Piloting to scale

Introduction and strategic rationale

Abu Dhabi is well placed to lead the UAE’s next wave of climate innovation, particularly in scaling hardware-intensive technologies at the intersection of climate, infrastructure and manufacturing. While the UAE has made global progress in clean energy and sustainability, a critical gap remains: the absence of infrastructure and mechanisms to pilot and scale climate-deep tech solutions. These include innovations such as green construction materials, energy storage systems, low-carbon industrial processes and other technologies vital to the future of infrastructure.

On 21 May 2025, a closed-door roundtable was held under Chatham House Rules during Make it in the Emirates (MIITE) Week to explore how Abu Dhabi could lead the development of a national piloting programme. The session brought together key stakeholders from government, industry, academia and finance. Participants reached a clear consensus: the UAE must create real-world testing environments, align regulatory pathways and de-risk capital-intensive innovation. These steps are essential to bridge the “valley of death” that many startups face as they move from prototype to deployment.

This brief presents the outcomes of that roundtable discussion and has been created in collaboration with Abu Dhabi Sustainability Week (ADSW), Global Climate Financial Centre (GCFC), UAE Independent Climate Change Accelerators (UICCA), Hub71 and PwC Middle East. It identifies the infrastructure, capital and policy gaps that currently constrain scale-up and offers a three-pillar action framework for Abu Dhabi to lead this transformation, building on existing programmes by Hub71, Masdar City and ADIO and aligning with national industrial and climate goals such as the Ministry of Industry and Advanced Technology’s (MOIAT) Operation 300bn.

Defining the focus

“Climate-deep tech” refers to hardware- and systems-intensive technologies that address climate mitigation or adaptation and are relevant to the future of infrastructure, including energy storage, green construction materials, carbon capture and industrial process decarbonisation. This brief does not cover general software-based climate solutions or consumer apps.

1. Key findings and gaps

1.1 Piloting infrastructure: What’s missing?

Abu Dhabi provides strong support for incubation and now has the opportunity to enhance its infrastructure for real-world piloting and light manufacturing. 

Specific gaps include:

• High OPEX for pilot sites, including real estate and utilities. One startup reported annual costs of Dhs150m for a modest pilot site

• Insufficient number of climate-tech tailored zones (e.g. Hub71 + ClimateTech that was launched during COP28 to accelerate startups developing climate solutions), especially for industrial decarbonisation and grid-related innovation
• Insufficient number of testing environments or regulatory sandboxes for first-of-a-kind (FOAK) technologies

These additions would help startups move beyond lab-scale validation. Without purpose-built zones and environments that support experimentation, Abu Dhabi risks losing commercially promising innovations to other markets.

1.2 Capital and de-risking barriers

Deployment-stage climate-deep tech startups often require significant investments (>US$100m) with long timelines and technology risks. This profile does not align with the expectations of most traditional venture capital in the region. 

Key challenges include:

• Pilots are often perceived as cost centres rather than value-generating assets
• Limited investor appetite for hardware innovation in MENA markets
• Absence of predictable demand signals, such as offtake agreements or strategic procurement, reducing the attractiveness of early-stage investments

A financing model tailored to hardware-intensive, climate-relevant technologies remains underdeveloped.

1.3 Regulatory enablement

Despite national ambition on climate, regulatory frameworks to support piloting and deployment remain fragmented or underdeveloped. 

Observed gaps include:

• No formal regulatory sandboxes or conditional approvals for climate-tech pilots
• Uncoordinated or immature carbon credit schemes, lacking interoperability or market traction
• Weak alignment between innovation priorities and public sector procurement practices

This regulatory ambiguity creates uncertainty and slows down deployment, particularly in sectors like green hydrogen, carbon capture and low-carbon construction.

1.4 Governance and integration

The ecosystem remains fragmented. Startups must navigate multiple and often siloed entry points across regulators, accelerators and investors. There is no single window for accessing the infrastructure, capital and partners needed to pilot deep-tech solutions.

• Stakeholders lack a coordinated mechanism for identifying, supporting and scaling high-potential pilot technologies
• Public-private collaboration mechanisms for scale-up are nascent
• While there are strong efforts by ADIO, Hub71 and others, there remains an opportunity to create a more unified approach and scope

A more integrated national approach could reduce friction, improve resource alignment and accelerate time to deployment.

2. What Abu Dhabi could do next

Abu Dhabi can play a catalytic role in closing the piloting gap by initiating a scalable, nationally replicable model to deploy climate-deep tech solutions. Building on existing platforms like Hub71, ADIO and Masdar City, this three-pillar action plan outlines how Abu Dhabi can lead the UAE in converting innovation into infrastructure.

2.1 Pillar 1: Enable piloting infrastructure

To accelerate real-world testing and iteration, Abu Dhabi could establish dedicated zones and enable flexible deployment environments:

• Designate climate-deep tech zones in locations such as KEZAD or Masdar City, offering subsidised utilities, tailored permitting and regulatory flexibility
• Develop a UAE innovation readiness map, beginning with Abu Dhabi, to clearly outline pilot pathways, contact points and support mechanisms across the ecosystem
• Expand Hub71 + ClimateTech to serve as a centralised access point for climate-deep tech pilot support
• Foster lab-to-pilot partnerships by linking universities (MBZUAI, NYUAD, Khalifa University) with industrial stakeholders to co-develop and test FOAK technologies

 2.2 Pillar 2: Mobilise capital and de-risk innovation

To address capital intensity and long deployment cycles, Abu Dhabi could anchor a financial framework that improves investor confidence:

• Launch a de-risking facility in Abu Dhabi to offer guarantees, first-loss capital, or concessional finance, potentially expandable to a national model
• Introduce R&D tax credits and corporate VC incentives to encourage private-sector investment in high-risk, hardware-based climate innovation
• Integrate pilot-stage startups into in-country value (ICV) schemes, providing procurement advantages and enhanced visibility in industrial supply chains

 2.3 Pillar 3: Drive collaboration and governance

To overcome fragmentation, a clear governance structure is needed to coordinate stakeholders and ensure accountability:

• Establish a national piloting mechanism anchored in Abu Dhabi, with clearly defined roles for public and private sector entities
• Create a multi-stakeholder steering committee to oversee implementation, monitor progress and adjust the model based on pilot outcomes
• Set up centres of excellence in partnership with corporates such as ADNOC, TAQA and Etihad to lead vertical-specific innovation agendas
• Embed challenge-driven procurement models into government and SOE purchasing strategies to create demand for locally piloted solutions