China's increasingly important role in Middle East energy transition

Electric vehicles, lithium-ion batteries, and solar cells have become the "New Three" in China's exports. These green sectors also represent highlights in the China-Arab states partnership, with Chinese new energy enterprises increasingly expanding their strategic presence across the region.

The Mohammed bin Rashid Al Maktoum Solar Park in Dubai, UAE, is one of the world's largest single-site solar parks. The fourth phase of this project was constructed by Shanghai Electric. Beyond the UAE, Shanghai Electric has also undertaken the Sudair PV Project in eastern Saudi Arabia, which is expected to meet the electricity needs of 700,000 local households upon completion.

In addition to exporting goods and services, Shanghai Electric has begun establishing supply chains within the Middle East. In April 2025, Shanghai Electric signed a comprehensive cooperation package with Oman's Mawarid Group, covering wind power supply framework agreements, technical licensing, and localized factory design.

According to Meng Donghai, deputy general manager of Shanghai Electric Power Generation Engineering, the company is using its advanced manufacturing power and industry expertise to help the Middle East accelerate its energy transition and reach new heights in energy development.

Many enterprises are involved in the Middle East's energy transition in various ways, such as exporting technology, investing in local manufacturing plants, and setting up regional headquarters.

For example, China's battery giant CATL registered its regional hub in the UAE last year. The company just unveiled a service center in Saudi Arabia, which is the fourth outside of China, says Weng Kui, head of the Middle East BESS Business of CATL.

Another major player in the new energy sector, Tongwei, also attaches great importance to the Middle East. Chen Fangzhou, director of Overseas Module Business of PV Business Division of Tongwei, explains that the Middle East is a natural market for photovoltaic development due to its abundant natural resources, particularly its excellent solar irradiation.

Trina Solar, another leading enterprise in China's PV industry, built a factory in Saudi Arabia that began operations in the first quarter of 2025. This marks Trina Solar's fourth manufacturing base globally. Ni Lili, president of the solar production division of Trina Solar, says the company views the Middle East as a frontier base, because the market is highly attractive, combining prime solar resources with significant financial backing.

More and more Chinese new energy companies are transforming from exporters to partners in the Middle East, as they start to set up factories and regional headquarters in the region. That means China has become an irreplaceable partner in the energy transition of the Middle East.