Iberdrola has signed a contract with Abu Dhabi National Energy Co (Taqa), opening investment opportunities in the Middle East for the Spanish energy group.

Under the contract, both companies will invest in electricity generation, renewable energy and oil exploration and production in the Middle East, North Africa, Europe and North America, Iberdrola said in a statement.

'This new partnership to analyse investment projects in the international energy sector will benefit both companies, and give Iberdrola the opportunity to grow in new markets like North Africa or the Middle East,' said Iberdrola Chairman Ignacio Galan.

The renewable energy credentials of the world's largest operator of wind farms are of interest to Taqa, 75 percent owned by the Abu Dhabi government which controls over 90 percent of the oil reserves in the United Arab Emirates.

The UAE is the world's fifth largest oil exporter and Taqa is looking to expand as part of the Gulf Arab state's drive to diversify asset holdings and the country's economy in a bid to lessen its reliance on oil revenues.

An Iberdrola spokesman declined to say how much either company hoped to invest in the joint venture.

The contract was signed during a trip by Spanish dignitaries, including King Juan Carlos, to the Gulf region to promote Spanish business interests. -Reuters