GCC captures $24bn of $1tn global green FDI: Strategy&

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Saudi Arabia, the UAE and Oman attracted $24bn of the $1tn in global green foreign direct investment (FDI) flows between 2020 and 2024, according to a Strategy& Middle East report.

The three countries, which invested $132bn abroad in the same period, accounted for 29 outbound and 10 inbound green FDI deals, capturing just 2 per cent of global inflows.

More than half of large cross-border investments during 2020-24 went into green projects, led by hydrogen, renewable power and batteries, the report said.

The surge peaked in 2022–23, before cooling last year as capital shifted toward artificial intelligence and semiconductors, though green FDI still reached $158bn in 2024, triple 2020 levels.

Saudi received $12.6bn in green FDI

Saudi Arabia received $12.6bn of inbound green investment, while Oman secured $8.9bn, including two major Indian-backed projects in ammonia and steel.

China, India and the US were the main sources of inbound GCC deals, while most outbound projects targeted hydrogen and ammonia ventures in Egypt and Mauritania.

“The GCC is uniquely positioned to benefit, possessing bold net-zero ambitions and some of the world’s cheapest clean energy sources. Yet, more can be done to fully capture the momentum of global green investment,” said Dr Yahya Anouti, partner at Strategy&.

The report noted that six of the ten lowest-cost solar projects worldwide are based in the GCC, highlighting its competitive advantage. But relative to GDP, all Middle Eastern countries except Oman lag global peers in attracting climate capital.

To expand its share, the consultancy recommended policy shifts similar to the US Inflation Reduction Act or EU Green Deal, investment de-risking tools such as green bonds and long-term offtake agreements, and support for regional green industries.

GCC countries have begun rolling out measures, including Saudi Arabia’s $1.7bn sovereign green bond, Oman’s hydrogen offtake agreements, and the UAE’s Sustainable Finance Framework.

While geopolitical uncertainty and shifting capital flows could weigh on investment, the report said climate concerns will keep green FDI high on the global agenda.