As the world accelerates toward renewable energy, Gulf states face a paradox: their vast oil wealth must finance their own obsolescence. The UAE and Saudi Arabia have recognized this reality earlier than most, investing hundreds of billions in solar, wind, and hydrogen technologies. However, the transition presents profound challenges. These nations built their modern identities on hydrocarbon wealth, and their social contracts depend on energy revenues funding generous welfare states. The question is not whether the transition will happen, but whether it will be managed or chaotic. The UAE approach offers a potential model: using oil revenues to build renewable capacity while developing knowledge economies. Yet skeptics argue that this strategy may be too slow, and that global decarbonization could accelerate faster than Gulf diversification. The geopolitical implications are equally significant.
✦Some sections of this article have been supplemented with AI-generated contextual information.

Core of the Argument

Gulf states must navigate the paradox of using oil wealth to build post-oil economies Amid diverse perspectives on Middle issues, this column presents a new viewpoint that challenges conventional wisdom.

Viewing Through Historical Context

To understand the current situation in the Middle, one must examine historical events including the collapse of the Ottoman Empire and the 1979 Iranian Revolution.

This article is based on on-site reporting and major news agency coverage. Some sections have been supplemented with AI-generated contextual information.