Middle East Solar Power - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the middle east solar power market size in terms of installed base is expected to grow from 26.85 gigawatt in 2025 to 31.91 gigawatt in 2026 and is forecast to reach 74.75 gigawatt by 2031 at 18.56% CAGR over 2026-2031.

This report is Segmented by Technology (Solar Photovoltaic and Concentrated Solar Power), Grid Type (On-Grid and Off-Grid), End-User (Utility-Scale, Commercial and Industrial, and Residential), and Geography (Saudi Arabia, United Arab Emirates, Oman, Kuwait, Qatar, Bahrain, Jordan, Israel, and Rest of Middle East). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

Middle East Solar Power Market Trends and Insights

National Renewable-Energy Targets And Mega-Tenders

Nationwide programs are scaling from pilot auctions to multi-gigawatt blocks, creating a stable offtake pipeline for the Middle East solar power market. Saudi Arabia's Round 6 tender in October 2025 awarded 4.5 GW across eight sites at a record 1.09682 US cents/kWh, underscoring sovereign resolve to treat solar as a baseload asset. The UAE's utility EWEC followed with a 1 GW solar plus 400 MW battery RFP that required firm power delivery, signaling a shift to dispatchable renewables. Oman's Ibri III shortlist and Kuwait's Al Dibdibah tender round out a region-wide queue topping 15 GW. Tender rules now mandate IEC-61215 and IEC-61730 certification, lifting quality standards and reducing warranty risk. Compressed bid-to-financial-close milestones of 15 months are forcing suppliers to hold inventory regionally, shortening historical procurement cycles by almost 40%.

Falling LCOE Of Mono-PERC And TOPCon PV Modules

Rapid diffusion of TOPCon has pushed module conversion efficiencies beyond 25% while narrowing price premiums to under 5% relative to PERC. JinkoSolar's USD 1 billion TOPCon joint venture with Saudi Arabia's Public Investment Fund will deliver 10 GW/year from early 2026, cutting landed costs by up to 12%. A 5 GW plant inaugurated by Desert Technologies in Jeddah in 2024 further broadens local supply. Bifacial TOPCon modules yield an additional 10% to 15% in the desert's high-albedo terrain, pushing the Middle East solar power market toward near-universal PV adoption as localized output scales and tender frameworks grant bid discounts for domestic content, lowering tariffs and deepening the cost gap with gas generation.

Grid Congestion And Intermittency Management Costs

Transmission upgrades lag utility-scale rollouts, forcing developers to fund substations that add as much as 12% to capex. Curtailment in Saudi Arabia's Eastern Province averages 8%-15% at midday, eroding internal rates of return. A 7.8 GWh battery tender awarded to Sungrow in 2024 aims for 10 GW of storage by 2030, yet lithium-iron-phosphate systems cost USD 250-350/kWh and trim IRR by 150-200 bps. The UAE's Northern Emirates mirror the challenge, with EWEC seeking 400 MW/800 MWh of storage capacity. Kuwait's Al Dibdibah timeline doubled to seven years due to the need for a dedicated 400 kV line, adding USD 180 million in grid spend. Reactive-power mandates and synchronous condensers further inflate balance-of-system budgets, tempering short-term expansion in the Middle East solar power market.

Other drivers and restraints analyzed in the detailed report include:

1. High Solar Irradiation Exceeding 2,000 kWh/m2/yr
2. GCC Cross-Border Grid Trade Initiatives
3. High Soiling And Water-Intensive O&M In Desert Climates

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Photovoltaic installations represented 96.5% of the Middle East solar power market in 2025. The Middle East solar power market size for PV surpassed 30 GW in 2026, outpacing every other generation source on new-build economics. TOPCon efficiencies above 25% and bifacial gains around 12% are lowering land-use intensity and capex per watt. JinkoSolar's 10 GW Saudi venture has already pre-sold production to ACWA Power's Haden and Al-Khushaybi projects, locking in offtake through the decade.

Concentrated solar power clings to a 3.5% niche share but is projected to expand at a 30.44% CAGR to 2031. Dubai's 950 MW MBR Phase 4 remains the flagship, combining 700 MW of CSP with 250 MW of PV and 5,907 MWh molten-salt storage. CSP's USD 4,500-5,500/kW price tag confines replication to hybrid projects or mandates for local heliostat manufacturing. Battery-paired PV now beats CSP on levelized cost in almost every scenario, steering future capacity toward photovoltaics inside the Middle East solar power market.

Complete Report Scope:

• By Technology
  • Solar Photovoltaic (PV)
  • Concentrated Solar Power (CSP)
• By Grid Type
  • On-Grid
  • Off-Grid
• By End-User
  • Utility-Scale
  • Commercial and Industrial (C&I)
  • Residential
• By Component (Qualitative Analysis)
  • Solar Modules/Panels
  • Inverters (String, Central, Micro)
  • Mounting and Tracking Systems
  • Balance-of-System and Electricals
  • Energy Storage and Hybrid Integration
• By Geography
  • Saudi Arabia
  • United Arab Emirates
  • Oman
  • Kuwait
  • Qatar
  • Bahrain
  • Jordan
  • Israel
  • Rest of Middle East

List of Companies Covered in this Report:

1. ACWA Power
2. Masdar (Abu Dhabi Future Energy Co.)
3. JinkoSolar Holding Co. Ltd.
4. First Solar Inc.
5. Trina Solar Co. Ltd.
6. JA Solar Technology Co. Ltd.
7. Canadian Solar Inc.
8. Longi Green Energy Technology Co. Ltd.
9. Sungrow Power Supply Co. Ltd.
10. Huawei Digital Power
11. Enerwhere Sustainable Energy DMCC
12. Hitachi Energy Ltd.
13. Array Technologies Inc.
14. Nextracker Inc.
15. Alsa Solar Systems LLC
16. Enviromena Power Systems
17. ACWA POWER BARKA SAOG
18. Desert Technologies (KSA)
19. Yellow Door Energy
20. TotalEnergies Renewables Middle East

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support