The two reportedly have signed a $2 billion agreement to build a 1,000-megawatt coal-fired power plant in the emirate of Ajman, Emirates Business reported.

The plant is expected to supply new real estate developments in the emirate with power, according to Emirates Business.

Feasibility, technical and environmental studies will be completed over the next six months, and the entire project is expected to take about three-and-a-half years to finish.

MMC is also working on two other plants for the UAE's Federal Electricity and Water Authority, and those are expected to be operational before the end of the year.

FEWA reportedly has signed a deal with the Malaysian firm to cap power tariffs and save about 10 percent on the average price of power.