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Abu Dhabi is taking the green shoots of recovery a step further, winning the race to host the International Renewable Energy Agency (Irena). Abu Dhabi hopes it will add fuel to its Masdar project - a $15 billion (£9 billion) green city designed by Sir Norman Foster.
On the surface, it seems an absurd paradox. Abu Dhabi is home to about 8% of the world's oil, is a major oil and gas producer, and capital of the UAE - a staunch member of oil cartel Opec. Irena, set up this year, strives to promote a "rapid transition" away from hydrocarbons. Surely this is the turkey voting for Christmas?
UAE foreign minister Sheikh Abdullah bin Zayed al Nahyan says not. His government backed Abu Dhabi's effort to host Irena, fighting off Germany and Austria. A sovereign wealth fund has pledged to build a zero-carbon headquarters for the body, which will be given rent-free.
"It's all part of Abu Dhabi's effort to diversify its economy," says Sander Trestain, senior vice president at Enviromena, a start-up solar power company based at Masdar. "Abu Dhabi already has world-class infrastructure in conventional energy, so renewable energy is a logical extension."
Masdar is still being built in the desert outside Abu Dhabi, but the first phase is nearly ready. Earlier this year, it turned on a 10 megawatt solar power plant, fuelled by a 55-acre solar farm built by Enviromena (generating enough power for 4000 residents a year). A specialist university, the Masdar Institute of Science and Technology, opens in October.
Ultimately, Abu Dhabi hopes to be a hub for green energy. It wants to export energy itself (it's very sunny) as well as technology, by luring more firms like Masdar, a private company funded by international investors.
Trestain believes it'll succeed. "You can guarantee that with IRENA being just down the road, with all the investment being made, and with all the natural solar resource, every global company in this industry will be at least looking to set up an operation here."
MORE consolidation in Dubai's troubled real estate industry. Emaar Properties, a listed company, will merge with three state-owned developers. It may be good for the industry, but investors aren't happy: Emaar shares fell 10% following the announcement.
SHUAA Capital, the biggest investment bank in Dubai, has finally resolved a bitter dispute with state investment firm Dubai Banking Group. They were heading to court over a controversial $400 million convertible bond. Dubai Banking has agreed to take a 48% stake in Shuaa to end the row.
