Abu Dhabi is emerging as one of the world’s most competitive locations for the hydrogen industry, supported by low production costs, expanding industrial capacity and significant export opportunities, according to a new report by the Abu Dhabi Chamber of Commerce and Industry (ADCCI), Arabian Business reported.
The report said the emirate is moving from policy planning to commercial-scale projects at a time when many global hydrogen markets are witnessing slower progress because of policy uncertainty.
Published in June 2026 by ADCCI’s Business Intelligence Department, the report titled Abu Dhabi’s Positioning in the Hydrogen Economy identifies the emirate as one of the strongest contenders in the global hydrogen market.
According to the report, the UAE’s abundant solar resources, reliable electricity infrastructure, well-developed industrial base and relatively low cost of capital are expected to make it one of the world’s lowest-cost producers of hydrogen and ammonia by 2030.
These advantages are expected to support exports to major future markets, including the European Union, Japan and South Korea.
Abu Dhabi has set a target of producing 1.4 million tonnes of low-carbon hydrogen annually by 2031 as part of its clean energy strategy.
The report noted that the global hydrogen industry is increasingly shifting from exports of pure hydrogen to higher-value products such as green ammonia, methanol, synthetic fuels and Sustainable Aviation Fuel (SAF).
To capture these opportunities, Abu Dhabi is developing projects to produce methanol and SAF using green hydrogen and captured carbon dioxide. It is also exploring e-methane production, bunkering infrastructure, green ammonia and synthetic fuel projects.
According to ADCCI, these initiatives could generate billions of dirhams in export revenues by 2029 while creating new jobs and helping reduce carbon emissions.
The report also pointed out that only about 12% of low-carbon hydrogen projects worldwide have secured confirmed buyers, highlighting customer demand as one of the biggest challenges facing the sector.
It said Abu Dhabi’s focus on customer-backed projects provides a practical model for accelerating investment. One example is the EMSTEEL-Masdar green steel pilot project, described as the first hydrogen-based steel project in the Middle East and North Africa (MENA), which is already operational. The report also highlighted supply agreements with Modon and Aldar to provide green steel for sustainable construction projects.
ADCCI said long-term purchase agreements, particularly from industries willing to pay a premium for low-carbon products, will be critical to expanding the hydrogen economy.
Beyond hydrogen production, the report identified opportunities for Abu Dhabi to manufacture and export hydrogen technologies and equipment.
Industrial zones such as KEZAD, combined with logistics facilities at Khalifa Port, position the emirate as a regional manufacturing and export hub for hydrogen-related technologies, the report said.
By 2029, export opportunities are estimated at around AED2.3 billion for green hydrogen production equipment, AED1.2 billion for port infrastructure components and AED1.3 billion for hydrogen blending projects.
Potential export markets include China, Germany, the United Kingdom, the United States and Australia.
The report also highlighted a 2023 agreement between ADNOC, John Cockerill Hydrogen and Strata Manufacturing to produce electrolysers in the UAE for domestic use as well as exports, describing it as the first initiative of its kind in the region.
According to ADCCI, the report is part of its efforts to provide data-driven insights to support private sector growth and strengthen Abu Dhabi’s long-term economic diversification strategy.
