MENA accelerates towards a green industrial future with record project commitments

According to a recent report from the Mission Possible Partnership and the Industrial Transition Accelerator, the Middle East and North Africa, often just called MENA, are increasingly becoming some of the most closely monitored regions in the global effort to develop low-carbon industries. The report highlights that the region now has about 84 announced projects focused on clean industry, with potential investments reaching roughly $642 billion across sectors like clean fuels, fertilisers, steel, and aluminium.

That figure really puts MENA on the map as one of the most significant emerging hubs for industrial decarbonisation, especially as governments and businesses try to shield their supply chains from the unpredictable swings in energy prices and the more fragmented nature of international trade. The report makes the case that this shift isn’t just about power generation anymore. It’s starting to penetrate those tough-to-decarbonise sectors that lie at the heart of trade, transportation, and heavy manufacturing.

The latest data signals that momentum is building pretty quickly. Over the past six months alone, 19 projects worth around $43 billion have reached a final investment decision, roughly twice as many as in the same period last year. That’s pretty remarkable, actually, because final investment decision generally marks the point when ideas begin to turn into actual projects. For a sector that’s often slowed down by financing issues and uncertain demand, this pace suggests that some of these clean industrial assets might finally be overcoming those major commercial hurdles.

Clean fuels are definitely emerging as one of the clearest opportunities within the region. Especially in terms of sustainable aviation fuel and green ammonia, these areas seem to be gaining serious traction. The report notes that several projects focused on these fuels have already made their final investment decision in recent months. This is pretty important for the Gulf states and the broader MENA region, where aviation, shipping, and export logistics are prioritised strategies. It also highlights a shift in global demand, airlines, freight companies, and industrial buyers are all on the hunt for lower-carbon inputs that can be scaled up.

Looking at specific countries, the region has developed its own strengths. Egypt, for example, leads the way with 25 announced projects valued at approximately $108.5 billion. Most of these are clustered around the Suez Canal Economic Zone, the Gulf of Suez, and Damietta, areas with solid logistics links and industrial infrastructure. Egypt’s position on a major shipping corridor really could give it an edge when it comes to future trade in clean commodities.

Meanwhile, Oman’s pipeline of committed projects is the largest by value, around $271 billion spread across 19 different initiatives. One standout is a green ammonia plant in Duqm, which has already made its final investment decision. Duqm’s strategic location on the Arabian Sea, away from the bottlenecks of the Strait of Hormuz, has long made it attractive for export-oriented industries. And now, it looks like this advantage is being built upon with the new clean industry pipeline.

Saudi Arabia remains a major player too. The Neom Green Hydrogen Project, developed with Air Products and Acwa Power, is among the world’s most notable clean fuel initiatives. It’s a plan to create around 1.2 million tonnes of green ammonia, reinforcing the Kingdom’s ambition to leverage its scale, resources, and renewables to take a leading role in the hydrogen economy of the future.

The UAE, interestingly enough, is progressing steadily as well. The report highlights projects involving sustainable aviation fuel in Abu Dhabi and Fujairah, both strategic energy and logistics hubs. In Abu Dhabi, ADNOC has moved forward with a low-carbon liquefied natural gas plant in Ruwais, which recently received approval for development, including the engineering, procurement, and construction contract. The company claims that this will be the first LNG export plant in MENA to operate on clean power, with some of the lowest carbon intensity levels worldwide. It’s a clear sign that the region’s decarbonisation efforts are reaching beyond just hydrogen plans and into gas infrastructure too.

Qatar is another country pressing ahead with clean industrial efforts. QatarEnergy has broken ground on what it calls the world’s largest blue ammonia plant, located in Mesaieed Industrial City. The plant is expected to produce about 1.2 million tonnes annually, and should start operating by the second quarter of 2026. The scale isn’t accidental, it underscores how Gulf producers are positioning ammonia not just as a domestic industrial feedstock but also as a potential export fuel for global decarbonisation.

The report’s authors emphasise that geography provides one of the region’s greatest advantages. MENA sits right at the nexus of global trade routes, including the Suez Canal, and it has access to ports, industrial zones, and well-established energy networks. This geographic positioning could give it a real edge when it comes to exporting clean commodities to Europe, Asia, and beyond. But, as the report also warns, infrastructure alone won’t cut it.

Faustine Delasalle, CEO of the Mission Possible Partnership and executive director of the Industrial Transition Accelerator, pointed out that the global landscape is changing, fueling the expansion of cleaner industries. She argued that reliance on fossil fuels leaves economies vulnerable to price shocks, supply disruptions, and broader instability, widening the climate crisis in the process. Her key message was that countries which manage to build cleaner, more resilient industrial systems could gain better control over the core elements of their economies.

James Schofield, the deputy director at the Industrial Transition Accelerator, commented that the pace of final investment decisions is already twice what it was a year ago. He noted that most of the biggest commitments are still in China, but he added that coherent policy support can definitely help boost investments in clean industries, especially in areas like sustainable aviation fuel. Schofield also sees potential in forming trade partnerships between countries that have complementary strengths as a way to bolster resilience and competitiveness.

That’s a point likely to resonate in the UAE, where policymakers are really pushing forward with industrial decarbonisation and advanced manufacturing. The Industrial Transition Accelerator has already announced collaborations with the governments of the UAE and Bahrain to expand efforts on industrial decarbonisation across the region, aligning these initiatives with national climate goals. For Gulf economies looking to diversify beyond hydrocarbons, this kind of coordinated approach might end up being just as important as the actual project announcements.

Nonetheless, the report makes it clear that real progress in this sector will depend on more than just lofty ambitions. It calls for improved trade collaborations, clearer signals of future demand, and mobilisation of public-private finance if the region is to move beyond a pipeline of projects and develop a long-lasting industrial transformation. For MENA, the potential is enormous. The real challenge now is whether it can turn those promising investments into actual factories, exports, and durable, clean industrial supply chains.