The Gulf states, being rich in hydrocarbons, possess some of the world's best solar resources but have shown low deployment of renewable power, including solar. The UAE has been an exception, leading in renewable energy generation. Strategic and economic objectives, along with favorable enabling conditions, have been key drivers for renewable energy development in the Gulf. However, despite these conditions, solar power deployment has not reached desired levels across the GCC. The research delves into regulatory regimes' impact on solar deployment, shedding light on the role of policies in shaping the energy landscape. By analyzing case studies and data from interviews with solar power developers, the paper provides insights into the barriers and trade-offs hindering higher levels of solar deployment. The study emphasizes the importance of business-state relations in addressing challenges and maximizing solar power utilization for economic diversification and sustainable energy transition in the Gulf region.