How banks can power the Middle East’s next energy chapter

The energy transition is not just an environmental imperative; it is an economic opportunity for the Middle East. Banks have a critical role to play in enabling this transformation by mobilising capital, fostering innovation, and guiding clients toward sustainable growth.

The Middle East has always been at the heart of the global energy story. For decades, hydrocarbons have powered economies and positioned the region as a key player in global markets. But the world is changing, and so must the region. Today, the question is no longer whether the energy transition will happen, it is about how fast, and how effectively, it can be managed. For Middle Eastern economies, this is not about abandoning oil and gas overnight; it is about using today’s strengths to build tomorrow’s economy.

This is a moment of opportunity. Ambitious national visions, such as the UAE’s Net Zero 2050 strategy and Saudi Arabia’s Vision 2030 are setting the direction. These plans are more than policy statements; they are blueprints for diversification, job creation, and technological leadership. But turning ambition into reality requires more than government action. It needs private sector commitment and, critically, banks that can bridge global capital with regional opportunity. Deutsche Bank, for example, has aligned its global net-zero strategy with regional priorities, ensuring that financing decisions support both economic diversification and climate goals.

Banks are uniquely positioned to accelerate this transformation. They are not just lenders; they are transition partners. Their role is to help clients navigate uncertainty, structure financing that supports credible transition plans, and bring international best practices to local markets. Deutsche Bank has already demonstrated this by introducing sustainability-linked financing structures in the region and supporting projects that reduce emissions while driving growth. These solutions go beyond traditional lending, creating incentives for companies to embed sustainability into their core strategies.

The reality is that the Middle East cannot afford to stand still. Global capital markets are moving toward low-carbon investments, and companies that fail to adapt risk losing access to funding and competitiveness. At the same time, the region has unique advantages: abundant solar resources, strategic logistics hubs, and the financial capacity to invest in new technologies like green hydrogen and energy storage. A recent example is the UAE breaking ground on the world’s first and largest combined solar power and battery storage project—a $6 billion facility that will deliver up to 1 gigawatt of baseload renewable power 24/7 by 2027. This project, integrating a 5.2GW solar PV plant with a 19GWh battery energy storage system, underscores the scale of ambition and the kind of innovation that banks can help bring to life.

Of course, this transition will not be simple. It requires balancing economic priorities with environmental goals and ensuring that the shift creates opportunities for people across the region. Collaboration is essential—between governments, businesses, and financial institutions. Banks can act as catalysts by aligning capital with credible transition strategies, supporting clients who are willing to adapt, and setting clear expectations where progress is needed. Deutsche Bank’s approach of engaging clients in transition dialogues, helping them define pathways and linking financing to measurable ESG outcomes, is an example of how this can work in practice.

This is as much about risk as it is about opportunity. Climate-related risks, whether physical or regulatory, are becoming part of every business decision. Ignoring them is no longer an option. But for those who act early, the upside can be significant. Sustainable infrastructure, renewable energy, and sustainable finance are not niche, they are the growth engines of the next decade. Deutsche Bank’s target to achieve net-zero by 2050, backed by interim targets for high-emitting sectors, shows how banks can lead by example while supporting clients through the transition.

The winners of this transition will be those who embrace it with clarity and conviction. Banks must be at the heart of this story, not as bystanders, but as active partners in shaping a future that is more sustainable, competitive, and inclusive. The energy transition is not a challenge to fear; it is an opportunity to seize. And for the Middle East, it is a chance to write the next chapter of its economic success.