By: Utilities Middle East

Renewable energy capacity across Arab countries increased by nearly 36 per cent in 2025, driven by strong investment activity in the Gulf region and wider Arab world, according to the Arab Energy Organisation (AEO).

Total installed renewable capacity in AEO member states rose by around 10.3GW year-on-year to reach approximately 39.2GW, the organisation said in its annual report.

Despite the sharp growth, the region still accounts for just 0.8 per cent of global renewable capacity, which stands at about 5,149GW.

Growth was primarily driven by Saudi Arabia, the UAE and Egypt, alongside contributions from Qatar, Syria, Tunisia and Bahrain, reflecting a broader regional push toward energy diversification.

Solar power remained the dominant source, accounting for 72.3 per cent of total renewable capacity, followed by hydropower at 16.9 per cent, wind at 9.7 percent and bioenergy at 1.1 per cent.

The report noted that countries in the region are accelerating renewable deployment alongside continued hydrocarbon production, aiming to balance domestic energy demand with export-oriented oil and gas strategies.