This paper provides a comprehensive analysis of the potential for hydrogen energy to become the leading energy source in the Kingdom of Saudi Arabia (KSA). As hydrogen emerges as a viable energy source, demand and investment are increasing significantly, particularly in nations with vast deposits of renewable energy resources. Moreover, green energy is manufactured using renewable sources like wind and solar. During electrolysis, water molecules are split into hydrogen and oxygen without carbon dioxide emission. The prospect of green hydrogen generation in Saudi Arabia is necessary because of its abundant energy resources. Moreover, the Saudi government has already made substantial investments in the renewable energy sector, and its determined renewable energy goals show a solid dedication to sustainable development. Saudi Arabia benefits from having extensive desert lands that can be utilized for building massive solar farms. The demand for hydrogen energy is at its initial stages and is expected to increase due to the demand for green energy. There is a need to assess economies of scale and environmental sustainability while considering the storage of green hydrogen. Nonetheless, the production of green hydrogen still faces obstacles, such as the current high production costs and political and regulatory challenges. Therefore, this paper provides a historical overview of hydrogen energy in Saudi Arabia, its demand, potential resources for its production, and current challenges.