Middle East’s Green Energy Drive Attracts Hong Kong Firms

As Middle Eastern nations accelerate efforts to diversify away from oil dependence, Hong Kong businesses are positioning themselves as key partners in the region’s transition to sustainable energy.

As per reports, companies like Templewater, which owns Citybus in Hong Kong, are already engaging with Gulf countries through clean transportation and renewable energy projects.

Cliff Zhang Kun, Chairman of Templewater and Bravo Transport, revealed that the company is in active discussions with Qatar and Kuwait to supply hydrogen-powered buses. The talks follow a successful pilot program in the United Arab Emirates, where Templewater delivered three hydrogen buses to Abu Dhabi in November 2023.

According to Zhang, the pilot is part of broader efforts to support the region’s energy transition. He noted that the buses are currently under evaluation, and the UAE government may consider bulk purchases in the second half of 2025, depending on the pilot’s outcomes.

“New energy vehicles may not have the strongest cost advantage in regions where petroleum is cheap,” Zhang said. “However, local governments are taking a long-term view, prioritising innovation and industry development over short-term costs,' he pointed out.

Zhang emphasised the immense potential for solar and wind energy in the Middle East, both of which could play a key role in generating green hydrogen for domestic use and export. He added that as hydrogen vehicle technology matures and becomes more affordable, its adoption is likely to grow rapidly in the region.

“Despite their historical reliance on oil and gas, Gulf countries are actively seeking to diversify, and renewables offer a viable path forward,” he noted.

The Hong Kong delegation, led by Chief Executive John Lee Ka-chiu, will visit Qatar and Kuwait this week with the aim of expanding trade and clean energy cooperation. Zhang, a member of the official delegation, sees Hong Kong as a gateway for high-quality, cost-effective mainland Chinese hydrogen products to enter global markets.

“Mainland China has a mature supply chain and cost advantage in hydrogen products. Hong Kong can leverage its international position to help these products reach the Middle East and other Belt and Road markets,” Zhang explained. “This role can also bring opportunities to our professional services sectors like legal, finance, and accounting," he noted.

Also joining the delegation is Jeffrey Lam Kin-fung, lawmaker and managing director of Forward Winsome Industries. Lam disclosed that his company has already signed agreements in Kuwait focused on solar energy development. Given the country’s extreme heat, he stressed the importance of designing products and systems that can operate reliably in high-temperature environments.

“Kuwait is the hottest country in the Middle East, and there’s a high demand for heat-resistant technologies. Understanding local conditions is essential for success in this market,” Lam said. “Kuwait’s clean energy sector is still developing, which presents tremendous opportunities for infrastructure and technology partnerships," he added.

In addition to renewable energy, Lam highlighted the potential for collaboration in hosting major events and exhibitions. Qatar, which has gained global recognition for organising events such as the FIFA World Cup and Formula One Grand Prix, offers models and partnerships that Hong Kong businesses could benefit from.

“The Middle East is open for business, not just in energy but across sectors like tourism, infrastructure, and MICE (Meetings, Incentives, Conferences and Exhibitions),” Lam added.

The Gulf Cooperation Council (GCC) countries have collectively pledged to invest USD100 billion in renewable energy projects by 2030. These efforts aim to reduce greenhouse gas emissions by up to 20 percent, with each nation setting ambitious goals for their energy mix.

Qatar, where non-oil sectors already contribute two-thirds of GDP, is targeting an 18 percent share of renewables in its power mix by 2030, up from the current 5 percent. Kuwait, heavily reliant on oil, plans to meet 30 percent of its energy needs through renewables by 2030 and 50 percent by 2050.

As Gulf nations modernise their energy systems, Hong Kong’s strategic location, international expertise, and access to Chinese manufacturing present a unique opportunity for mutual growth.