The Middle East is racing to the front of the global hydrogen economy, with GCC countries leveraging ultra-low-cost renewables, world-class infrastructure, and decisive policy backing, according to Al-Attiyah Foundation.
Qatar is advancing its landmark 1.2mn tonnes per year Blue Ammonia Project in Mesaieed Industrial City, scheduled to begin operations in 2026, alongside new green hydrogen initiatives that build on its global LNG leadership.
Saudi Arabia has achieved record-breaking solar tariffs close to one US cent per kilowatt hour and Oman is targeting more than 8mn tonnes of renewables-based hydrogen by mid-century.
In 2024, global hydrogen demand reached nearly 100mn tonnes, but less than one percent was supplied from low-carbon sources, and green hydrogen represented only a fraction of that. More than 60 countries have now published national hydrogen strategies, but most of them remain aspirational.
The majority are aiming to position themselves as exporters, while only a small number in Asia and Europe have declared intentions to be importers. This imbalance exposes the risk of a growing gap between supply ambitions and credible demand, raising doubts about whether many of these strategies can be realised in practice.
The new Al-Attiyah Foundation research paper, ‘Charting National Hydrogen Strategies for Future Trade’, examines how the Gulf states’ abundant solar and wind resources, competitive renewable energy prices, existing export infrastructure, and policy coherence are allowing the region to progress with projects that are already bankable and capable of scaling.
The United Arab Emirates continues to expand its clean energy capacity through Masdar and other entities, tying renewable generation to hydrogen and ammonia projects for both domestic and export use.
Qatar, through its Mesaieed development and wider portfolio of hydrogen-linked ventures, is cementing its position at the forefront of the sector.
Hydrogen offers pathways to decarbonise hard-to-abate industries such as steel, aluminium, cement and fertilisers, and the Gulf states are already embedding hydrogen into these sectors.
Doing so reduces the risks of overreliance on export markets, ensures that domestic demand anchors early projects, and positions the region to capture premium margins from low-carbon products. For Europe and Asia, where demand will outstrip domestic supply, partnerships with Middle Eastern producers are likely to become essential to achieving climate goals.
The Al-Attiyah Foundation noted that the next five years will determine whether global hydrogen strategies succeed or stall.
Many nations face uncertainty due to policy fragmentation, limited carbon pricing, and hesitant offtakers unwilling to pay a green premium.
The GCC, by contrast, combines decisive leadership with structural advantages that give it a commanding position.