Sustainability Trends in the Middle East

Governments across the Middle East are enthusiastically enforcing policies to discard traditional hydrocarbon practices and embrace sustainable solutions. This comes after the region was flagged as one of the world’s most polluted parts, the top environmental issue being highly polluted air.

According to a World Health Organisation (WHO) report, Saudi Arabia had the world’s most polluted air in 2021 with PM 2.5 being the primary culprit. Following Saudi Arabia were Qatar, Kuwait, the UAE, and Bahrain. These statistics have resulted in governments framing new regulations and policies towards climate action, striving to lower the trends.

Industries are compelled to follow the guidelines and aid a better and safer economy. In addition, there is a steep rise in investment and support for clean technologies and renewables. Today, investors are making educated and sustainable bets through sophisticated, forward-looking approaches, encompassing the sustainability of business models. Let us unfold some of these sustainability trends adopted in the Middle East.

Renewable Energy

Since 2013, the Middle East has invested a considerable portion of $1 trillion in renewable energy. The investment includes a Solar Park, said to lower the cost of renewable energy and increase the ratio of renewables in the region. Dubai Electricity and Water Authority (DEWA)’s efforts for clean energy are in line with the Dubai’s Clean Energy Strategy 2050. Dubai’s Net Zero Carbon Emissions Strategy 2050 aims to provide 100% of Dubai’s energy production capacity from clean energy sources.

During Expo 2020 Dubai, the Middle East as a collective revealed a range of investments in renewable and solar energy, including solar farms and E-trees. A standing example of this development is The Terra Pavillion. It comprises a monumental solar array, functioning as a shade structure and water collector. Further, Saudi Arabia’s futuristic mega city NEOM will run on 100% renewable energy and 95% of land will be preserved for nature.

Circular Economy

The circular economy model involves sharing, leasing, reusing, repairing, and recycling existing materials. The intent is to extend the lifecycle of products. The UAE produces the highest amount of water per capita, at 2.1 kg per day, followed by Saudi Arabia and Kuwait, with 1.7kg and 1.5kg per capita each day, respectively. The circular economy model stands to save nearly 138 billion dollars by 2030 across Middle Eastern countries.

This model renders incentives for using healthy materials, leading to non-toxic and renewable energy. The initiatives shall help stop nearly 13,000,000 tonnes of plastic from polluting oceans. Moreover, this practice ensures that landfills can be reduced by about 2,000,000 tonnes yearly. The UAE Government is working towards developing a solar energy project comprising nearly 300 football fields.

Ports And Logistics

DP World is prioritising sustainability and impact on the people, communities and environment as it operates on a day-today basis. In DP World’s Chief People Officer Maha Al Qattan’s words: “If we can improve ocean health, provide more equitable water access and connect more families to reliable sanitation, we can provide a critical foundation for improved economic growth, human rights and resilience to the effects of climate change.”

Similarly, Aidrivers has begun a proofof-concept initiative with AD Ports Group to explore opportunities regarding the deployment of autonomous transport solutions at the group’s ports and termi- nals. Saudi Ports Authority (Mawani) has launched the Smart Ports initiative that aims to automate operations in Saudi ports using 5G Technologies. Finally, the UAE’s Ras Ghanada Coral Reef is a true embodiment of sustaining marine treasures, where Abu Dhabi Ports has invested US$239.61 million to build an 8 km breakwater as well as a trestle bridge to protect and preserve the reef.

Sustainable Finance

Green finance has been a top priority for the GCC (Gulf Cooperation Council) countries. The overarching objective is to diversify regional economies. Another aspect is the rise of new products such as weather derivatives and catastrophe bonds with new assets such as green buildings. These help corporations better monitor and integrate risks in their decision-making processes and repertoire of products.

Note that for the Arab world, Islamic investments are already well-established. Hence, socially responsible and sustainable opportunities render a natural fit. In this way, sustainable financing can make GCC countries a global hub for new technologies focused on green solutions. Another aspect is the launch of new investment benchmarks that inform and educate investors on Shariah-compliant and sustainable opportunities, including the S&P/Hawkamah UAE ESG Index.

AUTOMOBILES (EVS)

As per Mordor Intelligence, in 2021, the Middle East Electric Vehicle market was valued at US$40.25 million and is expected to reach US$93.1 million by 2027. The effects of the pandemic are inevitable, and the Middle East market is no exception. However, the EV market is up for revival. The UAE and Saudi Arabia have successfully taken a proactive stance. The Saudi Arabian Standards Organisation (SASO) plans to issue regulations on the use of electric vehicles.

Dubai has also launched several initia- tives to encourage sustainable choices over the past few years. For example, it plans to convert 25% of the city’s trips into driverless journeys by 2030. Saudi Arabia too has signed an MoU with the UK to reduce carbon emissions in line with the Saudi Vision 2030.

Real Estate

In recent years, the Middle East has put considerable effort toward developing green buildings. Several sustainable cities are under development, including NEOM, the Zero Carbon city, and Masdar City. UAE also launched its first sustainable real estate investment trust in 2021. The Middle East advocates green trends such as carbon-neutral communities, public transport, no-car cities, self-sustaining urban planning, and on-site water treatment plans.

The United Arab Emirates and Qatar spearhead sustainability with the highest share of green buildings. Besides, Qatar’s Global Sustainability Assessment System (GSAS) is among the most comprehensive rating systems in the world. On the other hand, Abu Dhabi’s Pearl Rating System (PRS) is a niche in itself. The Middle East building industry is adopting widespread use of eco-friendly architecture and sustainable construction practices. The Masdar Institute of Science and Technology, Climate Change Initiative Building (Dubai), and World Trade Centre (Bahrain) are some prominent green buildings. Another noteworthy development is UAE’s Masdar City securing US$200 million to expand its green real estate portfolio.

TRAVEL & TOURISM

Today, the Middle East region comprises beautiful places that support sustainable tourism. Mentioned below are some of the best sustainable tourist places.

• Amman, Jordan Jordan has some impeccable sustainable tourist spots. Amman, the capital city, resides close to the Ajloun Forest Reserve and the Dibeen Forest Reserve. The city also has one of the best-preserved

Roman-era sites. Also, the northern area of Jordan is home to the award-winning Feynan Ecolodge, making it an ecstatic place for a sustainable vacation.

• Marrakech, Morocco

The city of Marrakech is committed to green tourism. It was awarded ISO 14011 certification for its sustainable tourism efforts. Marrakech follows the Moroccan Sustainable Tourism Charter. More so, over 72 Moroccan accommodations have been awarded the Green Key for environmental responsibility. Of these, 30 are in Marrakech.

• Masdar City, UAE

Masdar is the first known eco-city in the world. The city obtains 100% of its energy from renewable sources. Also, it reduces its water consumption by using treated sewage for irrigation and recycling wastewater. Masdar Park is the highlight. Also enlivening the city is the captivating “Tree of Light”, made using recycled building materials, which changes colours when touched.

Final Thoughts

Innovations in sustainability trends are undoubtedly taking care of the environmental issue and contributing to the region’s economy. So, it is a win-win situation for all. With governments, industries, and people aligned to provide clean and breathable air to future generations, a healthy and net zero environment in the Middle East is not a far-fetched dream.