The Middle East is emerging as a pivotal region in the global transition to green hydrogen, leveraging its vast solar resources and strategic geographic position to establish large-scale hydrogen hubs. Countries like Saudi Arabia, Oman, and the UAE are spearheading projects that combine renewable energy, government backing, and international partnerships to position themselves as leaders in the hydrogen economy. These initiatives are not only aimed at domestic decarbonization but also at exporting green hydrogen to energy-hungry markets in Europe and Asia.

Saudi Arabia’s NEOM Green Hydrogen Project stands as one of the most ambitious undertakings in the sector. Located in the northwest of the country, the $8.4 billion facility will integrate 4 GW of solar and wind power to produce up to 600 tonnes of green hydrogen per day by 2026. The project, a joint venture between ACWA Power, Air Products, and NEOM, underscores the kingdom’s commitment to diversifying its energy exports beyond oil. The region’s unparalleled solar irradiance, exceeding 2,200 kWh/m² annually, provides a competitive advantage in electrolysis-based hydrogen production, significantly lowering costs compared to less sunny regions.

Oman is another key player, with its Hyport Duqm project aiming to produce 1.8 million tonnes of green hydrogen annually by 2030. The sultanate’s coastal location offers dual benefits: access to seawater for desalination and proximity to shipping routes for export. The Omani government has allocated 50,000 hectares of land for hydrogen projects, attracting investors through favorable policies such as tax exemptions and streamlined permitting. The country’s National Hydrogen Strategy targets 30 GW of renewable capacity dedicated to hydrogen production by 2040, aligning with its Vision 2040 economic diversification plan.

The UAE has also entered the fray with the Abu Dhabi National Oil Company (ADNOC) and Masdar collaborating on a $1 billion green hydrogen venture. The project will utilize the country’s existing solar infrastructure, including the Al Dhafra Solar PV plant, one of the world’s largest with a 2 GW capacity. Dubai’s Hydrogen Strategy aims to supply 25% of the city’s energy needs from hydrogen by 2050, supported by the Mohammed bin Rashid Al Maktoum Solar Park’s expansion.

Investment incentives are critical to accelerating these projects. Saudi Arabia’s Public Investment Fund (PIF) has allocated billions to renewable energy and hydrogen infrastructure, while Oman’s Hydrogen Alliance brings together public and private stakeholders to de-risk investments. The Middle East’s low renewable energy costs, often below $20/MWh for solar, translate into hydrogen production costs as low as $2.50/kg, making it competitive with conventional fuels in certain applications.

Export strategies are equally vital. Europe, with its stringent decarbonization targets, is a primary market. Saudi Arabia has signed agreements with Germany and Belgium to supply hydrogen derivatives like ammonia, while Oman is exploring partnerships with Japan and South Korea. The region’s existing LNG infrastructure can be repurposed for hydrogen transport, reducing initial capital expenditures. Ammonia, as a hydrogen carrier, is particularly attractive due to its established shipping protocols and higher energy density.

However, challenges persist. Water scarcity is a major constraint, as electrolysis requires significant freshwater input. Desalination plants, though energy-intensive, are being deployed to address this, with Saudi Arabia planning to power them entirely with renewables to maintain hydrogen’s green credentials. Additionally, the intermittency of solar power necessitates large-scale storage solutions or hybrid systems incorporating wind energy to ensure continuous production.

Regulatory frameworks are still evolving. While Saudi Arabia and Oman have introduced hydrogen-specific policies, regional coordination is lacking. Standardization of certifications, such as guarantees of origin, will be crucial to building trust in green hydrogen markets. Workforce development is another hurdle, with local expertise in hydrogen technologies still in nascent stages. Training programs and partnerships with international firms are being implemented to bridge this gap.

The Middle East’s green hydrogen hubs represent a transformative shift in the global energy landscape. By capitalizing on solar abundance, government support, and strategic partnerships, the region is poised to become a key supplier of clean energy. Yet, overcoming water scarcity, infrastructure gaps, and regulatory fragmentation will determine the pace and scale of this transition. As these projects mature, they could redefine the Middle East’s role in a post-carbon world, balancing economic growth with environmental sustainability.