Arab Renewable Energy Capacity Surges 36 Percent to 39.2 GW in 2025

Heavy investments across Middle Eastern countries have boosted renewable energy capacity by nearly 36 percent in 2025, with total installed capacity surpassing 39 GW, according to the latest annual report from the Arab Energy Organisation (AEO), formerly known as OAPEC.

The report said renewable energy capacity across AEO member states increased by around 10.3 GW during the year, rising 35.9 percent from 2024 levels to reach approximately 39.2 GW. Despite the strong growth, the region accounted for only 0.8 percent of global renewable energy capacity, which stood at about 5,149 GW in 2025.

Saudi Arabia contributed the largest share of new additions, accounting for 5.7 GW of the increase. Egypt added 1.5 GW, followed by the UAE with 1.3 GW, Qatar with 0.9 GW, Syria with 0.7 GW, Tunisia with 0.1 GW and Bahrain with 0.05 GW.

According to AEO, governments across the region have accelerated investments in solar and other renewable energy technologies as part of efforts to diversify energy sources, reduce domestic consumption of oil and gas, preserve hydrocarbon resources for export and support global climate objectives.

Solar power remained the dominant renewable energy source in AEO member countries, accounting for 72.3 percent of total installed renewable capacity. Hydropower ranked second with a 16.9 percent share, particularly in countries with significant water resources such as Egypt, Iraq, Syria and Algeria.

The report underscores the growing momentum of renewable energy deployment across the Middle East as countries continue expanding clean energy infrastructure to strengthen energy security and meet long-term sustainability targets.