Several Middle Eastern states have introduced overarching national strategies with aims to diversify their energy mix to reduce their reliance on fossil fuels, as they also seek to expand their economies beyond a dependence on oil and gas revenue. This has led countries, such as the United Arab Emirates (UAE), Saudi Arabia, and Qatar, to invest heavily in the expansion of their renewable energy and cleantech industries.
Oil and gas production has provided several Middle Eastern countries with significant revenue for many decades, allowing them to rapidly develop their infrastructure and significantly improve the quality of life for citizens. However, with the world expected to gradually shift away from a reliance on fossil fuels in favour of greener alternatives, several states are now looking to reduce their dependence on a single revenue source in support of long-term economic diversification.
High levels of public investment have helped to accelerate the growth of the region’s clean energy capacity. Solar photovoltaic capacity in the Middle East and North Africa (MENA) is expected to increase tenfold by 2035, while the contribution of renewable energy sources to the region’s electricity generation reaches 25 percent. In addition, its nuclear energy capacity is projected to triple in this period.
In the UAE, the government aims to achieve net-zero carbon emissions by 2050, in line with targets outlined in the Paris Agreement. It aims to achieve this by cleaning up its fossil fuel operations and expanding its renewable energy capacity. By 2050, the UAE aims for its energy mix to consist of 44 percent alternative energy, 38 percent gas, 12 percent clean coal, and 6 percent nuclear power. The government also aims to create 50,000 new jobs and triple renewable energy capacity to 14 GW by 2030, as well as increase the percentage of alternative energy in the total energy mix to 30 percent by 2031.
The UAE has three of the world’s biggest solar plants at present, including the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, which is expected to produce enough energy to power 800,000 homes by 2030. The government launched the UAE’s first wind power programme in 2023, a 104 MW project in four locations. The country is also developing its nuclear energy sector, aiming to be the first Arab country to operate a nuclear plant, and hopes to ramp up its green hydrogen production to become one of the largest producers of hydrogen by 2031.
In a bid to “clean up” its fossil fuel industry, the UAE is investing heavily in carbon capture technology, as it continues increasing its oil output for several years. The state-owned oil company ADNOC is currently developing the largest carbon capture project in the MENA region, which is expected to be able to capture 1.5 million tonnes of carbon a year, if successful.
In Saudi Arabia, the government is investing over $40 billion from its Public Investment Fund (PIF) in diversification projects each year. The Kingdom aims for renewable energy to contribute 50 percent of its energy generation by 2030, through investments in wind and solar power, and other energy sources.
Saudi Arabia’s renewable energy capacity is expected to grow to 90 GW by the end of the decade, alongside around 48 gigawatt-hours of storage capacity. To this end, PIC and Saudi Arabia’s ACWA Power signed an agreement to develop a 15 GW renewable energy portfolio in 2025, to increase green energy output to 43 GW.
In June, Air Products announced that the construction of Saudi Arabia’s NEOM Green Hydrogen Project had reached roughly 80 percent completion across multiple sites. The development includes a large-scale green hydrogen production facility, with solar and wind farms to power production, and a purpose-built transmission network. Once complete – reportedly within the next two years – it is expected to be the world’s largest renewable-powered ammonia complex.
Meanwhile, Qatar has pledged to reduce greenhouse gas emissions by 25 precent by 2030. This will be driven by the rollout of the Qatar National Renewable Energy Strategy (QNRES). The QNRES aims to alleviate pressure on grid infrastructure by advancing energy sustainability. The government aims to install 4 GW of utility-scale renewable energy capacity by 2030, principally through the development of solar farms.
Kuwait has also set a (slightly less ambitious) target of generating 15 percent of its total energy needs from renewable sources by 2030. This will be supported by an investment of $99 million in the 10 MW Sidrah 500 solar plant. Kuwait is expected to achieve 2.9 GW of cumulative solar capacity by 2030, an increase from just 50 MW at present, according to figures released by Norwegian research company Rystad Energy. This figure could rise significantly to 10.1 GW by 2035.
The MENA region is investing heavily in the expansion of its renewable energy capacity in a bid to reduce its dependence on fossil fuels and support economic diversification. Some countries are achieving this at a more accelerated pace than others, with both the UAE and Saudi Arabia set to meet their ambitious green energy capacity targets.
