Accurate assessment of wave energy potential has not been done so far in the offshore and nearshore waters of the Red Sea. In this paper, we present an assessment of wave energy resources in the Red Sea using numerical modelling. The wave conditions are simulated for 1979 to 2010 using a third generation ocean wave model, WAVEWATCH-III by forcing with CFSR winds. The model results are validated against in situ measurements in the Red Sea. The simulated wave parameters are used to estimate the wave power in the Red Sea during the 32 years – a reasonable long-term period for accurate assessment. The estimated wave power has been analyzed on a monthly, seasonal and inter-annual basis. The results indicate robust spatial and seasonal variations in mean wave power. Detailed investigations on wave energy potential have been carried out at a number of coastal locations in the Red Sea that consists of the coasts of Saudi Arabia, Yemen, Egypt, Sudan and Eritrea. Inter-annual variability in the mean wave power is also analyzed and discussed.