The Middle East continues to be dominated by traditional fossil fuels. However, countries are shifting their energy strategies away from oil-fired generation towards a power mix dominated by gas and renewables. Whilst the region has abundant natural gas reserves, balancing the dynamic between exports and domestic supply will be crucial for its energy security.
Despite the region’s continued reliance on thermal power, renewable technologies are rapidly scaling due to climate ambitions and energy and economic diversification strategies.
As countries in the region expand their renewable energy capacities, the deployment of energy storage technologies will be crucial to mitigate the intermittency of renewables and ensure grid stability. However, energy storage currently remains an emerging technology with capacity concentrated in Saudi Arabia, the UAE, and Israel.
Electric vehicle penetration in the Middle East saw a sharp increase in penetration in 2024. Despite previous low adoption rates, driven by insufficient charging infrastructure and price disparity with ICE vehicles, government targets and regulations are supporting development.
Given the role of the Middle East in the aviation industry, significant investment is being made to position the region as a hub for SAF production.
Due to its extensive fossil fuel production, CCUS has the potential to play a key role in the decarbonization of the Middle East. The region’s CCUS capacity is set to grow at a CAGR of 32% between 2026 and 2030.
Low-carbon hydrogen plays a key role in many Middle Eastern nations’ economic diversification strategies. Many countries are looking to leverage the region’s existing oil and gas infrastructure and expertise, and its vast natural gas and renewable resources, to establish themselves as key global export hubs for low-carbon hydrogen.
Despite the region’s continued reliance on thermal power, renewable technologies are rapidly scaling due to climate ambitions and energy and economic diversification strategies.
As countries in the region expand their renewable energy capacities, the deployment of energy storage technologies will be crucial to mitigate the intermittency of renewables and ensure grid stability. However, energy storage currently remains an emerging technology with capacity concentrated in Saudi Arabia, the UAE, and Israel.
Electric vehicle penetration in the Middle East saw a sharp increase in penetration in 2024. Despite previous low adoption rates, driven by insufficient charging infrastructure and price disparity with ICE vehicles, government targets and regulations are supporting development.
Given the role of the Middle East in the aviation industry, significant investment is being made to position the region as a hub for SAF production.
Due to its extensive fossil fuel production, CCUS has the potential to play a key role in the decarbonization of the Middle East. The region’s CCUS capacity is set to grow at a CAGR of 32% between 2026 and 2030.
Low-carbon hydrogen plays a key role in many Middle Eastern nations’ economic diversification strategies. Many countries are looking to leverage the region’s existing oil and gas infrastructure and expertise, and its vast natural gas and renewable resources, to establish themselves as key global export hubs for low-carbon hydrogen.
Key Highlights
- By 2035, renewables are set to reach a 21% share of the power mix, an increase from its 6% share in 2025. Solar PV, alone, is set to account for 18% of the power mix driven by developers such as Acwa Power.
- Given the role of the Middle East in the aviation industry, significant investment is being made to position the region as a hub for SAF production.
- At present, all 10 of its active and upcoming projects are focusing their capacity on SAFs, with production forecasted to reach 516mmgy by 2030.
- The region’s CCUS capacity is set to grow at a CAGR of 32% between 2026 and 2030, with enhanced oil recovery a key driver of this growth in the near term due to its revenue-generating potential for the oil industry.
- From 2026 to 2030, the Middle East’s low-carbon hydrogen capacity is expected to grow at a CAGR of 48%, across ~84 projects.
Report Scope
- Middle Eastern leaders in energy transition technologies, Country net-zero targets, renewable power capacity and generation, decommissioning of thermal power, natural gas reserves, major players in renewable energy, energy storage capacity, major players in energy storage, electric vehicle outlook, renewable refinery outlook, CCUS outlook, largest upcoming carbon capture projects, hydrogen policies, low-carbon hydrogen outlook, regional breakdown of hydrogen capacity, breakdown of hydrogen by end-product, largest upcoming low-carbon hydrogen projects
Reasons to Buy
- Assess the current regional emissions, thermal and renewable capacity, and generation share, and identify which countries are driving the energy transition in the Middle East
- Identify market trends within the industry, including expected 2030 capacities for a range of technologies
- Identify who the leading countries and regional players are in renewable energy capacity and energy transition technologies, such as hydrogen and CCUS
- Understand the legislative framework laid out by the region’s governments aimed at accelerating the region's decarbonization and energy transition
Table of Contents
- Overview
- Executive summary
- Sector grid and leaders in the Middle East
- Power Mix
- Regional net-zero and renewable energy targets
- Power capacity and generation share outlooks
- Middle Eastern countries’ renewable generation share
- Thermal power: upcoming and decommissioning capacity
- Regional natural gas outlook
- Major players in renewable power
- Major EPC and equipment manufacturers for solar and wind
- Energy Storage
- Middle East energy storage outlook
- Major players in energy storage in the Middle East
- Electric Vehicles
- Middle East electric vehicles outlook
- Renewable Refineries
- Middle East renewable refinery outlook
- CCUS
- CCUS outlook in the Middle East
- The Middle East’s largest upcoming carbon capture projects
- Hydrogen
- Hydrogen policies and initiatives
- Hydrogen outlook in the Middle East
- Regional breakdown of hydrogen capacity
- Breakdown of regional hydrogen capacity by end-product
- The Middle East’s largest upcoming low-carbon hydrogen projects
- Sector and grid leaders in the Middle East
- Middle Eastern net-zero targets
- Major EPC and equipment manufacturers for solar and wind
- Major EPC and technology providers for energy storage
- The Middle East's largest upcoming carbon capture projects
- Hydrogen policies and initiatives
- The Middle East's largest upcoming low-carbon hydrogen projects
- Middle East power capacity share 2020-2035
- Middle East power capacity share 2035
- Middle East power generation share 2020-2035
- Middle East renewable energy generation by type 2020-2035
- Renewable generation share by country 2020-2035
- Middle East upcoming and decommissioning thermal capacity 2026-2030
- Regional breakdown of natural gas reserves as of January 2026
- JODI import vs export levels of natural gas in Middle East 2015-2025
- Major regional players in solar PV capacity based on active and announced projects
- Major regional players in wind capacity based on active and announced projects
- Middle Eastern rated power capacity by country 2026YTD
- Major players in energy storage by rated power capacity 2026YTD
- Middle Eastern EV car sales 2014-2024
- Middle East SAF capacity by stage 2025-2030
- Number of active and upcoming refineries by country and refinery type 2026YTD
- Middle Eastern CCS capacity by stage 2025-2030
- Middle Eastern countries' active and upcoming CCS capacity by stage 2026YTD
- Middle East vs global low-carbon hydrogen capacity by development stage 2026YTD
- Middle East low-carbon hydrogen capacity by development stage 2025-2030
- Country breakdown of Middle Eastern low-carbon capacity by stage 2026YTD
- Country breakdown of Middle Eastern low-carbon hydrogen capacity by type and project count 2026YTD
- Middle East low-carbon hydrogen capacity by end-product 2025-2030
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Acwa Power
- Badeel
- Iran Water and Power Resources
- Saudi Electricity Company
- Doral Group
- BYD
- Tesla
- Volkswagen
- X2E
- Nordic Electrofuel
- Mercantile & Maritime
- QatarEnergy
- Saudi Aramco
- ADNOC
- EnBW Energy Solutions
- Masdar
- ADQ
- ACME Cleantech Solutions
- Nama Power and Water Procurement
- MEW Kuwait
- EDF
- Dubai Electricity & Water Authority
- Saudi Power Procurement
- Nama Group
- Marubeni
- Abdulaziz Alajlan Sons for Trading & Real Estate Investments
- Korea Electric Power
- EtihadWE
- Larsen & Toubro
- Power Construction Corporation of China
- China Energy Engineering Corp
- China National Machinery Industry
- Air Products and Chemicals
- Multi Nova Contracting
- Shanghai Electric Group
- Northwest Electric Power Design Institute
- Guangdong Power Engineering Corp
- Cox Energy SAB de CV
- JinkoSolar Holding
- JA Solar Technology
- LONGi Green Energy Technology
- Trina Solar
- Tongwei
- Chint Group
- Yingli Green Energy
- First Solar
- Jolywood Sunwatt
- Zhejiang Chint Electrics
- Vestas Wind Systems
- Elecnor
- Shanxi Electric Power Engineering
- General Electric
- Doosan Enerbility
- Siemens Energy
- Safa Nicu Sepahan
- Nasb Niroo
- Envision Energy
- Goldwind Science & Technology
- Zheijang Windey Wind Generating Engineering
- MAPNA group
- Villas Wind Technology
- Xiangtan Electric Manufacturing
- Nordex
- Neom
- Ormat Technologies
- Alfanar Group
- State Grid Corporation of China
- Shikun & Binui
- Kharafi National
- TSK Group
- AFCON Holdings
- Xiamen Hithium Energy Storage Technology
- Sungrow Power Supply
- NGK Insulators
- Caterpillar
- Brenmiller Energy
- Shenzhen GSL Tech
- GenCell
- Ceer Motors
- Emirates
- Etihad
- Qatar Airways
- MENA Biofuels
- TotalEnergies
- SATORP
- Occidental Petroleum
- Daesung Group
- ExxonMobil
- Hanwha Corp
- HD Hyundai Co
- Itochu Corp
- Korea Gas Corp
- LG Corp
- Samsung C&T Corp
- SK Innovation Co
- Sojitz Corp
- Sumitomo Corp
- Sinopec
- ConocoPhillips
- Eni SpA
- Shell
- Lukoil Oil
- PTT Public Co
- Tospoe
- OQ SAOC
- Amarenco Solar
- H2 Global Energy
- Actis Corp
- Fortescue Future Industries
- Blue Power Partners
- CIP
- Electirc Power Development Co
- Yamna
