The Middle East, traditionally reliant on oil wealth, is rapidly transforming its energy landscape in response to climate imperatives, economic diversification goals, and evolving global energy markets.

This region, possessing some of the world's highest solar potential, is now investing heavily in solar energy through major national projects and supportive policy frameworks.

This report examines how key Middle Eastern nations are approaching the energy transition, highlighting national solar initiatives, comparative capacity and targets, government incentives, and the broader economic and environmental impacts of these efforts.

Several countries lead the region’s solar transition, each setting ambitious renewable targets backed by flagship projects.

The UAE, for example, aims to source 50% of its energy from clean sources by 2050, with projects like the Mohammed bin Rashid Al Maktoum Solar Park—set to become the world’s largest single-site solar installation—and Masdar City, a sustainable urban model showcasing integrated solar technology.

In comparison, Morocco seeks 52% renewables in its national mix by 2030, a goal anchored by the Noor Ouarzazate complex—the largest concentrated solar power (CSP) plant globally.

These efforts bode well for Morocco’s reputation as a regional benchmark and position it as a leader in CSP adoption .

Egypt’s ambitions are similarly notable, with a target of 42% renewables by 2035.

Its centerpiece is the 1,800 MW Benban Solar Park, one of the world’s largest photovoltaic installations, and additional investments in wind, like the Gulf of Suez wind farm.

In contrast to the UAE and Morocco, Egypt’s strategy includes a heavy emphasis on facilitating both utility-scale and distributed solar, coupled with regulatory reforms and growing interest in green hydrogen .

Saudi Arabia stands out for the scale and future orientation of its projects.

Vision 2030 underpins the NEOM megacity on the Red Sea coast, which will be powered by 100% renewables.

“The Line,” a linear city within NEOM, is designed to be car-free and carbon-neutral, relying on advanced solar and wind generation alongside new energy storage technology.

Beyond domestic deployment, Saudi Arabia is investing in hydrogen and electric vehicles as part of a broader push to diversify its economy and reduce reliance on oil exports.

National initiatives like the Green Middle East Initiative reinforce these efforts, focusing on afforestation, emissions reduction, and establishing regional climate governance bodies .

Oman’s approach emphasizes both domestic supply and export potential.

It aims for 30% renewable electricity by 2030 under Vision 2040, with the 607 MW Ibri Solar PV plant as a central project.

Oman is increasingly recognized as a future leader in green hydrogen, leveraging abundant solar resources, low production costs, and established export infrastructure to support both the domestic economy and potential global markets .

Despite these significant individual efforts, solar still accounts for only around 2% of the region’s total energy mix, though the sector is expanding at approximately 23% annually as of 2023.

Most countries share similar aims to triple renewables and double energy efficiency by 2030, in line with regional and international climate commitments like those of COP28 .

Transitioning from project descriptions to policy, government incentives have been instrumental in accelerating solar adoption.

Jordan, for instance, offers zero-interest loans to farmers, solar loans for homes, and specific programs for rural and agricultural solar deployment.

Egypt encourages residential and commercial solar via loans, net metering, and fast-tracked licensing.

Kuwait incentivizes distributed solar by allowing households to sell excess generation back to the grid.

These diverse programs encourage grassroots involvement and facilitate the expansion of both centralized and decentralized solar capacity across the region .

Broader regulatory reforms further stimulate solar growth.

Egypt now permits private-to-private renewables sales, spurring investment and local manufacturing, while various countries provide tax breaks and green incentives for residential and commercial installers.

These policies have supported both large utility-scale projects and smaller rooftop or rural installations, extending the benefits of renewables to a wider segment of the population .

Economic impacts are significant and increasingly measurable.

Egypt, for example, forecasts tens of thousands of new renewable energy jobs and expects knock-on investment in green hydrogen, electric vehicles, and desalination.

Similar trends are visible elsewhere, with the region experiencing a substantial increase in sustainable “green deals” and climate-driven mergers and acquisitions—quadrupling since 2001—reflecting its rising status as a global hub for green investment and innovation .

These strategies also have meaningful climate and geopolitical implications.

Expanding solar and renewables capacity helps reduce greenhouse gas emissions, supports resilience against oil price volatility, and strengthens national energy security.

Initiatives like Saudi Arabia’s Green Middle East Initiative, national hydrogen roadmaps, and participation in global renewables markets are central to meeting national and international climate targets .

Increasingly, Middle Eastern countries are exporting green power—such as Egypt’s planned subsea cable to the EU or Oman’s hydrogen exports—further linking the region to future low-carbon energy markets .

In summary, the Middle East’s energy transition is marked by rapid increases in solar capacity, iconic projects like those in the UAE, Morocco, Egypt, and Saudi Arabia, and a proliferation of government incentives supporting both utility-scale and distributed solar deployment.

While solar currently represents a modest share of the total energy mix, accelerating progress, policy support, and international collaboration are shifting the region toward a more sustainable, diversified, and economically resilient future.

This transition has begun delivering substantial benefits in jobs, investment, technology transfer, and climate action, positioning the Middle East as an emerging leader in the global renewable energy revolution.

The Middle East, traditionally reliant on oil wealth, is rapidly transforming its energy landscape in response to climate imperatives, economic diversification goals, and evolving global energy markets.

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Content: People 's Daily Online > > Economy and Technology
Electric cars welcome in the Middle East
Li Xuehua
July 18, 2024 08: 47 | Source: Economic Daily
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Original title: China's electric car welcomed by the Middle East market
In recent years, in the face of increasingly severe climate change challenges and increasingly urgent pressure to reduce emissions, countries in the Middle East have accelerated the green transformation of energy and economic diversification, and the development of green transportation has become one of the important contents.
With its cost-effective and beautiful design, Chinese-made electric vehicles are favored by more and more industry insiders and consumers in the region.
The Middle East is becoming a "blue ocean" for Chinese electric vehicle companies to explore the international market.
The development of electric vehicles is the general trend
According to the International Energy Agency (IEA), the transportation sector currently accounts for about 60% of global oil consumption.
In order to achieve global emission reduction targets, the proportion of electric vehicles must be greatly increased.
The development of electric vehicles has become an important part of the Middle East countries to promote the green transition.
The UAE is the first country in the Gulf region to commit to net zero emissions by 2050.
To this end, the UAE has formulated a National Electric Vehicle Policy, which provides preferential measures such as free registration, free parking and reduced charging and tolls to promote the development of the electric vehicle industry.
The UAE has converted 20% of federal government agency vehicles to electric vehicles and has set a target of at least 30% of government vehicles and 10% of road vehicles to be electric (pure electric or hybrid) by 2030.
By 2050, 50% of the UAE ’ s road vehicles will be electric.
The development of the electric vehicle industry is an important part of the Saudi strategic transformation program “Vision 2030 ”. In 2022, the Saudi government launched the national electric vehicle strategy, in addition to increasing the market share of electric vehicles, the Saudi government also provides a series of incentives for consumers to buy electric vehicles, including tax cuts and subsidies.
In addition, the Saudi government has also set a target of 30% of electric vehicles in the capital Riyadh by 2030, with an annual output of 300,000 vehicles.
Saudi Arabia has completed the formulation of relevant supporting policies for the infrastructure of electric vehicle charging stations in August 2022, and promoted the acceleration of the landing of charging infrastructure.
The Egyptian government launched the Electric Vehicle Development Plan in 2018, aiming to make up 2% of the total vehicle fleet by 2025 and 10% of the total vehicle fleet by 2030.
In order to achieve these policy objectives, the Egyptian government has adopted a series of policy measures and incentives to stimulate and support investment and consumption of electric vehicles and charging stations.
The Qatari government ’ s goal is to reach 10% penetration of pure electric vehicles by 2030, expand 15,000 charging stations, and make public transport 100% electric buses.
Governments in the Middle East have launched plans to promote electric vehicles, accelerating the growth of the electric vehicle market, and the acceptance and recognition of electric vehicles by consumers is rising.
Chinese car companies compete
According to PwC ’ s latest “Electric Vehicle Outlook 2024: UAE ” report, it is expected that by 2030, the market share of electric vehicles in new passenger and light commercial vehicle sales in the UAE will exceed 15% (about 58,000 vehicles), and by 2035, this share will increase to 25% (about 110,500 vehicles).
Arthur D. Little, an international consultancy, expects the UAE EV market to grow at a rate of 30% per year between 2022 and 2028.
Deloitte predicts that by 2030, the total value of the Saudi electric vehicle market is expected to reach 28 billion US dollars.
The huge demand for electric vehicles and supporting facilities in the Middle East is undoubtedly a major positive and unmissable opportunity for Chinese car companies.
According to the statistics of the China Automobile Industry Association, in 2023, China's new energy vehicles exported 1.203 million, an increase of 77.6%.
China's new energy vehicle production and sales account for more than 60% of the world's total.
In addition to meeting the needs of the domestic market, "going to sea" has become a concerted action of the industry, and the Middle East has become an important market for large car companies to explore.
Xie Qiyi, Vice President of Dubai One Road Group, said that electric vehicles have become a new business card for Chinese brand cars in the Middle East. During the 2022 World Cup in Qatar, China Yutong Bus provided 1,002 special electric buses to Qatar and put them into the national public transportation system after the World Cup. In October 2022, Red Flag Electric Vehicles successfully “joined ” the Dubai Police Force as the first electric vehicle for the Dubai Police, and the Red Flag E-HS9 has become one of the favorite electric vehicles of local chiefs, royals and government dignitaries.
At the end of 2022, Geely ’ s electric commercial vehicle brand Long Range Motors signed an order for 1,000 electric commercial vehicles with Emirati enterprises. In September 2023, Geely ’ s other electric vehicle brand, Gekrypton Automobile, signed a national general generation agreement with dealers in the UAE, Saudi Arabia, Qatar and Bahrain to build a sales service network.
BYD began to enter the Middle East market in 2023, entering the UAE, Saudi Arabia, Jordan, Qatar, Israel and other countries. In May 2024, BYD officially opened its first store in Riyadh, the capital of Saudi Arabia. In June 2024, BYD completed its 1000th delivery in the UAE.
BYD has established a leading position for electric vehicle brands in the Middle East.
Other Chinese electric vehicle companies such as the Great Wall, Beiqi, Changan, Xiaopeng, Skyworth, etc. have also opened up the Middle East market.
With its high cost performance and beautiful design, China's electric vehicles are favored by more and more consumers in the Middle East.
According to data released by the Israel Automobile Importers Association, in 2023, China 's electric vehicles accounted for about 61% of the Israeli electric vehicle market share. In the first half of 2024, the market share increased to 68.31%, and BYD became the sales champion brand, with the ATTO 3 becoming the best-selling model in Israel in the first half of the year with 7265 sales.
In Jordan, Egypt and other countries, sales of Chinese brand electric vehicles are also growing.
Industry insiders are generally optimistic about the sales prospects of Chinese brand electric vehicles in the Middle East.
Heiko Seitz, head of global and Middle East electric vehicles at PwC, expects to see more electric vehicle models from Chinese companies in the UAE in the coming years.
A report by Dubai-based Glasgow Research Consulting found that Chinese automakers are seizing the opportunity to deliver reliable and cost-effective electric vehicles, making them key players in the UAE ’ s transition to a green future.
Help the Middle East improve the industrial chain
Zhang Chenling, executive president of One Road Group, believes that China's electric vehicle industry chain is complete, upstream and downstream batteries, energy storage, infrastructure and other aspects are in the world's leading level, many Middle Eastern countries not only aim to import electric vehicles, but also hope to promote the development of their own electric vehicle industry chain through cooperation with China to expand their local manufacturing capacity, thereby boosting their own industrialization process.
The best way for Chinese auto companies to enter the Middle East market is to choose a reliable local partner, which can make full use of the preferential policies of the local government and effectively deal with some trade barriers.
Cooperation between the two sides can complement each other's advantages and be mutually beneficial and win-win.
In March 2024, Rongding Consulting released a research report that China's foreign direct investment in electric vehicle related industries is shifting from North America to Europe, the Middle East and Asia.
The report predicts that China's overseas investment in electric vehicles will remain strong in 2024, and the Middle East and North Africa will jump to second place.
In June 2024, Egypt ’ s GV Investment Company entered into a cooperation agreement with China FAW Group to begin production of China FAW ’ s affordable electric vehicles in Egypt in the first quarter of 2025. GV Investment aims to localize 65% of vehicle parts and export products to the Middle East, Africa, Europe and Latin America in the next three to five years.
In July 2024, BYD signed an agreement with the Turkish government, BYD will invest $1 billion to build a plant in Turkey with an annual output of 150,000 electric vehicles and set up a research and development center.
The plant is expected to go into production by the end of 2026, providing 5,000 jobs.
In June 2023, during the 10th Entrepreneur Conference of the China-Arab Cooperation Forum, the Saudi Ministry of Investment and Chinese electric vehicle manufacturer China Express signed a $5.6 billion contract to establish a joint venture for research, development, manufacturing and sales of automobiles.
In the same month, NIO Motor announced that it had signed a share subscription agreement with CYVN, the Abu Dhabi sovereign fund, which will make a total strategic investment of about $1.1 billion through the targeted issuance of new and old shares.
Some countries enjoy duty-free access to markets in Europe and North America.
While meeting the local market demand, Chinese electric vehicle companies can also take the Middle East countries as an important partner in developing third-party markets, and radiate broader markets such as Europe and Africa from here.
Cooperation between China and Middle East countries in the field of electric vehicles has broad prospects and great potential.
(Editor: Yang Xi, Chen Jian)
Public Number ： People 's Network Finance
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This region, possessing some of the world's highest solar potential, is now investing heavily in solar energy through major national projects and supportive policy frameworks.

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Content: New technologies to achieve sustainability goals and address climate change
Science and Technology
Huawei
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Existing renewable energy initiatives in the Middle East are strengthening their role in supporting international efforts to address climate change.
In particular, the region is one of the largest contributors to the oil and gas sector globally, and at the same time is the cradle of a number of major and ambitious initiatives and projects aimed at enhancing the reliance on clean energy.
In the UAE, the Mohammed bin Rashid Al Maktoum Solar Park is the world ’ s largest IPP solar site, and the Al Dhafra Solar PV Plant is being built as the world ’ s largest solar power plant with a capacity of 2 GW.
Masdar City is the most sustainable urban community in the world.
ADFD is committed to funding innovative projects to accelerate access to sustainable energy as part of a joint initiative with the International Renewable Energy Agency (IRENA).
In Saudi Arabia, Neom recently launched The Line, the world ’ s first car-free, carbon-free city with 100% renewable energy.
King Abdullah University of Science and Technology (KAUST) leads green energy projects designed to manage the recycling of grey water for reuse for plant irrigation and other purposes, and also has large area photovoltaic panels that produce clean electricity.
In Egypt, hydropower is the second source of energy after thermal, wind and solar, and the country has developed a number of future projects that seek to exploit solar energy and replace non-renewable energy.
Other green projects in Egypt include the cities of Jebel Galala and El Alamein.
The Bahrain World Trade Centre is one of the world ’ s leading examples of sustainable architecture, taking the lead in being the first skyscraper in the world to introduce wind turbines to provide total energy consumption.
Morocco, famous for its huge and world-leading solar arrays, has made a big name for itself as a leader in the fight against climate change, renewable energy makes up nearly two-fifths of the country ’ s electricity, and the country implements some of the world ’ s largest clean energy projects.
Since 2012, Jordan has turned to solar power to generate electricity and government policies have pushed citizens and investors to turn to renewable energy to reduce carbon dioxide emissions, by offering financial facilities to investors and reducing the electricity bill.
Sustainability initiatives in the Arab countries contribute effectively to building a diversified digital economy that achieves the national visions of these countries, and the green economy initiative launched by the UAE, and the Saudi Green Initiative is a good example of this.
Today, the ICT sector is increasingly playing a role in achieving sustainability through new technologies such as 5G, cloud computing and artificial intelligence that will play a key role in implementing clean energy initiatives as they enhance productivity, improve efficiency, reduce costs and waste, evaluate business systems, analyze waste, track problems and develop solutions.
The International Telecommunication Union (ITU) says ICT will contribute to achieving the UN ’ s Sustainable Development Goals and improving the quality of life.
According to the United Nations, ICT can be relied upon in two ways: reliance on clean information and communication technology, and clean energy generation based on information and communication technology.
In the first scenario, ICT solutions that contribute to environmental safety and carbon reduction are designed.
In the second scenario, ICT solutions such as those in grids, buildings, smart logistics and industrial processes help promote sustainability and energy efficiency.
The sustainability efforts of tech companies have been recognized globally, Huawei is an example of companies that have adjusted their business in line with sustainability goals, and recently received an award from the International Mobile Phone Association for their contributions to achieving the United Nations Sustainable Development Goals through mobile devices.
The company aims to rely on innovative technologies to drive clean development across various sectors and industries, and in 2021 it used more than 300 million kWh of electricity produced from renewable sources, an increase of 42.3% compared to 2020.
Huawei ’ s digital power solutions have generated 482.9 billion kilowatt-hours of clean energy and reduced electricity consumption by 14.2 billion kilowatt-hours, equivalent to 230 million tons of carbon emissions.
In parallel with efforts to promote a sustainable approach to technology, the ICT industry must not lose sight of the issue of enhanced security.
Technology providers should focus on protecting user privacy when working to provide modern, seamless technology and communications.
Certainly, we will not be able to grow the business and ensure its sustainability if we do not provide safe and reliable technologies to protect cybersecurity, which is a shared responsibility of all stakeholders involved in sustainability.
The current digital divide could isolate millions of people around the world from contributing to the development of a clean economy.
Tech companies can contribute to making technology accessible to all thanks to their technical capabilities and resources.
Through initiatives such as TECH4ALL, Huawei has relied on digital technologies to implement programs aimed at enhancing the leadership capabilities of more than 110,000 people in 2021.
The digital divide in global talent could undermine sustainability efforts, so greater emphasis should be placed on redressing it and priority should be given to strengthening collaboration between tech companies, academia and government institutions in order to bridge the digital skills gap.
By investing in programs to prepare local technical cadres, hone skills and enhance practical experience, more bridges of cooperation between the public and private sectors can be built to prepare the future generation of sustainability leaders with the help of technology.
Huawei has established 163 ICT academies in the Middle East.
More than 3,500 students participated in the Seeds for the Global Future program, while more than 37,000 students received Huawei certifications.
The company has also provided training to more than 120,000 ICT talents in the region who are expected to contribute to the advancement of sustainability in the countries of the region by making the most of technology.
In light of the increasing challenges of reducing carbon emissions facing various countries around the world, we all have a responsibility to strengthen cooperation and work together to build a sustainable and prosperous future for future generations.
By: Ammar Taba, Huawei Vice President for Public Relations and Media in the Middle East
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This report examines how key Middle Eastern nations are approaching the energy transition, highlighting national solar initiatives, comparative capacity and targets, government incentives, and the broader economic and environmental impacts of these efforts.

Title:

Content: General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
World Future Energy Summit.
Green finance and climate change lead day 2
The second day of the World Future Energy Summit (WFES), held at the Abu Dhabi National Exhibition Centre (ADNEC) in the UAE, kicked off today.
The summit is the premier annual forum for future energy and sustainability.
The day ’ s events focused on green finance, with Boris Johnson, the former Prime Minister of the United Kingdom, stressing the urgency of correcting climate change and thinking outside the box, and providing inspiring views on the obstacles to investing in renewable energy and ways to develop it during a session entitled “Financing Global Approaches to Low-Carbon Economies ”.
“It takes a lot of in-depth social studies, practical solutions and a lot of financial support – governments around the world spend a lot of money to defend themselves against other governments, but we don ’ t spend that much money to fight everyone ’ s first enemy, climate change.
He believes that finding practical solutions requires a serious approach to financing and establishing an assembly line for simple renewable energy projects, so that tangible results can be achieved as soon as possible, which is not possible without setting aside the side issues that usually concern us or we will not be able to solve the problem for another 10 years.
Ahmed Bahieldin, General Manager and Commercial Officer for Europe, Middle East and Africa (EMEA) at GE Vernova, an independent public company spin-off of GE ’ s energy, wind and electricity business, also joined the panel.
“Time is an important factor, especially as there is a lot of capital looking for projects in advanced markets, especially in the areas of renewable energy sources and new technologies, and regulatory reforms and the structuring of the revenue model give more room for growth.
The second day of the summit also saw the launch of the Solar Outlook 2024 report, officially released by the Middle East Solar Industry Association at the World Future Energy Summit.
The report highlights the growing contribution of solar energy to the MENA region ’ s ongoing energy transition from traditional fossil fuels to renewables, amid continued manufacturing boom, population and economic growth, as well as concerns about climate change and environmental sustainability.
Solar Energy
According to the report, the Middle East and North Africa (MENA) region today has one of the highest levels of solar energy potential in the world, with countries such as Saudi Arabia, the United Arab Emirates, Morocco and Egypt contributing on average annual solar radiation exceeding 2,000 kilowatt-hours per square meter per year.
While the regional solar growth trajectory is expected to continue, the report reveals that it is still well below the levels required to replace the current fossil fuel contribution of 87%, with solar providing just over 2% of the current energy mix in the MENA region.
Denisa Vines, Secretary General of the Middle East Solar Industry Association, said: “The COP28 pledge to increase renewable energy capacity and double energy efficiency with the support of 124 countries has set ambitious targets to increase the deployment of renewable energy and energy efficiency measures by 2030, but we still face many challenges to achieve these goals, especially in the energy sector within the Gulf region. After 2030, a variety of technologies are expected to be market-ready, offering scalable solutions to decarbonize the energy sector, enabling a more effective role for renewables, energy efficiency and zero-emission technologies.
The broad pursuit of ambitious targets by 2030 is focused on public utility projects, which may overshadow the needs of the commercial and industrial sectors, and this underscores the importance of considering a balanced approach to energy deployment to ensure inclusive and sustainable development.
COP28 Pledges
Speaking at the Solar and Clean Energy Conference, Dr. Ralph Blumenthal, Head of Networks Programs Middle East at Siemens, praised the ongoing discussions on digitization and the great importance of integrating renewables into smart grids to help achieve the goals of the COP28 pledge.
Batteries are key if we want to triple renewables by 2030, and increase them nine-fold by 2050. Batteries are not only storage, they are essential to grid regulation and reduce disruptions that may occur during renewable energy generation. Today, around 1,500 GW of renewable energy has been installed globally and is ready for deployment, but cannot be integrated into networks. It operates 100% on renewable energy, but national grids have not yet been able to effectively integrate renewables on a large scale.
Constructive discussions and sessions on global energy issues and solutions will continue tomorrow with the Electric Mobility Forum, which will comprehensively examine the role of clean and independent transport in changing the future of city design, and what is needed to unlock the potential of investing in expanding electric mobility.

Several countries lead the region’s solar transition, each setting ambitious renewable targets backed by flagship projects.

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Content: Chairman of the Board of Directors and Editors
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Mohamad Elbaz
Chairman of the Board of Directors and Editors
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Mohamad Elbaz
Economy: Benban and the Gulf of Suez are among the largest renewable energy projects
Economic Middle East magazine, which specializes in economics and energy, said that the Benban solar park and the Gulf of Suez wind project in Egypt are considered among the largest renewable energy projects in the Middle East.
Renewable Energy Projects in the Middle East
The Middle East has long relied on oil and gas, not only for revenue but also for power generation, but in the past years, the region has positioned itself as a leader in the renewable energy sector, boasting numerous renewable energy projects.
From 2023 to 2028, Mordor Intelligence expects the renewable energy market in the Middle East to grow by 13.43% annually.
The Arab Clean Energy Initiative was launched by the International Renewable Energy Agency (IRENA), and during the Arab Economic and Social Development Summit of 2013, the League of Arab States adopted the initiative, with leaders pledging to increase renewable energy generation capacity in the region from 12 GW in 2013 to 80 GW by 2030.
Benban Solar Park
Located in Aswan, Egypt with a capacity of 1,800 megawatts, Benban Solar Park is valued at $4 billion and includes 41 solar power plants, one of the largest solar PV parks in the world, spanning 37 square kilometers and containing 7 million photovoltaic panels, this initiative is a component of Egypt ’ s Renewable Energy Feed Tariff (FiT) program, which was unveiled in September 2014.
Gulf of Suez Wind Power Project
In November last year, ACWA Power and the Sovereign Fund of Egypt (TSFE) signed a memorandum of understanding, and together they will invest in a 1100 MW wind power project in Jebel Zeit and the Gulf of Suez. The project is one of the largest onshore wind farms in the world, and aims to provide power to more than one million households and reduce annual CO2 emissions by 2.4 million tons.

The UAE, for example, aims to source 50% of its energy from clean sources by 2050, with projects like the Mohammed bin Rashid Al Maktoum Solar Park—set to become the world’s largest single-site solar installation—and Masdar City, a sustainable urban model showcasing integrated solar technology.

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Content: Fossil fuels, which have powered the industrial growth and development of civilisations for centuries, are facing a looming deadline of depletion. Moreover, they have caused severe environmental and social problems, such as climate change, conflicts, and pollution. The need for alternative and sustainable energy sources is clear and urgent. However, the transition to a post-fossil fuel era is not easy or straightforward. It requires innovation, investment, cooperation, and vision.

This article explores the challenges and opportunities of global energy transformation, focusing on the dual nature of fossil fuels, the countdown to their exhaustion, and the promise of renewable energy sources. It also highlights the progress and potential of some countries in the Middle East and North Africa (MENA) region, which is one of the most dependent regions on fossil fuels in the world.

Fossil Fuels: A Double-Edged Sword

Fossil fuels, comprising oil, coal, and natural gas, are ancient energy sources that have been central to the development of various industries and sectors. They have enhanced transportation, manufacturing, agriculture, and electricity generation. They have catalysed global trade, commerce, and innovation, elevating the quality of life for millions.

However, this ascent has been coupled with profound challenges. Fossil fuels have been a source of geopolitical strife, epitomised by wars and conflicts over their control and distribution. They have also exacerbated environmental issues, such as greenhouse gas emissions, global warming, and climate change. Incidents like oil spills, gas leaks, and fracking have inflicted severe damage on ecosystems and public health.

The Countdown to Depletion

The finite and non-renewable nature of fossil fuels leaves humanity facing a daunting deadline. Predicting the exact exhaustion of these resources is a complex endeavour, influenced by reserves, consumption rates, technological advancements, and price fluctuations. Nonetheless, projections based on current data paint a concerning picture.

According to Octopus Energy, the year 2060 may mark the twilight of fossil fuels, based on current consumption and reserve estimates. In 2020, global oil production reached 91.7 million barrels per day (b/d), with key players like the United States, Saudi Arabia, and Russia at the forefront. Simultaneously, natural gas production stood at 3.94 trillion cubic meters (bcm). Although the Covid-19 pandemic temporarily curtailed production, a resurgence is anticipated. In contrast, natural gas consumption steadily rises by over 3% each year.

Should additional oil reserves remain elusive, known deposits could be depleted by 2052. The stark reality is that demand for oil has surged, nearly doubling the average annual rate observed over the preceding decade in 2018.

Toward a Sustainable Energy Paradigm

The global imperative for alternative energy sources is clear. Sustainable options, even if not entirely devoid of environmental impact, have become a linchpin of energy discussions. The quest for sustainability is no longer optional; it is fundamental to securing a prosperous future.

Embracing alternative and sustainable energy solutions is our paramount responsibility. The adverse consequences of persisting with fossil fuels are increasingly undeniable. Furthermore, incidents such as oil spills, gas leaks, and fracking have grievously scarred ecosystems and human health.

The geopolitical maelstrom surrounding fossil fuels is a testament to their strategic importance. By reducing our dependence on these finite resources, we can contribute to global stability and peace.

The Promise of Sustainable Energy

Investing in sustainable energy is not merely an ecological commitment; it is a strategic move to safeguard long-term energy security. Renewable sources like solar and wind power do not suffer the same spectre of depletion as fossil fuels, offering a reliable and sustainable energy future. Moreover, technology’s relentless march is enhancing the efficiency and cost-effectiveness of these alternatives, ensuring a seamless transition.

In this era of unprecedented global challenges, the unsustainable trajectory of fossil fuels is no longer tenable. Transitioning to renewable and sustainable energy sources is both a moral imperative and an economic necessity. As we confront the relentless march of climate change, endeavouring to secure long-term energy stability and foster global peace, embracing this transformation is our only viable path toward a sustainable and prosperous future. It is a journey we must embark upon with unwavering determination and foresight.

The MENA Region: The abundance of wisdom

The MENA region stands as an interesting case study for global energy transformation. The region is one of the most dependent regions on fossil fuels in the world. According to the World Bank, the region accounted for 36% of the global oil production and 20% of the global gas production in 2018. However, the region also faces many challenges and risks related to its reliance on fossil fuels, such as price volatility, environmental degradation, social unrest, and geopolitical conflicts.

Therefore, some countries in the region have started to prepare for the transition to a post-fossil fuel era by diversifying their economies, investing in renewable energy sources, and promoting innovation and sustainability. According to a report by the International Renewable Energy Agency (IRENA), the MENA region has a huge potential for renewable energy development, especially solar and wind power. The report estimates that the region could generate more than 60% of its total electricity from renewable sources by 2030.

Some of the countries that have made significant progress in this field are:

• UAE: The UAE has been a leader in innovation and sustainability in the region, with a vision of becoming a global hub for green economy and clean energy. The UAE has set a target of increasing its share of clean energy to 50% by 2050. The UAE has invested in various renewable energy projects, such as the Shams 1 solar thermal plant, which is one of the largest of its kind in the world, and the Mohammed bin Rashid Al Maktoum Solar Park, which is planned to be the largest single-site solar park in the world by 2030. The UAE is also home to Masdar City, which is a planned city that aims to be one of the most sustainable cities in the world. Also, UAE is one of the 10 largest oil producing countries with a proven reserves, according to BP statistical reviews, of 100 billion barrels.

• Morocco: Morocco has been a pioneer in renewable energy development in the region, with a target of achieving 52% of its electricity from renewable sources by 2030. Morocco has invested heavily in solar power projects, such as the Noor Ouarzazate complex, which is the largest concentrated solar power plant in the world. Morocco also has a strong wind power sector, with a capacity of over 1.2 gigawatts (GW) as of 2019.

• Egypt: Egypt has also been pursuing an ambitious renewable energy strategy, with a goal of reaching 42% of its electricity from renewable sources by 2035. Egypt has a large potential for solar and wind power, especially in the Sinai Peninsula and the Red Sea coast. Egypt has launched several large-scale projects, such as the Benban Solar Park, which is expected to be the largest solar photovoltaic (PV) plant in the world when completed, and the Zafarana Wind Farm, which is one of the largest wind farms in Africa.

These are some examples of countries in the MENA region that are prepared for after fossil fuels era. However, there are still many challenges and barriers that need to be overcome, such as policy and regulatory frameworks, financing and investment mechanisms, public awareness and participation, and regional cooperation and integration.

The world is at a crossroads in its energy choices. Fossil fuels have been instrumental in driving industrial growth and development, but they have also caused severe environmental problems. Their finite nature also poses a threat to long-term energy security. The need for alternative and sustainable energy sources is clear and urgent.

Renewable energy sources offer a promising solution to this challenge. They are abundant, reliable, and sustainable. They can reduce greenhouse gas emissions, mitigate climate change impacts, and foster global peace. They can also create new opportunities for economic growth, innovation, and social welfare.

— Dr Abdullah Belhaif Al Nuaimi is a former UAE minister of Infrastructure Development and for Climate Change and Environment

In comparison, Morocco seeks 52% renewables in its national mix by 2030, a goal anchored by the Noor Ouarzazate complex—the largest concentrated solar power (CSP) plant globally.

These efforts bode well for Morocco’s reputation as a regional benchmark and position it as a leader in CSP adoption .

Egypt’s ambitions are similarly notable, with a target of 42% renewables by 2035.

Its centerpiece is the 1,800 MW Benban Solar Park, one of the world’s largest photovoltaic installations, and additional investments in wind, like the Gulf of Suez wind farm.

In contrast to the UAE and Morocco, Egypt’s strategy includes a heavy emphasis on facilitating both utility-scale and distributed solar, coupled with regulatory reforms and growing interest in green hydrogen .

Saudi Arabia stands out for the scale and future orientation of its projects.

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Tesla Competitor Lucid Raises $1.5 Billion, Majority From Saudi Sovereign Wealth Fund

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Key Takeaways

  • Lucid Group has raised an additional $1.5 billion to support ongoing operations, with $915 million being contributed by the Saudi Arabia Public Investment Fund.
  • It keeps the Fund’s stake in Lucid at around 62%, continuing their status as a majority owner of the company.
  • Despite almost $1 billion in additional investment, it’s a drop in the bucket compared to the funds total value, which is estimated at over $620 billion.
  • It marks a continued diversification of the oil states diversification away from fossil fuels, into a wide range of investment from video games to sports teams to major infrastructure projects.

Electric vehicle (EV) manufacturing has come a long way over the past ten years. Back in 2008 when the first generation Tesla Roadster was launched, EV's were very much a curiosity.

It was the first road legal production EV, and while less than 2,500 Roadsters were sold across the world, it kicked off a trend that continues to pick up pace today.

Tesla wasn't the first company to make an electric vehicle. They’ve been made in one form or another as far back as 1828. But Tesla were the first to mass produce one that was legally able to be driven on the road, and they made it sexy to boot.

Since then, the EV market has exploded.

There have been a huge number of newcomers to the space, with companies such as Rivian, Nikola, Polestar, Fisker and Lucid all vying for their share of the electric gold rush. Not only that, but traditional automakers are pumping billions of dollars into the sector as well.

Companies such as General Motors, Mercedes-Benz, Volkswagen Group, Kia and Hyundai and others have all jumped on the bandwagon and now offer a range of electric vehicles alongside their internal combustion range.

The trend is only going to pick up speed. Many jurisdictions are now seeking to ban the sale of new gasoline and diesel powered cars, such as California and all states signed up to their Zero Emission Vehicle Program, plus the UK and Europe, Canada, New Zealand, Singapore, Japan, Iceland, Norway and even China.

So with all that going on in the background, it’s not a stretch to suggest that the oil states might be getting a little nervous. It’s why we’ve seen such a huge push from places like Sudi Arabia, the United Arab Emirates and Oman to diversify their economies away from just oil.

The Saudi Arabia Public Investment Fund is already a majority owner of Lucid Motors, and with an additional $915 million cash tipped in with this round, their stake remains at sound 62%.

Download Q.ai today for access to AI-powered investment strategies.

Lucid raises $1.5 billion

In addition to the $915 million added by Saudi Arabia, Lucid raised an additional $600 million through a traditional secondary stock offering. The funds will be used to help bolster the company’s balance sheet, after it posted underwhelming third quarter results.

The figures showed delivery numbers way down from expectations which had been as high as 20,000 vehicles in 2022. Now the number is expected to be below 7,000.

Lucid is now likely to have over $5 billion in cash reserves, with the newly raised $1.5 billion being added to the $3.85 billion on hand on September 30.

After going public in January 2021, Lucid’s stock price rose very quickly from an IPO price of $14 to hit an all-time high closing price of $58.05 in February of that year. It came back down soon after to settle in the low $20 range, before running up to the high $50’s again in late 2021.

Since then the price has crashed in 2022 and is down over 81% year to date. It currently trades at just under $8 per share.

What is the Saudi Arabia Public Investment Fund?

By far the largest investor in Lucid is the Saudi Arabia Public Investment Fund (PIF), which holds around 62% of the company. The PIF is a sovereign wealth fund that was established by the government of Saudi Arabia in 1971. Its mandate is to manage the country's financial assets and make strategic investments that will contribute to the economic development of Saudi Arabia.

The PIF is one of the largest sovereign wealth funds in the world, with assets estimated at over $620 billion. It is a key financial institution in Saudi Arabia, and it is responsible for managing a large portion of the country's financial resources.

The PIF has made a number of high-profile investments in recent years, including a $3.5 billion stake in Uber, $522 million in Meta, $495 million in Disney, $487 million in Bank of America, $713 million in Boeing and $522 million in Citigroup.

The fund has also made a number of bets on gaming, at various times taking minority ownership in Electronic Arts, Take-Two Interactive, Activision Blizzard, Capcom, Nexon and Nintendo.

It doesn’t end there.

There have been a range of high profile investments in sports as well. In 2021 the fund purchased English Premier League club Newcastle United for $370 million and also launched LIV Golf, a high profile, big money competitor to the PGA Tour.

These investments were made in order to help the PIF diversify its portfolio and generate returns for the benefit of the Saudi government and its citizens.

The PIF has also played a key role in the Saudi government's efforts to diversify the country's economy away from oil. For example, it has invested in a number of infrastructure projects, like the construction of a new international airport in Riyadh and the development of a new city called NEOM - the crazy, 100 mile long, mirror-finished, futuristic ‘line’ in the desert.

These projects are intended to create jobs and stimulate economic growth in non-oil sectors, and they are part of the Saudi government's Vision 2030 plan to transform the country into a more diversified and modern economy.

The PIF is hugely important for Saudi Arabia, and it is expected to play a key role in the country's economic development in the future. It’s responsible for managing a significant portion of the country's financial resources, and it is working to make strategic investments that will contribute to the economic growth and diversification of the country.

Why are oil states moving away from oil?

It’s not just the move to EV’s which is driving this diversification.

At the end of the day, oil is a finite resource, which means that it will eventually run out. The oil reserves in these countries are not infinite, and at some point in the future, they’ll be gone.

That might be a long way off, but nonetheless it will happen.

This is a concern for the governments of these countries because oil has traditionally been the main source of income and economic activity in the region. If they don’t diversify their economies and find other sources of income, they’ll be in big trouble when oil or its demand begins to run out.

Another reason for diversification is that the demand for oil can fluctuate significantly, and this can have a big impact on their economies. For example, if there is a recession or a drop in global oil prices, the economies of these countries may suffer. This is because the demand for oil decreases during these times, and as a result, the revenues that these countries generate from oil exports may decrease as well. By diversifying their economies, these countries can be less reliant on a single resource and be less vulnerable to these fluctuations.

The oil states also recognize that there are increasing concerns about the environmental impacts of fossil fuels and the need to transition to more sustainable sources of energy.

Diversifying their economies can help them achieve this goal by promoting more diverse and sustainable sources of economic activity, such as renewable energy, tourism, and technology.

Overall, diversifying their economies away from oil is seen as a way for the Middle Eastern oil states to ensure their long-term economic stability and sustainability. By having a more diverse and resilient economy, they can better weather economic downturns and other challenges, and continue to thrive in the future.

How can investors benefit?

There’s no denying that moving towards a more sustainable future makes sense. Not just from an environmental standpoint, but from an investment one as well. There is a huge push for new technologies and strategies to make our economy cleaner, and this creates a big opportunity for companies.

In our Clean Tech Kit, we use the power of AI to invest across a range of different green technologies. These include renewable sectors such as EV producers and infrastructure manufacturers, hydrogen fuel cell tech, alternative fuels, battery manufacture, waste reduction and smart water technologies.

Every week our AI predicts how each holding in the predetermined investment universe is likely to perform in the coming week on a risk-adjusted basis, and then automatically rebalances the Kit in line with these predictions.

This includes three ETFs, plus a weekly allocation to between 16-19 individual stocks out of a total universe of 58.

It’s like having a professional investment manager, right in your pocket.

Download Q.ai today for access to AI-powered investment strategies.

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Vision 2030 underpins the NEOM megacity on the Red Sea coast, which will be powered by 100% renewables.

“The Line,” a linear city within NEOM, is designed to be car-free and carbon-neutral, relying on advanced solar and wind generation alongside new energy storage technology.

Beyond domestic deployment, Saudi Arabia is investing in hydrogen and electric vehicles as part of a broader push to diversify its economy and reduce reliance on oil exports.

National initiatives like the Green Middle East Initiative reinforce these efforts, focusing on afforestation, emissions reduction, and establishing regional climate governance bodies .

Oman’s approach emphasizes both domestic supply and export potential.

Title:

Content: To enable Oman Vision 2040, PowerChina sets new standards in renewable energy through the Oman Ibri Solar PV Project
BEIJING, Dec. 22, 2022 / PRNewswire / — Report from haiwainet.cn:
According to a recent World Government Summit report, Oman, Jordan, Tunisia, the United Arab Emirates, Algeria and Morocco have topped the list in achieving 60% of the 2030 Sustainable Development Goals.
Oman is promoting global cooperation in renewable energy following the launch of Oman Vision 2040.
In January 2022, Oman ’ s largest renewable energy project, the Oman Ibri Solar PV Project, implemented by PowerChina, was completed.
As the largest solar PV project in Oman at present, it has a installed capacity of 607 MW and annual power generation of 1,598 GWh, which could cover the annual electricity consumption of 50,000 local households.
It is important to secure energy supply and diversify Oman ’ s energy structure.
The construction of a large-scale photovoltaic power plant in the desert needs to take into account not only summer extremes, but also complex geological conditions and dust storm weather.
During the storm, a thick layer of dust will accumulate on the photovoltaic panels, reducing the efficiency of power generation.
To deal with the dust storm, the project team made a groundbreaking attempt – installing intelligent cleaning robots on the panels.
The cleaning robots will automatically clean the dust covered on the panels.
This project combines photoelectric tracking system and automatic cleaning system for the first time, greatly improves power generation efficiency and reduces operation and maintenance costs, and sets new standards for large-scale power plant operation and maintenance in the Middle East.
PowerChina has obtained 41 patents for inventions and utility models, completed one study, and published 8 scientific reports through this project.
At the same time, the clean energy produced by the Oman Ibri solar PV project is expected to reduce carbon emissions by 340,000 tons per year, contributing positively to addressing climate change and achieving carbon neutrality.

It aims for 30% renewable electricity by 2030 under Vision 2040, with the 607 MW Ibri Solar PV plant as a central project.

Oman is increasingly recognized as a future leader in green hydrogen, leveraging abundant solar resources, low production costs, and established export infrastructure to support both the domestic economy and potential global markets .

Title:

Content: NEWS
Oman ’ s Green Economy Charts New Features for Future Growth in All Sectors
The expansion of green industries paves the way for a significant impact on GDP growth, fiscal revenues and credit rating determinants
– World Bank: National targets and ambitious initiatives adopted by the Sultanate of Oman to shift towards a green economy and address climate change
– Fitch Rating: Capabilities and potentials qualify Oman for a good competitive position with low production costs and structure available for export through Hydrom and Port of Duqm facilities
– Energy Agency: Oman can be at the forefront of leading countries in the field of sustainable energy
The Sultanate of Oman is witnessing important shifts towards green economy, low emission industries and the expansion of the use of clean and renewable energy. These shifts are highly praised and followed by international institutions due to the importance of these efforts in the global effort to curb climate change. The expansion of green industries, especially green hydrogen, can bring about GDP growth, fiscal revenue volume, and credit rating determination.
The World Bank praised Oman ’ s national goals and ambitious initiatives to transition to a green economy, address climate change and achieve zero carbon neutrality by 2050, which confirms its commitment to green growth and the UN climate change adaptation agenda. A World Bank report released this week indicated that Oman ’ s green economy transition includes ambitious targets, including electricity generation from renewable sources, aiming to increase electricity production from renewable sources to 30% by 2050. 2030.
The World Bank pointed out that Oman ’ s green transformation strategies are part of an increasing trend in recent years by some of the world ’ s largest oil producing countries to commit to adopting clean energy. The GCC countries are among the countries that have announced national and regional goals and initiatives to address climate change. Balancing energy security and the deployment of renewable energy sources for a carbon-free future, it is able to become a leader in the Middle East and North Africa region and the world by investing its resources and capabilities towards a better climate and a livable planet.
Rapid green growth across sectors — including renewables, energy storage, electric vehicles, green buildings, a circular carbon economy and waste recycling — provides opportunities for skilled jobs, productivity growth and economic diversification, the World Bank said.
IFC estimates that supporting low-carbon investments in 10 key sectors in 21 emerging markets will generate $10.2 trillion in investment opportunities, create 213 million jobs and reduce greenhouse gas emissions by 4 billion tonnes by 2030.
In order to fully benefit from these benefits, GCC countries will need sustainable national commitments to these priorities, climate strategies, access to finance for businesses, and an enabling environment for green investment.
The World Bank estimates that if GCC countries continue to follow their current growth pattern, their combined GDP will reach $6 trillion by 2050.
Implementing a green growth strategy would accelerate its economic diversification and possibly contribute to increasing its GDP to more than $13 trillion by 2050.
This shift to a green economy offers a unique opportunity for GCC countries to increase their commitment to green growth and the climate change adaptation agenda, boosting international climate action that is progressing in a number of areas, including many countries joining the Global Methane Pledge (an international effort to reduce methane emissions by a minimum of 30 percent by 2030), increased investments in programs to support low-carbon technologies such as green hydrogen, circular carbon economy, and increased participation in markets. Carbon, local energy efficiency initiatives, and other important initiatives.
The World Bank stressed that the private sector plays a critical role in the success of climate initiatives in the GCC countries by pushing for a low-carbon transition and attracting green investments, and the transformation of resource consumption, energy production, manufacturing processes and other economic systems will require significant investment to achieve climate goals.
Sustained public sector commitment is also needed along with concrete policy interventions to drive change at the speed and scale required to address environmental challenges and support low-carbon transformation. First, green growth must be integrated as a national policy that shapes the future in all relevant sectors such as energy, water, food security, urban planning and services, among others.
The International Energy Agency (IEA) has highlighted the significant economic potential of Oman ’ s green hydrogen industries, which enhances its export competitiveness and supports economic growth, as well as pushing Oman to the forefront of global sustainable energy. The IEA has praised the move towards green hydrogen industries as a new engine of economic growth, with Oman potentially the sixth largest exporter of green hydrogen in the world by 2030.
According to a recent report by Fitch Rating, Oman has the capabilities to be competitive in the production and export of green hydrogen, especially with low costs of renewable energy, infrastructure available for export through the facilities of Hydrom and Port of Duqm, as well as a clear tax framework and relatively low rate of corporate income taxes in Oman.
Fitch said that against the backdrop of global shifts towards renewable energy and in the long term, the ambitious goals of the Government of Oman to expand the production of green hydrogen to strengthen the key criteria and indicators that determine the credit rating such as GDP growth, fiscal revenue volume and balance of payments.
The International Energy Agency (IEA) estimates that global investments in renewable energy reached a record $1.7 trillion in 2022, up from $530 billion in 2021, with a large portion coming from the private sector.
Oman is an active contributor to the world ’ s efforts to reduce global warming and has taken important steps towards reducing carbon emissions by declaring zero carbon neutrality by 2050, establishing the Oman Sustainability Centre, implementing a national strategy for an orderly transition to zero neutrality, and a national energy policy.
Recently, the Ministry of Economy announced that it is conducting a detailed study on the economic cost of the transition to a low-carbon green economy in Oman, including estimating expected returns and defining policies, legislation and economic governance.
Oman is witnessing a growing interest in switching to renewable energy and building a green economy to reduce harmful emissions and achieve carbon neutrality, targets that fall within the strategic direction of the priorities of environment, natural resources, economic diversification and development in Oman Vision 2040.

Despite these significant individual efforts, solar still accounts for only around 2% of the region’s total energy mix, though the sector is expanding at approximately 23% annually as of 2023.

Most countries share similar aims to triple renewables and double energy efficiency by 2030, in line with regional and international climate commitments like those of COP28 .

Transitioning from project descriptions to policy, government incentives have been instrumental in accelerating solar adoption.

Jordan, for instance, offers zero-interest loans to farmers, solar loans for homes, and specific programs for rural and agricultural solar deployment.

Title:

Content: Among them Iraq.
5 Arab Countries Leading Solar Energy Support Programs
2023-11-07 | 02: 22
Alsumaria News – Economy
Solar subsidy and loan programs in Arab countries continue at a time when the need for alternative energy sources is acute, as the effects of climate change intensify, and the global energy crisis that began with the Russian invasion of Ukraine on February 24, 2022 intensifies.
Solar energy in Iraq, Jordan, Lebanon, Egypt and Kuwait receives official support, either through direct legislation approved by the parliaments of these countries, or through loans made available by government and official banks there, or through national and national projects provided by the ministries of energy and electricity, according to the specialized energy platform.
In the coming years, support for solar energy in Arab countries is expected to gain momentum, with many declaring their commitment to achieving carbon neutrality by mid-century and plans to increase the contribution of renewable energy to their electricity mix by 2050.
* Support for solar energy in Jordan
The most prominent support received by solar energy in the Arab countries is that provided by Jordan, through a range of programs supervised by the Ministry of Energy and Mineral Resources, as the solar loan project in Jordan witnessed a new step on Sunday, October 29, as part of efforts to motivate citizens to adopt clean energy.
The Agricultural Credit Corporation signed an agreement with the Renewable Energy Promotion Fund to support the second phase of the program to install solar cell systems for farmers to cover the interest on the loans, according to a press release.
* Solar Loans in Jordan
The Minister of Agriculture and Chairman of the Agricultural Lending Corporation, Khalid Al-Hanifat, said that the agreement will reduce the cost of production for farmers, as it targets all animal and plant agricultural activities, as it covers beneficiaries with a ceiling of 20 thousand dinars (28.1 thousand US dollars) without interest.
At the same time, Jordan is preparing for the third phase of the strongest support program witnessed by solar energy in the Arab countries, the installation of solar cells in homes, the second phase of which ended in July 2023, according to information monitored by the specialized energy platform.
This program aims to support the use of solar energy in Jordanian homes, as well as the installation of solar heaters, which will reduce the cost of electricity for citizens, while reducing the energy import bill for the state.
* Solar Loans in Lebanon
As part of the efforts to support solar energy in the Arab countries, the Lebanese effort, which aims to alleviate the energy crisis, is highlighted through an important program to grant solar energy loans, which are an appropriate and sustainable solution to overcome the energy threat, as described by the Lebanese government a year ago.
The installation of solar energy in the homes of Lebanese will solve the crisis of high electricity bills, as these loans are provided to the low- and middle-income by the initiative "Loans to the low- and middle-income", in cooperation with the Lebanese Center for Energy Conservation.
Loans for the installation of solar energy systems and plants in Lebanon range from 75 million to 200 million liras ($2,590 to $6,900) per person, up to a maximum of 80% of the project cost, and at an interest rate of 4.99% per annum, depending on the specialized energy platform.
* Information on Solar Loans in Lebanon
It is noteworthy that the solar energy market in the Arab countries is witnessing increasing growth, especially in Lebanon, which, despite its major crisis, witnessed during 2020 about 313 projects authorized, with a capacity of 14 MW, before this number increased, and the country records 662 applications for the installation of solar plants, during the period from October 2021 to March 2022.
According to the Lebanese Center for Energy Conservation, the installation of solar power plants in Lebanese homes will save citizens the value of high bills, which makes them able to save the value of the loan within two to three years, especially since the repayment is limited to paper lira only.
Solar energy in Egypt
In August 2023, the Committee on Energy and Environment in the Egyptian House of Representatives set a number of rules to increase the number of small household units to consume electricity from solar energy, as part of its recommendations on the Economic and Social Development Plan for 2023-2024.
The Committee stressed the need to develop alternative renewable sources of energy, to take action to mitigate and adapt to climate change and its consequences, while working to reduce greenhouse gas emissions, and to accelerate the transition to low-carbon vehicles.
Solar energy in Egypt
Prior to these directives, Egypt witnessed one of the strongest solar energy subsidy programs in the Arab countries, with four banks, including government banks, providing loans of large amounts to support the installation of solar energy systems and their stations for homes, through various repayment programs.
HSBC Egypt, one of the largest solar loans in the Arab world, is offering EGP 2 million ($64,675) with a repayment period of about seven years, while QNB is offering a loan of EGP 400,000 ($12,930) for seven years.
Misr State Bank also offers a financing program worth up to EGP 500,000 ($16,168) and a repayment period of up to 10 years, while the Commercial International Bank (CIB) offers a loan worth EGP 350,000 ($11,300) with a repayment period of 5 years.
* Solar energy in Kuwait
As the State of Kuwait prepares to complete new phases of the Shaqaya CSP project, the State continues to encourage citizens to use solar energy in their homes, as part of its drive to achieve carbon neutrality and reduce emissions by mid-century.
The State of Kuwait adopts a unique approach that distinguishes it from all consumers of solar energy in the Arab countries, as it encourages citizens to sell electricity in excess of their consumption to the government, generated from solar panels installed on rooftops.
* Solar energy in Kuwait
According to an analysis by Mordor Intelligence, seen by the specialized energy platform, the solar energy market in Kuwait is expected to register a compound annual growth rate of more than 7%, especially as this market is achieving a significant recovery, despite the damage caused by the outbreak of the Coronavirus three years ago.
Despite this, Kuwait ’ s solar market is not growing in line with expectations, as initial spending is large, and there is a lack of multiple government programs during the forecast period, but over time internal subsidies continue, leaving the country with the most important solar projects in the Arab countries.
At the same time, the Kuwaiti government is working to provide solar energy to citizens by building huge power plants from an inexhaustible renewable source, especially as Kuwait enjoys a very high brightness, which qualifies it to enter this market from its widest doors.
Iraq to finance solar installation
As Iraq faces one of the difficult electricity crises, caused by the lack of Iranian gas supplies, and seeks alternative sources, both external (such as Qatari gas) and internal (such as the tendency to burn gas associated with electricity generation), Baghdad continues to provide one of the most important forms of solar energy subsidies in Arab countries.
In January 2022, the Central Bank of Iraq issued controls to finance electricity generation systems from renewable energy, as the governor of the bank signed the first circular that allows citizens and institutions to buy systems and power plants from solar energy.
Solar energy in Iraq
This initiative is in line with the State ’ s commitment to the decisions of the Paris Climate Conference, as the interest on loans provided to citizens to install solar power plants did not exceed 1%.
While the value of loans ranged between 7 million Iraqi dinars (4 thousand and 800 dollars) for stations 3 kilowatt hours, and one billion dinars (685 thousand dollars) for large projects in residential squares, according to the website of the Central Bank of Iraq.
Source: Energy Platform
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Egypt encourages residential and commercial solar via loans, net metering, and fast-tracked licensing.

Kuwait incentivizes distributed solar by allowing households to sell excess generation back to the grid.

These diverse programs encourage grassroots involvement and facilitate the expansion of both centralized and decentralized solar capacity across the region .

Broader regulatory reforms further stimulate solar growth.

Title:

Content: World Future Energy Summit to focus on providing ‘sustainability blueprint’

The three-day event will be held at the Abu Dhabi National Exhibition Centre from January 16 to January 18

Beta V.1.0 - Powered by automated translation

The 2023 World Future Energy Summit aims to provide a “crucial sustainability blueprint” amid a global focus on the energy transition and measures to boost investment in the renewables sector.

Energy industry leaders and policymakers from around the world will participate in the three-day event at the Abu Dhabi National Exhibition Centre from January 16 to January 18, organisers said on Wednesday.

The summit is the centrepiece of Abu Dhabi Sustainability Week, a global initiative championed by the UAE and Abu Dhabi's clean energy company Masdar to hasten sustainable development and advance economic, social, and environmental progress.

“This event has evolved just as the energy sector and our economies are transitioning,” said Suhail Al Mazrouei, Minister of Energy and Infrastructure.

“It has now morphed into the Middle East’s most important industry gathering, of which clean energy and infrastructure are key components.”

Countries in the Middle East such as the UAE, Saudi Arabia, Jordan, Oman and Egypt are boosting investment in the clean energy sector.

The UAE is investing Dh600 billion ($163.5bn) in clean and renewable energy projects over the next three decades as it aims to achieve net zero emissions by 2050.

It is building the world’s largest solar plant with a capacity of two gigawatts in Abu Dhabi's Al Dhafra region that is expected to be ready next year, as well as the Mohammed bin Rashid Solar Park in Dubai with a capacity of five gigawatts.

Saudi Arabia, the Arab world’s largest economy, also announced a number of new renewable energy projects as it seeks to become carbon neutral by 2060.

Egypt, the most populous country in the Arab world, aims to derive 42 per cent of its electricity mix from renewable sources by 2035. The North African country is hosting Cop27 next month.

“This newly transitioned event profile is in the right place at the right time, underlining a much-needed shift towards reaching our clean energy goals, as well as achieving sustainable governance and adopting consumption and [the] production of natural energy methods that ensure the quality of life for current and future generations,” Mr Al Mazrouei said.

Renewable energy investment continued to rise amid green transition efforts globally. Capital investments in renewables are set to surpass oil and gas spending for the first time in 2022 as high power prices prompt countries to further diversify their energy mix, according to a report by Rystad Energy.

Investment in renewable energy is set to hit $494bn in 2022, outstripping upstream oil and gas spending at $446bn for the year, the Oslo-based energy consultancy said this month.

In addition to the focus on energy, water, eco-waste, solar, smart cities, climate and the environment, next year's event will also preside over the launch of a dedicated hydrogen innovation centre as demand for the clean fuel picks up globally amid green transition efforts, organisers said.

The event takes place at a time when the UAE is preparing to host Cop28 next year.

Updated: October 19, 2022, 10:41 AM
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Egypt now permits private-to-private renewables sales, spurring investment and local manufacturing, while various countries provide tax breaks and green incentives for residential and commercial installers.

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Content: Exclusive renewable energy solutions attract the attention of Egyptian real estate developers
To avoid power outages and enhance project marketing opportunities
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Egyptian real estate developers have turned to the use of solar energy solutions in their projects to provide sustainable energy sources in projects and overcome any potential crises related to the lack of power supply or capacity of major networks, as well as adding value to projects that enhance their marketing opportunities.
Managing Director and CEO of Madinat Misr, Abdullah Salam, said that the Egyptian real estate development companies are constantly seeking to provide green solutions to their customers, given the importance of sustainability in projects to ensure adding value to projects.
He added that his company adopts a vision to develop sustainable communities, starting from the project designs and taking into account the surrounding environmental conditions, including addressing energy problems, rationalizing its use and ensuring its continuous availability, rationalizing the use of water and recycling, and recycling waste.
He explained that the company is studying all modern technological solutions for the use of renewable energy sources in the communities that develop them.
He pointed out that the launch of new technological solutions in residential urban communities is a challenge that the company is working to find solutions for now.
“While the cost of building solar panels or introducing new energy efficiency solutions increases, this will reduce the operational costs of those services in the long run compared to those of traditional energy sources, which not only increase their operating costs but rise over time due to higher prices of conventional energy, ” he said.
Use of foreign expertise
Ahmed Al-Attal, Chairman of the Group of Companies for Real Estate Development, said with Sunview, a Malaysian company specialized in sustainable alternative solutions for energy and the production of solar panels to provide solar panels in Parklane project in the New Administrative Capital and other projects of the company in West Cairo and Future City in East Cairo.
He added that the Malaysian company is currently working to open its regional office in Egypt to facilitate access to the service and under the contract will pay for the service over 10 years, in addition to its contract two years ago with Siemens to provide alternative energy solutions and digitization of its projects.
Al-Attal told Al Arabiya Business that his company complies with the requirements of the Administrative Capital for Urban Development Company, which requires that at least 60% of the roofs of buildings in the project be allocated for the installation of solar panels.
He added that "Attal" has already allocated about 80% of the roofs of buildings, whether residential or administrative, for the installation of solar panels, explaining that his company will transfer the electricity production service from solar energy to the Administrative Capital Company, which in turn will buy the service and sell it to customers, which means that real estate developers in the New Administrative Capital project will not sell electricity themselves.
He stressed that the company will generalize this experience in its other projects in various regions, where electricity will be produced from solar energy and sold directly to customers, and will be paid for the service through the maintenance differences paid by the customer.
Top Developer Initiatives
Sebastian Reyes, president of Schneider Egypt, North Africa and the Levant, said that the Egyptian real estate sector is witnessing a very large growth during the current period.
“We have a number of discussions with many major real estate developers, and we also have a strong partnership with most real estate developers such as Talaat Mustafa, Al-Ahly Sabbour Development, Tatweer Misr, Landmark Sabbour Real Estate Development, Misr Italia, Paragon and others, ” he added.
Reyes stressed that all these developers expressed their desire to create sustainable urban communities, move to digitization in the management of energy resources and use modern technology to rationalize the use of energy, to preserve the value of the property and build a sustainable future for their customers.
Reyes explained that Schneider Egypt has a large and extended partnership with the Administrative Capital Company for Urban Development, noting that they are holding open discussions all the time with the company to deliver more sustainability in the city by offering rational and clean energy solutions.
Government incentives
Romany Hakim, chairman of the board of directors of Benchetti Solar Energy and vice chairman of the Energy Development Association (SIDA), said that Egyptian real estate developers have been studying for years the use of solar panels in electricity production, however, no actual proposals have yet been put forward to sell the units as green homes based on alternative energy.
He added that companies specialized in the production of renewable energy have made several offers to real estate developers to exploit the empty spaces on the roofs of unutilized residential buildings.
He said that some real estate companies have been forced to use this technology in public spaces within residential complexes without applying it to the residential units themselves.
He pointed out that real estate developers need to be incentivized by the state to provide facilities for the installation of solar panels in residential buildings and must have a clear marketing plan to sell these units, while explaining their benefits to customers in terms of sustainability and rationalization of energy use, which contributes to reducing operational expenses for customers.
Hakeem pointed out that the solar panel industry in Egypt is currently witnessing significant growth, despite some obstacles that private sector companies seek to overcome.
He explained that the situation is much better than before, but there is a need for the support of the state and customers, in addition to providing clear and serious incentives for them to take the initiative.
Hakeem stressed the need for full cooperation between the ministries of electricity, finance and petroleum to solve the problems facing the new and renewable energy sector, pointing out that the cost of producing kilowatts of electricity with solar energy is much cheaper than producing it using natural gas, which contributes to providing natural gas more to the industrial sector.
He also called for incentives for developers to use solar panels in homes in undeveloped areas, tax incentives such as tax relief, reduced property taxes or electricity subsidies for developers, and mandatory rules for installing solar energy in buildings before projects are approved.
Cost reduction
Hakim revealed that one kilowatt of solar energy can save about 5-6 kilowatts / day, equivalent to 1800 kilowatts / hour per year, and in some areas up to 2000 kilowatts / hour per year, at a cost of about 20,000 pounds per kilowatt.
According to estimates by Intersolar Egypt, a specialist in the field of solar energy in Egypt and the Middle East, the estimated cost of solar panels to produce one kilowatt in Egypt is about $1,000 and requires an area of 8 square meters on the ground.
Government initiatives for individuals
The Egyptian government announced last year the “Egypt Solar Platform ” initiative to facilitate the installation of solar panels for homes and companies to stimulate the reduction of consumption of traditional sources of energy and increase reliance on new and renewable sources of energy to reach 42% renewable energy participation by 2030.
The platform provides guidance on the installation of solar cells, the costs involved, the capacity required and the required documentation, as well as lists of qualified companies for the installation of these cells, and facilitates communication between customers and the installation companies and electricity distribution.
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These policies have supported both large utility-scale projects and smaller rooftop or rural installations, extending the benefits of renewables to a wider segment of the population .

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Content: Sunday, 24 September 2023 02: 03 GMT
2030 Arab Goal to Advance Renewable Energy Capabilities Globally
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Several Arab countries are accelerating to keep pace with the international aspiration to achieve the goal of tripling global renewable energy capacity by 2030, which is receiving widespread attention, amid various plans and strategies at national levels in many countries.
The Arab countries that are likely to play the largest role in this regard, according to industry experts, are the UAE, Saudi Arabia, Oman, Kuwait, Egypt, Jordan, Algeria and Morocco, by injecting more investments into this vital and promising sector.
During the recent G20 summit in New Delhi in September, G20 leaders expressed their support for all efforts to increase renewable energy capacity and pledged to accelerate measures to address environmental crises and challenges.
With this growing international interest in the energy transition, the plans are facing many challenges, including (but not limited to) access to finance, especially for low- and middle-income countries, with significant investment required over the coming years.
(Al-Bayan), a group of American academics and specialists in the renewable energy sector were surveyed about the main opportunities and challenges on the way to increase the desired capacity, the investments required to achieve that goal, and the extent of its expected environmental and economic repercussions.
Huge spikes.
Achieving the ambitious goal of doubling global renewable energy capacity in the near term will be reflected concretely in several contexts, explains Gregory Nemet, a specialist in the analysis of international energy systems and environmental policies at the University of Wisconsin. By 2030, it will deliver significant benefits in terms of jobs, economic development, and improved air quality, as well as putting the world on the path to addressing climate change in the long term.
“The costs of renewable energy, especially solar and wind, have dropped dramatically over the last 10 years, and most experts expect them to continue to fall, ” says Nemet, explaining that a clean, affordable source of energy creates huge opportunities, allowing global renewable energy capacity to be tripled by taking full advantage of it.
According to Nemet, the 3-fold increase also presents challenges, such as “access to finance for low- and middle-income countries, and investments in electricity grids to accommodate this growth ”, stressing that“ challenges can be overcome through sustained efforts and supportive policies, as we have seen many examples in the recent past. ” A sign of broad international cooperation is required in this regard.
Last year, renewable energy capacity (globally) increased by 9.6 percent to 3,372 gigawatts, an increase of a record 295 gigawatts, despite global uncertainty in light of geopolitical developments and the Ukrainian war, according to data published by the International Renewable Energy Agency (IRENA) on March 22.
Almost half of the new capacity from renewable energy in Asia has been added, with China contributing more than 141 gigawatts to the new capacity of the entire continent.
Renewable energy sources in Europe and the United States grew by 57.3 gigawatts and 29.1 gigawatts respectively.
African capacity increased slightly by 2.7 gigawatts.
According to IRENA data, although hydropower accounts for the largest share of total global renewable energy capacity at 1,250 gigawatts, solar and wind power continue to dominate new capacity, contributing 90% of total capacity last year.
Solar capacity came first with an increase of 22%, followed by wind power with an increase of 9%.
Policies and Incentives
University of Massachusetts academic David Turcotte, whose research interests include climate change and environmental justice, believes that there are many opportunities in the context of increasing global renewable energy capacity, due to increases in oil prices as a result of the Ukrainian crisis, which makes renewable energy sources more cost-effective, as well as worsening economic and human costs. Recurrent, more severe climate change disasters.
“Many developed countries have expanded policies and incentives to encourage increased capacity to produce renewable energy.
However, we still face a lot of challenges […]
That threatens to derail efforts to increase renewable energy capacity, and the transition to a clean energy economy.
Among these challenges is the lack of adequate funding to support increases in renewable energy capacity in developing countries, a challenge he described as “serious. ”
While international efforts are accelerating to target investments in the context of increasing global renewable energy capacity, those investments are still below the 1.5 ° C target.
This is shown by data from IRENA and the Climate Policy Initiative (CPI) released in February, which estimate the total volume of investments in renewable energy sectors during 2022 at $499 billion, up from $430 billion in the previous year 2021.
Developments in the world over the past year, especially with the start of the Russian military operation in Ukraine in February 2022, have also encouraged many countries to move more towards renewable energy sources, to overcome the energy crisis caused by the consequences of the war, in the interest of the desired goal of increasing capacity.
Required investments
John Hall, Professor of Mechanical Engineering at the Center for Energy Production and Infrastructure, University of North Carolina, United States, notes that “the goal of tripling global renewable energy capacity by 2030 is a challenge, and achieving the goal requires an intensive global strategy, focused on significant financial investment, technological innovation targeting these communities, inclusive policies, and collaborative efforts. ”
Speaking with Al-Bayan, he stressed that community participation and infrastructure development in underserved areas should be central to the strategy, leading not only to the promotion of the energy transition, but also to economic upgrading.
The International Renewable Energy Agency (IRENA) estimates that $4 trillion per year will be required in the clean energy sector until 2030 to strengthen global capacity in this regard.
Logistical challenges
Warren Mabey, an academic at Queen ’ s University who specialises in energy policy and natural resource management, told Al Bayan that “it is technically possible to triple global renewable energy capacity over the next six years, and this will put enormous pressure on the global supply chains that support the sector. and manufactured goods, necessary for the transformation process).
Mabe believes that “the cost will be enormous, and the logistical challenge may be too great to overcome ”, stressing the need for“ strong and consistent leadership from countries around the world to achieve this. ”
Arabic Steps
At the Arab level, five Arab countries (Egypt, Morocco, Oman, Saudi Arabia and the United Arab Emirates) are expected to account for about 72% of the region ’ s total growth in renewable energy, according to the Organization of Arab Petroleum Exporting Countries (OAPEC), which expects renewable energy capacity to reach 45 gigawatts by 2027, an increase of 3 times. Compared to the last five years.
The International Renewable Energy Agency (IRENA) estimates that in 2022, the Middle East saw the highest increase in renewables ever, with 3.2 gigawatts of new capacity added last year, a 12.8 percent increase over the previous year.
According to the Arab Renewable Energy Authority (AREA), the volume of investments by Arab countries in renewable energy projects is expected to reach $1 trillion by 2040, in light of the interest of Arab governments in this file, to achieve global environmental goals.
A Great Leap in 10 Years
According to the current data, the renewable energy sector in the region is expected to witness a huge leap in the next 10 years, at a time when eight Arab countries are leading this trend, according to the researcher in international relations and political economy, Abu Bakr al-Deeb, adviser to the Arab Center for Studies and Research, who tells Al-Bayan that the countries strongly candidate to move in this direction are:, Kuwait, Egypt, Jordan, Algeria and Morocco).
Aldeeb also cites the volume of electricity generated from renewable sources in the Middle East and Arab countries, which is expected to increase six-fold in 10 years through heavy reliance on solar photovoltaic energy, noting that the Arab region has “great potential ” to help launch major projects to produce energy from the sun. And wind, among these possibilities or advantages (the right climate, the bright sun most days of the year, as well as human expertise, and financial capabilities also for some countries).
The UAE is at the top of the list of Arab countries that produce electricity from solar energy, while Egypt is the largest country in the Arab world in terms of electricity production from wind energy, according to a report issued by (Global Energy Monitor), which Al-Deeb cites when explaining the progress made by some Arab countries in this sector, The UAE, Egypt, Jordan and Morocco are among the first Arab countries to establish solar and wind power plants.
According to the report, renewable power plant projects for Arab countries are likely to achieve 92% of the region ’ s total target by 2030 when completed.
One of the most reliable projects in this regard is the Green Hydrogen projects, through which the Middle East is seeking global leadership, with export revenues likely to reach $200 billion by 2050 for the Gulf countries, according to a study by Dii Desert Energy.
In this context, Al-Deeb notes the abundance of renewable energy resources, clean hydrogen, human expertise, capital, and their geographical proximity to the European market, all of which provide them with important and growing opportunities.
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Economic impacts are significant and increasingly measurable.

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Content: Environmental, Social, and Governance (ESG) issues have become increasingly prominent on the global stage as organisations recognise the need to integrate sustainability into their operations.

As the Middle East moves towards a low carbon future, sustainability has become a top priority for organisations and governments across the region.

Sheikh Mohammad bin Rashid, Prime Minister and Ruler of Dubai announced while launching the National Hydrogen Strategy that the UAE is to invest up to AED 200 billion ($54.5 billion) in renewable energy.

The launch of a AED 4 billion renewable energy plant in Dubai,  and the world’s largest waste-to-energy plant are proof of sustainability climbing the agenda.

With COP 28 being held in the UAE this year, there is a renewed sense of urgency on climate change action, and the net-zero carbon target is being prioritised through policies and actions.

After all, sustainability will boost the UAE’s economic competitiveness, drive innovative policy and improve investment opportunities.

The region has seen notable sustainability innovations, including Saudi Arabia’s rapid transition to a circular carbon economy, Bahrain’s state oil company refinancing a $2.2 billion sustainability-linked corporate finance facility, and Oman’s exploration of green hydrogen as a clean energy source.

However, the Middle East faces its own unique challenges in implementing ESG practices, especially around accurate sustainability reporting and implementing early regulations to fill in previous gaps.

Other challenges that hinder the progress of the region’s ESG agenda include the talent gap, how corporates in the region address the need to implement ESG practices, as well as data availability.

Regulatory frameworks

While standardised frameworks and reporting guidelines begin to form, the lack of clear regulations can hinder consistent measurement and disclosure of ESG performance.

Global frameworks have now become more widely adopted in the region such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the newly published International Sustainability Standards Board (ISSB).

The gap in standardisation previously posed challenges for investors and stakeholders who relied on transparent and comparable ESG data for decision-making, however, we are starting to see drastic changes in this area.

Data availability

Many companies in the Middle East still face challenges in collecting, managing, and reporting ESG data, which can hinder their ability to effectively assess and manage their sustainability performance.

Data is the first step to measure any status, but also measure progress. Improving data collection mechanisms and investing in robust reporting systems will be instrumental in addressing this challenge.

ESG talent gap

Organisations need individuals with specialised knowledge and expertise in ESG practices to drive sustainable strategies effectively. Alongside this specialised knowledge, the industry also needs innovators, risk takers, agitators for change, mentors, and communicators in the field. There is however, a shortage of skilled professionals in the region with a deep understanding of ESG principles to drive innovative solutions.

Bridging this gap requires investment in education and training programmes to build a skilled workforce capable of integrating ESG considerations into business practices. Universities and training institutions are therefore increasingly offering courses and programmes on sustainability and ESG and businesses are partnering with academic institutions to develop tailored training initiatives and internships, nurturing a pipeline of talent equipped with the required knowledge and skills.

These efforts will cultivate a sustainable workforce capable of implementing and driving ESG practices in the Middle East.

Implementation by region’s corporates

Despite the challenges, corporations in the Middle East are embracing ESG practices, recognising the importance of sustainability and responsible business conduct. We see this through accelerated electrification and the increase of decarbonizing energy supply.

The GCC’s oil-producing nations have made efforts to diversify energy sources, transitioning towards net-zero carbon fuels for transportation. Investments in renewable energy, such as solar and wind, aim to mitigate environmental impacts and promote a low-carbon economic future transforming the economic system and supply chain.

Additionally, social considerations are gaining prominence. Companies are addressing social issues through initiatives that promote diversity, inclusion, and employee welfare.

Governance practices are also being strengthened to ensure transparency, accountability, regulatory reforms and ethical conduct.

While obstacles in integrating ESG practices persist in the Middle East, corporates in the region are proactively embracing sustainability and responsible business practices.

That the Middle East is emerging as a leader in ESG adoption is apparent through their fullfillment of the UN SDG goals which has driven positive environmental, social, and governance outcomes for businesses and society as a whole.

Egypt, for example, forecasts tens of thousands of new renewable energy jobs and expects knock-on investment in green hydrogen, electric vehicles, and desalination.

Title:

Content: Friday 29 December 2023
Chairman of the Board of Directors and Editors
Abdurrahim Ali
Editor-in-Chief
Dalia Abdul Rahim
Chairman of the Board of Directors and Editorial Board
Abdurrahim Ali
Editor-in-Chief
Dalia Abdul Rahim
NEWS
Hassad 2023 | « Electricity »: New renewable energy projects under construction with a total capacity of 1700 MW
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The Ministry of Electricity and Renewable Energy confirmed that the green hydrogen projects to be established will provide 44,000 direct and indirect jobs and 220,000 temporary jobs, in addition to eliminating 37 million tons of carbon dioxide emissions annually in Egypt.
Minister of Electricity and Renewable Energy Mohamed Shaker announced that there are 3,500 megawatts under construction and implementation to produce electricity from renewable energy, with investments of up to $4 billion and 400 million.
He added that this comes within the framework of Egypt's keenness to expand renewable energy projects to increase its reliance on electricity generation to provide the quantities of fuel used.
He stressed that the total capacity generated from renewable energy in the national electricity grid in 2025 is expected to reach 15,800 megawatts and reach 42,100 megawatts by 2028.
Total capacity generated from renewable energy will reach 68,500 MW by 2030.
He added that there is a reference plan that aims to rely on renewable energies by 50% by 2040 of the total capacity of the national electricity network with a total capacity of 142,000 megawatts.
Regarding the so-called “Green Plan ”, the minister explained that the state aims to rely on renewable energies by 57% by 2040 with a capacity of 159 thousand megawatts.
He pointed out that Egypt is keen to implement its plan to shift to green energy by amending the renewable energy strategy in Egypt to target reliance on renewable energies by 42% by 2030 instead of 2035.
He pointed out that renewable energy projects in Egypt have become a source of other investments such as green hydrogen, electric cars and water desalination.
For his part, Dr. Mohammed Musa Omran, CEO of the Electricity and Consumer Protection Utility Authority, said that the Authority is keen to overcome any obstacles facing investors in the sector, and speed the completion of licenses for investors and procedures within 15 days.
He added that there are also many legislations for new and renewable energy, and there is an exemption of up to 10 megabytes in the field of integration, and there is progress in net metering projects.
As for consumer complaints, he said that the door is always open to quickly end any problems, explaining that in the framework of developments, the investor can build a sales terminal for the consumer directly without the need to sell the network, which facilitates investment in this sector.
He stressed that the Authority is keen to open the competitive market for the private sector to produce renewable energy and sell it to the private sector and draft bilateral agreements between the private sector to create a favorable environment to attract private investment, which is one of the priorities of the Egyptian government.
On the other hand, the Ministry of Electricity confirmed that the memorandum of understanding signed between the New and Renewable Energy Authority and one of the leading Chinese companies in the field of renewable energy will be investments of up to $10 billion and include the establishment of solar power plants with capacities of up to 10 gigawatts. The participation of renewable energy in the national electricity grid to 42% by 2030, pointing out that Egypt has a huge potential in the field of renewable energy unlike any other in the world, and that the project will produce about 29,784 GWh of clean energy annually, which will contribute to reducing about 14 million tons of carbon dioxide emissions.
The ministry pointed out that the largest gathering of solar power plants in Egypt and the Middle East is Benban solar complex with a capacity of 1465 megawatts, noting that the memorandum of understanding signed aims to establish plants with a capacity of up to 10,000 megawatts that can be divided into two or three complexes to become the largest gathering of solar power plants in the future.

Similar trends are visible elsewhere, with the region experiencing a substantial increase in sustainable “green deals” and climate-driven mergers and acquisitions—quadrupling since 2001—reflecting its rising status as a global hub for green investment and innovation .

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Content: Middle East M & A growth, ‘ green deals ’ quadrupled since 2001
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A new report from Boston Consulting Group (BCG) shows that M & A activities across the Middle East are back to pre-pandemic levels, with the Middle East recording 283 M & A transactions in the first three quarters of 2022 – an increase of 16% compared to the same period last year – with a total value of $23.8 billion.
“Green Deal ” has quadrupled since 2001.
The 19th edition of Boston Consulting Group ’ s annual Mergers and Acquisitions Report 2022 predicts that environmental considerations will spur an increasing number of M & A transactions, despite generally unfavorable macroeconomic conditions, with green M & A growing from 5% in 2020 to 10.3% in 2021, indicating that more officials and decision-makers are recognizing the potential for value creation. such operations.
Ihab Khalil, Managing Director and Senior Partner at Boston Consulting Group, said: “Green M & A is seeing significant growth across the region.
The exponential growth of sustainability-sensitive deals in the Middle East is a clear result of the national transformation programs announced by the region ’ s governments as they seek to achieve diverse economic outcomes as they move towards meeting the requirements of climate neutrality strategies.
As the region continues to establish itself as a thriving global hub for partnerships and economic diversification plans, so will green mergers and acquisitions.
“The Green Deal. ”
BCG ’ s analysis revealed a clear upward trend in green and sustainable deals over the past decade, with 2021 seeing the fastest pace of such deals in the Middle East when the volume nearly doubled to 10.3% after two years of less active M & A and green deals.
Green M & A has seen particularly rapid growth in sectors at the forefront of the energy transition as well as in emerging markets, with the Middle East showing the highest level of green transaction activity globally.
Over the past 10 years, the energy and utilities sector has accounted for the largest share of green mergers and acquisitions, with the highest growth rate, with a 98% increase in deals from 2020 to 2021, contributing 10% of M & A deals in the Middle East in 2021.
Asia Pacific (especially China) was the second most active region in green M & A deals, with the share of green deals reaching around 8% in 2021.
The company ’ s new analysis shows that despite the large premium that green M & A operations often require, they generally create more value than non-green deals when disclosed and over the next two years.
By analyzing the abnormal cumulative return (CAR) for periods of three days before and after the deal announcement, BCG found that the average abnormal cumulative return for green deals (1.0%) was marginally higher than for non-green deals (0.0%).
The report also determined that the two-year average relative total shareholder return (rTSR) for non-green deals (-0.55%) exceeds the average relative total shareholder return for green deals (-2.38%).
Ronald Maalouf, Managing Director and Partner at Boston Consulting Group, said: “While countries in the Middle East are looking for ongoing solutions that meet the requirements of their climate neutrality strategies to support their economies, they will continue to develop energy sector operations and projects.
Conversely, increased hydrogen projects will strengthen the region ’ s position not only as a reliable and sustainable energy supply hub, but also as a leading destination that attracts and supports the burgeoning of a greater number of mergers and acquisitions across the board.
With the UAE hosting COP28, we expect to attract more attention to the region ’ s green investment portfolios to support the achievement of the global Sustainable Development Goals. ”
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These strategies also have meaningful climate and geopolitical implications.

Expanding solar and renewables capacity helps reduce greenhouse gas emissions, supports resilience against oil price volatility, and strengthens national energy security.

Initiatives like Saudi Arabia’s Green Middle East Initiative, national hydrogen roadmaps, and participation in global renewables markets are central to meeting national and international climate targets .

Increasingly, Middle Eastern countries are exporting green power—such as Egypt’s planned subsea cable to the EU or Oman’s hydrogen exports—further linking the region to future low-carbon energy markets .

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Content: Egypt’s Ambitious Subsea Cable to Fuel Europe’s Green Energy Transition

In a groundbreaking move set to reshape the energy landscape, Egypt is poised to bolster its own energy infrastructure while propelling Europe towards a cleaner, greener future. The ambitious endeavor, known as the GREGY interconnector, seeks to create a pioneering subsea electricity cable linking Egyptian solar facilities to the European energy market via Greece. This project, gaining significant traction during discussions between Egypt’s Foreign Minister Sameh Shoukry and his Greek counterpart at the recent UN General Assembly, marks a critical stride in reducing Europe’s dependency on fossil fuels.

The visionary GREGY interconnector initiative is spearheaded by the Copelouzos Group, a prominent Greek conglomerate, in collaboration with Infinity Power, a joint venture between UAE-based renewable energy firm Masdar and Egyptian company Infinity. The proposed subsea power cable, stretching approximately 1,400 kilometers, is poised to transmit a formidable 3,000 MW of solar and wind energy generated by Infinity Power to Greece and, subsequently, the broader European market.

Carlos Torres, the Head of Gas and Power Markets Research at consulting firm Rystad Energy, underscores the immense potential the GREGY interconnector presents for Europe. He highlights Egypt’s strategic geographical advantage and superior solar energy potential, offering an ideal backdrop for the development of solar systems, unlike many European nations. A 2020 World Bank study corroborated this assertion, singling out Egypt, alongside other Middle Eastern and North African countries, as possessing the world’s greatest solar energy potential.

Europe’s fervent quest to curtail its reliance on fossil fuels, further exacerbated by geopolitical tensions and energy security concerns stemming from the Russian invasion of Ukraine, has been well-documented. Meanwhile, Egypt grapples with its own energy challenges, as demonstrated by a series of debilitating blackouts during the summer—an unfortunate consequence of years of insufficient investment in energy infrastructure to accommodate its burgeoning population.

Notwithstanding these hurdles, Egypt remains resolute in its pursuit of various energy projects, including the construction of its inaugural nuclear power station. Torres posits that these endeavors are anticipated to fortify Egypt’s position, ensuring it can satisfy domestic energy demands while simultaneously exporting surplus power.

The GREGY interconnector initiative forms a part of a broader strategy to interlink North Africa with Europe. Two subsea cables transmitting electricity between Morocco and Spain are already operational, with several other projects in the planning stages, including propositions to deliver power from Tunisia to Italy.

Noteworthy is the fact that, should the GREGY interconnector come to fruition, it would outstrip all existing subsea transmission lines in terms of length, nearly doubling the size of the present record holder—an undersea link recently completed between Denmark and Britain. While longer than most existing interconnectors, the GREGY project adopts a more pragmatic approach, transporting electrons generated in Egypt to the closest point on the European mainland, thus ensuring a more efficient power supply to other European nations.

In contrast, the alternative project, conceived by UK-based start-up Xlinks, envisions an undersea cable spanning a staggering 3,800 kilometers along the western edge of Europe. Such extensive distances can lead to significant energy losses during transmission, even with recent technological advancements aimed at mitigating these losses.

Conversely, the GREGY interconnector adopts a more streamlined approach by transporting electrons generated in Egypt to the nearest point on the European mainland, guaranteeing a more efficient and reliable power supply to other European countries.

As developers explore diverse strategies to tap into North Africa’s abundant solar resources, it becomes evident that these resources will remain a central focus for energy-hungry European governments in their quest for green alternatives to Russian gas. Carlos Torres predicts an upsurge in high-voltage, long-distance connections in the near future, further solidifying the ties between Europe and regions boasting substantial renewable energy potential.

The GREGY interconnector, championed by Egypt and Greece, marks a momentous stride towards sustainable energy collaboration and European energy diversification, paving the way for a greener and more resilient energy future for both Egypt and Europe.

In summary, the Middle East’s energy transition is marked by rapid increases in solar capacity, iconic projects like those in the UAE, Morocco, Egypt, and Saudi Arabia, and a proliferation of government incentives supporting both utility-scale and distributed solar deployment.

While solar currently represents a modest share of the total energy mix, accelerating progress, policy support, and international collaboration are shifting the region toward a more sustainable, diversified, and economically resilient future.

This transition has begun delivering substantial benefits in jobs, investment, technology transfer, and climate action, positioning the Middle East as an emerging leader in the global renewable energy revolution.