MENA Solar Market Outlook 2026: Capacity, Projects, and What Comes Next

AQ Electric works on solar plants across the Middle East and North Africa every week — testing, commissioning, inspecting, and maintaining them — and from the field the direction of the market is unmistakable: more projects, larger projects, more storage, and less tolerance for underperformance. This MENA solar market outlook 2026 brings together the latest verified figures on regional capacity and investment, a country-by-country view of the seven markets where AQ Electric is most active — Saudi Arabia, the UAE, Egypt, Jordan, Oman, Qatar, and Kuwait — the trends shaping the next wave of projects, and what they mean for developers, EPC contractors, investors, and plant owners.

The MENA Solar Market in 2026 at a Glance

The MENA solar market outlook 2026 can be summarised in one sentence: the region is moving from a handful of landmark projects to continuous, gigawatt-scale deployment. BloombergNEF’s MENA Clean Energy Market Outlook 2026, reported in September 2026, found that the region added a record 16 GW of solar and wind capacity in 2025, bringing the cumulative total to about 49 GW. It expects annual additions to rise by 37% in 2026, with solar alone reaching a record 18 GW, and forecasts that cumulative solar and wind capacity could reach 404 GW by 2035.

The money is following. BloombergNEF reported US$22 billion of renewable energy investment in the region in 2025, the third consecutive annual record, with regional investors providing 85% of the financing. Battery storage is scaling just as fast: BloombergNEF projects 4 GW / 16 GWh of storage additions in 2026, double the 2025 level.

What Is Driving the Middle East Solar Market in 2026

World-Class Resource and Low Costs

The region combines some of the world’s highest solar irradiation with abundant land. Competitive auctions in the Gulf have repeatedly produced some of the lowest solar tariffs recorded anywhere, making utility-scale PV the lowest-cost source of new daytime electricity in many markets.

National Targets

Every major market has a formal renewable energy target — from Saudi Arabia’s goal of 50% renewable electricity by 2030 to Oman’s 30% by 2030 and Kuwait’s 15% by 2030 — supported by structured procurement programmes and long-term power purchase agreements.

Demand Growth and Fuel Economics

Electricity demand is rising quickly with population growth, industrialisation, desalination, cooling, and new data centres. Every barrel of oil or cubic metre of gas not burned for power can be exported or used in higher-value industry, which strengthens the economic case for solar across both importers and exporters of hydrocarbons.

Regional Capital

Regional developers and investors such as ACWA Power and Masdar now lead projects at home and abroad, and regional banks are increasingly active lenders. BloombergNEF’s finding that 85% of 2025 financing came from regional investors shows how much the market has matured.

Country Snapshot: Seven Key Markets

The table below summarises the latest verified position in the seven markets covered in this MENA solar market outlook 2026. Each country is discussed in more detail in the sections that follow.

Saudi Arabia: The Region’s Largest Pipeline

Saudi Arabia is the centre of gravity in the MENA solar market outlook 2026. According to the King Abdullah Petroleum Studies and Research Center’s Saudi Arabia Renewables Tracker, reported in September 2026, the Kingdom has 19.3 GW of renewable capacity operational in 2026 and a tracked pipeline of 63.8 GW across 53 projects, of which 81% is solar. About 30% of tracked capacity is operational, 37% is under construction or in development, and 32% is in tendering. The Ministry of Energy separately reported 18.8 GW of installed renewable capacity in August 2026.

The national goal remains 50% renewable electricity by 2030, delivered through the National Renewable Energy Program and large PIF-partnered projects. Analysts have questioned whether the full 130 GW envisioned can be reached by 2030, but the scale of the pipeline already makes Saudi Arabia one of the world’s busiest solar construction markets. For AQ Electric, that market is familiar ground: its engineers supported SEPCO – Power China with testing and commissioning on the 120 MWp Wadi Ad Dawasir plant.

United Arab Emirates: Giga-Scale Solar-Plus-Storage

The UAE has pioneered giga-scale solar and record-low tariffs, with Abu Dhabi’s 2 GW Al Dhafra plant and Dubai’s Mohammed bin Rashid Al Maktoum Solar Park, which is planned to reach 5 GW by 2030. EWEC targets 7.3 GW of solar in Abu Dhabi by 2030.

The most important project for the regional outlook is Masdar and EWEC’s round-the-clock project in Abu Dhabi: 5.2 GW of solar PV combined with a 19 GWh battery energy storage system, designed to deliver 1 GW of continuous baseload power. Construction began in late 2025, Masdar announced financial close on the US$6.1 billion project in July 2026, and commercial operation is expected in 2027. If it performs as designed, it will change how the whole region thinks about solar — from a daytime energy source to firm, dispatchable capacity.

Egypt: The Busiest Year for New Capacity

Egypt is having its strongest year yet. Electricity Minister Mahmoud Esmat reported 9.5 GW of installed renewable capacity in July 2026, against a goal of 11.2 GW by the end of 2026 and a target of 45% renewable generation by 2028. Battery storage is part of the plan, with a goal of 1.2 GWh in 2026.

Two projects define the year. Scatec’s 1.1 GW Obelisk solar plant, with 100 MW / 200 MWh of storage, supplies Egypt Aluminium under a 25-year power purchase agreement; its first phase of 561 MW reached commercial operation in February 2026 and the plant was fully online in August. AMEA Power’s Abydos 2 — 1 GW of solar with 600 MWh of storage — began trial operations in September 2026. Egypt’s grid operator has also raised the bar for new plants: Obelisk was the first project assessed under EETC’s updated 2024 grid code compliance guidelines. AQ Electric’s Egyptian experience includes testing and commissioning support for China Energy Engineering Group (CEEC) on the 230 MWp Komombo plant in Aswan.

Jordan: A Mature Market With Strong Distributed Solar

Jordan was one of the region’s first solar markets, and its mix now shows it. According to the Energy and Minerals Regulatory Commission’s annual report for 2025, renewables supplied about 27% of Jordan’s electricity generation. Distributed solar is a distinctive strength: by the end of 2025 there were 82,401 net-metering systems with a combined 889 MW, plus 722 wheeling systems totalling 337 MW. The government has said the 31% renewables target could be reached ahead of its original 2030 date, and Jordan has adopted a new energy strategy for 2025–2035 that expands both gas and renewables.

A large distributed fleet means a large number of owners, installers, and maintenance teams who need reliable test equipment and skills. For equipment, AQ Electric’s sister company EE Electronics supplies solar PV testing equipment in Jordan and explains what to check before purchasing in its article on buying test equipment in Jordan. Jordan is also where AQ Electric was founded in 2019.

Oman: From First Projects to a Gigawatt Programme

Oman’s utility-scale solar fleet — Ibri II (500 MW) and Manah I and II (1,000 MW combined) — lifted renewables to about 11.5% of national generation in the first five months of 2025, according to Nama Power and Water Procurement, up from about 4.9% at the end of 2024. The next steps are already defined: the 500 MW Ibri III solar-plus-storage project is expected to connect by 2027, and four further 1 GW solar IPPs — at Adam, Al Kamil, Thamrait, and Mahadha — are planned from 2028–29. Oman’s transmission company projects that renewables’ share of installed capacity will rise from 13.6% in 2026 to 45% by 2030, in support of the national target of 30% of electricity from renewables by 2030.

Qatar: Tripling Solar by the End of the Decade

Qatar has 1,675 MW of solar installed across the 800 MW Al Kharsaah plant and the 875 MW Ras Laffan and Mesaieed plants. The next step is the 2 GW Dukhan Solar Power Plant, for which QatarEnergy awarded the EPC contract to Samsung C&T in September 2025, with completion expected by 2029. Together these projects support Qatar’s target of 4,000 MW of renewable capacity by 2030 under Qatar National Vision 2030.

Kuwait: Shagaya Moves Forward

Kuwait has long had a target of 15% renewable electricity by 2030, built around the Shagaya Renewable Energy Park, which is planned to reach 4.5 GW by 2030. In 2026 the programme took a decisive step: MEED reported in August 2026 that a consortium of Masdar and Kuwait’s Fouad AlGhanim & Sons had been selected for the 1.1 GW Al Dibdibah and Al Shagaya phase three, zone one solar IPP, which will sell its output to the national grid under a 30-year power purchase agreement. After years of preparation, Kuwait is set to become a significant new utility-scale solar market.

Six Trends in the MENA Solar Market Outlook 2026

1. Storage Becomes Standard

Solar-plus-storage is no longer experimental in the region. Obelisk and Abydos 2 in Egypt, Ibri III in Oman, and Masdar’s 19 GWh round-the-clock project in Abu Dhabi all pair PV with batteries, and BloombergNEF expects storage additions to double in 2026. Storage adds new commissioning, protection, and performance-testing requirements to every project.

2. Projects Keep Getting Bigger

Single projects of 1–2 GW are now routine, and multi-gigawatt projects are under construction. Scale increases the value of systematic testing, independent quality control, and efficient inspection methods such as drone surveys; AQ Electric explains the latter in its article on drone inspection for solar PV plants.

3. Industrial and Corporate Offtake

Obelisk’s 25-year PPA with Egypt Aluminium shows a growing role for industrial buyers, alongside state utilities. Industrial offtakers care intensely about availability and output, which puts performance verification at the centre of contracts.

4. Local Manufacturing

MESIA has reported that regional solar module manufacturing capacity exceeded 3 GW by the end of 2024, with facilities in countries including Saudi Arabia, Jordan, the UAE, and Egypt. Local supply shortens logistics but does not remove the need for factory and arrival inspection.

5. Stricter Grid Codes

As solar’s share grows, grid operators are demanding more from new plants: dynamic studies, fault ride-through, reactive power, and storage-based support. Egypt’s 2024 update to EETC’s grid compliance guidelines is one example of a regional trend toward more rigorous connection requirements and commissioning tests.

6. A Growing Operating Fleet

Every gigawatt commissioned becomes a gigawatt to operate for 25 years or more. Industry data shows losses rise after EPC warranties expire, and the region’s heat and dust accelerate soiling and degradation. The O&M, inspection, and performance analysis market is therefore growing as fast as construction; AQ Electric covers performance measurement in its article on the solar performance ratio.

Risks and Constraints

• Delivery pace — ambitious targets depend on procurement, financing, and grid connection keeping up; some analysts expect targets to be reached later than planned.
• Grid integration — transmission build-out and system stability become binding constraints as solar penetration rises, which is why storage and grid code requirements are tightening.
• Equipment quality — independent laboratories report rising module test failures as manufacturers cut costs and adopt new cell technologies. AQ Electric explains the defects to watch for in its article on common PV module defects.
• Harsh climate — heat, dust, sand, and coastal humidity stress modules, inverters, trackers, and cables, and raise the cost of poor design or workmanship.
• Skills — the regional workforce must grow quickly to build and operate the pipeline; AQ Electric discusses the skills gap in its article on solar PV training for engineers.

What It Means for Owners, EPCs, and Investors

The MENA solar market outlook 2026 is not only about capacity numbers. For the companies building and owning plants, it translates into practical priorities.

In practical terms, three things matter most. First, quality must be verified at every stage, from the factory to commissioning; AQ Electric explains the stages in its articles on FAT vs SAT in solar PV projects and third-party inspection for solar PV. Second, commissioning and acceptance must be rigorous, because a plant accepted with built-in defects stays underperforming for decades; see AQ Electric’s article on the solar PV commissioning process. Third, financiers will keep raising their expectations, which AQ Electric explains in its articles on solar PV technical due diligence and the lender’s technical advisor for solar PV projects. Owners without large in-house teams can find the right support in AQ Electric’s article on the owner’s engineer for solar PV projects, and long-term performance depends on the practices described in its article on solar PV plant operation and maintenance.

AQ Electric in the MENA Solar Market

AQ Electric for Power Solutions was founded in Jordan in 2019 and expanded to Egypt in 2021, and today supports solar projects across the MENA region with independent technical services across the full project lifecycle: testing and commissioning, FAT and SAT quality assurance, third-party inspection, engineering and consultation, drone inspection, operation and maintenance, and training.

AQ Electric operates under an ISO 9001, ISO 14001, and ISO 45001-certified management system from offices in Amman, Jordan and New Cairo, Egypt, with more than 1.0 GW of PV project experience. The full portfolio is on AQ Electric’s projects page. For help choosing any independent technical partner in a fast-growing market, see AQ Electric’s article on how to choose a solar testing and commissioning partner.

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