Hong Kong-based private equity firm Templewater is teaming up with countries in the Middle East to unlock investment opportunities arising from the region’s energy transition programmes, while delivering returns for its investors.
It is working with the Future Fund Oman, a 2 billion Omani rial (US$5.2 billion) investment fund established by the sultanate’s sovereign wealth fund, Oman Investment Authority (OIA), to “focus on energy transition and localisation opportunities”, according to Yufeng Wan, partner and head of decarbonisation investment at Templewater.
“These efforts will create enterprise and economic values and contribute to the region’s net-zero emission and economic diversification ambitions,” he said.
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The fund seeks to unlock the potential of tourism, industry and manufacturing, green energy, information and communication technology, ports and logistics, mining, fisheries and agriculture, according to its website.
Wisdom Motor, a zero-emission commercial vehicle manufacturer majority-owned by Templewater, aims to build a presence in manufacturing, servicing and sales distribution in six countries that make up the Gulf Cooperation Council (GCC).
It signed a preliminary agreement in March with the OIA, which manages US$50 billion of assets, setting the stage for investment and collaboration in green transport. It had earlier agreed to offer customised hydrogen-powered vehicles in the United Arab Emirates.
“We see a lot of complementary elements between Wisdom Motor and the GCC countries,” chief strategy officer Felix Xu said. “We strive to become the leader in providing zero-emission commercial vehicle solutions which fits perfectly” with the region’s decarbonisation strategy and agenda, he added.
Oman and the UAE are part of the GCC, which is forecast to grow its gross domestic product to US$6 trillion in 2050 from 2023, according to the World Bank. The size could reach US$13 trillion when incorporating the benefits of green initiatives, it projected.
Templewater manages US$1.5 billion of assets. The firm was co-founded by ex-banker Cliff Zhang and wealth manager Investec Group of South Africa in 2018. It owns 30 per cent of Bravo Transport, the operator of Kong Kong’s Citybus. It aims to raise US$300 million for its first decarbonisation fund.
Wisdom Motor introduced the first 12-metre hydrogen city bus to Abu Dhabi in November 2023 as part of the emirate’s green-bus assessment programme that will run up to end of 2025. To date, three buses are plying the roads in Abu Dhabi, a city of 3.8 million people.
“In Oman, we envision a comprehensive energy transition and a new energy landscape. In the UAE, we have been focusing on hydrogen public transportation, leveraging our experience operating Citybus and producing hydrogen buses,” Wan said.
“In this energy transition, [Oman] hopes to diversify its economy and promote local industries,” he said.
Oman defined its national priorities in Vision 2040, which highlights economic diversification and sustainable development. Its rich solar and wind resources, as well as vast land, make its renewable energy costs highly competitive, Wan added.
While Oman imports wind turbines and solar cells, it aims to localise manufacturing and attract global companies with core technologies, Wan said. Templewater will be a “conductor who directs high-quality energy companies to places that need them and incentivises investors to help with energy transition”, he added.
The Middle East offers a “neutral ground” amid geopolitical tensions and supply chain diversification, providing an ideal place for companies to take advantage of fresh funds and markets, Wan said.
“We think choosing industries with long-term growth potential is essential, and the energy sector is very sustainable,” Wan said. “Energy transition has vast economic potential. It’s not just a policy script. We want to encourage investors to invest in the space and raise awareness.”
More from South China Morning Post:
- After pioneering hydrogen bus in Hong Kong, Citybus owners eye Middle East transport market
- Hang Lung pushes for faster decarbonisation in Hong Kong and China’s construction industry
- China dominance in EVs, clean energy helps shipping industry’s green transition: analysts
- Rosewood Hotel Group targets Chinese travellers in Abu Dhabi, eyes further Mid-East expansion
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