Renewable Energy Policies in the Gulf countries: A case study of the carbon-neutral “Masdar City” in Abu Dhabi

The Gulf countries are largely dependent on exporting oil and natural gas for their national budgets. They mainly use domestic fossil fuels for their domestic energy supply. In spite of favorable geographic conditions, especially for solar energy, renewable energies are still a niche application. Abu Dhabi, besides Dubai, the most important emirate in the United Arab Emirates (UAE), has now started a process of “transforming oil wealth into renewable energy leadership,” and has set the long-term goal of a “transition from a 20th Century, carbon-based economy into a 21st Century sustainable economy.” This article is a case study about “Masdar City,” a planned carbon-neutral town in Abu Dhabi. The article describes the key characteristics of Masdar City, analyses the drivers behind the project, identifies the main actors for its implementation, and seeks obstacles to creation and development as well as the policy behind Masdar City. Finally, a first judgment of possible diffusion effects of the project is done.