A latest report from the International Energy Agency (IEA) said that investments in the renewable energy sector is on the rise. This comes at a time when the region is already dominated by the fossil fuels like coal, gas and other sources.
The report said that Middle East is home to five of the world’s top oil producers: Saudi Arabia, Iraq, the United Arab Emirates (UAE), Iran, and Kuwait. These countries play a significant role as a producer of natural gas, with three of the world’s top ten producers being Iran, Qatar, and the UAE.
“For the moment, spending on fossil fuel supply predominates: for every 1 USD invested in fossil fuels, only 20 cents are allocated to clean energy investment, which represents approximately one-tenth
of the average global ratio of clean energy to fossil fuel investment,” the report said.
It also added that there are wide disparities in per capita income and energy consumption levels across the region. “For example, countries like Saudi Arabia, the UAE and Kuwait are situated at the higher end of
income and energy consumption, while Yemen and Syria are positioned at the lower end. Sovereign credit ratings also vary significantly. Saudi Arabia, Kuwait, Qatar, and the UAE hold high ratings, while Jordan, Oman, and Bahrain fall into the medium-grade category. Conversely, Iraq and Lebanon have very low ratings,” it added.
The IEA report also said that energy investment in the Middle East is expected to reach approximately USD 175 billion in 2024, with clean energy accounting for around 15% of the total investment. “In the APS by 2030, clean energy investment more than triples compared with 2024. As a result, by the end of the decade, every 1 USD invested in fossil fuels in this scenario would be matched by 70 cents going to clean energy,” the IEA report added.
