In the 21st century, global energy security is a critical concern. Buildings contribute to over 40% of the worldwide energy consumption, primarily due to heating and cooling, resulting in a third of greenhouse gas emissions. The residential sector accounts for 25% of global electricity consumption, and in the Arab Mashreq and Maghreb (AMM) countries, the residential sector consumes around 41% of the total electricity. Existing residential buildings constitute a significant portion of the building sector, playing a crucial role in the overall performance of the building sector. To address this issue, it is essential to invest in the energy retrofitting of existing unsustainable residential buildings. This study aims to provide a comprehensive critical review of the literature on residential buildings’ energy retrofitting trends in the AMM countries. Using a keyword-based search, 41 relevant studies were identified and critically analysed to identify gaps in the literature, benchmarking against global retrofit studies’ trends, including the absence of top-down and bottom-up physical approaches and the limited use of modern tools like BIM. Additionally, there is a significant lack of studies that present measured and verified case studies of implemented energy retrofitting projects. The study concludes with recommendations for future research to bridge the gaps in the literature.