Saudi Arabia’s well-established prowess in crude oil production is increasingly being viewed as a strategic asset that could propel the Kingdom to the forefront of the global renewable energy transition. Leading energy and environment experts argue that Saudi Arabia possesses the technical depth, engineering rigor, and industrial breadth needed to become a central hub for green power and low-emission fuels. This growing perception frames an ambitious national trajectory: leveraging decades of energy-sector mastery to accelerate cleaner energy adoption, diversify the economy, and position the Kingdom as a key exporter of renewable energy and green hydrogen.
From a practical standpoint, analysts emphasize that Saudi Arabia’s accumulated capabilities in drilling, pipelines, refineries, and large-scale project execution can be repurposed to accelerate renewable energy developments. The argument centers on the transferability of core competencies—such as advanced drilling and subsurface expertise, pipeline networks, port and pumping infrastructure, and the management of complex, capital-intensive builds—to new energy systems. If these skill sets can be redirected efficiently, the Kingdom could shorten the timeframe needed to scale up wind, solar, geothermal, and even nuclear capacities, while maintaining cost advantages and resilience.
The national plan places a central focus on the NEOM megaproject as a flagship platform for green hydrogen production and export. In partnership with ACWA Power and Air Products, NEOM is envisioned as a major catalyst for developing, manufacturing, and exporting clean energy technologies. By 2026, NEOM and its partners aim to export up to 600 tonnes of hydrogen per day, signaling a bold push to establish Saudi Arabia as a leading green hydrogen producer and supplier in global energy markets. This strategic push aligns with broader goals to expand clean energy capacity and to draw on the Kingdom’s industrial base to support a low-carbon energy economy.
Spearheading the shift to cleaner energy, experts point out that Saudi Arabia already has significant potential across multiple renewable pathways. The Kingdom’s rich resource base presents opportunities for geothermal energy, where drilling and well-management expertise could translate into efficient heat extraction and power generation. The transfer of competencies from oil and gas sectors into geothermal projects illustrates how cross-pollination of technical know-how can unlock new energy sources. As one analyst noted, advanced drilling techniques—central to oil and gas development—could be leveraged to unlock geothermal reservoirs in diverse locations across Saudi Arabia, expanding the country’s renewable mix.
Beyond drilling, the broader suite of engineering and construction competencies developed in Saudi Arabia’s oil-driven economy is seen as a critical enabler for renewables. Proficiency in building pipelines, refining operations, port facilities, pumping stations, and heavy industrial infrastructure carries direct relevance to the development of wind farms, solar complexes, geothermal plants, and even nuclear facilities. Such capabilities are essential for the reliable integration of new energy assets into national grids, facilitating efficient power generation, transmission, and distribution at scale. This perspective emphasizes that the Kingdom’s financial strength—generated by decades of oil leadership—could be redirected toward green energy investments in a manner that is disciplined, strategic, and growth-oriented.
In this context, the financial dimension of the energy transition is also crucial. Analysts note that Saudi Arabia’s substantial oil revenues and accumulated financial clout could serve as a powerful enabler for green energy initiatives, provided that capital is deployed with a clear, results-oriented strategy. Rather than allowing legacy energy profits to stagnate or constrict the pace of new ventures, there is a growing consensus that capital can be redirected toward advanced desalination, green power, and other environmentally aligned industries. This reallocation would support a broader ecosystem that not only reduces emissions but also creates new revenue streams and job opportunities in the future energy economy.
Technical and commercial expertise underpinning this transition is reinforced by the perspectives of industry professionals who highlight both the opportunities and the practical pathways to commercialization. Peter Brishimov, a partner in Energy and Process Industries at Kearney Middle East and Africa, stresses that Saudi Arabia’s experience in crude oil production provides a solid foundation for future renewable energy projects. He points out that the Kingdom’s track record in delivering large-scale capital projects offers a blueprint for deploying renewable energy infrastructure on a comparable scale. The ability to manage complex programs, coordinate multiple stakeholders, and maintain cost discipline is presented as a key advantage in bridging the gap between current oil-centric markets and the growing global renewables market.
Brishimov elaborates that, while the technology side may differ between oil and renewables, the commercial side is converging. The market for renewable energy is still developing its global reach, and Saudi Arabia is actively working to bridge this gap to make renewables commercially viable in both the short term and the long term. He notes that interconnection infrastructure—transmission lines, grid integration, and cross-border connections—remains central to unlocking renewable energy potential and ensuring that Saudi Arabia can meet its own demand while establishing itself as a global energy trader. Green hydrogen production, in particular, is highlighted as a strategic pathway to expand energy exports and to strengthen the Kingdom’s role in the evolving energy economy. By building out green hydrogen capacity, Saudi Arabia could position itself as a reliable supplier to energy markets seeking low-emission fuels, while simultaneously addressing domestic demand for clean power.
In addition to the technical build-out, experts emphasize the importance of research, collaboration, and knowledge transfer. Sullivan highlights that Saudi Arabia’s existing energy research infrastructure—bolstered by prominent institutions, universities, and think tanks—provides a solid foundation for accelerating the energy transition. He cites the Kingdom’s robust research ecosystem as a source of innovative ideas and practical solutions that can be applied to both traditional and emerging energy technologies. In particular, he cites KAPSARC (the King Abdullah Petroleum Studies and Research Center) as a notable example of homegrown expertise that can facilitate policy analysis, scenario planning, and the development of a strategic roadmap for clean energy deployment.
Recent collaborative efforts underscore the emphasis on hydrogen development and research. A joint August announcement detailed a partnership among KAUST (King Abdullah University of Science and Technology), NEOM’s Education, Research, and Innovation Foundation (ERIF), and ENOWA, aimed at accelerating the hydrogen economy. As part of this collaboration, ERIF agreed to sponsor three strategic projects focused on hydrogen research, working in tandem with KAUST researchers to advance hydrogen as a viable and scalable renewable energy source. This partnership is positioned as a key element of Saudi Arabia’s broader strategy to diversify its energy portfolio, accelerate commercialization, and strengthen the knowledge base required for sustainable energy leadership.
Human capital development emerges as a central theme in the transition narrative. Sullivan underscores the necessity of retraining the Kingdom’s workforce to remain relevant in a changing energy landscape. He cautions that the traditional energy workforce will require new competencies that may not be transferable to every individual, and that some workers could face displacement as the sector evolves. He argues that younger generations should be equipped with education and training aligned with new opportunities, while the existing training and education systems for traditional energy activities can be evolved in tandem with those for the emerging green technologies. This approach is designed to ensure a smoother transition, minimize disruption, and maximize the creation of new opportunities for workers across the economy.
Brishimov also stresses the importance of human capital development as a critical piece of the transition puzzle. He notes that the Kingdom’s track record in building and expanding its oil industry provides a strong foundation for replicating that success in the renewable energy domain. He points to national policies that enable human capital development and Saudization requirements as mechanisms to ensure a skilled, locally integrated workforce capable of supporting a rapid transition. By aligning workforce strategies with the needs of new energy sectors, Saudi Arabia can cultivate a labor force that is both technically proficient and adaptable, capable of supporting longer-term growth and resilience in the energy economy.
Despite the optimism surrounding the transition, experts acknowledge potential challenges that could hinder progress. Sullivan identifies several critical minerals and metals essential to green energy production—especially for electric vehicle technologies—that may need to be imported in the near term. He notes that Saudi Arabia is actively developing its mining sector to mitigate this dependence in the future, but the reality remains that some components of the green energy value chain rely on international supply chains. In addition, Sullivan cautions that the relative cheapness of oil production can, at times, impede the development of green energy by making incumbent energy sources more competitive in the short term. This tension highlights a fundamental policy design question: how to incentivize investment in green energy when legacy electricity and fuels remain economically attractive.
Nevertheless, the comparative case of China’s energy transition illustrates that progress in green energy can coexist with ongoing legacy energy development. Sullivan cites that China leveraged coal to fuel its early green energy growth, underscoring that success in traditional energy does not inherently slow down the growth of new energy sectors. This historical insight provides a blueprint for how Saudi Arabia could navigate the balance between maintaining oil-based revenue streams and expanding renewable energy capabilities. The overarching message is that a dual-path strategy—where traditional energy continues to contribute to national prosperity while green energy expands rapidly—could yield durable gains for the Kingdom and its trading partners.
Saudi Arabia has set an ambitious target to derive 50 percent of its electricity generation from renewable sources by 2030. Brishimov notes that achieving this objective entails significant logistical and infrastructural hurdles, particularly the pace required for deploying the necessary capacity. He identifies a need to deploy more than 100 gigawatts of renewable capacity by 2030 as a central challenge. To address this, the Kingdom is pursuing a dual approach that combines renewable energy auctions with direct deployment led by the Public Investment Fund (PIF), a strategy designed to accelerate construction and bring capacity online more quickly. Brishimov emphasizes that rapid deployment must be reconciled with localization goals in the renewable energy sector, ensuring that the projects remain economically attractive while also creating jobs and strengthening domestic capabilities. The tension between speed and localization represents a key area where policy design and execution will determine the success of the renewables push.
Balancing the old energy system with the new is widely recognized as a strategic necessity, rather than a mere transitional step. Industry voices have long argued that gradual integration is essential to ensuring energy security, system reliability, and economic stability during the transition. Haitham Al-Ghais, the secretary-general of OPEC, reinforced this view when he stated that oil will continue to play a pivotal role in future energy pathways, given the ongoing importance of petroleum products to sectors such as electricity generation and other industries. He noted that OPEC member countries, including Saudi Arabia, are actively developing clear national electrification plans that align with broader emissions-reduction initiatives, signaling a pragmatic, multi-track approach to energy policy. This perspective complements the more optimistic view of renewables by acknowledging that traditional energy sources will remain relevant for the foreseeable future.
Sullivan’s take mirrors this balanced stance. He argues that energy security, resilience, and reliability require the simultaneous development of both traditional and new energy systems. He asserts that oil will remain necessary for an extended period, even as the energy mix evolves toward renewables. From this vantage point, Saudi Arabia and other Gulf Cooperation Council (GCC) players stand to gain by embracing the opportunities presented by the new energy economy while continuing to leverage their existing assets and markets. The conclusion of this line of thought points toward a practical, diversified energy strategy: build out renewables and green fuels, but maintain and optimize legacy energy where it continues to offer strategic value, stability, and revenue, thereby supporting a more resilient economic future in a rapidly changing global energy landscape.
In closing, the broad consensus among experts is that Saudi Arabia’s response to the energy transition should be characterized by both ambition and pragmatism. The Kingdom’s leadership is positioned to capitalize on its oil-dominated legacy as a springboard for a comprehensive, diversified energy strategy that includes renewables, green hydrogen, and related technologies. By combining an aggressive deployment of renewables with a disciplined, market-friendly approach to development, Saudi Arabia could enhance its economic security, create new industries, and strengthen its role in global energy markets. The overarching takeaway is that the Kingdom’s energy evolution could yield not only environmental benefits but also significant opportunities for business growth, economic diversification, and geopolitical influence as the world charts a path toward a cleaner, more resilient energy future.
Conclusion
[Note: The concluding section is presented separately below as requested, summarizing the overarching themes and implications of Saudi Arabia’s path toward renewables and the strategic role of its existing energy leadership.]