For much of the 20th century, the Middle East and North Africa (MENA) regions were the beating heart of the global oil economy. Nations like Saudi Arabia, the UAE, and Algeria rose to geopolitical prominence by supplying the world with hydrocarbons, fueling global industries and economies. However, as the world shifts toward sustainability and decarbonization, the same region once defined by oil is rewriting its energy legacy—this time, powered by the sun and wind.
Today, the MENA region is undergoing a profound transformation. Driven by the urgency of economic diversification, climate resilience, and energy security, countries across the region are embracing renewable energy with unprecedented speed and ambition.
The renewable energy market in MENA is experiencing remarkable growth. It is valued at approximately USD 26.8 billion in 2024 and is projected to reach nearly USD 59.9 billion by 2030, expanding to a CAGR of 14.4% during the forecast period.
Solar energy dominates the renewable mix due to the region's high solar potential. Meanwhile, wind energy is gaining traction in countries with favorable wind conditions, particularly North Africa. Hydropower, while limited by water scarcity, still contributes in a few select areas.
Economic Diversification and Energy Security
The need to reduce dependence on fossil fuels pushes oil-rich nations like Saudi Arabia, the UAE, and Oman to invest heavily in clean energy. Renewable energy offers both environmental benefits and economic resilience in the face of fluctuating oil prices.
Abundant Renewable Resources
Falling Technology Costs
The cost of solar photovoltaic (PV) modules and wind turbines has decreased dramatically. Solar PV costs have fallen by over 80% since 2010, making renewable energy highly competitive with conventional power.