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Green hydrogen: the Gulf's next trillion-dollar bet.
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Green hydrogen: the Gulf's next trillion-dollar bet

The region built its fortune on oil. Now it's wagering on a very different molecule.

KN
Karim NasserEnergy Correspondent · Published 18 July 2026 · 7 min read
Renewable energy

For a century, the Gulf's prosperity flowed from beneath the sand. Now, some of the region's biggest players are betting that the fuel of the future will be made not by drilling, but by splitting water with sunlight.

Green hydrogen — produced by using renewable electricity to separate hydrogen from water — has become the centrepiece of the region's long-term energy strategy. Backers envision vast plants powered by the very solar farms already sprouting across the desert.

Why hydrogen, why now

Unlike oil, green hydrogen produces no carbon when burned, making it attractive to industries — steel, shipping, aviation — that are hard to electrify. For a region blessed with abundant sun and land, producing it cheaply looks within reach.

"The sun is the new oil field, and hydrogen is how you ship it."

The economics remain challenging. Green hydrogen is still more expensive than fossil alternatives, and moving it around the world is technically hard. But costs are falling fast, and the region is racing to lock in early advantage.

A hedge and an opportunity

For the Gulf, the bet is twofold: a hedge against a world that may one day use less oil, and a chance to remain an energy superpower in a low-carbon age. If it pays off, the region could export clean fuel for decades to come.