DEWA (AO) | Buy | Strategic step towards international expansion

Research evidence excerpt

DEWA (AO) | Buy | Strategic step towards international expansion

unced at this stage, the company said work has already started on identifying projects, building a

pipeline and developing the partnership ecosystems needed to support a global presence. DEWA stressed it will work with

governments, developers and financial institutions through co-development and co-investment partnerships.

During the launch ceremony, management suggested that DEWA International could potentially double DEWA's current size

within 10 years, although no underlying operational or financial metric was specified.

Replicating the successful IWPP model abroad, starting in MENA

Management underscored that DEWA International will grow in a phased manner, starting in the MENA region, where DEWA has

stronger relationships, market knowledge and geographic proximity, before pursuing select high-return opportunities beyond

MENA and gradually scaling into a global portfolio.

The company aims to export its full value-chain expertise in both power and water, across conventional and renewable energy

technologies, covering generation, transmission, distribution, expansion planning, development, financing, project

management, and O&M.

DEWA intends to take its Independent Water and Power Producer (IWPP) model global, having successfully used it in its home

market to structure bankable projects that achieved low tariffs and attracted strong international investor participation.

Limited implications for the share price at this stage

To us, this international expansion drive makes sense, as growth opportunities are sizeable, particularly in MENA, where demand

for power, water, grid infrastructure, clean energy and desalination remains structurally high.