UAE’s Alcazar in talks to acquire Egyptian Gabal El-Zeit wind farm for up to $350mn

The UAE-based Alcazar Energy is in negotiations with the Sovereign Fund of Egypt and the Egyptian Ministry of Electricity to finalise the acquisition of the Gabal El-Zeit wind power complex on the Red Sea coast, Asharq Business reported on January 6, citing government sources. 

The transaction is expected to be valued at up to $350mn.

Alcazar submitted the highest financial bid in the privatisation process, according to the source. The UAE firm ranked first among five regional and international bidders that conducted due diligence on the asset and expressed interest in acquiring the project, which has a total installed capacity of about 580 MW.

Alcazar Energy is a leading independent sustainable infrastructure fund based in the UAE that specialises in developing, financing, and operating utility-scale renewable energy projects, particularly solar and wind, across emerging markets in the Middle East, Africa, and Europe.

The Gabal El-Zeit wind complex comprises three separate plants. The first, with a capacity of 240 MW, was developed in cooperation with KfW and the European Commission. A second plant of 220 MW was supported by the Japan International Cooperation Agency (JICA), while a third 120 MW facility was financed by the Spanish government.

Negotiations are expected to conclude before the end of Q1 2026. The competing bidders included ACWA Power, Actis, Alacazar, alongside a Malaysian company and a European consortium.

The potential sale forms part of Egypt’s broader strategy to monetise state-owned assets, attract foreign investment and expand private sector participation in the renewable energy sector, as the country seeks to boost clean energy capacity and ease pressure on public finances.

Egypt is significantly expanding its capacity by commissioning massive new facilities for clean energy, including a landmark 2 GW project, as part of a strategic goal to source over 40% of its electricity from renewable energy by 2030.