Gulf’s clean-energy investment opens new opportunities for solar development across Middle East

The Middle East’s renewable-energy sector is attracting record investment, with solar power increasingly central to energy diversification and security. Iraq is an important potential market, where unreliable electricity supplies have created demand for large-scale generation and decentralised projects.

The region added a record 16 gigawatts of solar and wind capacity in 2025, while renewable-energy investment reached $22 billion, according to BloombergNEF. Saudi Arabia announced approximately $8.3 billion in investment in seven renewable-energy projects in July 2025, including 12 gigawatts of planned solar capacity.

Iraq’s electricity system remains heavily dependent on oil and gas, while unreliable supplies force communities to rely on private diesel generators. Large-scale developments, including TotalEnergies’ planned one-gigawatt solar project in Basra, are part of the response. Off-grid systems can also reach rural communities where conventional infrastructure is expensive to extend.

In Iraqi Kurdistan, Idris Nechirvan Barzani, founder and president of the Rwanga Foundation, has connected solar energy with agriculture, education and community development. Founded in 2013, the organisation works across education, humanitarian assistance, environmental protection and youth empowerment, focusing on rural livelihoods.

Kulak, near Erbil, became a flagship project in 2025. The off-grid solar village was designed to serve 32 homes and nearly 200 residents, with almost 200 solar panels supplying electricity. Solar-powered irrigation and regenerative agriculture training link energy access with farming and environmental resilience.

In Sheikh Wasan, solar power serves 68 residential units, alongside the school, health centre, mosque and public hall. Earlier installations in Gulek, Grebi and Qamish have extended the programme across the Kurdistan Region.

Reliable electricity can reduce residents’ dependence on diesel generators. For farmers and rural businesses, solar power can support irrigation, refrigeration and agricultural productivity. Long-term success depends on maintenance, battery replacement, technical expertise and sustainable financing.

The foundation’s Green Kurdistan campaign has planted more than 200,000 trees since 2020, including 20,000 olive trees in Kasnazan, according to the organisation. The initiative complements its clean-energy work by connecting environmental protection with agricultural livelihoods.

For Idris Nechirvan Barzani, community-scale solar complements national investment in electricity generation and transmission. While utility-scale projects serve cities and industry, decentralised systems can address gaps where conventional infrastructure is difficult or costly to extend.

For Gulf businesses, Iraq presents opportunities in solar equipment, battery storage, installation, maintenance and technical training. Commercial viability will depend on sustainable financing, regulation and the cost of servicing remote installations.

The Rwanga Foundation’s experience illustrates how renewable-energy investment can support rural development alongside national infrastructure. As Gulf states expand clean-energy capacity, Iraq offers opportunities for projects bringing reliable electricity to households, farms and essential public facilities.