The International Energy Agency (IEA)’s World Energy Investment 2024 report has said that global energy investment is set to surpass USD 3 trillion for the first time in 2024, with USD 2 trillion directed toward clean energy technologies and infrastructure. Since 2020, investment in clean energy has accelerated, leading to higher spending on renewable power, grids, and storage than on oil, gas, and coal combined.
In 2024, nuclear power investments are expected to rebound, with its share of clean power investments rising to 9% after two years of decline. Total nuclear investment is projected to reach USD 80 billion in 2024, nearly double the 2018 level, which marked a decade-low.
Energy Investments in the Middle East
The Middle East, home to five of the world’s top oil producers—Saudi Arabia, Iraq, the UAE, Iran, and Kuwait—also plays a critical role in natural gas production, with Iran, Qatar, and the UAE among the top ten global producers. According to the report, fossil fuel supply remains the dominant focus, with only 20 cents invested in clean energy for every USD 1 spent on fossil fuels. This is roughly one-tenth of the global average ratio of clean energy to fossil fuel investment.
In 2024, energy investment in the Middle East is expected to reach approximately USD 175 billion, with clean energy accounting for around 15% of the total investment. Energy investment in the Middle East is projected to reach approximately USD 175 billion in 2024, with clean energy making up about 15% of the total. By 2030, under the APS (Announced Pledges Scenario), clean energy investment is expected to more than triple compared to 2024 levels. Consequently, by the end of the decade, for every USD 1 invested in fossil fuels, 70 cents would be directed toward clean energy.
Five of the twelve countries in the region have set net-zero emission targets. The UAE and Oman aim to achieve net-zero emissions by 2050, while Saudi Arabia, Bahrain, and Kuwait have set a target for 2060. The UAE has also committed to reducing emissions by 19% from 2019 levels by 2030 and pledged USD 30 billion in catalytic capital to launch a climate-focused investment initiative at COP28.
