Abu Dhabi’s IHC acquires 50% of Turkish renewable energy firm

UAE’s sovereign wealth funds has acquired 50 percent of a Turkish renewable energy company for Dh1.8 billion ($490 million) with links to President Recep Tayyip Erdogan, according to Bloomberg on Thursday.

Kalyon Enerji owned by Turkish group Kalyon Holding, which is in the construction, energy and aviation industries.

Abu Dhabi conglomerate International Holding Company (IHC) seeks to expand its clean energy portfolio, as it aims to grow across different markets, IHC chief executive Syed Shueb said.

The deal includes a solar power plant project with an installed capacity of 1,348 megawatts peak in the Karapinar region, IHC said on Thursday.

Moreover, the agreement includes a wind power project in the Gaziantep region.

The acquisition considers the first major deal between the two countries since the thaw in relations.

In May, IHC completed a Dh7.3bn ($1.9 billion) strategic investment deal in the green energy sector with India’s Adani Group.

Last November, Turkey and the UAE signed agreements worth billions of dollars in investments, including technology and energy.

This came after many talks between Erdogan and Sheikh Mohammed bin Zayed Al Nahyan, then crown prince of Abu Dhabi.