Heavy investment across the Gulf and broader Arab region has driven a sharp rise in renewable energy output, which surged by 36% in 2025, according to the Kuwaiti-based Arab Energy Organisation.
The report shows that countries including Saudi Arabia, United Arab Emirates and other member states have accelerated their shift toward solar and other renewable sources. The strategy is aimed at preserving oil and gas reserves for export while also supporting global climate and sustainability goals.
According to the organisation’s annual report released this week, total renewable energy capacity across member states rose by approximately 10.3 gigawatts (GW) in 2025—a 35.9% increase compared to 2024—reaching around 39.2 GW.
Despite this rapid growth, the region still accounts for a small share of global capacity. The report notes that AEO member states represent just 0.8% of the world’s total renewable energy capacity, which stands at roughly 5,149 GW.
The expansion was led primarily by Saudi Arabia with 5.7 GW of new capacity, followed by Egypt (1.5 GW), United Arab Emirates (1.3 GW), Qatar (0.9 GW), Syria (0.7 GW), Tunisia (0.1 GW), and Bahrain (0.05 GW).
Solar power continues to dominate the region’s renewable mix, accounting for about 72.3% of total installed capacity. Hydroelectric power ranks second with 16.9%, supported mainly in countries with water resources such as Egypt, Iraq, Syria and Algeria, where hydropower remains an important source of electricity generation.
