While the Gulf Cooperation Council (GCC) countries have a prominent global position in terms of their hydrocarbon wealth, their rapid socio-economic development and the soaring pace of energy consumption that feeds such expansion pose real sustainability challenges. The paper explores opportunities and challenges for the region to transition to sustainable energy systems that incorporate clean and renewable energy (RE) technologies. In particular, it examines the readiness of the GCC countries to deploy solar energy solutions in the mid to long term, and looks at different conservation and diversification measures as well as solar energy experimentation undertaken in the region. Giving special attention to the electricity and water sectors, it focuses on the extent to which the GCC countries are seriously pursuing RE opportunities and the obstacles that are preventing faster development and uptake of existing solar technologies and potential solutions. Against this backdrop, it is argued that for a solar energy transition to be successful, it should be tuned to the local socio-economic priorities of the GCC region – centered on competitiveness and economic diversification. The paper tries to come up with specific recommendations on what is needed now and how to pave the way for a long-term solar energy transition that enhances both sustainability and competitiveness of the GCC economies.