For the past two decades, there has been a significant shift in economic strategy in the Middle East. Due in part to a desire to diversify income sources, many countries, including the United Arab Emirates (UAE) and Saudi Arabia, have launched national frameworks to alleviate reliance on oil and gas, which has historically accounted for the bulk of their gross domestic products (GDPs). These economic diversification plans primarily emphasize tourism developments (theme parks and cultural attractions, resort hotels, etc.), new infrastructure, and renewable energy projects.
Currently, the Middle East accounts for less than 1% of global renewable energy capacity. However, it is adding capacity at a faster rate than any region outside of China, and there are no signs of stagnation, especially with ambitious plans to build AI data centers. According to the energy consultancy firm Rystad, renewable sources will account for about 30% of energy capacity in the Gulf by 2030.
“The perfect recipe [for renewable energy] exists here,” said Mazin Khan, chief financial officer at Masdar, speaking to the Financial Times. Masdar is the UAE’s state-owned renewable energy company. “We have abundant solar resources. We have relationships with manufacturers that we can leverage to get the best price possible. The regulatory market here in the UAE is very competitive and we have a line of commercial banks queueing up to be part of the project.”
Below are four significant solar projects that will help—or are already helping—diversify the energy mix and economies of Middle East countries.
$6 Billion Solar Project in Abu Dhabi
Masdar’s most ambitious renewable project is the 5.2 GW solar plant and 1,000 MW battery energy storage system (BESS) in Al Azeezah, Abu Dhabi. Launched in March 2025 with several other stakeholders, including Power Construction Corporation of China and JA Solar Holdings Co., Ltd., the first-of-its-kind $6 billion project will be able to dispatch 1 GW of baseload power 24/7 without interruption, addressing the intermittency challenges traditionally associated with solar power. Masdar chairman Dr. Sultan Al Jaber told the press that the project is the first step of what “could become a giant leap.”
The solar development is being built on a 90-square-kilometer plot of land and is being funded with a mix of equity and project finance debt, similar to other renewable projects in Abu Dhabi. It’s a major project of the UAE’s Energy Strategy 2050, which details plans to triple the country’s renewable energy capacity by the end of the decade. The project is expected to be operational by 2028.
Mohammed Bin Rashid Al Maktoum Solar Park
The Mohammed Bin Rashid Al Maktoum Solar Park, south of Dubai, is the world’s largest single-site solar park and a key component of the Dubai Clean Energy Strategy 2050, which aims for 100% of energy sourced from renewables. The six-phase plant, commissioned in 2013 by the Dubai Electricity and Water Authority, spans 77 square kilometers and is expected to be complete by 2030, at which point it will generate 5 GW of power.
The completion of the first phase, a 13 MW solar farm, added about 28 gigawatt-hours (GWh) to the Dubai grid and decreased carbon emissions by 15,000 tonnes per year. The second phase, completed in 2017, included the installation of 2.3 million PV solar panels, adding enough clean energy to power 50,000 homes. The sixth and final phase is expected to be fully operational by the end of 2026.
400 MW Solar PV Plant in Saudi Arabia
Located in Saudi Arabia’s Al Jawf Governorate, construction on the 400 MW Tabarjal solar PV plant began in March 2025 with an expected completion date of June 2026. Chinese firm Jinko Power Technology Company is developing the $315 million project, with financial support from APICORP and Riyadh Bank. Jinko has developed more than 3.4 GW of solar IPP projects outside of China and previously built the 300 MW SAAD solar PV park near Riyadh.
Saudi Power Procurement Company, Sunlight Energy Group, and Jackson Green Private Limited are among the project’s other stakeholders.
Baynouna Solar Park in Jordan
Back in 2013, the renewable energy sector in Jordan was practically non-existent, with no notable investments in solar or wind projects. A decade later, there was more than $4 billion worth of investments in renewable energy projects, while around 30% of the Middle Eastern country’s energy demands were met by wind and solar energy. Projects like the Tafila Wind Farm and Baynouna Solar Park, both of which featured large investments from Masdar, helped bring Jordan from 145th to 15th globally in share of electricity sourced from wind and solar generation. The $260 million Baynouna Solar Park, located east of Amman, has been operational since 2020 and generates 563.3 GWh of electricity annually, enough to power about 160,000 homes, or 4% of Jordan’s yearly energy consumption. Jordan intends to generate half of its energy from renewable sources by 2030.