Saudi Arabia leads Middle East’s solar revolution as region eyes renewable future

A recent analysis by Norwegian business intelligence and research company Rystad Energy indicated that along with the UAE and Oman, the Kingdom is poised to lead the Middle East’s solar transition due to several key factors. Shutterstock
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Updated 30 May 2024
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Saudi Arabia leads Middle East’s solar revolution as region eyes renewable future

RIYADH: Saudi Arabia has achieved a world-record low levelized cost of electricity for solar photovoltaics, reaching $10.4 per megawatt-hour, according to a new report. 

A recent analysis by Norwegian business intelligence and research company Rystad Energy indicated that along with the UAE and Oman, the Kingdom is poised to lead the Middle East’s solar transition due to several key factors. 

The report highlighted the increasing significance of solar power in the energy policies of Middle Eastern countries, attributing this trend to factors such as low hurdle rates, large-scale projects, declining hardware prices, as well as low labor costs and high solar irradiance. 

“The region has exceptional solar energy potential, receiving more than 2,000 kilowatt-hours per sq. m. annually in solar irradiation in countries such as Saudi Arabia, the UAE, and Oman,” the report stated.  

The total solar capacity in the Middle East surpassed 16 gigawatts by the end of 2023 and is projected to approach 23 GW by the end of 2024, the report added.  

Rystad Energy’s projections indicate that by 2030, the capacity will exceed 100 GW, with green hydrogen projects contributing to an annual growth rate of 30 percent. 

Saudi Arabia, the UAE, and Oman are expected to collectively account for nearly two-thirds of the region’s total solar capacity by the end of the decade. 

Furthermore, renewable sources, including hydro, solar, and wind, are anticipated to constitute 70 percent of the Middle East’s power generation mix by 2050, a substantial increase from 5 percent at the end of 2023.  

Despite this growth, the region will heavily rely on natural gas in the short term, with usage peaking around 2030. 

At the end of 2023, 93 percent of the Middle East’s power generation was from fossil fuels, with renewables at 3 percent, and nuclear and hydro at 2 percent each.  

By 2030, it is expected that 30 percent of installed capacity will be from renewables, potentially reaching 75 percent by 2050.  

Rystad Energy predicts significant growth in battery energy storage in the 2030s to support the transition to solar and wind power. The share of gas in power generation is forecasted to decrease from 74 percent in 2023 to 22 percent by 2050.


Saudi Arabia’s industrial output rises 10.4% in November: GASTAT 

Updated 11 January 2026
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Saudi Arabia’s industrial output rises 10.4% in November: GASTAT 

RIYADH: Saudi Arabia’s industrial output rose at its fastest rate in months, climbing 10.4 percent year on year in November, supported by stronger manufacturing activity and higher oil production, official data showed. 

The Industrial Production Index increased to 114.4, up from 103.6 a year earlier, according to the General Authority for Statistics, though the index slipped 0.7 percent from October.

The latest figures highlight continued momentum in the Kingdom’s industrial sector as Saudi Arabia pursues economic diversification under its Vision 2030 agenda.

In its latest report, GASTAT stated: “Preliminary results indicate an increase of 10.4 percent in the IPI in November 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity and water supply, sewerage and waste management and remediation activities.”  

The sub-index of mining and quarrying activity increased by 12.6 percent year on year in November, supported by Saudi Arabia’s decision to raise oil production to 10.1 million barrels per day, compared to 8.9 million bpd a year earlier. 

Manufacturing activity rose by 8.1 percent compared to November 2024, driven by a 14.5 percent increase in the production of coke and refined petroleum products. The manufacture of chemical products also recorded a 10.9 percent annual rise.

In contrast, the sub-index of electricity, gas, steam, and air conditioning supply declined by 4.3 percent year on year, while water supply, sewerage and waste management and remediation activities rose by 10.2 percent. 

On a month-on-month basis, the overall IPI fell by 0.7 percent in November. 

Mining and quarrying activity rose by 0.5 percent from October, while manufacturing activity edged up by 0.3 percent.

However, electricity, gas, steam, and air conditioning supply recorded a sharp monthly decline of 28.6 percent. Water supply, sewerage and waste management and remediation activities fell by 3.1 percent over the same period. 

Overall, the index of oil activities advanced by 12.9 percent year on year in November, while non-oil activities increased by 4.4 percent. 

Compared to October, oil activities rose by 0.4 percent, while non-oil activities declined by 3.4 percent. 

The IPI measures changes in industrial output based on the International Standard Industrial Classification framework and covers mining, manufacturing, utilities, and waste management sectors.