UAE Company Floating Pakistan’s First Green Energy Modaraba

Web Desk — The Securities and Exchange Commission of Pakistan has granted approval to Burj Energy International Management, a UAE-based renewable energy provider, to float Pakistan’s first green energy modaraba worth Rs1 billion (approximately $5.5 million), the watchdog and company officials said.  

The company will engage in the business of generating and supplying renewable energy, and renting commissioned renewable energy equipment after the completion of a public offering, the SECP said in a statement on Monday.

“It’s Pakistan’s first clean energy Modaraba that invests in renewable hybrid, solar, and wind energy and reduces the carbon footprint of the country,” Aamer Chishti, the director of Burj Energy International, told Arab News from Dubai.

“Floatation of the new modaraba will facilitate the growth of Shariah-compliant financial products in the financial services market,” he said. Within the next 12 months, the Burj Modaraba will be listed on the Pakistan Stock Exchange (PSX), with a public offering of 30 modaraba certificates of Rs10 each.  

In Pakistan, Modaraba will invest in a variety of solar and wind power generation projects, focusing primarily on industrial, small, and medium enterprises (SMEs) and residential entities.  

“Replacement of electricity with affordable and alternative energy sources like solar and wind power will offer huge savings to the industrial and residential consumers of energy”, Chishti said. “This will contribute to Pakistan’s goal of reducing the carbon footprint and achieving net-zero commitments to the international community.”

The company has so far generated 52 megawatts of renewable energy in Asia and reduced carbon emissions by 86,880 tonnes. It is working in Bangladesh and Malaysia through joint ventures and now planning to launch operations in Sri Lanka, Chishti said.

There are a total of 28 modarabas in Pakistan with an asset base of approximately Rs50 billion, according to a 2020 research report by The Pakistan Credit Rating Agency (PACRA).