Although the outlook for renewable energy in the Middle East is positive, there are several risks that can derail progress towards that front.
These include the entrenched subsidization of non-renewables; underdeveloped regional credit markets unable to deal with the unique nature of renewables; and policy preference for large projects that fulfill fast-growing demands in contrast to smaller-scale renewables projects. To seize the potential of renewables in the Middle East, policymakers must employ a deliberate policy of risk mitigation and aim for the right pace of development.