Global investment in climate technology from the Middle East has seen a dramatic rise, increasing nearly 200 percent to reach $5 billion in the 12 months leading up to September 2023, according to a new report.
PwC’s Middle East Climate Tech report reveals that these funds were directed across several regions and sectors, with the US, Asia, and Europe receiving significant shares. Saudi Arabia alone contributed more than $3 billion to the total amount, demonstrating the Kingdom’s growing commitment to sustainable innovation. This marks a sharp rise from the $1.8 billion invested in the previous year.
Yahya Anouti, Partner at Strategy& and Sustainability Leader at PwC Middle East, stated that climate tech progress in the region is being powered by “some of the most dynamic entrepreneurs,” who are developing new solutions to advance the net-zero agenda.
However, the report also notes a contrasting trend: while global investments from the region have surged, funding for Middle Eastern climate tech startups has dropped by 84 percent year-on-year. Local companies attracted only $152 million during the same period. Despite this decline, the report emphasizes that regional entrepreneurs continue to innovate and address crucial climate challenges.
Anouti stressed the need to support local innovators, calling them a potential “missing link” in the region’s broader sustainability strategy. He urged governments and large corporations to establish dedicated funds and long-term purchase agreements to strengthen demand and reduce investment risks in climate technology.
The report further outlines the key barriers facing climate tech growth in the region. These include complex regulatory environments, limited financing opportunities, and a shortage of skilled professionals experienced in green technologies.
Jon Blackburn, from PwC Middle East’s Energy, Resources and Sustainability practice, pointed out that the region—like much of the world—faces a shortage of talent capable of developing essential technologies such as carbon capture systems. According to PwC’s Middle East CEO Survey, 35 percent of business leaders cite a lack of specialized expertise, a challenge made worse by intense competition for experienced professionals.
Overcoming these obstacles, the report suggests, will be crucial for expanding clean technology adoption at a time when pollution is accelerating climate change and contributing to rising health risks worldwide.
