SCO: Ideology and Future Prospects
September 9, 2025
SCO: Pakistan’s Role in Summit 2025
September 10, 2025
Nayab Zahra
The Middle East is usually known as the heart of global production, and it now faces a defining moment in the energy transition of the world. Traditionally known as the backbone of oil supply, the region now faces difficulties as the world is shifting towards renewables and reduced carbon emissions. As demand for fossil fuels is declining and renewable energy gains momentum, the region’s reliance is mostly on oil, which can pose both opportunities and risks.
“The Middle East must decide whether to resist change or lead the global energy transition.”
On one hand, this led the region towards dependence and also entrenched risks towards its political inertia, and this will bring the Middle East into a barrier to progress. On the other hand, it leads the region towards leadership in clean energy because of its immense solar potential, strategic position, and financial resources. The question remains whether it is an obstacle or an opportunity for shaping the future of global energy.
There are internal and external factors and forces that are shaping the transformation of energy dynamics in the Middle East. In the region, most states for running their economies have depended mainly on oil exports. This heavy reliance makes them affected whenever the oil prices rise or fall. At the same time the population is increasing day by day, and along with that, unemployment is also increasing, and this creates pressure for the regional states to build stronger and more diverse economies beyond the oil exports.
Globally, the world is shifting towards renewable energy like solar and wind to fight climate change, which can reduce the need for oil. New competitors that are now challenging OPEC’s power, such as US Shale producers. In this situation, the Middle East must make one decision: whether to resist the change or lead the global energy transition.
The Middle East has always been one of the most oil-dependent regions in the world, which, coupled with its slow reform processes, makes it a major barrier to the shift towards energy transition. Economies of the Middle East have relied solely on oil for decades, which makes it exceedingly easy to finance the government budgets, social programs, and provide subsidies. This dependence makes it hard to change or to adapt, because when states go far away from fossil fuels, that not only threatens the political stability but also disrupts the economic systems that are even deeply rooted.
“Dependence on oil makes reform difficult, threatening political and economic stability.”
Many of these governments still seem to focus on oil production and do not make a serious attempt to invest in renewable energy, which indicates a reluctance to change. Alongside the constant rivalries and conflicts in the area are obstacles in the way of cooperative energy’s innovation and the commitments regarding the climatic conditions.
Moreover, the influence of the powerful oil lobbies delays the transition policies that are necessary in order to shift to cleaner alternatives. There are a few renewable projects in the region, but their scale and the level of oil dependence do not come even close to matching. Should the Middle East persist with its hydrocarbons strategy, it will not only miss the opportunity to diversify but will also place itself and the rest of the world further away from achieving a low-carbon future.
Despite the Middle East having an exceedingly high potential to lead in clean energy innovation, albeit with overcoming the oil dependency hurdle first. Some of the world’s richest solar and wind resources are found in the region, giving it an advantage for renewable energy production. Countries like Saudi Arabia, UAE and Oman have already started construction of large-scale solar facilities, green hydrogen plants, and advanced carbon capture projects, proving that the transition is possible.
Given the financial reserves that the Middle Eastern states have accumulated over the decades from oil exports, they have the necessary capital to fund ambitious renewable projects and diversify their economies. In addition, the region’s unique geographical location at the junction of Europe, Asia, and Africa is an added benefit for clean energy exports in the future.
Moreover, with a young and growing workforce, the region is poised to build the renewable green skill industries, thereby creating sustainable jobs. Embracing innovation, the region could shift from being seen as an oil-dependent economy and a contributor to the climate challenges towards a driver of solutions. Rather than being a follower of change, the region could lead the future of energy transition by pioneering renewables, hydrogen, and sustainable infrastructure, transforming its disabilities into its strength.
“The region holds some of the world’s richest solar and wind resources.”
The Middle East is at the forefront of the world’s energy transition and is the source of challenges and opportunities. Its dizzying dependence on petroleum revenues, coupled with political and economic obstinacy, tends to slow the march towards alternative sustainability, making it a brake on world change.
Yet the same region also possesses extraordinary potential: unparalleled solar potential, enormous financial capital reserves, and a strategic location with the potential to make it a hub for renewable exports and innovation. The force of these two pulls serves to underscore a fundamental fact: the Middle East cannot be excluded from the world’s transition to clean energy. Whether it remains obstinate or opens itself up towards the change, and this will determine not its specific destiny but also its rate of global decarbonization.
“Success lies in balancing economic realities with visionary policies to transform challenges into opportunities.”
The role of the Middle East in the transition of energy globally is neither entirely an obstacle nor solely an opportunity-it is both. While its reliance mostly on fossil fuels can present challenges to the region, along with its vast amount of resources, strategic position, and growing investments in renewable energy, make it a strong standing leader in the future that is shaping a sustainable energy future. Success is directly proportional to balancing economic realities with visionary policies, and this will turn existing challenges into opportunities for global progress.
The author is From International Islamic University Islamabad pursuing her degree in BS IR. With strong interest in global politics, diplomacy and regional security. Passionate about research, policy analysis and international cooperation with a focus on peace building, conflict resolution, and global governance.
