Why the UAE is Investing in Sustainability

The United Arab Emirates (UAE) is investing heavily in sustainability for several strategic, economic, and environmental reasons.  The Emirates’ oil and natural gas reserves are the world’s sixth and seventh largest, respectively, and for more than three decades, oil and global finance drove the UAE’s economy.  In 2008-09, the confluence of falling oil prices, collapsing real estate prices, and the international banking crisis hit the UAE especially hard.  The country is becoming less reliant on oil and gas and is economically focusing investment into healthcare, education, and infrastructure.

Here are five reasons the UAE is prioritizing sustainability and the potential return on investment (ROI) for these efforts:

Reasons for Investing in Sustainability

1. Perhaps most significantly and immediately pressing is economic diversification:

• • Investing in sustainable industries helps diversify the economy and reduce vulnerability to oil price fluctuations.
  • New economic sectors: Sustainability initiatives are opening up new sectors such as renewable energy, green technologies, and sustainable tourism, creating job opportunities and stimulating economic growth.  Many of these sectors require highly skilled professionals.

2. Environmental Concerns:

• • Climate change mitigation: Like many coastal areas, the UAE is vulnerable to the impacts of climate change, including sea-level rise, but also extreme heat.  Over the longer term, investing in sustainability is expected to mitigate these risks.
  • Resource management: Sustainable practices improve water and energy management, obviously crucial in a region with limited natural freshwater resources.

3. Global Image and Leadership:

• • International standing: By leading in sustainability, the UAE can enhance its global reputation and influence.  Hosting events like the World Expo 2020 with a strong sustainability theme helps project this image.
  • Compliance with Global Agreements: The UAE is committed to international agreements like the Paris Agreement, which requires significant investments in reducing carbon emissions.

4. Innovation and Technology:

• • Research and Development: Investing in sustainability fosters innovation and technological advancements.  Initiatives such as Masdar City are positioned as hubs for clean technology and innovation.
  • Attracting Investment: Sustainable projects attract foreign investment and partnerships, further boosting the economy.

5. Social Development:

• • Improving Quality of Life: Sustainable urban planning, renewable energy projects, and environmental conservation contribute to a higher quality of life for residents.
  • Health Benefits: Reducing pollution and improving environmental conditions have direct positive effects on public health.

 

Return on Investment (ROI)

Economic Returns:

• Increased Foreign Investment: A strong commitment to sustainability is expected to attract global investors prioritizing green projects.
• Job Creation: The development of sustainable industries creates new jobs – many of which require highly skilled professionals – and stimulates economic growth.
• Energy Savings: Investments in renewable energy sources including wind and solar reduce dependence on fossil fuels, translating to long-term cost savings.

Environmental Benefits:

• Reduced Emissions: Investments in clean energy and sustainable practices significantly reduce greenhouse gas emissions, helping to combat climate change.
• Resource Efficiency: Improved water and energy efficiency leads to cost savings and more sustainable resource management.

Social Returns:

• Improved Public Health: Cleaner air and water, along with green spaces, lead to better health outcomes and reduced healthcare costs.
• Enhanced Living Standards: Sustainable urban developments improve living conditions, making cities more livable and attractive.

Long-Term Stability:

• Resilience to Oil Price Volatility: By diversifying the economy, the UAE becomes less vulnerable to fluctuations in global oil prices.
• Future-Proofing: Investing in sustainability ensures the UAE is better prepared for future environmental and economic challenges.

Examples of UAE’s Sustainability Initiatives

• Sharjah Research, Technology and Innovation Park Free Zone (SRTI Park) was established in 2016 by royal decree and was mandated to develop and manage an innovation ecosystem that promotes Research and Development (R&D) and supports enterprise activities, utilizing the triple helix collaboration of industry, government, and academia.
• Masdar City: An ambitious project aiming to be one of the most sustainable cities in the world, focusing on renewable energy and sustainable urban planning.
• Noor Abu Dhabi: One of the world’s largest single-site solar projects, contributing significantly to the UAE’s renewable energy capacity.
• Dubai Clean Energy Strategy 2050: Aims to provide 75% of Dubai’s energy from clean sources by 2050.

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Our Approach…

The RISE platform instills a novel way of thinking that focuses on fulfilling the needs of the individual and not simply an HR-centered initiative. This is an evolution from legacy Organizational Change Management (OCM) methods to a modern fit-for-purpose Organizational Evolution & Sustainability (OE&S) platform.

Services…

The RISE platform provides a voice to the individual and a framework critical to cultural sustainability, innovation and bottom-line enterprise efficiency. Through an ecosystem health survey & assessment, the RISE service model establishes clear objectives, concise indicators, and valid transformation plans that allow the enterprise to measure progress, ensure success, and continually improve.

Conclusion

The UAE’s investment in sustainability is driven by a strategic vision to diversify its economy, address environmental challenges, enhance its global standing, and improve the quality of life for its residents.  The ROI on these investments is multifaceted, encompassing economic growth, environmental preservation, social benefits, and long-term stability.  As these initiatives mature, they are expected to yield significant returns, both in financial terms and in the overall well-being of the nation.

 

Links:

UAE Sustainability Initiatives | EmiratesGBC

Masood M. Sharif Mahmood, CEO e&UAE

Bodour Al Qasimi, President of the American University of Sharjah

How Can Buildings Beat the Heat in a Desert City? Blend Ancient and Modern. – The New York Times (nytimes.com)

AGSIW | UAE: Norway’s Lessons for Economic Development and Sustainability

 

Visit our website at https://envisionrise.com.