China-MENA Energy Engagement
2026 Status Report

China’s renewable energy engagement across the Middle East and North Africa (MENA) continues to expand despite heightened geopolitical instability resulting from the Iran war. While hydrocarbons historically have formed the foundations of China-MENA economic relations, renewable energy, green technology manufacturing, critical minerals, and industrial cooperation have become increasingly important components of bilateral engagement and are reshaping the relationship. This reflects both China’s efforts to internationalize its renewable energy industry and MENA governments’ ambitions to diversify their economies, strengthen energy security, and accelerate domestic energy transitions. Engagement is increasingly differentiated across the region.

The Gulf Cooperation Council (GCC) states, particularly Saudi Arabia and the United Arab Emirates, have emerged as China’s principal partners for renewable energy manufacturing, industrial cooperation, and technology deployment. Egypt has consolidated its position as a regional manufacturing and export hub centered on the Suez Canal Economic Zone, while Morocco continues to attract investment in renewable energy generation and green industrial development. Elsewhere, countries—including Jordan and Tunisia—remain focused primarily on utility-scale renewable deployment, supported by external finance and Chinese engineering expertise, while political instability and financial constraints continue to limit such opportunities in Lebanon, Libya, Syria, and Yemen, where solar photovoltaics (PV) and batteries distributed by international organizations, and predominantly imported from China, play a larger role.

The nature of Chinese energy engagement has also evolved. Having initially been dominated by hydrocarbons trade, engagement in renewable energy has shifted markedly in character. Earlier cooperation was largely characterized by engineering, procurement and construction contracts, and project delivery. Increasingly, Chinese companies are establishing joint ventures, manufacturing facilities, and industrial partnerships that support local production of solar PV technologies, battery energy storage systems, and other clean energy technologies. This reflects a broader shift towards localized manufacturing and longer-term industrial cooperation alongside continued exports of Chinese technology and equipment.

Although energy engagements between China and MENA states have been characterized by an increased scale and pace of renewable energy engagements, several structural obstacles to boosting renewable energy expansion remain. Many MENA countries continue to face financing constraints, limited domestic industrial capacity, regulatory uncertainty, and insufficient electricity transmission infrastructure. Grid modernization, battery storage, and smarter electricity networks will be essential to support higher levels of renewable energy deployment. Financial conditions also vary considerably across the region, with lower-income economies relying heavily on concessional finance and foreign investment, while GCC member states increasingly seek to leverage sovereign capital and international partnerships to accelerate industrial development.

China’s growing role in regional renewable energy also intersects with wider geopolitical and economic dynamics. Competition between China and the United States, evolving critical mineral supply chains, and regulatory frameworks such as the European Union’s Carbon Border Adjustment Mechanism are likely to influence future patterns of investment and industrial cooperation. At the same time, continuing regional instability has highlighted the importance of resilient supply chains and diversified energy systems.

In summary, China has established itself as a leading partner in MENA’s renewable energy transition through investment, trade, project delivery, manufacturing and industrial cooperation. Although the scale, pace and typology of engagement differ across countries, current trends indicate that renewable energy cooperation, green technology manufacturing, electric vehicle trade, and battery construction will increasingly define China-MENA relations over the coming decade.