Middle East to diversify economies away from oil

Saudi Arabia and other Gulf countries have backed the energy transition. These governments are now making significant investments in renewable energy. 

The annual BCG’s Mergers and Acquisitions (M&A) report estimated that green deals represent 10.3% of the total contracts signed. Moreover, green mergers and acquisitions have quadrupled since 2001. Their total value for 2022 amounted to $23.8 billion. Despite the unfavorable macroeconomic environment, BCG believes that there will be more M&A activity in the market.

Among the Gulf states, Saudi Arabia and the UAE hold the lead in clean energy investments. These countries have been actively expanding their product range and reorienting their markets, thereby diversifying their economies away from oil.