BlackRock to invest $400m in Dubai decarbonisation firm 

Positive Zero

BlackRock, one of the largest fund managers in the world, has agreed to invest up to $400 million in the Dubai-based decarbonisation business Positive Zero through a diversified infrastructure fund.

The investment will help Positive Zero boost energy transition projects in Gulf countries to aid in reducing carbon emissions and limit global temperature rise to 1.5 Celsius, the company said in a statement.

The firm was set up by Creek Capital late last year through the merger of the UAE-based SirajPower’s energy efficiency services firm, Taka Solutions, and the on-demand battery business HYPR Energy.

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“The conclusion of Cop28 in Dubai marks the beginning of a transformative partnership with BlackRock,” said Mohammed Abdulghaffar Hussain, co-founder and chairman of Positive Zero.

“We are set on a journey to achieve the ambitious Cop28 targets of tripling renewables and doubling efficiency by 2030,” he said.

The UAE president, Sheikh Mohammed Bin Zayed, announced at Cop28 that the government was to launch a $30 billion climate-related investment fund with the asset management companies BlackRock, TPG and Brookfield announced as inaugural launch partners.

The fund, to be based in Abu Dhabi and called Altérra, will be the world’s largest private investment vehicle for climate change action and will aim to reach $250 billion globally by 2030.

In an interview at the climate conference in Dubai, BlackRock told AGBI it has identified investment opportunities in companies that are preparing for or repairing climate-related damage.

Christopher Kaminker, head of sustainable investment research and analytics at BlockRock, highlighted investment opportunities in emerging technologies aimed at improving water systems and other vital infrastructure.

“We’ve identified a group of companies now that we think are quite important companies and we don’t believe that the demand for their services is priced in,” he said.

“We think that it’s going to increase in the future and they’re not well recognised by the financial markets.”

BlackRock has a regional office in Dubai International Financial Centre and had more than $8.5 trillion in assets under management at the end of July.