DUBAI: Saudi Arabia is building a $5-billion green fuel plant for export in a bid to become the world’s largest supplier of hydrogen, Bloomberg reported.
The hydrogen plant will be located in the planned megacity of NEOM, which lies north of the Red Sea. It will be powered entirely by sun and wind, the report said.
“There’s nothing I’ve ever seen or heard of this dimension or challenge,” Peter Terium, who heads the energy, water, and food sector at NEOM, said.
“I’ve been spending the last two years wrapping my mind around ‘from scratch,’ and now we’re very much in execution mode,” he added.
The move comes as global demand for clean fuel surges, with superpowers such as China and Europe setting sights on the growing hydrogen business, which Bloomberg predicts to be worth as much as $700 billion by 2025.
The European Union alone earlier dedicated $500 billion as investment to hydrogen production, but experts suggested there were still major obstacles that hinder a global energy transition.
Many countries have expressed a desire to use the gas more, including the UK, China, Japan, and the US, highlighting the potential of the industry.
Energy experts reportedly described Saudi Arabia as the one to watch in the global race in the hydrogen scene, which could be attributed to the Kingdom’s geographical characteristics – “perpetual sunshine and wind, and vast tracts of unused lands.”
Green hydrogen is produced by using renewable energy instead of fossil fuels, and producing a kilogram of the gas currently costs about $5.
Saudi Arabia could drive this cost down to $1.5 per kilogram by 2030, according to Bloomberg’s energy research arm.
Saudi Arabia pushes ahead with plan to be world’s top ‘green hydrogen’ producer
https://arab.news/yuz5g
Saudi Arabia pushes ahead with plan to be world’s top ‘green hydrogen’ producer
- The move comes as global demand for clean fuel surges, with superpowers such as China and Europe setting sights on the growing hydrogen business
- Energy experts reportedly described Saudi Arabia as the one to watch in the global race in the hydrogen scene
Gulf-EU value chain integration signals shift toward long-term economic partnership: GCC secretary general
RIYADH: Value chains between the Gulf and Europe are poised to become deeper and more resilient as economic ties shift beyond traditional trade toward long-term industrial and investment integration, according to the secretary general of the Gulf Cooperation Council.
Speaking on the sidelines of the World Governments Summit 2026 in Dubai, Jasem Al-Budaiwi said Gulf-European economic relations are shifting from simple commodity trade toward the joint development of sustainable value chains, reflecting a more strategic and lasting partnership.
His remarks were made during a dialogue session titled “The next investment and trade race,” held with Luigi Di Maio, the EU’s special representative for external affairs.
Al-Budaiwi said relations between the GCC and the EU are among the bloc’s most established partnerships, built on decades of institutional collaboration that began with the signing of the 1988 cooperation agreement.
He noted that the deal laid a solid foundation for political and economic dialogue and opened broad avenues for collaboration in trade, investment, and energy, as well as development and education.
The secretary general added that the partnership has undergone a qualitative shift in recent years, particularly following the adoption of the joint action program for the 2022–2027 period and the convening of the Gulf–European summit in Brussels.
Subsequent ministerial meetings, he said, have focused on implementing agreed outcomes, enhancing trade and investment cooperation, improving market access, and supporting supply chains and sustainable development.
According to Al-Budaiwi, merchandise trade between the two sides has reached around $197 billion, positioning the EU as one of the GCC’s most important trading partners.
He also pointed to the continued growth of European foreign direct investment into Gulf countries, which he said reflects the depth of economic interdependence and rising confidence in the Gulf business environment.
Looking ahead, Al-Budaiwi emphasized that the economic transformation across GCC states, driven by ambitious national visions, is creating broad opportunities for expanded cooperation with Europe.
He highlighted clean energy, green hydrogen, and digital transformation, as well as artificial intelligence, smart infrastructure, and cybersecurity, as priority areas for future partnership.
He added that the success of Gulf-European cooperation should not be measured solely by trade volumes or investment flows, but by its ability to evolve into an integrated model based on trust, risk-sharing, and the joint creation of economic value, contributing to stability and growth in the global economy.
GCC–EU plans to build shared value chains look well-timed as trade policy volatility rises.
In recent weeks, Washington’s renewed push over Greenland has been tied to tariff threats against European countries, prompting the EU to keep a €93 billion ($109.7 billion) retaliation package on standby.
At the same time, tighter US sanctions on Iran are increasing compliance risks for energy and shipping-related finance. Meanwhile, the World Trade Organization and UNCTAD warn that higher tariffs and ongoing uncertainty could weaken trade and investment across both regions in 2026.
