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Global study from Pinsent Masons finds Carbon Capture and Storage dominates low‑carbon investment priorities for Middle East, but diversification is on the horizon

As energy resilience becomes increasingly critical, new research from multinational law firm Pinsent Masons shows carbon capture and storage (CCS) remains the dominant focus of low‑carbon investment across the Middle East, while diversification into complementary technologies gains momentum.

The study found 87% of venture capital investors and technology developers active in the Middle East invested in a CCS project somewhere in the world over the past year, with 80% planning to do so again in the year ahead. While the findings mirror strong global momentum behind CCS, they also reveal a market beginning to broaden portfolios to support long‑term system resilience.

The research forms part of Inside the Energy Transition, a global study drawing on insights from nearly 1,000 VC investors and low‑carbon technology developers worldwide, examining sentiment, priorities and perceived risks shaping the energy transition over the next 12 months.

Alongside CCS dominance, the data suggests that meaningful diversification across Middle Eastern low-carbon markets is already underway and tracking ahead of global engagement. E‑fuels (27%), advanced nuclear fission (40%) and geothermal (18%) all featured prominently in respondents’ current portfolios, well ahead of the global bases of 18%, 31% and 6% respectively. Looking ahead, tidal and ocean power set for a major uptick in interest, rising from negligible current activity to 26% planning investment in the next 12 months.

Commenting on the findings, energy partner, Gurmeet Kaur said: “Across the UAE, Saudi Arabia and Qatar we have seen regulatory activity that is directly encouraging investor confidence in low-carbon projects. With a number of national carbon‑capture strategies now formalised, such as the Kingdom of Saudi Arabia’s Jubail CCUS Hub, it is clear that CCS remains a key technology for the region, but the pipeline of hydrogen, e‑fuels and next‑generation nuclear projects signals a market rapidly diversifying and maturing.

Our data shows that the region is ahead of the curve in terms of investors and developers already engaging with geothermal and e-fuel projects compared to the global respondent base. The region’s pace, supported by rapid regulatory evolution, positions the Middle East as one of the key low‑carbon markets globally. As recognition of the importance of energy resilience in the region, we can expect these diversified portfolios to increasingly become the norm for investors and developers alike.”

In terms of investment flows, 14% of global respondents said they planned to expand either investment or development activity in the UAE, followed by 11% citing Saudi Arabia and 10% reporting Qatar, reflecting a number of measures introduced in the last twelve years to boost activity support net-zero trajectories across the region.

In the UAE, the launch of the updated National Energy Strategy and COP28‑aligned targets has increased visibility for CCS, hydrogen and synthetic fuels, while new federal frameworks around green finance have encouraged uptake of tools such as reduced tax rates, preferential interest rates and capital cost rebates, used by 46%, 42% and 44% of respondents in the Middle East respectively. Twelve percent of global respondents reported using incentives in Saudia Arabia or the UAE.

Overall, global respondents showed exceptionally high confidence in the region’s policy environment, with 80% agreeing that Middle East offers a supportive regulatory landscape for low‑carbon investment.

In the Middle East, appetite for carbon‑credit‑aligned technologies remains exceptionally high, with 96% of investors and 95% of developers saying they prioritise or actively build eligibility into their technologies. This comes despite concerns about regulatory divergence (64%), complex verification processes (71%), and the difficulty of keeping pace with fast‑moving carbon‑credit regulation (70%).

Middle East respondents also demonstrated strong engagement in energy optimisation technologies which have proven critical for grid stability as renewable penetration grows. The most favoured technologies include: grid optimisation (57%), long‑duration and short‑duration energy storage (both 55%) and demand optimisation (53%).

ENDS

Notes to editors:

We partnered with Censuswide to survey a sample of 964 VC investors (525 from fund sizes: >$50,000,000 active in the low carbon space) and Developers (439 companies who have developed low carbon technologies). The data was collected between 12.02.2026-24.02.2026. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council. 107 respondents were based in the Middle East.

To build a focused view of appetite for CCS, we asked Censuswide to combine responses relating to carbon capture (both pre‑combustion and post‑combustion) with those on carbon storage (including on‑site, subsea and onshore options). We then aggregated these datasets to provide a single, comprehensive picture of respondents investing in either carbon capture or storage.

The data was gathered before the outbreak of the Iran conflict. That said, the sample comprised organisations already committed to the low‑carbon market, meaning the findings are likely to be less exposed to short‑term geopolitical volatility than research drawn from the wider energy infrastructure sector.