How Will Green Energy in the UAE Affect Traders?

Guest Article

Green Energy – UAE

The UAE announced at the start of this year that they would be investing £134 billion in renewable energy in order to meet their 50% clean target. This means that they are aiming to revolutionize their energy sources and create more jobs through this significant investment.

This could have an impact on global markets, so traders around the world will no doubt be trying to anticipate the potential opportunities this could create on the markets. Here are some of the possible effects.

Stocks and Shares

Those who trade in stocks and shares will be eager to see which companies benefit the most from the new green energy drive in the UAE. The investment will serve to boost the green energy job sector and attract experts from around the world to potentially lucrative positions in the newly strengthened industry.

This could see the value of many green energy companies shoot up, meaning that there could be ample opportunity to profit from the value of their shares going up too. There may well be a surge in green energy start-ups as entrepreneurs look to take advantage of the enthusiasm for green energy.

Ethical Investment

Investment in green energy is also considered to be incredibly ethical, given that it helps the keep the environment clean and global warming down. In this sense, traders can be sure that there are no moral issues attached to their investments, and that they are actually helping to promote a good cause.

Ethical investment is on the rise, and as more people shift to this way of trading, it actually undermines less ethical investments by strengthening ethical competitors and reducing support for unethical companies. The UAE’s newfound support for green energy will no doubt bolster the case for ethical investment and make it even more profitable.

Fossil Fuel Disruption

One of the most obvious effects of a shift to renewable green energy is on fossil fuels, the price of which could go down, as could share in fossil fuel companies. The more green energy which is generated worldwide, the cheaper it will become as an energy source, so fossil fuels will soon become uncompetitive as green energy takes center stage.

The recent slump in the value of oil could be indicative of its future value as a commodity, and traders will undoubtedly be cautious about the disruption to the fossil fuel industry which has been caused by green energy.

Economic Impact

Investment in green energy also brings numerous economic advantages, such as potentially cheaper electricity bills for various companies in the UAE. This could well lead to greater growth in these companies and for the country as a whole.

Those who trade forex could well see the value of the dirham rise as the economic benefits of green energy become clearer (although this will most likely be in the long term rather than short term).

Many of the effects which the introduction of green energy in the UAE could have on traders are subtle, yet they all impact the markets in some form and are set to have even greater influence in the future. Traders will continue to observe green energy developments across the world whilst they look to make a healthy profit on global markets.

About the Author:

The article is contributed by Zak Goldberg. Zak is a Law & Business Graduate from the University of Leeds who has chosen to follow his aspirations of becoming a full-time published writer, offering his expertise in all areas of law and finance.