UAE banks are missing out on project finance opportunities for renewable power projects due to uncompetitive interest rates.

Speaking during a panel debate at MEED’s Clean Energy conference, Stephane Bontemps, managing director of Access, said “[Many] local banks lend in dirhams, which has very high interest rates compared to the US dollar.” It means there is less interest in taking dirham-based project finance he said.

Thierry Tardy, executive director, acquisitions and project finance at Acwa Power, added that local banks have the knowledge and experience, the question is whether or not they can help developers secure the best tariff, otherwise developers will go to the international banks.

The panellists pointed to Saudi Arabia, where many banks offer project finance at favourable interest rates with the Saudi riyal.