Opportunities and Challenges in the Middle East Wind Power Market

The energy structure in the Middle East is predominantly fossil fuel-based. However, with the acceleration of urbanization and population growth in the region, the pressure to reduce emissions has increased. Countries such as Saudi Arabia, the United Arab Emirates (UAE), and Egypt have introduced and updated renewable energy development goals to reduce dependence on traditional energy sources, accelerate energy transition, and contribute to economic diversification and sustainable development. According to a report by the International Energy Agency, based on current plans announced by Middle Eastern countries, the total renewable energy (excluding hydropower) capacity in the region will exceed 192 million kilowatts by 2030, 17 times the current level. Solar photovoltaic power is expected to account for over 42%, while wind power is estimated to contribute around 35%.

The economic structures of many Middle Eastern countries are generally singular, making them susceptible to geopolitical and international oil price influences. To reduce dependence on traditional energy sources, several countries in the region have formulated renewable energy development goals to expedite energy transition.