The Emirates sent a large number of delegates to try and win the vote
The International Renewable Energy Agency (Irena) will have its headquarters in Abu Dhabi.
The decision was taken at the inaugural meeting of the body which was created in January and will advise governments about renewable energy and technology.
Delegates from 129 countries are gathered in Sharm al-Sheik.
Despite criticism that per capita it has the largest carbon footprint in the world, Abu Dhabi beat off Bonn and Vienna to host the organisation.
According to a local news agency, the United States, Australia and Japan added their names to the document establishing Irena just hours before the conference opened.
The aim of the organisation is to offer advice to governments on technical and financial issues linked to renewable energy and promote such technology in developing countries.