GCC Renewable Energy Market

GCC Renewable Energy Market Size and Share:

The GCC renewable energy market size was valued at 16.44 GW in 2024. Looking forward, IMARC Group estimates the market to reach 43.80 GW by 2033, exhibiting a CAGR of 10.60% from 2025-2033. UAE currently dominates the market, with 45% of the market share. The market is primarily driven by rise in large-scale green hydrogen projects, the ongoing integration of smart grids, continual advancements in energy storage, government-led collaborations, financial incentives, the deployment of renewable energy in industrial sectors, public-private partnerships, and a growing focus on decarbonization to achieve global sustainability goals.

The market is primarily driven by the region’s commitment to economic diversification and reduced dependence on hydrocarbons. In line with this, ambitious national strategies, such as Saudi Arabia's Vision 2030 and the UAE’s Net Zero 2050, emphasize large-scale investments in solar, wind, and green hydrogen projects to enhance energy security and meet global climate goals. A notable example is the July 18, 2024, agreement between KBR and Kuwait Oil Company to create a masterplan for 17GW of renewable energy and 25GW of green hydrogen by 2050. This includes phased wind, solar, and storage integration, feasibility studies, market analysis, and workforce training. Moreover, strategic international partnerships and supportive policies further accelerate the region's renewable energy transition.

In addition to this, continual technological advancements in energy storage, grid integration, and photovoltaic efficiency are also driving the market. The declining costs of solar and wind technologies render renewable projects increasingly competitive. The region's abundant solar radiation and favorable wind conditions provide a reliable renewable resource supply. A study published on 1 March 2024 at Bahrain Polytechnic examined tilted global solar irradiance using fixed and moving photovoltaic panels over a year. The moving panel, controlled by GPS and software, achieved a 33% annual energy gain, producing 2780 kWh/m² compared to 2088 kWh/m² for the fixed panel. In June, when cooling demand peaks, the moving panel received 54.7% more energy. Supportive incentives like tax exemptions, subsidies, and partnerships attract international investors, accelerating renewable energy deployment and sustainability efforts.

GCC Renewable Energy Market Trends:

Rapid Integration of Smart Grids and Energy Storage

The GCC is pushing the adoption of renewable energy through massive investments in smart grid technologies and advanced energy storage systems, which improve efficiency and reliability. On December 24, 2024, Dubai Electricity and Water Authority, Dewa, announced a AED7 Billion, or USD 1.91 Billion, smart grid project that will extend up to 2035 with the aim of enhancing efficiency, reliability, and sustainability in electricity and water services. Some of the notable achievements from this initiative include achieving an electricity loss of 2% and water loss of 4.6%, well beyond the global average. It also allows for innovations such as automated grid restoration and advanced management, under the smart grid that enable dynamic energy management to have real-time monitoring and effective distribution of solar and wind power. Coupled with large-scale battery storage systems, these advancements address intermittency challenges and support renewable energy goals by creating a resilient and adaptive energy infrastructure.

Growing Focus on Decarbonizing Energy-Intensive Industries

The GCC is ramping up efforts to decarbonize energy-intensive industries like petrochemicals, aluminum, and steel toward global sustainability goals. In Dubai, from September 11-12, 2024, the MENA Green Steel Summit 2024 shed light on green steel's potential in carbon emissions reductions, with the Global Carbon Council underlining the use of carbon credits for financing decarbonization. Key strategies, such as Carbon Capture, Hydrogen-Based Iron Making, and Electrolysis, have been identified as transformative solutions. Renewable energy is increasingly being used to power industrial operations, significantly reducing carbon footprints while maintaining international competitiveness. Governments are fostering public-private collaborations to establish renewable-powered industrial clusters, such as Saudi Arabia's Industrial Renewable Energy Initiative. Low-carbon cement investments and green steel production, encouraged by green bonds and sustainable loans, also render the GCC the world leader in sustainable industrial innovation and best practices for decarbonization.

Expansion of Green Hydrogen Projects

The focus on green hydrogen is a cornerstone of the GCC's renewable energy strategy, driven by abundant solar and wind resources that form a cost-effective basis for its production. Large-scale projects are being initiated by governments and private players in Saudi Arabia, the UAE, and Oman, to render the region a major hydrogen-exporting hub worldwide. The GCC is positioning itself according to global decarbonization trends by leveraging advanced electrolysis technologies and strategic proximity to Europe and Asia. An example is the Saudi Arabia Neom Green Hydrogen Project, reported to be 60% complete on November 19, 2024. The world's largest green hydrogen facility will combine 4GW of renewable energy to produce 600 tonnes of hydrogen daily, which converts to 1.2 million tonnes of ammonia annually, further solidifying the region's leadership in clean energy.

GCC Renewable Energy Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the GCC renewable energy market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type, and application.

Analysis by Type:

• Hydropower
• Wind Power
• Solar Power
• Bioenergy
• Geothermal Energy
• Others

Solar power dominates the market share, given the region's high solar radiation, making it one of the best regions in the world for solar energy potential. The cost of photovoltaic technology has decreased, and solar panel manufacturing efficiency has improved, making solar projects increasingly cost-competitive. Through the ambitious initiative of Vision 2030 in Saudi Arabia and the UAE's Net Zero 2050, governments have focused on large-scale installations such as the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. Advances in technology have included energy storage integration and CSP systems to enhance reliability and scalability. Moreover, solar energy supports decarbonization efforts by providing carbon-free power sources for industries and households, aligning with global sustainability goals, and fostering regional energy independence.

Analysis by Application:

• Residential
• Commercial
• Industrial

Residential adoption of renewable energy, particularly solar power, is gaining momentum in the GCC as governments promote energy efficiency and sustainability. Rooftop solar panels and small-scale photovoltaic systems allow households to reduce electricity costs and carbon footprints. Net metering policies and subsidies render renewable solutions more accessible, while advancements in energy storage enable homeowners to store excess energy for later use, enhancing energy independence and reliability in residential settings.

Commercial establishments including malls, offices, and hotels are finding ways to minimize operation expenses and meet their sustainability needs by using renewable energy sources. Installation of solar rooftops and on-site wind turbines for lighting, heating, ventilation, and cooling, among other energy intensive operations, is becoming a trend. In addition, green certifications and lesser utility costs also attract the businesses while displaying environmental friendliness to the customers enhancing brand reputation in an environmentally responsible market.

The industrial sector in the GCC is relying on renewable energy for both decarbonization and cost savings. Gigascale solar farms and wind facilities feed power into energy-hungry activities in petrochemicals, manufacturing, and steel. Renewable-driven industrial clusters are seen as well in the Saudi Arabian Industrial Renewable Energy Initiative that underlines this region's pursuit of cleaner energy solutions in heavy industry. The introduction of technologies like green hydrogen, therefore, makes industrial activity carbon lean without undermining its competitiveness.

Country Analysis:

• Saudi Arabia
• UAE
• Qatar
• Kuwait
• Oman
• Bahrain

In 2024, UAE leads the market with 45% of the share, due to its strategic investments, abundant resources, and ambitious national initiatives. The country’s Vision 2030 plan emphasizes economic diversification and sustainability, driving large-scale projects like the NEOM Green Hydrogen initiative and the Sakaka Solar Power Plant. Saudi Arabia benefits from vast solar and wind resources, providing a cost-effective foundation for renewable energy production. With substantial government funding, public-private partnerships, and backing from the Public Investment Fund (PIF), Saudi Arabia is rapidly scaling its renewable energy capacity. Additionally, its geographic location allows for efficient export to global markets, particularly Europe and Asia. These factors, combined with advanced infrastructure and strong policy support, establish Saudi Arabia as a leader in the region.

Key Regional Takeaways:
 

Kingdom of Saudi Arabia (KSA) Renewable Energy Market Analysis 

The Kingdom of Saudi Arabia's renewable energy market is undergoing a rapid transformation, emphasizing sustainability and energy diversification. According to the Center on Global Energy Policy, Saudi Arabia has set a goal to source 50% of its power from renewable energy by 2030, aiming for 130 GW of capacity, including 58.7 GW from solar and 40 GW from wind. This ambitious target is the most extensive among GCC countries. The nation is advancing innovation in solar, wind, and geothermal technologies while implementing favorable policies, investment incentives, and public-private partnerships to attract international and local players.

On 19 November 2024, TAQA, JERA, and AlBawani signed 25-year PPAs with Saudi Power Procurement Company to develop the Rumah 2 and Al Nairyah 2 combined cycle gas power plants, totaling 3.6 GW. These projects will integrate carbon capture technologies and support Vision 2030’s renewable energy goals and the Saudi Green Initiative’s net-zero emissions target. Additional projects, like the Dumat Al Jandal wind farm and utility-scale solar plants, showcase the government’s dedication to clean energy. By exploring advanced energy storage solutions and leveraging significant financial resources, Saudi Arabia is establishing itself as a leader in the global renewable energy transition.

United Arab Emirates (UAE) Renewable Energy Market Analysis 

The UAE's renewable energy market is dominating, supported by ambitious strategies and significant investments. The UAE Energy Strategy 2050 aims for a 50% clean energy mix by mid-century, focusing on solar, wind, and nuclear power. The Mohammed bin Rashid Al Maktoum Solar Park, set to reach 5 GW capacity by 2030, highlights the nation’s commitment to large-scale solar development. Diversifying the energy portfolio, offshore wind projects and waste-to-energy (WtE) plants play a crucial role. On July 1, 2024, KfW IPEX-Bank financed a WtE plant in Abu Dhabi, aiming to divert 85% of waste from landfills by 2035 and cut carbon emissions by 1.1 million tonnes annually.

The UAE is advancing its role in green hydrogen production, positioning itself as a global hub for hydrogen export. Financial mechanisms, including green bonds and public-private partnerships, attract investments. On July 19, 2024, Masdar raised USD 1 Billion through its second green bond issuance, oversubscribed 4.6x, to fund renewable energy projects targeting a 100GW portfolio by 2030, mitigating 5.4 million tonnes of GHG emissions annually. These efforts solidify the UAE’s position as a leader in renewable energy and sustainability.

Competitive Landscape:

The GCC renewable energy market is very competitive, driven by significant investments, supportive government policies, and a very strong focus on sustainability. The region has vast sources of solar and wind that provide opportunities, especially with solar power. Continual technological advancements, cost reduction, and strategic partnerships make up the competitive dynamics in this region. One of the notable examples is the King Salman International Airport (KSIA) project, which was announced in Riyadh, Saudi Arabia, on 23 August 2024, as a renewable energy-powered development. Covering 57 sq km with six runways, it aims for 120 Million passengers by 2030 and 180 Million by 2050. It is managed by Mace and Jacobs and emphasizes sustainability while positioning the GCC as a clean energy leader. Such initiatives, along with government incentives, draw great interest from stakeholders locally and internationally.

The report provides a comprehensive analysis of the competitive landscape in the GCC renewable energy market with detailed profiles of all major companies, including:

• MACE Group
• Enerwhere Sustainable Energy DMCC
• SolarWinds
• Akuo Energy SAS
• Yellow Door Energy Limited
• Masdar (Abu Dhabi Future Energy Co.)
• Canadian Solar Inc.
• Siraj Power Contracting LLC
• ACWA POWER BARKA SAOG
• EDF Renewables

Latest News and Developments:

• April 18, 2024: The EU-GCC Cooperation on Green Transition project, launched at the 2024 World Future Energy Summit in Abu Dhabi, focuses on advancing renewable energy deployment through EU-GCC collaboration. The initiative promotes knowledge sharing, technology transfer, and clean energy policies to accelerate the green transition. Key discussions emphasized tripling renewable energy capacity, enhancing infrastructure, and equipping workforces with skills for the changing energy landscape. By fostering innovation and partnerships, the project aims to significantly expand renewable energy use, supporting global climate goals and regional sustainability efforts.
• October 17, 2024: Spanish conglomerate ACCIONA secured €300 Million in sustainable financing to fund renewable energy, energy efficiency, sustainable mobility, and water management projects across the GCC, aligning with the EU Green Taxonomy. The financing, structured as a green loan, includes local impact initiatives to support low-carbon material production. With 80% of its corporate debt in sustainable structures, ACCIONA’s GCC projects include Dubai Metro extension, Jebel Ali desalination plant, and multiple water treatment facilities.

GCC Renewable Energy Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the GCC renewable energy market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the GCC renewable energy market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the GCC renewable energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.