Sustainability, defined as the capacity to safeguard and conserve resources for both the current and future generations, has evolved from a mere idealistic concept to an increasingly common principle in contemporary society.
This is especially true for the United Arab Emirates, where the conducive regulatory framework has established it as a goldmine for emerging entrepreneurs who want to build a better, more meaningful and safer world.
The UAE started cementing its sustainability credentials in 2015. That’s when Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, unveiled the Energy Strategy 2050.
“The strategy aims to provide 75 percent of the emirate’s energy through clean energy sources by 2050,” Sheikh Mohammed said. Sharing his vision for Dubai, he noted that one of the goals of the strategy was to transform the country’s most populous city into one with the smallest carbon footprint in the world.
Perfect strategy
The UAE’s economy is growing at an incredible pace. To cater to this demand, the country announced plans to triple the share of energy from renewable sources. It also plans to invest between AED 150 and AED 200 billion before the end of the decade to meet its growing energy demands.
Read: Sustainability and innovation on spotlight at Global Media Congress
The UAE has also declared 2023 as the “Year of Sustainability,” under the theme, “Today for Tomorrow.” The idea behind the move is to encourage and promote initiatives, activities and events that promote sustainability.
Hydrogen of late has caught the fancy of the sustainability world. Interestingly, hydrogen occupies a pivotal role in the UAE’s commitment to shifting away from fossil fuels to greener alternatives. Initiatives such as the National Hydrogen Strategy and the Green Hydrogen project help the UAE underline its position as a global leader when it comes to producing low-carbon hydrogen.
The Dubai Electricity and Water Authority has emerged as a key player in helping transition the UAE into a green economy. It spearheads a number of initiatives to increase the country’s reliance on clean energy. It does so with a special emphasis on the efficient production and consumption of water.
One notable DEWA project is the AED 500 million, 5 gigawatt Mohammed bin Rashid Al Maktoum Solar Park. This is the world’s largest single-site solar project. Producing just 13 MW in 2013, the park was producing 800 MW in 2017. By 2030 the park aims to generate 5,000 MW of electricity.
The right start
To put its sustainability vision into practice, the UAE is adopting a green-first approach at the regulatory level. This helps shape the growth of cleantech startups and also acts as a catalyst for other innovative environmental solutions.
Read: UAE gathers experts to intensify sustainability initiatives
Unsurprisingly the sustainability landscape in the country is replete with companies that help elevate its green credentials. Their efforts cover a wide range of environmental and sustainability issues, from energy generation to waste reduction.
For instance, there’s Solavio, which aims to make solar panels as ubiquitous as cell phone towers. Then there’s BANTgo, which uses Web 3.0 to gamify environment-friendly actions in order to incentivize sustainable recycling behavior.
Startups such as these are getting a positive market reception, with growing interest from both consumers and venture capitalists. Both groups recognize the value of sustainability. Furthermore, the startups are also receiving active interest from government entities, helping them scale.
In the run-up to COP28, the Ministry of Industry and Advanced Technology created the “Make it in the Emirates” startup competition. It’ll host 24 global sustainability startups and give them a platform to meet investors and network with policymakers and industry partners.
In the same vein, the Ministry of Climate Change and Environment has collaborated with the Middle East and North Africa Fintech Association to create the sustainable fintech pledge.
The pledge helps fintech firms integrate sustainability principles into their operations. Early signatories include the likes of Abu Dhabi Global Market, Dubai International Financial Centre, Mastercard and more.
Rubber hits the road
One critical aspect of sustainability that has come about due to increasing urban congestion is the need for environment-friendly transport.
Here too the UAE is paving the way for the future thanks to its large-scale adoption of electric vehicles.
Read: Sustainability: a non-negotiable for leaders in the Middle East
The adoption of EVs, particularly in Dubai, is increasing at a phenomenal rate. This is thanks to a multitude of factors such as low-interest loans, discounted car registration fees, toll exemptions and free charging at public charging stations, among others.
In fact, the country has one of the world’s biggest charging stations-to-vehicles ratios.
On a commercial scale, several companies have solved another critical aspect of the urban transportation puzzle. With an influx of e-bikes and e-scooters, companies such as Careem and Lime are making last-mile transport greener than ever before.
Then there is the upcoming dawn of autonomous vehicles. Although the ecosystem must navigate a few more hurdles before mass AV adoption, the country is moving in the right direction.
For instance, there’s the Dubai Autonomous Transportation Strategy, which aims to transform 25 percent of total transportation in the UAE to AVs by 2030.
Paving the way
The UAE’s ambition to become a full-fledged green economy is helping the country emerge as an investment hub for companies.
Read: Renewable energy jobs on the rise
The right mix of forward-looking strategies and positive regulations seems to create the perfect terrain for innovative startups. They can use this to come up with business opportunities in the green energy space.
Naturally, the success of these innovative startups depends on the funding and commercialization of their solutions. However, this no longer needs to be a concern as consumer demand for sustainable products and services is on the rise in the UAE.
Similarly, sustainability metrics have now started creeping into corporate financial statements. And in line with the global trends, organizations in the UAE are increasingly keen to brandish their sustainability credentials.
Thanks to a culmination of all these factors, a sustainable urban future is well within our reach.
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