Carbon capture and storage (CCS) remains the leading focus for low carbon investment in the Middle East, while diversification into other technologies is accelerating, according to a global study by Pinsent Masons.

The “Inside the Energy Transition” report found that 87 per cent of venture capital investors and developers in the region invested in CCS projects in 2025, with 80 per cent planning further investment.

However, portfolios are broadening, with strong activity in e-fuels (27 per cent), advanced nuclear fission (40 per cent) and geothermal energy (18 per cent), all ahead of global averages.

Interest in tidal and ocean power is also expected to rise sharply to 26 per cent over the next year.

The UAE, Saudi Arabia and Qatar continue to attract growing investment, supported by national net-zero strategies and green finance frameworks. 

Globally, 14 per cent of respondents plan to expand activity in the UAE, followed by 11 per cent in Saudi Arabia and 10 per cent in Qatar.

The report highlights strong confidence in the region’s policy environment, with 80 per cent of respondents viewing the Middle East as supportive for low carbon investment. 

Adoption of carbon credit aligned technologies is also high, with over 95 per cent prioritising eligibility, despite regulatory and verification challenges.