According to the Emirates News Agency (WAM), the UAE Ministry of Economy has joined forces with French multinational Schneider Electric to launch a new initiative to foster climate-tech startups in the country.
Strengthening the Climate-Tech Ecosystem
This partnership is designed to attract and support emerging sustainability and climate technology startups. As part of the collaboration, Schneider Electric will introduce its portfolio companies to the UAE, offering them opportunities for expansion and networking.
Under the agreement, Schneider Electric will also contribute to the NextGen FDI initiative by providing go-to-market strategies and incubation support for participating startups. This includes potential collaborations with Schneider Electric’s own projects and integrating promising companies from its global portfolio into the UAE market.
Launched in 2022, NextGen FDI is a key pillar in the UAE’s vision to diversify its economy and position itself as a global innovation hub. So far, the program has attracted over 20 companies specializing in cutting-edge fields like artificial intelligence (AI), renewable energy, robotics, and advanced manufacturing, reinforcing the country’s shift towards a knowledge-driven, sustainable economy.
Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, emphasized that working with Schneider Electric is a strategic step to provide climate-tech startups with the tools and expertise needed to scale effectively.
Schneider Electric’s Commitment to Innovation
Schneider Electric has long been an active player in the startup ecosystem, maintaining commercial partnerships with over 35 companies focused on energy management, sustainability, and industrial automation. Through targeted investment strategies, it continues to provide startups with the resources, tools, and connections needed for growth.
Climate-Tech Investment Trends
The climate-tech sector is facing an increasingly complex investment landscape, both globally and within the Middle East. A report by PwC found that investment in climate-tech startups from Middle Eastern investors dropped by 28% to $3.6 billion in 2024, while global investment in the region fell 41% to $114 million.
Schneider Electric’s Financial Performance
Despite market challenges, Schneider Electric recorded an 8% increase in revenue in 2024, reaching a record $39.8 billion (€38 billion), driven largely by strong growth in its data center business. Net income also rose 7% to $4.5 billion, according to a filing on Euronext Paris.
CEO Olivier Blum highlighted that Schneider Electric is entering 2025 with strong momentum, targeting organic adjusted EBITA growth of 10% to 15%, supported by continued revenue growth and margin expansion. Key drivers include rising demand for data centers, the expansion of smart grids, increasing industrial automation, and a growing shift towards renewable energy solutions.
