Middle East to capture 10% of global hydrogen investment
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The Middle East is emerging as a key player in the global hydrogen race. According to a new report, investors have pledged $11 billion by 2030 to develop large-scale hydrogen plants across the region—representing one-tenth of worldwide investment in this fast-growing sector.
Driven by abundant solar and wind resources, as well as access to natural gas, the Middle East is positioning itself as a hub for both green hydrogen (produced from renewables) and blue hydrogen (produced from gas with carbon capture). By 2030, the region’s hydrogen capacity is projected to reach 500,000 tonnes annually.
One of the flagship developments is the Neom Green Hydrogen Project in Saudi Arabia, an $8.4 billion venture expected to deliver around 219,000 tonnes per year once operational. Similar initiatives are underway in the UAE and Oman, aiming to support both local decarbonization efforts and global export demand.
Opportunities and Challenges
🌍 Global positioning: The Middle East can leverage its geographic location and energy infrastructure to supply Europe and Asia.
⚡ Energy transition: Hydrogen investments support regional diversification strategies, reducing reliance on crude oil exports.
⚠️ Execution risk: Scaling hydrogen production faces challenges such as high capital costs, supply chain constraints, and long development timelines.
As global demand for low-carbon fuels accelerates, the Middle East’s $11 billion commitment signals a clear intent: to become a world leader in clean hydrogen and secure a prominent role in the future energy economy.
