Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

The Arab region possesses a strategic location and vast natural resources that qualify it to become a global hub for renewable energy production. With abundant solar, wind, and hydropower resources, Arab countries have an exceptional opportunity to reshape the global energy landscape, provided these resources are exploited within an integrated vision based on regional cooperation and the adoption of the latest technological innovations. However, the absence of comprehensive strategies may leave this potential untapped, at a time when major economic powers are racing to achieve supremacy in the sustainable energy sector.

Developing the renewable energy sector is not limited to securing the region’s electricity needs; it represents a cornerstone for a deeper economic transformation capable of reshaping the development landscape in Arab countries. By reducing dependence on fossil fuels, Arab economies can free their public budgets from the volatility of global oil markets and achieve financial stability by diversifying sources of national income. Investment in clean energy also contributes to improving regional competitiveness and positions Arab countries ahead in international markets that are increasingly relying on sustainability standards in trade and investment.

Data indicates that Arab investments in the energy sector have exceeded $880 billion in recent years, reflecting governments’ awareness of the sector’s importance to economic stability. Economies such as the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, and Egypt are developing mega projects aimed at developing energy infrastructure, both in fossil fuels and renewable energy sources, which will open new horizons for more effective economic integration. However, the fundamental question remains: Will these countries be able to leverage these investments to effect a profound structural transformation that ensures sustainable economic growth, free from the cyclical fluctuations of the oil market?

In light of current geopolitical shifts, regional energy cooperation has become a key element in shaping the region’s future. The world’s major economic blocs recognize that energy strategies are not limited to purely technical aspects, but are closely linked to the balance of political and commercial power. Strengthening Arab energy integration, through joint projects such as unifying electricity grids and establishing industrial complexes specialized in manufacturing renewable energy components, could position the region as a major player in the global economy, rather than merely a consumer or supplier of raw materials.

Despite these opportunities, the Arab region faces structural challenges that hinder the desired integration in the renewable energy sector. Political tensions between some countries and the lack of unified legal and regulatory frameworks hinder the implementation of cross-border projects and limit the private sector’s ability to play a pivotal role in developing energy infrastructure. The absence of transparent policies to attract foreign investment and the continued reliance on government support for the conventional energy sector are also slowing the transition to a sustainability-based economic model.

If Arab countries are to overcome these obstacles, they need to rethink their energy policies from a comprehensive strategic perspective, transcending narrow national frameworks and embracing true regional integration. This requires establishing institutional mechanisms to ensure coordination of energy policies across countries, developing programs to finance joint projects through regional investment funds, and building international partnerships with leading players in the green technology sector. Investing in clean energy research and development, through the establishment of regional innovation centers, will position the region to compete globally, rather than relying solely on imported innovations.

In general, the Arab region’s energy future hinges on its ability to redefine its position within the global economic system. It can either remain stuck within traditional economic models, reliant on the export of raw materials, or adopt a proactive approach that makes it an influential force in shaping global energy policies. The first option carries the risk of dependency and marginalization, while the second opens the door to a historic transformation capable of repositioning the Arab world as a sustainable economic power, possessing the potential to become a pillar of the new global energy system.