “expert group” to “identify priority projects, remove potential hurdles, and measure PACE’s progress in achieving its goal of catalyzing $100 billion in financing, investment, and other support and deploying globally 100 gigawatts of clean energy,” it said.
The UAE is a major oil exporter but has invested heavily in developing non-fossil fuel energy sources, including building the world’s largest single-site solar power plant and the first nuclear power plant in the Arab world. It plans to host the COP 28 climate summit in 2023.
Analysts also see the development as a sign of the Biden administration looking forwards to replace Saudi Arabia with the UAE as its strategic partner in the region.
Bilateral relationship between the US and KSA have seen a blow after the Kingdom of the Saudi Arabia refused to honor President Biden’s request to increase production of crude oil.
Sources told The Islamabad Telegraph that President Joe Biden is furious at Saudi Arabia for its decision to slash oil production along with its OPEC allies against U.S. wishes, and he’s made no secret of it. With the global economy on a knife-edge and energy prices high, Biden administration sees the kingdom’s move – which it made in coordination with Russia and other oil-producing states – as a snub and a blatant display of siding with Moscow.
The oil producer group in early October announced its largest supply cut since 2020, to the tune of 2 million barrels per day from November, which its members say is designed to spur a recovery in crude prices to counter a potential fall in demand.
