The global shift towards decarbonization and sustainable energy systems presents a profound challenge to the Gulf Cooperation Council (GCC) countries, particularly Saudi Arabia, whose economies have long been anchored in hydrocarbon wealth. The complex dynamics of the energy transition in the Gulf region, focusing on how this transformation influences Saudi Arabia’s geopolitical standing. While the GCC countries, including the UAE, Qatar, Oman, Kuwait, and Bahrain, are pursuing ambitious diversification strategies, ranging from large-scale renewable energy projects to investments in green hydrogen, carbon capture, and climate diplomacy, structural challenges such as financial constraints, governance complexities, and human capital readiness continue to impede progress. Saudi Arabia, as the world’s largest oil exporter and a pivotal player in OPEC+, faces unique pressures to balance economic resilience with global climate commitments. Its Vision 2030 initiative and strategic investments in both traditional hydrocarbons and emerging clean technologies reflect a dual approach aimed at maintaining geopolitical influence while preparing for a post-oil future. The current study analyzes the geopolitical implications of these s strategies, highlighting competitive dynamics within the GCC, the evolving roles of national oil companies and sovereign wealth funds, and the integration of clean energy into domestic and global markets. The findings suggest that while the Gulf countries are making strides towards economic diversification and climate adaptation, their continued dependence on oil revenues and complex regional rivalries pose significant challenges to achieving long-term sustainability and geopolitical stability in a rapidly evolving global energy landscape.