Over the past year, US$3.6 billion flowed from Middle Eastern investors into global climate tech, a 28% decline from 2023,according to PwC Middle East’s recent 2024 Climate Tech report. Investment into local climate tech ventures also dropped sharply, falling 41% to US$114 million, compared to US$193 million in the previous year. Despite these declines, key sectors, including AI-driven autonomous technologies show promising growth, highlighting the region’s transformative potential in advancing climate innovation.
The Middle East invested US$2.4 billion globally in AI-driven climate tech in 2024, nearly 2.5 times the amount invested the year before. Autonomous vehicles dominated these investments, accounting for 96% of this total, reflecting the region's ambition to redefine the future of mobility. AI-related climate-tech companies in the Middle East also attracted US$47.3 million in global investments in 2024, a significant increase from the US$5.4 million raised in 2023.
The 2024 PwC Pitchbook analysis also highlights the active participation of Middle East sovereign investment funds (SIFs) in the global climate tech landscape. Although the number of unique Middle East investors declined from 98 to 47 over the past year, they collectively invested US$3.55 billion globally in 2024. Majority of these deals involved US-based innovators (21 deals), followed by UAE-based climate tech firms (15 deals), underscoring the pivotal role Middle Eastern SIFs continue to play in advancing global climate tech innovation.
Despite a tough investment climate, the region’s strategic focus on mobility and AI reflects a growing maturity in identifying and pursuing high-impact opportunities. However, closing funding gaps in underfunded sectors and fostering innovation locally are vital to advancing net zero ambitions and ensuring long-term sustainability.
