Overview
Masdar, formally the Abu Dhabi Future Energy Company, is one of the world’s leading clean energy companies. Wholly owned by Mubadala Investment Company, ADNOC, and TAQA, Masdar develops, operates, and invests in renewable energy and sustainable urban infrastructure projects across more than 40 countries. The company’s global portfolio encompasses utility-scale solar, wind (onshore and offshore), waste-to-energy, battery storage, and green hydrogen projects with a combined capacity target of 100 gigawatts by 2030.
Masdar also develops and manages Masdar City, a planned urban community in Abu Dhabi designed as a testbed for sustainable building technologies, clean transportation, and low-carbon urban living.
Establishment
Masdar was established in 2006, during the same period that Abu Dhabi was developing the Economic Vision 2030. The company was founded under the Mubadala umbrella as a vehicle for positioning Abu Dhabi at the forefront of the global clean energy transition — a strategic decision that reflected the emirate’s recognition that its long-term economic future required diversification beyond fossil fuels.
The timing was deliberate. Abu Dhabi, one of the world’s largest hydrocarbon producers, chose to invest in renewable energy not as a replacement for oil and gas but as a complementary economic sector with significant growth potential. Masdar was the institutional embodiment of this strategy.
Ownership Restructuring
In 2022, Masdar underwent a significant ownership restructuring. ADNOC and TAQA acquired stakes alongside the founding owner Mubadala, creating a tripartite ownership structure that aligned three of Abu Dhabi’s largest energy entities behind the clean energy mandate. This restructuring brought additional capital, operational expertise, and strategic weight to Masdar’s expansion programme.
The restructuring also reflected the convergence of Abu Dhabi’s hydrocarbon and clean energy strategies. By bringing ADNOC — the national oil company — into Masdar’s ownership, Abu Dhabi institutionalised the connection between its fossil fuel present and its clean energy future.
Global Renewables Portfolio
Masdar’s investment portfolio spans utility-scale renewable energy projects across the Americas, Europe, Asia, Africa, and the Middle East. Key areas of activity include:
Solar Energy: Masdar has invested in and developed large-scale solar photovoltaic and concentrated solar power projects. The Shams 1 concentrated solar power plant in Abu Dhabi was one of the world’s largest at the time of its commissioning. The company holds stakes in solar projects across Jordan, Mauritania, Indonesia, Uzbekistan, and other markets.
Wind Energy: The portfolio includes significant investments in both onshore and offshore wind projects. Masdar holds stakes in the London Array (one of the world’s largest offshore wind farms), the Dudgeon and Hywind Scotland offshore wind projects in the United Kingdom, and onshore wind assets in multiple countries.
Green Hydrogen: Masdar has committed to developing green hydrogen production capacity, leveraging low-cost renewable electricity to produce hydrogen through electrolysis. This initiative positions Abu Dhabi as a potential exporter of clean hydrogen fuel to markets in Asia and Europe.
Waste-to-Energy and Storage: The portfolio includes investments in waste-to-energy facilities and battery storage projects that support grid stability and the integration of variable renewable energy sources.
Masdar City
Masdar City is a planned sustainable urban development located adjacent to Abu Dhabi International Airport. Conceived as a carbon-neutral community powered entirely by renewable energy, Masdar City was designed by Foster + Partners and broke ground in 2008.
The development serves multiple functions: a commercial district hosting clean technology companies and research institutions; a residential community; and a living laboratory for sustainable urban design, including passive cooling architecture, autonomous electric transport, and smart grid technology.
Masdar City hosts the headquarters of the International Renewable Energy Agency (IRENA), the intergovernmental organisation supporting the global transition to renewable energy. The presence of IRENA reinforces Abu Dhabi’s positioning as a hub for international clean energy governance.
The Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the world’s first graduate-level AI university, is also located in Masdar City, linking the clean energy and advanced technology agendas.
Carbon Capture
The Economic Vision 2030 identified carbon capture and storage as a priority technology for Abu Dhabi’s energy sector. Masdar has been involved in carbon capture initiatives, including the Al Reyadah carbon capture facility — one of the first commercial-scale CCUS operations in the Middle East, which captures CO2 from industrial processes and injects it into oil reservoirs for enhanced oil recovery.
These carbon capture activities sit at the intersection of Masdar’s clean energy mandate and ADNOC’s hydrocarbon operations, illustrating how Abu Dhabi deploys technology to reduce emissions from existing industrial activity while developing new clean energy capacity.
COP28 Legacy
The UAE hosted COP28 in Dubai in November-December 2023, with ADNOC CEO Sultan Al Jaber serving as President. Masdar featured prominently in Abu Dhabi’s COP28 narrative as evidence of the emirate’s commitment to the energy transition. The company’s global scale, diversified portfolio, and aggressive growth targets were presented as proof that a major oil-producing economy can simultaneously invest in clean energy at global scale.
The COP28 period coincided with announcements of new Masdar investment commitments, partnerships, and capacity targets, leveraging the global attention on Abu Dhabi’s energy credentials.
Role in Abu Dhabi Economic Vision 2030
Masdar addresses multiple objectives within the Economic Vision 2030. Energy is one of twelve target sectors for diversification, and Masdar builds Abu Dhabi’s presence in the renewable energy segment of the global energy market. The company’s international investments generate financial returns while creating the technology expertise and commercial relationships that strengthen Abu Dhabi’s long-term energy competitiveness.
Masdar City supports the vision’s infrastructure and knowledge-economy objectives by creating a purpose-built environment for clean technology innovation, research, and commercialisation. The hosting of IRENA and MBZUAI within Masdar City directly supports the vision’s goals for international institutional engagement and education excellence.
Institutional Significance
Masdar is Abu Dhabi’s answer to the question of whether an economy built on fossil fuels can credibly lead in clean energy. The company’s scale, global reach, and institutional backing — spanning Mubadala, ADNOC, and TAQA — provide a level of strategic commitment that few clean energy companies in any country can match. Masdar represents the emirate’s long-term hedge: building the capabilities and market position to remain a major energy economy regardless of which energy sources dominate the coming decades.