Electrifying the Arabian Gulf’s Next Decade
The global energy system is evolving in ways that indicate electricity will play an increasingly important role in economic development. As countries seek to strengthen energy security, improve industrial competitiveness, and reduce emissions; reliable and affordable electricity is becoming more central to transportation, industry, digital infrastructure, and emerging technologies, such as artificial intelligence. In its Global Energy Review 2026, the International Energy Agency (IEA) described this trend as the “Age of Electricity,” reflecting electricity expanding role in meeting global energy needs.
Recent data suggest that this shift is gathering momentum. In 2025, solar photovoltaic generation increased by approximately 600 terawatt-hours, accounting for around 70 percent of the growth in global electricity generation. For the first time, solar made the largest contribution to the increase in global energy supply. Low-emissions sources, including renewables and nuclear power, were responsible for nearly 60 percent of the growth in total energy demand. Renewable capacity additions reached a record 800 gigawatts, while battery storage and new nuclear projects continued to expand. These trends indicate that the global energy mix is gradually becoming more diversified and increasingly dependent on electricity.
For the Gulf Cooperation Council (GCC) countries, these developments present an important strategic opportunity. The region benefits from some of the highest solar irradiance levels in the world, substantial sovereign investment capacity, and considerable experience in delivering large-scale infrastructure projects. According to the International Renewable Energy Agency (IRENA)’s Renewable Capacity Statistics 2026, the Middle East recorded the fastest regional growth in renewable capacity globally in 2025, expanding by 28.9 percent and led primarily by Saudi Arabia.
Looking ahead, the GCC’s collective ambitions are substantial. The Kingdom of Saudi Arabia alone is targeting 130 gigawatts of renewable capacity by 2030, with around 58.7 gigawatts from solar and 40 gigawatts from wind, supported by an investment program exceeding 188 billion US dollars. These advantages provide a solid foundation for expanding renewable energy, modernizing electricity systems, and developing new industries linked to the evolving energy landscape.
Smaller GCC economies, including the Kingdom of Bahrain, may be particularly well positioned to benefit from the expanding role of electricity in the global economy, as its compact power systems and concentrated industrial sectors lend themselves naturally to piloting advanced technologies, such as smart grids, digital twins, and AI-based energy management tools. Supporting this trajectory, Bahrain’s recently launched National Innovation Strategy 2025–2035 sets clear targets to strengthen the country’s innovation ecosystem, including doubling patent registrations by 2027, training more than 6,000 Bahrainis in innovation-related fields, raising research and development spending to 2 percent of the GDP by 2035, and placing the Kingdom among the top 50 countries in the Global Innovation Index. These commitments help build the institutional and human capital base required to translate emerging technologies into practical applications that support economic diversification and strengthen Bahrain’s position in the evolving energy landscape.
The global energy transition is advancing at different speeds, though its overall direction is becoming increasingly clear. The relevant question today is no longer whether electricity will assume a larger role in the global economy; it is how the Arabian Gulf can draw on its existing strengths to capture the opportunities this shift continues to create. With a clear innovation agenda, sound strategic planning, and targeted investment; Bahrain is well positioned to help shape this trajectory and contribute meaningfully to the region’s broader transformation.
Dr Abdulla Isa Alabbasi, Director of Energy and Environmental Studies Program (Derasat Center)
