Written by Jaap Bastiaansen from Nexus Climate
The UAE’s ambitious commitment to achieving net-zero emissions by 2050 is catalyzing a major shift in how energy is managed, especially within its older building stock. These pre-2000 structures, developed before sustainability became central to design and engineering, still account for a disproportionately high share of energy consumption. As the country accelerates its decarbonization goals, retrofitting these buildings is no longer optional—it’s essential.
Strategic Goals and the Regulatory Push
Net-Zero Targets Driving Retrofit momentum
To align with its net-zero roadmap, the UAE has set a critical interim goal of cutting emissions by 40% by 2030. Much of this reduction hinges on improving the performance of existing buildings. In Dubai, the Supreme Council of Energy aims to retrofit 30,000 buildings by the end of this decade. In parallel, Abu Dhabi’s Building Retrofit Program, aligned with the Department of Energy’s Energy Efficiency Policy, seeks to reduce electricity consumption by over 22%, targeting both government and commercial buildings.
Why existing buildings matter
The UAE’s building sector, like much of the MENA region, contributes up to 80% of total electricity consumption. What’s more striking is that in Dubai, around 80% of this energy is used by just 20% of buildings—typically older, inefficient structures. Retrofitting this segment could result in energy savings upwards of 50%, especially when combined with advanced Energy Conservation Measures (ECMs) and smart building technologies.
Retrofitting as a Strategic Investment
More than Sustainability—A Business Opportunity
Retrofitting is no longer seen as a cost center. Supported by initiatives like Abu Dhabi’s Powerwise program and Dubai’s energy performance contracting (EPC) market, property owners and facility managers are increasingly recognizing the commercial upside. Upgraded buildings not only lower operational costs but also benefit from improved asset valuation, regulatory compliance, and tenant satisfaction.
Smart Tech Integration
Next-generation retrofits go beyond insulation and HVAC upgrades. Smart building technologies—AI-enabled energy management systems, IoT sensors, real-time analytics—allow buildings to adapt dynamically to occupancy, climate, and usage patterns. These innovations not only improve efficiency but also extend the lifespan of assets, reduce maintenance costs, and enhance resilience.
MENA-Wide Momentum and Capital Inflows
Across the region, the shift toward clean energy and efficiency is gaining momentum. The MENA region is projected to invest approximately USD 175 billion in energy projects through 2024–2025, with a significant portion earmarked for retrofitting and energy optimization. This reflects not only environmental concerns but also a drive toward energy security and economic diversification.
Retrofitting for the Future
The UAE’s retrofit wave is more than a regulatory checkbox—it’s a strategic pathway to energy resilience, cost savings, and climate leadership. As cities like Dubai and Abu Dhabi retrofit thousands of buildings, the challenge is clear—but so is the opportunity.
With a supportive policy landscape, growing investor interest, and platforms like Nexus to accelerate innovation, the transformation of the UAE’s aging building stock is well underway. For startups and stakeholders alike, now is the time to plug into the retrofit revolution and help turn today’s energy guzzlers into tomorrow’s green giants.
