Legal Determinants of Foreign Direct Investment in the Power Industry: A Comparative Analysis of the UAE’s Strategic Liberalization and Australia’s Prudent Oversight

In the context of modern energy economics and the imperative transition to renewable sources, attracting Foreign Direct Investment (FDI) in the power industry has become a strategic challenge for governments, particularly in countries facing energy imbalances such as Iran. Adopting a descriptive-analytical and comparative approach, this article examines the legal frameworks of the United Arab Emirates (UAE) and Australia in attracting investment to the power industry. The central research problem involves identifying the key legal factors and mechanisms that have led to investment growth in the power industry: the UAE’s "Strategic Liberalization" model (emphasizing 100% ownership and energy free zones) and Australia’s "Prudent Oversight" model (relying on the national interest test and critical infrastructure security). The findings indicate that while the UAE focuses on legal transparency and simplicity to attract nimble capital, Australia ensures long-term sustainability through institutional maturity and rigorous security oversight. Finally, by aligning these two patterns with Iran’s circumstances, the study suggests that resolving the electricity crisis requires moving toward establishing independent regulatory bodies, guaranteeing the stability of Power Purchase Agreements (PPAs), and utilizing the legal structures of energy special zones to strike a balance between attracting foreign technology and safeguarding infrastructure security.