ENERGY TRANSITION OF THE GULF COUNTRIES

Abstract

The article examines the problem of energy transition of the Persian Gulf countries. This task is of particular importance for the countries of the region, as the Gulf states depend on the extraction and export of hydrocarbon resources. At the same time, the countries of the region have different energy transition strategies. An analysis of the current situation shows that some states, such as the Kingdom of Saudi Arabia and the United Arab Emirates (UAE), are betting on wind and solar power. Other countries, such as the Sultanate of Oman, the Kingdom of Bahrain, and Kuwait, are beginning to adopt renewable energy sources (RES), but on a smaller scale compared to the aforementioned countries. Qatar, for its part, is focused on continuing to develop liquefied natural gas (LNG), but it is also beginning to consider projects for investment in RES. The article identifies the common approaches of the Gulf countries to the energy transition process and also highlights the specific characteristics of each state. In general, the implementation of the energy transition faces a number of challenges, including dependence on oil and gas (as they remain economically viable for consumers and exporting countries), a number of technological difficulties (i.e. the development and deployment of new technologies for RES extraction and utilization may face a lack of necessary infrastructure), lack of investment, etc. For states such as KSA (despite its extensive financial resources, it faces risks related to covering the costs of RES), Bahrain and Kuwait, energy transition poses certain risks for economic development, as it requires additional financing. At the same time, countries such as the United Arab Emirates, Qatar and, at the same time, KSA expect to receive significant benefits from the realization of the energy transition, as it will lead to economic diversification and open up additional opportunities.