With ample solar and wind energy and natural gas reserves, the Middle East is primed to increase renewable power as well as green and blue hydrogen production capacity.

At the time of publication, the Middle East had approximately 9mt/yr of low-carbon and/or green hydrogen/ammonia projects under development, according to information provider S&P Global. Most of the region’s hydrogen demand (more than 8mt/yr) is used as feedstock for refining and chemical operations—this feedstock is currently nearly all grey hydrogen.

Although the Middle East accounts for only 4% of active hydrogen project market share, it has dozens of renewable energy, green and blue hydrogen and derivatives, and related hydrogen infrastructure capital-intensive projects in the pipeline.

$120–200b/yr – Potential revenues from Middle East hydrogen exports by 2050

If developed, Middle Eastern hydrogen exports could result in potential revenues of $120–200b/yr by 2050, according to the Gulf Petrochemicals and Chemicals Association (GPCA). According to the GPCA report The Rise of Hydrogen: Fueling a Green Revolution, regional hydrogen demand could reach as much as 50mt/yr by 2050. Within this timeframe, the region could start operations on 80–100mt/yr of hydrogen production.

However, the Middle East does have several challenges in accomplishing goals to boost hydrogen production, including detailed regulatory and certification frameworks (this challenge is being addressed by several nations), access to water for electrolysis and significant transportation and infrastructure costs—e.g., shipping green hydrogen and/or building green hydrogen pipelines to demand centres in places such as Western Europe.

Regardless, several Middle Eastern countries are investing heavily in all areas of the hydrogen value chain. At the time of publication, the GEI database was tracking more than 50 active hydrogen projects in the Middle East, totalling over $200b in active investments. These projects are led by Oman (35%), the UAE (33%) and Saudi Arabia (14%). These three nations represent more than 80% of active hydrogen project market share in the Middle East. Approximately 80% of the region’s active hydrogen projects are green, followed by blue (19%) and grey (1%).

Oman

The country’s hydrogen ambitions are built on the Oman Vision 2040 initiative, which aims to increase the share of domestic renewables in the country’s energy mix to 20% by 2030 and up to nearly 40% by 2040. The buildout of renewable energy capacity will help Oman reach its net-zero goals by 2050.

The country’s goal is to produce 1mt/yr of green hydrogen by 2030. According to Oman’s Ministry of Energy and Minerals’ 2023 annual report, the country has also allocated approximately 50,000km² for green hydrogen developments in three regions: Al Jazir, Dhofar and Duqm.

The country also plans to develop six hydrogen hubs: Al Jazir, Duqm, Muscat, Salalah, Suhar and Sur. These hubs will be connected via approximately 2,000km of hydrogen pipelines. These project initiatives are primarily being led by Hydrom, which is owned by the government’s Energy Development Oman.

9mt/yr – Low-carbon and/or green hydrogen/ammonia projects in Middle East

Hydrom was created in 2022 to oversee the strategic growth of Oman’s green hydrogen ecosystem. At the time of publication, Hydrom had already awarded nearly $49b in green hydrogen projects, totalling more than 1.3mt/yr of green hydrogen production by 2030 and nearly 35GW of renewable energy capacity. Five of these projects are in Duqm (the Amnah consortium, BP Oman, Green Energy Oman, the POSCO-Engie consortium and Hyport Duqm) and three are in Dhofar (SalalaH₂, the Yamna-EDF-J-Power consortium and Actis-Fortescue). Other capital-intensive projects are under development in Oman, including Oman Shell’s 3,000t/d blue ammonia project, ACWA Power’s 100,000t/yr green ammonia project (could be expanded to 1.2mt/yr, if needed) and TES-OQ’s e-natural gas project (at the feasibility study stage), among others.

Post 2030, Oman plans to increase green hydrogen production to 3.25–3.75mt/yr by 2040 and up to 7.5–8.5mt/yr by 2050. This green hydrogen buildout could require the installation of as much as 40GW of electrolyser capacity by 2040 and 100GW by 2050. Renewable energy capacity would have to increase to 75GW by 2040 and up to 185GW by 2050. Green hydrogen produced will flow to the country’s various industrial sectors—such as refining and chemicals production, steelmaking and/or used as a fuel for shipping, with surplus hydrogen exported to demand centres (e.g., Asia and Europe).

Saudi Arabia

Following the launch of Vision 2030, Saudi Arabia has strived to reduce emissions in the Kingdom. This strategy has brought about the construction of new renewable energy capacity, along with the announcement of capital-intensive blue and green hydrogen projects and initiatives. These goals will help the nation reach its target of a carbon-neutral economy by 2060.

According to the Saudi Green Initiative, Saudi Arabia plans to generate 50% of its power from renewable sources by 2030. The initiative’s website details more than 3GW of renewable energy capacity under development, with nearly 8.5GW under construction. At the time of publication, Saudi Arabia had more than 80 initiatives to reduce emissions, including using captured carbon for chemicals and fuels production and setting its sights on becoming the world’s leading exporter of hydrogen. The country plans to focus on both green hydrogen production and blue hydrogen pathways with CCS—Saudi Arabia has vast reserves and production of natural gas. Saudi Arabia’s goal is to produce 1.2mt/yr of green hydrogen by 2030, increasing to 4mt/yr by 2035.

The nation’s hydrogen goals are anchored in the $500b NEOM megaproject. This project—part of Vision 2030—aims to build a sustainable metropolis, powered by renewable energy and green hydrogen. At the centre of the project’s energy is a nearly $8.5b green hydrogen plant. The mega-plant will integrate a 4GW solar and windfarm to produce 600t/d of carbon-free hydrogen. Once completed in late 2026, the plant is expected to be the largest of its kind in the world.

NEOM’s green hydrogen plant is complemented by other capital-intensive hydrogen projects in the Kingdom. For example, Saudi Aramco has announced plans to produce up to 11mt/yr of blue ammonia—a derivative of blue hydrogen—by 2030. However, due to a lack of offtakers and increased cost of production, these plans are likely to be put on hold. Aramco has announced the possibility of exporting LNG instead of blue hydrogen. The company is developing the $100b Jafurah project, which is forecast to produce 2bcf/d of natural gas by 2030. Much of this production will flow into the country’s Master Gas System, while any surplus can be exported via pipeline, LNG or possibly as blue hydrogen.

UAE

The UAE aims to be one of the largest producers of hydrogen by the early 2030s. To accomplish this goal, the country’s Ministry of Energy and Infrastructure released the National Hydrogen Strategy report in 2023. The strategy provides a strategic framework and key performance indicators to reach domestic hydrogen production and distribution targets. The strategy focuses on ten elements—including policy, regulations and standards; financing and investments; international collaboration; resources and assets; economic models; and skills and education; among others. These goals are an effort to reach net-zero by 2050.

The UAE is focusing on producing 1.4mt/yr of hydrogen by 2031 (1mt/yr of green hydrogen and 400,000t/yr of blue hydrogen), increasing domestic production to 7.5mt/yr by 2040 and up to 15mt/yr by 2050. By 2031, the UAE also plans on establishing two hydrogen hubs (referred to as hydrogen oases) and increasing hydrogen’s use to 25% in hard-to-abate industrial sectors (e.g., refining and chemicals production, steelmaking and transportation). By 2050, the country plans to increase the number of hydrogen oases to five and convert all industrial sectors to low-/zero-carbon hydrogen.

$200b – Value of active hydrogen investments in Middle East

The UAE’s net-zero ambitions are being backed up by numerous clean energy projects—i.e., renewable power generation and green hydrogen production facilities. The country’s hydrogen production is centred around two hydrogen oases: TA’ZIZ and at the Khalifa Industrial Zone Abu Dhabi (KIZAD). The TA’ZIZ chemicals and transition fuels ecosystem is a public-private partnership that will advance domestic production of low-carbon and chemical products. The area includes the scale up of domestic green hydrogen and derivatives production—e.g., Fertiglobe is building a 1mt/yr blue ammonia plant.

The UAE has several other hydrogen projects under development. At 33%, the UAE follows only Oman in share of highest active hydrogen project market share in the region. These projects include Brooge’s nearly 2,000t/d green ammonia project; Korea Electric Power Corp., Korea Western Power, Petrolyn Chemie and Samsung C&T Corp.’s $1b green hydrogen/ammonia facility in KIZAD; Masdar’s numerous renewable energy, green hydrogen, waste-to-energy and green-hydrogen–to–SAF projects; and several others. These projects are being complemented by new hydrogen infrastructure, export terminals and other hydrogen distribution initiatives.

Other Middle Eastern projects/initiatives

Additional green hydrogen projects/initiatives in the Middle East include:

• Bahrain: The country has initiated its National Energy Transition Plan, which focuses on increasing renewable power market share in the electricity sector to 5% by 2025 and 20% by 2035. The additional renewables capacity has the potential to provide feedstock for increasing domestic green hydrogen production—the country’s Industrial Strategy 2022–26 announced plans to increase domestic green and blue hydrogen production. Bahrain plans to invest approximately $1b in green hydrogen research and pilot projects by 2030, with a goal of producing 100,000t/yr of green hydrogen by the end of the decade.
• Jordan: Investing in new forms of energy—including green hydrogen—is a primary focus of Jordan’s sustainability pillar within its Economic Modernisation Vision (2023–33). Increasing the use of hydrogen in various sectors of the country’s economy is part of Jordan’s initiative to switch towards clean energy, thus striving to reach a carbon-neutral economy. At the time of publication, the nation’s flagship project is a $1.5b green ammonia facility being developed in Aqaba. The plant, which is expected to be complemented by a 1GW windfarm, is near Aqaba, the country’s largest port.
• Kuwait: Kuwait Oil Co. awarded KBR a consulting contract in July 2024 to explore market analysis and conduct technical and commercial feasibility studies in developing a massive increase in renewable energy and green hydrogen production in the country. Kuwait has ambitious plans to increase domestic renewable capacity to more than 17GW and green hydrogen capacity to 25GW by 2050. The studies are expected to be completed around Q2 2026. From these reports, Kuwait can build a roadmap for boosting renewables and green hydrogen production.
• Qatar: The country is one of the top LNG exporters in the world, utilising vast domestic natural gas reserves for production and export. Although it does not have a formal hydrogen strategy, Qatar can use domestic natural gas with CCS to increase blue hydrogen production. At the time of publication, QAFCO was developing a $1b blue ammonia plant in Mesaieed Industrial City, with operations scheduled to begin in 2026. However, no other hydrogen projects have been announced.

Lee Nichols is Vice-president, content, at Gulf Energy Information.

Read more from the 2025 Hydrogen Market Databook:

• Introduction
• Africa
• Asia
• Western Europe, Part 1
• Western Europe, Part 2
• Eastern Europe, Russia & CIS
• Central & South America
• North America

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Author: Lee Nichols