The share of solar energy in the Middle East and North Africa’s (MENA) energy mix has grown significantly in recent years. Solar capacity in the region rose 23 percent in 2023 to 32 gigawatts (GW) and is projected to exceed the 180 GW peak by 2030. The latest Solar Outlook Report 2025 by the Middle East Solar Industry Association (MESIA) outlines the rapid growth of solar energy in the MENA region and the UAE’s key role in this transformation.
“With record-breaking giga scale project, deployments at the lowest LCOE in the MENA region stand at the forefront of the global energy transition, with solar energy playing a pivotal role in shaping its sustainable and transformative future,” stated Fazle Moyeen Quazi, MESIA President.
UAE ranks 10th globally in per capita solar capacity
Released during the World Future Energy Summit 2025 in Abu Dhabi, the report highlights the UAE’s leadership in the MENA region’s solar energy sector, driven by initiatives like the Dubai Clean Energy Strategy 2050 which targets 75 percent clean energy by 2050, and the Abu Dhabi Vision 2030 that aims for 30 percent renewable energy within five years.
The UAE has emerged as a beacon of renewable energy innovation, ranking 10th globally in per capita solar capacity in 2023, with an impressive 708 watts per capita. The nation’s bold solar ventures drive this leap forward. From a modest 12 MW in 2012 to an ambitious 6.1 GW in 2023, the UAE’s rapid growth in solar capacity showcases its commitment to a sustainable energy future.
Under the visionary UAE Energy Strategy 2050, the nation aims to triple its renewable energy contributions by 2030 and achieve a 50 percent clean energy mix by 2050, with a substantial investment of AED150-200 billion. This strategic roadmap not only focuses on solar energy but also integrates waste-to-energy facilities and pioneering investments in clean hydrogen, reinforcing the UAE’s role as a pivotal player in the global renewable energy arena.
By advancing its solar energy capabilities, the UAE sets a strong example for other MENA countries, paving the way towards sustainable development and climate neutrality by 2050.
Saudi Arabia to generate 43,698 GWh annually
Saudi Arabia is also at the forefront of the solar energy expansion in the MENA region, with bold, utility-scale projects driving a transformation of its energy mix by 2030. The Kingdom’s initiatives span both solar and wind, with over 17 major renewable projects producing 41.2 million MWh annually, aimed at fulfilling nearly 66 percent of residential energy needs.
By the end of 2024, Saudi Arabia’s renewable energy projects likely generated 43,698 GWh annually across 19 developments, with solar comprising 12,313 MW and wind 2,200 MW.
In August 2024, Goldman Sachs reported that Saudi Arabia plans to reduce oil capital spending by $40 billion by 2028 to prioritize renewable energy and mining sectors. This shift reflects the Kingdom’s strategic redirection, aiming to allocate 73 percent of investments to non-oil industries by 2030.
As oil spending decreases, Saudi Arabia seeks to channel $235 billion into clean energy, an increase from a previous $148 billion estimate, underlining its commitment to a diverse and sustainable energy economy.
Factors driving MENA renewable energy growth
The adoption of innovative technologies like digital twins and automated cleaning systems has enhanced solar plant performance across the MENA region, increased energy output and reduced costs. Advances in energy storage and automated operations are addressing challenges in expanding solar portfolios.
In addition, advanced solar cells, grid integration tools and digital monitoring systems are boosting efficiency, while private sector investments, public-private partnerships and innovative financing are accelerating adoption across the region.
The report also said that efforts to localize solar manufacturing and reduce reliance on external suppliers are essential for long-term success. Countries like Morocco, Egypt and Tunisia are expanding their solar capacities to meet local needs and contribute to global clean energy goals.
“With the global drive towards net-zero emissions, international collaboration and capital flow into the MENA, solar sector is expected to increase creating more opportunities for local and international players,” added Quazi.
The report also identified green hydrogen as a fast-growing sector, with MENA’s abundant solar and wind resources offering a competitive edge in production. Despite challenges such as funding and infrastructure, the region’s commitment and market advancements are unlocking new opportunities.
