Undiscovered Gems in the Middle East for December 2025

The Middle East is undergoing a seismic shift in its energy landscape, driven by ambitious net-zero targets and a surge in renewable energy investments. While the UAE, Saudi Arabia, and Qatar dominate headlines, overlooked markets such as Jordan, Lebanon, Bahrain, Kuwait, and Iraq are emerging as critical players in the energy transition. These nations are attracting institutional capital and cross-border partnerships through innovative projects in green hydrogen, solar power, and sustainable infrastructure. For investors seeking high-impact opportunities in 2025, these "undiscovered gems" offer a unique blend of policy support, untapped resources, and strategic alignment with global climate goals.

Jordan: A Model for Green Industrialization

Jordan has positioned itself as a regional leader in decarbonizing industrial sectors. Between 2013 and 2024, the Jordan Ozone Depleting Substances HCFC Phase-Out Project (ODS3), supported by the World Bank, achieved an 87% reduction in ozone-depleting substance consumption while avoiding over 240,000 tons of CO₂-equivalent emissions. This initiative not only improved environmental outcomes but also enhanced productivity for small and medium enterprises (SMEs), opening new export markets. The success of ODS3 underscores Jordan's capacity to integrate climate action with economic growth, making it an attractive destination for investments in green manufacturing and clean technology.

Lebanon: Revitalizing Energy Access Through Innovation

Lebanon's energy sector, long plagued by instability, is undergoing a transformative overhaul. In December 2025, the International Finance Corporation (IFC), in collaboration with the World Bank Group, announced a gas-to-power initiative under a public-private partnership model. Key projects include a floating storage and regasification unit for liquefied natural gas, the modernization of the 465-megawatt Deir Ammar I power plant, and the construction of a new 825-megawatt combined-cycle gas turbine plant. These projects aim to reduce reliance on diesel, enhance electricity reliability, and create a foundation for renewable energy integration. With Lebanon's energy transition gaining institutional backing, the country presents compelling opportunities for investors in hybrid energy systems and grid modernization.

Bahrain: Offshore Wind and Solar Synergy

Bahrain is leveraging its geographic advantages to expand renewable energy capacity. Masdar and Bapco Energies are developing up to 2 gigawatts of offshore wind projects, complemented by the 100-megawatt Al Askar solar plant. These initiatives align with Bahrain's broader strategy to diversify its energy mix and reduce carbon intensity. The country's stable regulatory environment and strategic location make it an ideal hub for regional renewable energy trade, particularly for investors seeking scalable, tech-driven projects with long-term returns.

Kuwait: Solar Power as a Strategic Priority

Kuwait has accelerated its renewable energy ambitions to address chronic power shortages. In 2025, the country signed agreements to build 3.5 gigawatts of solar projects, including the 1.1 gigawatt Al Dibdibah Power and Al Shagaya Renewable Energy (Phase III) Zone 1 Solar PV IPP. These projects are part of Kuwait's broader effort to meet its 2030 climate goals and reduce dependence on fossil fuels. With solar irradiance levels among the highest in the region, Kuwait offers a high-potential market for solar infrastructure and energy storage solutions.

Iraq: A Just Transition Framework for Sustainable Growth

Iraq's energy transition is uniquely shaped by its need to address historical pollution while integrating renewables. The country is exploring investment scenarios aligned with its Nationally Determined Contributions and Vision 2030, emphasizing transparency and accountability in energy policymaking. A just transition framework is being developed to ensure that oil-dependent communities benefit from the shift to cleaner energy. For investors, Iraq represents a high-impact opportunity to support projects that balance decarbonization with social equity, particularly in sectors like carbon capture and sustainable agriculture.

The Broader Regional Context

The momentum in these overlooked markets is part of a larger regional trend. Governments across the Middle East are implementing robust regulatory frameworks to attract capital. For instance, the UAE's Climate Law and National Register for Carbon Credits and Saudi Arabia's Vision 2030 target of 50% renewable electricity by 2030, highlight the region's commitment to sustainability. Meanwhile, institutional investors are increasingly prioritizing energy transition projects, as evidenced by Brookfield's $5 billion fund targeting Middle Eastern energy infrastructure.

Conclusion: A Call for Strategic Investment

The energy transition in the Middle East is no longer confined to headline-grabbing nations. Jordan, Lebanon, Bahrain, Kuwait, and Iraq are demonstrating that overlooked markets can deliver both environmental impact and financial returns. For investors, the key lies in aligning capital with projects that leverage regional strengths-whether through Jordan's industrial decarbonization, Lebanon's energy access innovations, or Iraq's just transition model. As the New Energy Investor Summit Middle East 2025 emphasized, the future of energy lies in partnerships that bridge policy, technology, and capital. These "undiscovered gems" are poised to redefine the region's energy narrative in the years ahead.