The study explains the rationale behind the transition to a renewable energy source in one of the world's leading oil and gas producers. It also provides a comprehensive analysis of the risks that the rentier UAE may encounter in the process of shifting from a hydrocarbon dominated to a sustainable energy driven economy. In‐depth expert interviews, secondary sources, and state official websites are used for data collection and analysis. Despite the successfully implemented several record‐breaking renewable energy projects, the rentier mentality, intermittent nature of the renewables, and geopolitical implications may prevent the UAE from emerging as a clear‐cut winner in the transition. It is instrumental for the UAE to introduce policy innovations that would encourage stakeholders’ participation beyond the state and turn the system resistant to potential technical and geopolitical disruptions.