Answer extracted from the Beyond the Deck podcast — listen to the full episode below.
What policy levers are reshaping energy success across the GCC?
The three pillars of energy policy success in the GCC are attracting foreign direct investment, enabling private sector participation, and building localization capabilities that include import-export potential. In Saudi Arabia, the Ministry of Energy sets the policy direction while the Public Investment Fund structures strategic partnerships aligned with sustainable energy goals, and utilities like the Saudi Electricity Company expand networks using digital solutions for predictive analytics and operational optimization.
How policy, investment, and infrastructure align in Saudi Arabia
Saudi Arabia demonstrates how coordinated policy frameworks drive real energy transformation. The Ministry of Energy acts as the strategic architect, establishing the regulatory environment and long-term vision that guides the entire sector. This top-down clarity allows other actors—investors, utilities, and private companies—to operate with confidence in the direction of the market.
Running parallel to policy direction, the Public Investment Fund deploys capital into strategic partnerships that connect energy production with sustainability objectives. Rather than treating energy and climate separately, the PIF aligns its investments so that new energy infrastructure meets both commercial returns and environmental criteria. This dual mandate has become the hallmark of how Saudi Arabia structures large energy projects.
On the operational side, utilities such as the Saudi Electricity Company expand distribution networks while simultaneously deploying digital technologies for real-time monitoring and optimization. Predictive analytics identify grid inefficiencies before they become problems, and operational optimization software reduces waste at scale. As Carmen Hamze explains in the episode, this blend of infrastructure growth and digital intelligence creates both capacity and efficiency—the two requirements for sustainable energy delivery.
What often goes unnoticed is how localization policy strengthens the entire ecosystem. When governments require energy companies to source, manufacture, and develop capabilities locally, they build a resilient supply chain and export potential. This isn't protectionism; it's competitive advantage. Local expertise becomes an asset that can eventually be exported to other markets across the region and beyond.
A portfolio approach, not siloed bets
The GCC's energy policy has shifted fundamentally over the past five years. Five years ago, the global conversation centered on net zero and eliminating hydrocarbons entirely. The GCC took a different path: a balanced portfolio approach that treats energy as a trilemma of sustainability, security, and affordability.
This means gas serves as the backbone, renewables expand capacity, and low-carbon molecules—hydrogen, liquefied natural gas, and carbon capture utilization and sequestration—sit alongside traditional oil and gas production. The policy enablers that make this work are those that allow multiple technologies and capital sources to coexist and compete rather than imposing a single winning technology. As the full conversation in Beyond the Deck reveals, this pragmatism has become the model other regions are now adopting.
One concrete detail that underscores this approach: the way GCC policymakers now think about data centers and AI infrastructure. These demand enormous energy inputs, and rather than viewing them as a burden, the GCC sees data center electricity demand as a catalyst for renewable and diversified energy investment. The policy enablers—fast-track permitting, investment incentives, regulatory clarity—were adjusted to welcome this new load. The result: massive new capital flowing into energy infrastructure that wouldn't have been justified by oil and gas exports alone.
"There's not one solution that's going to solve everything. It's multiple—green hydrogen will still be in place, LNG and CCUS will be key."
Carmen Hamze — Partner at Rollenberger, energy strategy expert with over 14 years of experience across the GCC. Originally trained in biology and biomedical research, Hamze transitioned into energy consulting at a major GCC utility where she built deep expertise in energy strategy, sustainable development, and regional policy frameworks. She is also Head of the Wellness Committee at Rollenberger.
See also
How did Russia's invasion of Ukraine impact energy policy thinking in the GCC?
Russia's invasion of Ukraine was an aha moment that brought policymakers back to realism—demonstrating that despite net zero ambitions, countries still need diverse energy portfolios including traditional hydrocarbons for energy security and affordability.
What advantage do GCC countries have in developing CCUS technology compared to other regions?
Countries with a history of large hydrocarbon sectors like Saudi Arabia and the UAE have significant advantages in CCUS because they have existing upstream infrastructure, technical expertise, and established relationships with oil and gas companies.
Why is green hydrogen momentum slowing and what technologies will actually drive the next five years of energy development in the GCC?
Green hydrogen will still be part of the solution but will progress slowly depending on technology evolution. The more immediate breakthroughs in the short term will come from LNG, CCUS, and data center energy demand driving investment in a diversified renewable and conventional energy mix.
Key takeaways
- Policy success in the GCC energy sector rests on three foundations: foreign direct investment attraction, private sector participation, and local capability building with export potential.
- Saudi Arabia's model shows how coordinated action—Ministry of Energy setting direction, PIF structuring sustainable investments, and utilities deploying digital optimization—creates compounding impact across the entire sector.
- The GCC has moved away from siloed energy subsectors toward a portfolio approach that balances sustainability, security, and affordability across gas, renewables, and low-carbon molecules.
- Data center and AI infrastructure demand has become a policy accelerant, justifying massive renewable and diversified energy investments that wouldn't have gained backing five years ago.