Middle East and Africa Renewable Energy Market to Reach USD 54.49 Billion by 2034

The Middle East and Africa (MEA) renewable energy market is set for significant growth, projected to reach USD 54.49 billion by 2034, up from an estimated USD 25.50 billion in 2025, at a compound annual growth rate (CAGR) of 8.80 percent, according to a report by Market Research Future (MRFR).

The report, titled 'Middle East and Africa Renewable Energy Market Information by End-user, Type, and Region—Forecast till 2034,' highlights the region’s accelerating transition towards renewable energy, driven by government policies, investments, and technological advancements.

The report says that the MEA region is increasingly shifting towards renewable energy sources to meet sustainability goals and diversify its energy mix. Solar energy dominates the market, benefiting from high solar radiation levels in key markets such as Saudi Arabia, the UAE, and Egypt. Wind energy is also gaining momentum, particularly in Morocco and Egypt, where favourable wind conditions enable efficient power generation.

Countries in the region have launched major energy transition initiatives, including Saudi Arabia’s Vision 2030, Egypt’s New and Renewable Energy Strategy, and the UAE’s Clean Energy Strategy, attracting international investments and fostering large-scale infrastructure development. With volatile global oil markets, governments are focussing on renewable energy expansion to enhance long-term energy security and reduce dependency on fossil fuels. Additionally, the region’s abundant solar insolation and strong wind corridors make it an ideal location for renewable energy projects.

However, despite the rapid expansion, challenges persist, primarily due to high initial investment costs. Although the cost of solar and wind power generation has decreased, the upfront capital required for infrastructure remains a significant hurdle. Regulatory barriers, including complex energy regulations, the dominance of state-owned enterprises, and slow policy implementation, further delay project execution.

Companies such as ACWA Power International, Masdar, AMEA Power, Scatec ASA, Siraj Power, Enel Spa, Electricité de France SA, and Saudi Arabian Oil Co. are actively investing in large-scale renewable energy projects to accelerate the transition.

The report poointed out that with continued government support, advancing technologies, and increasing international investment, the MEA renewable energy market is expected to expand substantially over the next decade.

While solar and wind energy will remain the primary focus, emerging technologies such as green hydrogen, energy storage systems, and smart grids will play an increasingly crucial role in enhancing energy security and efficiency across the region.