Middle East Infrastructure
Abu Dhabi's national energy company lifts capital spending 38 per cent to AED 7.2 billion
By Staff Writer | 14 August 2026
Half year figures published on 13 August put capital expenditure at AED 7.2 billion, with the money going into power generation, water and the transmission network, while revenue fell and profit rose.
Abu Dhabi National Energy Company, which trades as Taqa, reported results for the six months to 30 June 2026 on 13 August. Capital expenditure rose 38 per cent year on year to AED 7.2 billion, which the company attributed to faster investment across power, water and transmission networks.
Earnings before interest, tax, depreciation and amortisation rose 7.7 per cent to AED 11.0 billion, from AED 10.2 billion in the first half of 2025. Net income attributable to shareholders rose 9.7 per cent to AED 4.1 billion, from AED 3.7 billion, which the company put down to higher returns from its transmission and generation businesses.
Revenue went the other way. It fell 2.6 per cent to AED 27.5 billion from AED 28.2 billion, on lower pass through revenues in distribution, extension works at the Shuweihat 1 power plant and lower oil and gas production following the planned decommissioning of assets in the UK North Sea. Free cash flow was AED 4.6 billion against AED 7.0 billion a year earlier, the difference driven by the higher investment. The board approved a second quarter interim dividend of 0.8 fils a share, totalling approximately AED 899 million.
Our integrated model gives us the stability and financial strength to keep investing in the power and water infrastructure needed for decades to come. That is true both in the UAE and across our international markets.
Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of Taqa
Where the money went
Four commitments made in the period account for much of the spending line and for the pipeline behind it. Emirates Water and Electricity Company awarded the 2.6 gigawatt Taweelah C independent power producer project to a consortium led by Taqa, which holds a 60 per cent stake. Taqa and Adnoc signed a 27 year utilities purchase agreement covering the TA'ZIZ Industrial Chemicals Zone at Ruwais.
Taqa Water Solutions, Etihad Water and Electricity and Saur International signed a long term agreement with the Government of Ras Al Khaimah to develop that emirate's largest wastewater treatment plant, with a capacity of 60,000 cubic metres a day serving up to 300,000 people. Taqa, Emirates Water and Electricity Company, Masdar, EDF Power Solutions and Jinko Power completed a green bond issue of USD 870.75 million, around AED 3.2 billion, refinancing the Al Dhafra solar photovoltaic independent power plant.
Capital expenditure rose 38 per cent while free cash flow fell by AED 2.4 billion. The company is spending ahead of its cash generation, deliberately, on assets with regulated or contracted revenue behind them.
What it means for the supply chain
The spending pattern matters more to contractors than the profit line does. Three of the four commitments are long dated utility assets: a 2.6 gigawatt generating station, a 60,000 cubic metre a day treatment works and a chemicals zone utilities agreement running to 27 years. Work of that kind is procured in packages over several years, and it carries the long defects and performance obligations that go with plant rather than buildings.
The 27 year term on the Ruwais agreement and the 25 year and longer horizons usual on independent power projects also set the commercial framework a subcontractor will meet on site. Availability regimes, liquidated damages tied to commissioning dates and step in rights all flow down from the offtake agreement, and they tend to be tighter than anything in a building contract of similar value.
The figure to watch through the second half is whether capital expenditure holds at the first half rate. AED 7.2 billion in six months against a full year comparison will tell the market, and the supply chain, whether this is a step change in procurement or a timing effect from two large awards landing in the same period.