Investment in renewable energy across the Middle East is accelerating at one of the fastest rates globally, rising 28% year‑on‑year, according to new research from Ansarada, in partnership with Infralogic. The 2026 Renewable Energy Infrastructure Outlook Report reveals that the region is rapidly strengthening its position as a strategic market for global developers and investors amid growing pressure on energy security, infrastructure resilience, and AI‑driven power demand.
Renewable energy investment in the Middle East reached US$12.9 billion in 2025, up from US$10.1 billion the previous year. The report, based on a survey of 150 senior executives across APAC, EMEA, and the Americas, shows that one in four respondents (25%) now view the region as a top global growth market.
A key differentiator is the region’s ability to avoid permitting delays and grid bottlenecks that are slowing progress in Europe and North America. Supported by sovereign capital and streamlined regulatory frameworks, the Middle East continues to roll out large‑scale renewable and transmission projects in tandem, accelerating deployment timelines.
“The Middle East demonstrates what’s possible when renewable energy and transmission are designed holistically.”
— Justin Smith, Managing Director, Ansarada
“Building renewables and transmission together represents a fundamentally different approach than the fragmented delivery model common in Western markets,” said Justin Smith, Managing Director at Ansarada.
AI Compute Emerges as Dominant Driver of Global Renewable Demand
The report highlights the surging energy needs of AI data centres as a primary catalyst for global renewable expansion. With more than US$500 billion in AI infrastructure spending expected in 2026, and U.S. data‑centre consumption forecast to hit 409 TWh by 2030, 37% of global respondents and 36% in EMEA cited AI compute as the leading driver of new renewable development.
The UAE’s rise as an AI hub further amplifies the need for integrated renewable and storage systems particularly solar‑plus‑storage to support large‑scale compute operations.
Procurement Pressures Intensify Amid Fragmented Digitisation
Despite high adoption of procurement technology, the report found serious process inefficiencies. Although 91% use purpose‑built software, most organisations rely on three to four disconnected systems, while 55% still depend on email for sensitive bidder communication.
Only 37% of respondents globally described their most recent procurement cycle as “very efficient,” a figure that drops sharply to 8% in EMEA.
Smith warned that digital fragmentation is now a critical barrier: “Organisations think they’ve digitised, but they’ve actually created a ‘Frankenstack’ of disconnected tools.”
As ESG requirements tighten across the region and globally, procurement transparency and auditability are becoming prerequisites for both financing and tender eligibility.
