From Oil to Orbit: Why the Middle East is Betting Big on Space

For years, the Arabian Gulf has been all about oil. But oil won’t last forever, and the region knows it. Now, it’s aiming higher, literally, by investing in space.

No Arabian Gulf nation comes to mind quicker than the United Arab Emirates. When the UAE launched its probe Hope in 2020, it became the fifth nation to reach Mars: a feat that was accomplished with approximately $200 million. This price tag is significantly lower than that of comparable NASA missions, such as the MAVEN mission, which had similar objectives of exploring Mars and cost around $670 million in 2013. In addition to the UAE, Saudi Arabia’s Vision 2030 explicitly names space as a growth center, as there are talks to implement the space sector in the proposed smart city NEOM. This efficiency, coupled with political ambitions, signals that the Middle East is no longer a peripheral player in space.

So, what exactly is driving this shift?

Diversifying the Portfolio

The clearest motivation behind looking to the stars is for diversification from oil wealth. Hydrocarbons still account for the majority of government revenues in the Arabian Gulf. In Saudi Arabia, nearly 60% of state revenue came from oil in 2024. When the price of oil plummeted to $30 a barrel during 2020, Saudi Arabia’s deficit ballooned, endangering its domestic spending programs. This scare became the catalyst for the rapid investments in space and technology in the following years.

Soft Power & Diplomacy

The UAE’s Hope mission was made possible through strategic partnerships with U.S. universities, which provided technical expertise and training, and by leveraging existing, cost-effective launch platforms like Japan’s H-IIA rocket. This approach allowed the UAE to minimize cost and risk while accelerating its entry into space. This may also be interpreted as a strategy for fostering soft power on the world stage. Through these partnerships, the United Arab Emirates managed to strengthen Western relationships while also elevating its image as a pan-Arab leader in the MENA space race. Astronauts Hazza Al Mansouri (2019) and Sultan Al Neyadi (2023) are symbols of the UAE’s broader commitment to space. Al Neyadi is the UAE Minister of State for Youth Affairs, which translates to a cultural idea that Arab youth can and should aspire to careers in the space sector.

It is also important to consider the role these governments assign to women in space. In 2022, Sara Sabry of Egypt became the first Arab woman in space. The very next year, Rayyanah Barnawi from Saudi Arabia became the first Arab woman to travel to the International Space Station. The latest news comes from 2024 with the UAE’s Nora al-Matrooshi becoming the first woman to graduate from NASA’s astronaut training program. In a region often defined by conflict and stereotyped as lacking women’s rights, space exploration gives these countries a chance at flipping the script and minimizing these narratives: a ripple effect that could make their ever-growing tourism sector more inviting for Western travelers.

Optimal Geography & Digital Infrastructure

The geography of the Middle East has always shaped global politics. After all, it straddles three continents, encompasses the Suez Canal, and is responsible for the Strait of Hormuz and, by association, 20% of global oil flows. This region has been central to the energy economy of the 20th century. But in the 21st century, strategic locations are being reinterpreted through the lens of space and digital infrastructure. When it comes to space, geography still matters. Countries like Oman are being pitched as launch facilities because of the flat environment and close vicinity to the equator, which drastically reduces fuel costs. Satellites are becoming an increasingly critical aspect of national security and finance operations. Arabian Gulf states are beginning to market themselves as data hubs for Eurasia and Africa. Without this pivot, the geography of these oil-rich states becomes a curse, and the Middle East risks becoming a relic of the old oil economy.

A New Space Race

Unlike powers such as China, Russia, or the United States, Gulf states such as the UAE and Saudi Arabia often benefit from centralized leadership. This allows them the freedom to pivot more rapidly into emerging sectors like space and digital infrastructure. While not entirely free from bureaucracy, their governance structures can enable faster execution of these ambitions. Given this flexibility, it’s reasonable to expect that GCC nations could advance their space ambitions more effectively than traditional government-led programs in countries like the United States.

The MENA space race is only just beginning. GCC leaders recognize that while oil wealth sustained their influence for the last century, it won’t secure the next. Thanks to geography, ambition, and no shortage of oil wealth in sight, Gulf states are confident that they can outpace Western powers by securing influence in space diplomacy. The next century won’t be won underground. It’ll be won above the atmosphere, and the Gulf intends to get there first.