$2.5 Billion Syndication Lending Powers Dubai’s Solar City Vision in Desert

BEIJING, March 27, 2026 (GLOBE NEWSWIRE) — Against the backdrop of deepening financial cooperation in the Global South, and global push for renewable energy, a 950MW Concentrated Solar Power and Photovoltaic (CSP-PV) plant is erected in the Dubai emirate’s desert interior, and becomes a landmark of China-UAE green cooperation. Spanning 4,300 hectares within Mohammed bin Rashid Al Maktoum Solar Park, the 950MW power plant stands as the world’s largest single-site CSP-PV project.

The photo shows the construction site of the 950 MW Concentrated Solar Power (CSP) and Photovoltaic (PV) project in Dubai.

Green energy projects in emerging markets often struggle with massive financing demands, unstable capital chains, and complex cross-border coordination. To address these hurdles, Agricultural Bank of China (ABC)’s Dubai International Financial Centre (DIFC) Branch builds upon its track record in Belt and Road Initiative (BRI) collaboration, and pioneers an innovative financing model where international lenders are organized to partner closely with the EPC contractors. This model not only enables the syndication of USD 2.5 billion loans to break the financing bottlenecks, but also provides a pathway for green credit supporting international cooperation on production capacity. It has established a replicable template for funding green industrial projects for the BRI.

An aerial photo shows the 900MW photovoltaic (PV) project at the fifth phase of Mohammed bin Rashid Al Maktoum Solar Park in Dubai.

Key Challenges

High leverage with relatively low equity contribution from sponsors.

Sub-optimal risk allocation among sponsors, creditors, and contractors.

Highly responsive and time-sensitive fund disbursement given uncertainties in construction progress.

Solution Pathways

ABC responds swiftly to optimize the financing architecture. Closely coordinated with sponsors, coordinators and contractors, ABC has reasonably structured the debt-to-equity ratio, and introduced a “cash sweep mechanism” that imposes strict conditions on the use of early generated revenues. ABC itself performs as a joint mandated lead arranger, committing USD 400 million to the syndicate. Disbursement is well synchronized with project timeline under reasonable and rigorous drawdown conditions. Emergency response mechanisms are also in place to ensure funds are available when needed during project construction.

Practical Benefits for Local Communities

The plant generates clean electricity to over 320,000 households in Dubai, slashing CO2 emissions by more than 1.6 million tonnes annually. It is a cornerstone of the UAE’s Net Zero 2050 strategy. The project creates approximately 4,000 direct jobs and over 10,000 indirect jobs during its construction and operation.

The photo taken on Sept. 3, 2024 shows the solar mirror field of the central tower unit of the Concentrated Solar Power (CSP) and Photovoltaic (PV) project at the fourth phase of Mohammed bin Rashid Al Maktoum Solar Park in Dubai, the United Arab Emirates.

For more information, visit: Belt and Road Initiative(BRI)