Saudi Arabia and the UAE, oil and gas continue to provide the revenues to support a strong economy and contribute to their national funds to ensure their wealth for the future. However, leaders across the region are aware that oil and gas will not be the main economic drivers forever, and many are now attempting to diversify their economies and expand their non-oil sectors.
With extensive experience in energy, the Middle East is seen as the perfect location to develop green energy operations, from green hydrogen to wind and solar power, ensuring the future of the region’s energy security as well as its position on the energy stage of the future.
Several Middle Eastern states have announced ambitious decarbonization plans in line with Paris Agreement targets.
The Middle East is also looking to beat its main competitors – Europe and Asia, to dominate the green hydrogen market. In 2021, the UAE announced several new projects. France’s Engie and Abu Dhabi-based renewable energy business Masdar stated they would be investing $5 billion in the country’s green hydrogen industry, aiming for an electrolyzer capacity of 2 gigawatts by 2030.
Saudi Arabia also aims to generate 50 percent of its energy from green sources by 2030.
The Middle East is set to become an energy powerhouse thanks to the ongoing dedication to its long-established oil and gas industry as well as major investments in the future of the region’s renewables. Saudi Arabia and the UAE will likely be at the forefront of the region’s green energy revolution, with massive plans for green hydrogen, as well as solar and wind energy and other innovative green technologies.