Middle East Insights: Who will lead decarbonization process in MENA?

The World Future Energy Summit concluded on Friday in Abu Dhabi, the capital of the United Arab Emirates (UAE), drawing over 400 companies from 112 countries and regions to exchange insights on a sustainable future. First held in 2008, the annual summit has evolved into one of the largest exhibitions in the global renewable and clean energy sector and the foremost sustainable development conference in the Middle East and North Africa (MENA).

This year's summit focuses on advancing energy transition and efficiency to realize the "UAE Consensus" established at COP28, aiming to limit global warming to 1.5 degrees Celsius. It underscores the commitment of Middle Eastern countries to decarbonization, with Saudi Arabia and the UAE leading the charge.

Saudi Arabia: Non-oil economy exceeds 50 percent for the first time

The non-oil economy in Saudi Arabia reached $453 billion in 2023, accounting for more than half of the total economy for the first time, according to data released by the country's Ministry of Economy and Planning in April.

Although long regarded as the de facto leader of OPEC and the largest oil exporter, Saudi Arabia has introduced the "Saudi Vision 2030" economic diversification blueprint since 2016. In 2021, it launched the "Green Saudi Initiative" and the "Green Middle East Initiative," aiming to make energy transition a primary focus. Saudi Arabia has pledged to reduce carbon emissions by 278 million tonnes annually by 2030 and achieve "net-zero emissions" by 2060.

At the Saudi Arabia Smart Grids Conference in 2023, Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud stated that the Gulf country aims to add 20 gigawatts of renewable energy annually and achieve 130 gigawatts of renewable energy by 2030. It is also ready to export up to 150 gigawatts of green electricity or hydrogen.

With more than 80 measures, Saudi Arabia has invested more than $188 billion to build a more sustainable future. The initiatives to promote energy transition include promoting the low-carbon utilization of traditional energy sources, such as accelerating the development of the Jafurah gas field, planning to increase natural gas power generation to over half of the national grid supply by 2030, actively exploring the efficient use of clean energy sources, such as the Sun God Green Fuel project signed with American company Air Products, and vigorously developing the fields of photovoltaics, hydrogen energy and others.

The UAE's efforts to develop non-oil economy

The UAE revealed its hydrogen leadership roadmap in 2021, becoming the first country in MENA to announce a net-zero emissions strategy by 2050. According to the economic review report for the fourth quarter of 2023 by the country's central bank, the non-oil private sector in the UAE has shown strong performance, with a predicted 4.7 percent growth in non-oil GDP in 2024 and 2025.

As part of its national strategy for sustainable development, the country launched the "UAE Consensus" and the updated "UAE Energy Strategy 2050" last year, aiming to triple the contribution of renewable energy by 2030. It is eyeing an increase in the clean energy installed capacity from 14.2 gigawatts to 19.8 gigawatts, accounting for 30 percent of the total energy structure, and achieving a 45 percent increase in energy efficiency by 2050.