Middle East and Africa Hydrogen Market Report - 2026

Despite the high potential of the low-carbon hydrogen market in the MEA, recent market challenges have highlighted the uneven pace of regional development. Gulf states are leveraging extensive sovereign wealth and existing infrastructure to lead in project execution, while Africa's initial ambition has been winded by infrastructure gaps, an over-reliance on concessional finance, and sluggish demand from purported export markets.

Project progression remains slow across MEA, with 83% of its capacity being held in the feasibility stage. The slower-than-anticipated development of African mega-projects has been the primary driver, as developers reassess timelines amid rising borrowing costs and elevated risk premiums associated with projects in emerging markets. Weak demand signals have further contributed to delays.

In contrast, the Middle East benefits from established domestic industrial demand and extensive oil and gas expertise, enabling a greater share of projects to reach later development stages.

Transport remains the dominant end-use industry for low-carbon hydrogen in MEA, with approximately 5mtpa of capacity expected to be allocated to this application

Ammonia production has also become a key focus area for MEA's low-carbon hydrogen, given its importance in marine shipping, fertilizers, and as a carrier for transporting and storing hydrogen.

Recent hydrogen policy developments in the region have been focused on the Middle East and a small number of African countries, highlighting a narrow yet growing regional low-carbon hydrogen landscape. However, overall policy support remains insufficient, with a lack of notable subsidies, loans, and tax incentives to support the scaling of production necessary to achieve the region's 2030 capacity outlook.

Key Highlights

• Over the past year, the global hydrogen market has experienced significant headwinds. For the MEA region, the 2030 outlook decreased by 15% from the previous year.
• Project progression remains slow across MEA, with 83% of its capacity being held in the feasibility stage. The slower-than-anticipated development of African mega-projects has been the primary driver.
• In contrast, the Middle East benefits from established domestic industrial demand and extensive oil and gas expertise, enabling a greater share of projects to reach later development stages.
• As of 2026 year-to-date, the Middle East holds the third-largest active capacity, following North America and Asia.
• Transport remains the dominant end-use industry for low-carbon hydrogen in MEA, with approximately 5mtpa of capacity expected to be allocated to this application, based on current project announcements.

Scope

• A snapshot of the low-carbon hydrogen market
• Major hydrogen developments in MEA in 2025
• MEA's hydrogen market in a global context
• Key regional projects
• Hydrogen competitiveness drivers in MEA
• Leading countries in MEA for low-carbon hydrogen production
• Key companies and future leaders operating in MEA's hydrogen market
• MEA's low-carbon hydrogen capacity scenarios
• Intended use sectors for MEA hydrogen
• Hydrogen policies, strategies, and funding initiatives related to hydrogen in MEA
• MEA hydrogen deals

Reasons to Buy

• Identify the market trends within the region and key players in hydrogen technologies.
• Develop market insight of current, in development and announced capacity and latest trends of the sector.
• Understand the region's different scenarios for 2030 based on the likeliness of the projects.
• Look at the demand in key application areas for the country.
• Facilitate the understanding of how and where the market is growing as it is rapidly scaling up to position as one of the main topics of the international and national agenda.