Middle East & Africa Fossil Fuel New Energy Generation Market Size – By Source, Analysis, Share, Growth Forecast, 2025 – 2034

Middle East & Africa Fossil Fuel New Energy Generation Market Size

The Middle East & Africa fossil fuel new energy generation market was valued at USD 24.6 billion in 2024 and is estimated to grow at a CAGR of 19.5% from 2025 to 2034. Increasing energy demand across multiple sectors, coupled with strategic partnerships and flourishing investments in energy generation, is shaping the business dynamics. Increased collaborations among technology firms, which aim to develop low-carbon technology is complementing the industry landscape.
 

Stringent environmental regulations for emission reduction, increasing energy consumption driven by industrialization, and improving living standards, leading to a greater focus on energy security requirements. For instance, The Integrated Resource Plan (IRP) establishes an emissions limit of 275 MtCO2/year for electricity generation starting from 2025. This constraint mandates that total emissions from electricity production must not exceed this threshold. The emissions cap has been a crucial mechanism in promoting the incorporation of renewable energy capacity targets.
 

Middle East & Africa Fossil Fuel New Energy Generation Market Trends

Middle East & Africa fossil fuel new energy generation industry is anticipated to witness significant growth on account of increasing focus on energy production, rising power demand, and the growing installation of fossil fuel powered power plants with lower GHG footprint. Increasing investments in infrastructure development, stern environmental protection regulations, and favorable initiatives by authorities for the construction of new power plants will augment the industry outlook. Moreover, expansion of energy generation capacity, increased investments, and expenditure for development of power plants to cater to the energy demand will positively influence the industry outlook.
 

Middle East & Africa Fossil Fuel New Energy Generation Market Analysis

Based on source, the gas segment is set to surpass USD 80 billion by 2034. Increasing energy demand, ongoing exploration of gas across the region and abundant availability of reserves has augmented the business landscape. Gas-fired power plants continue to play a significant role in energy generation, contributing to energy security and providing cost-effective electricity further complementing the industry outlook. Growing inclination toward reducing carbon emissions from traditional power generation facilities along with focus on improving efficiency and meeting more stringent emission standards will positively influence the business dynamics.
 

Saudi Arabia fossil fuel new energy generation market is expected to surpass USD 9.5 billion by 2034. Ongoing expansion of power generation facilities to cater to the rising energy demand and rapidly growing industrial and commercial sector has complement the business landscape. Stringent emission regulations are prompting a shift towards more efficient and lower-emission technologies, including natural gas power plants that generate a smaller carbon footprint.
 

The availability of vast fossil reserves across the country, along with favorable energy generation policies, is augmenting the market outlook. For instance, according to the Saudi Green Initiatives, in December 2023, Saudi Arabia expanded its power sector by launching four efficient gas-fired plants totaling 5,600 MW. The nation is also developing 8.4 GW of plants with carbon capture technology, balancing energy needs with environmental concerns. Additionally, initiatives to enhance energy efficiency and the rising adoption of new technologies for improving power generation processes are complementing the industry landscape.
 

Middle East & Africa Fossil Fuel New Energy Generation Market Share

Major companies including Engie, Eskom, ADNOC, Saudi Aramco, RWE and Total Energies operating across the fossil fuel-new energy industry are actively pursuing strategic alliances, collaborative ventures, and research initiatives. These efforts are primarily focused on developing and implementing innovative, low-carbon technologies for power generation from fossil fuels, with an aim to strengthen their market position and maintain a competitive advantage in the evolving energy landscape.
 

Middle East & Africa Fossil Fuel New Energy Generation Market Companies

Major players operating in the industry are:

• ADNOC
• Arcelormittal
• Atkins Realis
• Edra Power Holdings
• Engie
• Eskom Holdings
• Iberdrola
• Mitsubishi Heavy Industries
• Oman Oil Company
• Qatar Petroleum
• RWE
• Saudi Aramco
• Sonatrach
• TotalEnergies
• Uniper
   

Middle East & Africa Fossil Fuel New Energy Generation Industry News

• In May 2024, Eskom has outlined its strategy to keep certain coal-fired power plants operational until at least 2030 to ensure the stability of South Africa's national power grid. This decision affects a minimum of three power stations and arises from the technical and economic hurdles linked to their timely shutdown. Additionally, Eskom is negotiating with the government for substantial funding, amounting to USD 21 billion, to support the expansion of the power grid, which will include both public and private investments.
   
• In January 2024, Saudi Arabia has officially launched the next phase of its extensive plan to modernize its thermal power generation capabilities. The Saudi Power Procurement Company is seeking requests for qualifications for the construction of four combined cycle gas turbine power plants, each with a capacity of 1.8 GW, totaling 7.2 GW. The Rumah-2 and Rumah-1 plants will be located near Riyadh in central Saudi Arabia, while the al-Nairyah-2 and al-Nairyah-1 plants will be developed in the Eastern Province, close to the industrial city of Jubail.
   

This Middle East & Africa fossil fuel new energy generation market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” & “MW” from 2021 to 2034 for the following segments:

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Market, By Source

• Coal
• Oil
• Gas

The above information has been provided for the following countries:

• Saudi Arabia
• UAE
• Turkiye
• South Africa