Transitioning to low-carbon energy systems is crucial for sustainable development, particularly in oil-rich developing countries (ORDCs) that face intertwined economic and environmental challenges. This review uses the PRISMA methodology to systematically assess the current state and prospects of low-carbon thermal electricity generation and utilization technologies in ORDCs. The study emphasizes clean thermal technologies such as biogas, biofuels, biomass, hydrogen, and geothermal energy, focusing on solutions that are technically feasible, economically viable, and efficient in combustion processes. These nations face significant challenges, including heavy reliance on fossil fuels, transmission losses, and financial constraints, making energy diversification urgent. The global shift towards renewable energy and the need to mitigate climate change presents an opportunity to adopt low-carbon solutions that align with Sustainable Development Goals related to energy access, economic growth, and climate action. This review aims to (1) evaluate the current state of low-carbon thermal electricity technologies, (2) analyze the technical and economic challenges related to combustion processes and energy efficiency, and (3) provide recommendations for research and policy initiatives to advance the transition toward sustainable thermal energy systems in ORDCs. The review highlights practical approaches for diversifying energy sources in these nations, focusing on overcoming existing barriers and supporting the implementation of clean thermal technologies.