Economic Risk of Wind Farm Investments in UAE: Evaluation through Real Options Approach

This study examines the potential of business investments in wind offshore farm United Arab Emirates through projection five different possible scenarios. The evaluation was done by using real option approach and Monte Carlo simulation imbibing risk on investment with source funds used. Our analysis indicates that return delay remain at highest degree if project is financed 50% government support investor’s own equity. On contrary, a 100% bank-financed yields lowest to delay. implies financial leverage high bank interest rate are significant factors influencing economic project. research contributes existing literature highlighting significance options application most-sought energy sector – farm. Moreover, this will pave way for small medium enterprises (SMEs) UAE invest field.