Gulf Co-operation Council (GCC) governments can help encourage reliance in renewables by setting specific targets and providing a framework to achieve them.
That’s the view of Nina Skero, Economic Adviser at the Institute of Chartered Accountants in England and Wales (ICAEW).
She added Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates have grown as “major energy suppliers” but demand in their own countries is increasing as well.
Ms Skero in the Economic Insight: Middle East Q3 2015 report said: “This has motivated governments and businesses in the region to invest in alternative energy sources.
“However despite these recent improvements and initiatives, the GCC’s energy efficiency remain low compared to global benchmarks.”
She added to be more efficient GCC governments can encourage “rational energy use” by scrapping fuel subsidies.
Ms Skero said: “The current low level of oil prices provides the perfect opportunity for governments to cut subsidies expanding with a minimum impact on consumers.
“Still even if energy prices drastically increase in a short term, householders and businesses will know that going forward they will not be entire shielded from movements in the global oil price.”