Heavy investments in the Gulf and other Arab countries boosted renewable energy production in the region by nearly 36 percent in 2025, according to the Kuwaiti-based Arab Energy Organisation, previously known as OAPEC.

Saudi Arabia, the UAE and other members of AEO have stepped up efforts to expand reliance on solar and other renewable energy sources to save their oil and gas wealth for export and to support global environment protection efforts, AEO said in its annual report released this week.

The total production capacity of renewable energy in AEO member states increased by nearly 10.3 gigawatts (GW) in 2025, representing a 35.9 percent growth compared to 2024 to reach about 39.2 GW, the report said.

This represents only 0.8 percent of the global total of around 5,149 GW in the same year, the report noted, adding that the increase was mainly concentrated in Saudi Arabia (5.7 GW), Egypt (1.5 GW), the UAE (1.3 GW), Qatar (0.9 GW), Syria (0.7 GW), Tunisia (0.1 GW), and Bahrain (0.05 GW).

Solar energy accounted for nearly 72.3 percent of the total renewable energy capacity in member states, followed by hydroelectric power at 16.9 percent. Countries with available water resources heavily utilise hydroelectric power for electricity generation, particularly Egypt, Iraq, Syria, and Algeria. 

Wind energy accounted for 9.7 percent of the capacity, and bioenergy for 1.1 percent.

(Writing by N Saeed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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