Green Hydrogen: Saudi Arabia, UAE, Oman, and Egypt Lead the Way

A mobile hydrogen-powered unit at Techno Valley Science Park in Dhahran, Saudi Arabia. (Reuters)
A mobile hydrogen-powered unit at Techno Valley Science Park in Dhahran, Saudi Arabia. (Reuters)
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Green Hydrogen: Saudi Arabia, UAE, Oman, and Egypt Lead the Way

A mobile hydrogen-powered unit at Techno Valley Science Park in Dhahran, Saudi Arabia. (Reuters)
A mobile hydrogen-powered unit at Techno Valley Science Park in Dhahran, Saudi Arabia. (Reuters)

The Arab Gulf and Egypt have joined the global race to secure a share of the green hydrogen industry, either through production or through long-term contracts to ensure abundant supplies, amidst worldwide energy sector upheavals.

This aligns with their ongoing efforts to transition their economies to be more environmentally friendly.

Green hydrogen is currently seen as a significant investment magnet, with its market expected to reach a value of $1.4 trillion annually by 2050, according to a report by Deloitte.

The EU has allocated billions of dollars to produce hydrogen both within and outside its member states.

The bloc anticipates an annual need of approximately 20 million tons; of which, it will produce 10 million. The remainder will be imported from abroad, including sources like Egypt and Mozambique.

Similarly, Japan is heavily investing in green hydrogen. It has committed to spending over $100 billion over the next fifteen years to augment supply by securing domestic and foreign sources.

By 2030, Japan anticipates needing three million tons annually, an increase from the current two million. This demand is projected to leap to 12 million by 2040.

Moreover, hydrogen has the potential to play a pivotal role in helping Gulf Cooperation Council (GCC) countries achieve their net-zero objectives.

According to PwC, the swift transition to green hydrogen offers GCC nations the opportunity to pioneer in this emerging industry. Green hydrogen could serve as a versatile and primary energy source in a carbon-free future.

PwC suggests that the GCC states have a competitive edge in green hydrogen production due to the abundance of low-cost solar energy. Additionally, the availability of land and port infrastructure within their special economic zones further enhances these natural advantages.

For GCC countries, developing a hydrogen supply chain is of paramount importance, especially since the majority of projects are export-oriented.

Saudi Arabia is constructing the world’s largest green hydrogen production facility in the future mega-city NEOM, located in the Kingdom’s northwest.

With an anticipated cost of $500 billion, the initiative is poised to position the Kingdom prominently on the global map for clean energy transition.

In July, Saudi Arabia announced its intention to join the Global Hydrogen Trade Forum, set to be launched by the Clean Energy Ministerial (CEM). The group is an international coalition formed to advocate for clean energy policies. The forum aims to bring together hydrogen importing and exporting countries to discuss international trade of this fuel.

Also in July, the UAE, which is set to host the UN Climate Change Conference (COP 28) later this year, approved a hydrogen strategy that aims to produce 1.4 million metric tons of hydrogen annually by 2031, positioning the country among the world’s top ten hydrogen-producers.

Oman is also making steadfast strides toward entering the green hydrogen market. The sultanate aims to diversify its energy sources by relying on hydrogen and increase the renewable energy contribution to its national electricity mix to 30% by 2030, with plans to raise this to about 39% by 2040 as part of its carbon neutrality goals.

Egypt, meanwhile, is targeting a production of 5.8 million tons annually by 2024. Out of this, 3.8 million tons are earmarked for export each year, representing 5% of the global green hydrogen market.



China Hits Back at US and Will Raise Tariffs on American Goods from 84% to 125%

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura
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China Hits Back at US and Will Raise Tariffs on American Goods from 84% to 125%

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura

China announced Friday that it will raise tariffs on US goods from 84% to 125% — the latest salvo in an escalating trade war between the world's two largest economies that has rattled markets and raised fears of a global slowdown.

While US President Donald Trump paused import taxes this week for other countries, he raised tariffs on China and they now total 145%. China has denounced the policy as “economic bullying" and promised countermeasures. The new tariffs begin Saturday.

Washington's repeated raising of tariffs “will become a joke in the history of the world economy,” a Chinese Finance Ministry spokesman said in a statement announcing the new tariffs. “However, if the US insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”

China’s Commerce Ministry said it would file another lawsuit with the World Trade Organization against the US tariffs.

“There are no winners in a tariff war,” Chinese leader Xi Jinping said during a meeting with the Spanish Prime Minister Pedro Sanchez, according to a readout from state broadcaster CCTV. “For more than 70 years, China has always relied on itself ... and hard work for development, never relying on favors from anyone, and not fearing any unreasonable suppression.”

Chinese Foreign Minister Wang Yi on Friday said China stands firm against Trump’s tariffs not only to defend its own rights and interests but also to “safeguard the common interests of the international community to ensure that humanity is not dragged back into a jungle world where might makes right.”

Wang made the remarks when he met Rafael Mariano Grossi, director general of the International Atomic Energy Agency in Beijing. Wang said China will “work together with other countries to jointly resist all retrogressive actions in the world.”

Trump's on-again, off-again measures have caused alarm in stock and bond markets and led some to warn that the US could be headed for a recession. There was some relief when Trump paused the tariffs for most countries — but concerns remain since the US and China are the world's No. 1 and No. 2 economies, respectively.

“The risk that this escalating trade war tips the world into a recession is rising as the two largest and most powerful countries in the world continue to punch back with higher and higher tariffs,” Jennifer Lee, a senior economist at BMO Capital markets, wrote Friday. “No one truly knows when this will end.”

Chinese tariffs will affect goods like soybeans, aircrafts and their parts and drugs — all among the country's major imports from the US Beijing, meanwhile, suspended sorghum, poultry and bonemeal imports from some American companies last week, and put more export controls on rare earth minerals, critical for various technologies.

The United States' top imports from China, meanwhile, include electronics, like computers and cell phones, industrial equipment and toys — and consumers and businesses are likely to see prices rise on those products, with tariffs now at 145%.

Trump announced on Wednesday that China would face 125% tariffs, but he did not include a 20% tariff on China tied to its role in fentanyl production.

White House officials hope the import taxes will create more manufacturing jobs by bringing production back to the United States — a politically risky trade-off that could take years to materialize, if at all.