Key Findings

• Saudi Arabia, the UAE and Qatar are rapidly transforming their economies and their energy infrastructure in order to reduce their reliance on oil. These transformations are set to transform the global energy infrastructure itself. 
• Three sectors have been identified as the primary focus of these countries’ transformative efforts: Liquid Natural Gas, Electric Vehicles, and Renewable energy.
• Qatar leads the LNG sector while the UAE is the Gulf’s frontrunner in EVs. Saudi Arabia, meanwhile, has made great strides towards establishing a strong basis for renewable energy. 
• With significant investments enabling policy terrain and strong push from the state, these transformative efforts have already yielded significant successes.
• However, a number of structural factors continue to pose risks for the future. Qatar, in particular, faces serious geopolitical pressures in the region that could hamper its ability to attract investments or maintain exports.
• Import reliance is another concern: With Gulf manufacturing capacities remaining low and much of the infrastructure and technology imported, Gulf countries remain at the mercy of price shocks, commodity shifts and supply line disruptions. 
• International geopolitical shifts are also set to endanger Gulf efforts for boosting native capabilities, especially as countries such as China seek third markets as tariffs from Europe and the United States target their renewables and EW industries.
• Furthermore, despite a push towards decarbonization, the construction of the infrastructure required for these technologies, and their manufacturing itself, remains highly carbon-intensive, leading to accusations of “Greenwashing”. 
• The uneven distribution of technology and services, particularly in the EV sector, is also set to create distortions between metropolitan centres and the rest of the country. 
• Nevertheless, the growing popularity of the energy transition and quick update leaves future prospects growth-positive.

Summary

This report analyzes the market strategies of Saudi Arabia, the UAE, and Qatar in the context of the global energy transition. While oil and gas remain significant, these Gulf states are also focusing on expanding natural gas and investing in renewable energy to diversify their economies. The report highlights the political and economic risks of overreliance on hydrocarbons and explores opportunities for international partnerships. The goal is to ensure revenue and enhance global influence as electricity demand grows, without abandoning hydrocarbons entirely. Historically dependent on fossil fuels, these countries are increasing LNG production to diversify revenue and position LNG as a "bridge fuel," while also investing in renewable energy, electric mobility, and clean technologies to reduce emissions. However, risks like market volatility and regulatory scrutiny persist. Their success, underpinned by strategic agility, involves forming long-term partnerships and adapting to evolving market demands. By balancing traditional strengths with innovation, Gulf states aim to revamp their energy sectors and secure economic growth in the transitioning landscape.