Alcazar Advances Talks To Buy Egypt Wind Asset

(MENAFN- The Arabian Post) Greenlogue /AP

Dubai-based Alcazar is edging closer to acquiring Egypt's Gabel El-Zeit wind farm after submitting the highest bid among contenders, according to people familiar with the negotiations. Discussions are under way with the country's sovereign wealth fund and the Ministry of Electricity and Renewable Energy on a transaction valued at about $350 million, with officials indicating that talks could be wrapped up before the end of the first quarter of 2026.

The asset, one of the largest onshore wind facilities in the Middle East and North Africa, sits along the Red Sea coast and has long been viewed as a cornerstone of Egypt's renewable power programme. Developed in phases over more than a decade, Gabel El-Zeit has benefited from strong wind resources and grid connectivity that allow it to supply electricity at scale, helping to diversify the country's energy mix away from hydrocarbons.

People briefed on the process say Alcazar's offer outpaced rival bids on valuation and financing terms, giving it a clear edge as the preferred buyer. Negotiations are now focused on final pricing mechanics, operational handover and long-term power offtake arrangements, which are critical to underpinning cash flows once ownership changes hands. Officials involved in the talks have said both sides expect to reach agreement within weeks, subject to customary approvals.

The sale forms part of Egypt's broader push to recycle capital from mature state-backed assets while attracting foreign investors with operational expertise. The Sovereign Fund of Egypt, established to unlock value from public holdings, has prioritised infrastructure and energy projects that can draw long-term capital and technology. Renewable assets have been high on that list as Cairo seeks to meet ambitious clean-energy targets and manage rising electricity demand.

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For Alcazar, the acquisition would mark a significant expansion of its footprint in the regional renewables market. Headquartered in Dubai, the firm has been building a portfolio spanning wind, solar and hybrid projects across emerging markets, with a focus on assets that offer stable returns under long-term contracts. Securing Gabel El-Zeit would provide immediate scale and visibility, positioning the company among the largest private owners of wind capacity in North Africa.

Market participants note that interest in Egyptian renewable assets has intensified as global investors hunt for yield and diversification. Egypt's wind and solar resources are among the strongest in the region, while recent regulatory reforms have improved bankability through clearer tariff structures and sovereign-backed offtake. These factors have helped narrow the risk premium traditionally attached to emerging-market infrastructure.

At the same time, the negotiations are unfolding against a complex backdrop. Currency volatility, inflationary pressures and fiscal consolidation efforts have sharpened scrutiny of deal terms, particularly around dollar-linked revenues and repatriation of profits. Buyers have sought protections through robust contractual frameworks, while sellers are keen to demonstrate that strategic assets can be monetised without compromising national energy security.

The Gabel El-Zeit complex, located near the Gulf of Suez shipping lane, has historically attracted international partners and financiers. Its scale and performance record make it a bellwether for Egypt's renewable ambitions, and any ownership change is closely watched by lenders and policymakers alike. Industry analysts say a successful sale at the mooted valuation would signal confidence in the sector and could pave the way for further divestments.

See also AMEA Power delivers landmark Tunisia solar project

Officials involved in the process have stressed that the transaction is structured as a transfer of ownership rather than a change in operational priorities. The wind farm would continue to feed power into the national grid under existing agreements, supporting Egypt's goal of lifting the share of renewables in electricity generation over the coming decade. For the government, the deal offers a chance to crystallise value while retaining strategic oversight through regulation.

via Greenlogue

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