The Middle East is witnessing a rapid expansion in its renewable energy and clean tech sectors as several countries in the region strive for economic diversification beyond oil and gas. While fossil fuels continue to play a significant role in countries like Saudi Arabia, the UAE, and Qatar, investments in major wind, solar, green hydrogen, and other renewable energy projects are ensuring these states maintain a competitive position in the future global energy landscape.
Traditionally reliant on oil and gas for both energy security and revenue generation, several Middle Eastern nations are now redirecting funds towards renewable energy projects and clean technologies to adapt to the shifting global energy landscape. At the COP28 climate summit hosted in the UAE, regional leaders made ambitious climate pledges, with the Middle East and North Africa (MENA) region projected to add 62 GW of renewable energy capacity over the next five years, according to the International Energy Agency (IEA). Solar energy is anticipated to account for more than 85 percent of this capacity growth as countries capitalize on their abundant sunlight.
Saudi Arabia is expected to play a significant role in the MENA region’s renewable energy expansion, alongside the United Arab Emirates (UAE), Morocco, Oman, Egypt, Israel, and Jordan. Together, these nations are projected to contribute approximately 90 percent of the region’s renewable energy capacity growth. Saudi Arabia’s green energy ambitions hinge heavily on the development of Neom, a massive new urban area at the northern tip of the Red Sea, spanning 26,500 km² and slated for completion by 2039.
Supported by $500 billion from Saudi Arabia’s Public Investment Fund, Neom aims to be powered entirely by renewable energy, devoid of roads or cars, and accommodate nine million people. The project includes plans for a clean industrial hub called Oxagon, featuring the “world’s largest green hydrogen facility” at a cost of $8.4 billion. Saudi Arabia aims to achieve a power mix of 50 percent renewable energy by 2030.
Meanwhile, the UAE is pursuing its renewable energy goals, aiming for a renewable energy mix of 44 percent by 2030. With rapid development in solar power, including three of the world’s largest solar plants, the UAE is making strides in reducing carbon emissions. Additionally, the country is venturing into wind energy and nuclear power, alongside investments in blue and green hydrogen production to align with its National Hydrogen Strategy 2050.
Collaboration between regional players is also on the rise, as seen with the $35-billion investment partnership between the UAE and Oman for renewable energy, green metals, railways, and digital infrastructure. Oman, leveraging its expertise in oil and gas, aims to become a major green hydrogen producer by harnessing its ample solar and wind resources. With plans to produce millions of tonnes of green hydrogen annually by 2050, Oman is poised to emerge as a key player in the global renewable energy arena.
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