The Middle East and North Africa (MENA) region is highly dependent on fossil fuels and accounted for about 36% of global oil production and 20% of global gas production in 2018.

Several MENA countries have set ambitious renewable energy targets and launched national projects to diversify away from oil and gas.

The United Arab Emirates aims to increase its share of clean energy to 50% by 2050 and has invested in projects such as the Shams 1 solar thermal plant, the Mohammed bin Rashid Al Maktoum Solar Park, and Masdar City.

The UAE announced a National Hydrogen Strategy alongside a pledge to invest up to AED 200 billion (about $54.5 billion) in renewable energy and launched an AED 4 billion renewable plant in Dubai.

Morocco has a target to source 52% of its electricity from renewable sources by 2030 and hosts the Noor Ouarzazate concentrated solar power complex.

Egypt aims to reach 42% of its electricity from renewables by 2035 and has advanced projects such as the Benban Solar Park and the Zafarana Wind Farm.

IRENA and regional assessments estimate that the MENA region could generate more than 60% of its electricity from renewable sources by 2030.

National and local barriers include gaps in policy and regulatory frameworks, financing constraints, limited public awareness, and the need for regional cooperation.

Governments and multilateral partners are using fiscal incentives, concessional finance, and country platforms to mobilize investment, as illustrated by Egypt’s Nexus of Water, Food and Energy program coordinating $14.7 billion worth of projects.

Egypt’s program explicitly links renewable energy investments with broader water and food projects and relies on partnerships with multilateral development banks to attract finance and technical assistance.

Mechanisms such as Just Energy Transition Partnerships and ideas like debt-for-climate swaps are described as instruments to mobilize private capital and concessional support for the green transition.

Municipal and regulatory actions include Dubai’s green building regulations and initiatives to power large buildings with renewable and solar energy.

Regional governments present renewable investment as a path to economic diversification, competitiveness, and new investment opportunities while prioritizing net-zero and climate action.

Other national sustainability actions cited in the region include Saudi Arabia’s circular carbon economy approach, Bahrain’s $2.2 billion sustainability-linked corporate refinancing, and Oman’s exploration of green hydrogen.

Energy developments are also reshaping regional diplomacy, for example Israel’s energy-centric foreign policy, plans to export gas to Europe via Egypt, and a water-for-energy deal with Jordan.

Climate impacts are a material economic risk for the region, with UN and World Bank assessments warning that water stress and climate hazards could cost MENA economies significantly, including a projected cost from water scarcity of up to 6% of GDP by 2050.

Taken together, national solar and renewable projects in the Middle East are being pursued through targets, large-scale projects, fiscal pledges, municipal regulations, and international finance tools to diversify economies and advance climate goals.

In summary, Middle Eastern states are investing in large solar and renewable projects, setting national targets, and using financial and regulatory incentives to pursue economic diversification and climate objectives.

The Middle East and North Africa (MENA) region is highly dependent on fossil fuels and accounted for about 36% of global oil production and 20% of global gas production in 2018.

Title:

Content: Fossil fuels, which have powered the industrial growth and development of civilisations for centuries, are facing a looming deadline of depletion. Moreover, they have caused severe environmental and social problems, such as climate change, conflicts, and pollution. The need for alternative and sustainable energy sources is clear and urgent. However, the transition to a post-fossil fuel era is not easy or straightforward. It requires innovation, investment, cooperation, and vision.

This article explores the challenges and opportunities of global energy transformation, focusing on the dual nature of fossil fuels, the countdown to their exhaustion, and the promise of renewable energy sources. It also highlights the progress and potential of some countries in the Middle East and North Africa (MENA) region, which is one of the most dependent regions on fossil fuels in the world.

Fossil Fuels: A Double-Edged Sword

Fossil fuels, comprising oil, coal, and natural gas, are ancient energy sources that have been central to the development of various industries and sectors. They have enhanced transportation, manufacturing, agriculture, and electricity generation. They have catalysed global trade, commerce, and innovation, elevating the quality of life for millions.

However, this ascent has been coupled with profound challenges. Fossil fuels have been a source of geopolitical strife, epitomised by wars and conflicts over their control and distribution. They have also exacerbated environmental issues, such as greenhouse gas emissions, global warming, and climate change. Incidents like oil spills, gas leaks, and fracking have inflicted severe damage on ecosystems and public health.

The Countdown to Depletion

The finite and non-renewable nature of fossil fuels leaves humanity facing a daunting deadline. Predicting the exact exhaustion of these resources is a complex endeavour, influenced by reserves, consumption rates, technological advancements, and price fluctuations. Nonetheless, projections based on current data paint a concerning picture.

According to Octopus Energy, the year 2060 may mark the twilight of fossil fuels, based on current consumption and reserve estimates. In 2020, global oil production reached 91.7 million barrels per day (b/d), with key players like the United States, Saudi Arabia, and Russia at the forefront. Simultaneously, natural gas production stood at 3.94 trillion cubic meters (bcm). Although the Covid-19 pandemic temporarily curtailed production, a resurgence is anticipated. In contrast, natural gas consumption steadily rises by over 3% each year.

Should additional oil reserves remain elusive, known deposits could be depleted by 2052. The stark reality is that demand for oil has surged, nearly doubling the average annual rate observed over the preceding decade in 2018.

Toward a Sustainable Energy Paradigm

The global imperative for alternative energy sources is clear. Sustainable options, even if not entirely devoid of environmental impact, have become a linchpin of energy discussions. The quest for sustainability is no longer optional; it is fundamental to securing a prosperous future.

Embracing alternative and sustainable energy solutions is our paramount responsibility. The adverse consequences of persisting with fossil fuels are increasingly undeniable. Furthermore, incidents such as oil spills, gas leaks, and fracking have grievously scarred ecosystems and human health.

The geopolitical maelstrom surrounding fossil fuels is a testament to their strategic importance. By reducing our dependence on these finite resources, we can contribute to global stability and peace.

The Promise of Sustainable Energy

Investing in sustainable energy is not merely an ecological commitment; it is a strategic move to safeguard long-term energy security. Renewable sources like solar and wind power do not suffer the same spectre of depletion as fossil fuels, offering a reliable and sustainable energy future. Moreover, technology’s relentless march is enhancing the efficiency and cost-effectiveness of these alternatives, ensuring a seamless transition.

In this era of unprecedented global challenges, the unsustainable trajectory of fossil fuels is no longer tenable. Transitioning to renewable and sustainable energy sources is both a moral imperative and an economic necessity. As we confront the relentless march of climate change, endeavouring to secure long-term energy stability and foster global peace, embracing this transformation is our only viable path toward a sustainable and prosperous future. It is a journey we must embark upon with unwavering determination and foresight.

The MENA Region: The abundance of wisdom

The MENA region stands as an interesting case study for global energy transformation. The region is one of the most dependent regions on fossil fuels in the world. According to the World Bank, the region accounted for 36% of the global oil production and 20% of the global gas production in 2018. However, the region also faces many challenges and risks related to its reliance on fossil fuels, such as price volatility, environmental degradation, social unrest, and geopolitical conflicts.

Therefore, some countries in the region have started to prepare for the transition to a post-fossil fuel era by diversifying their economies, investing in renewable energy sources, and promoting innovation and sustainability. According to a report by the International Renewable Energy Agency (IRENA), the MENA region has a huge potential for renewable energy development, especially solar and wind power. The report estimates that the region could generate more than 60% of its total electricity from renewable sources by 2030.

Some of the countries that have made significant progress in this field are:

• UAE: The UAE has been a leader in innovation and sustainability in the region, with a vision of becoming a global hub for green economy and clean energy. The UAE has set a target of increasing its share of clean energy to 50% by 2050. The UAE has invested in various renewable energy projects, such as the Shams 1 solar thermal plant, which is one of the largest of its kind in the world, and the Mohammed bin Rashid Al Maktoum Solar Park, which is planned to be the largest single-site solar park in the world by 2030. The UAE is also home to Masdar City, which is a planned city that aims to be one of the most sustainable cities in the world. Also, UAE is one of the 10 largest oil producing countries with a proven reserves, according to BP statistical reviews, of 100 billion barrels.

• Morocco: Morocco has been a pioneer in renewable energy development in the region, with a target of achieving 52% of its electricity from renewable sources by 2030. Morocco has invested heavily in solar power projects, such as the Noor Ouarzazate complex, which is the largest concentrated solar power plant in the world. Morocco also has a strong wind power sector, with a capacity of over 1.2 gigawatts (GW) as of 2019.

• Egypt: Egypt has also been pursuing an ambitious renewable energy strategy, with a goal of reaching 42% of its electricity from renewable sources by 2035. Egypt has a large potential for solar and wind power, especially in the Sinai Peninsula and the Red Sea coast. Egypt has launched several large-scale projects, such as the Benban Solar Park, which is expected to be the largest solar photovoltaic (PV) plant in the world when completed, and the Zafarana Wind Farm, which is one of the largest wind farms in Africa.

These are some examples of countries in the MENA region that are prepared for after fossil fuels era. However, there are still many challenges and barriers that need to be overcome, such as policy and regulatory frameworks, financing and investment mechanisms, public awareness and participation, and regional cooperation and integration.

The world is at a crossroads in its energy choices. Fossil fuels have been instrumental in driving industrial growth and development, but they have also caused severe environmental problems. Their finite nature also poses a threat to long-term energy security. The need for alternative and sustainable energy sources is clear and urgent.

Renewable energy sources offer a promising solution to this challenge. They are abundant, reliable, and sustainable. They can reduce greenhouse gas emissions, mitigate climate change impacts, and foster global peace. They can also create new opportunities for economic growth, innovation, and social welfare.

— Dr Abdullah Belhaif Al Nuaimi is a former UAE minister of Infrastructure Development and for Climate Change and Environment

Several MENA countries have set ambitious renewable energy targets and launched national projects to diversify away from oil and gas.

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Content: Environmental, Social, and Governance (ESG) issues have become increasingly prominent on the global stage as organisations recognise the need to integrate sustainability into their operations.

As the Middle East moves towards a low carbon future, sustainability has become a top priority for organisations and governments across the region.

Sheikh Mohammad bin Rashid, Prime Minister and Ruler of Dubai announced while launching the National Hydrogen Strategy that the UAE is to invest up to AED 200 billion ($54.5 billion) in renewable energy.

The launch of a AED 4 billion renewable energy plant in Dubai,  and the world’s largest waste-to-energy plant are proof of sustainability climbing the agenda.

With COP 28 being held in the UAE this year, there is a renewed sense of urgency on climate change action, and the net-zero carbon target is being prioritised through policies and actions.

After all, sustainability will boost the UAE’s economic competitiveness, drive innovative policy and improve investment opportunities.

The region has seen notable sustainability innovations, including Saudi Arabia’s rapid transition to a circular carbon economy, Bahrain’s state oil company refinancing a $2.2 billion sustainability-linked corporate finance facility, and Oman’s exploration of green hydrogen as a clean energy source.

However, the Middle East faces its own unique challenges in implementing ESG practices, especially around accurate sustainability reporting and implementing early regulations to fill in previous gaps.

Other challenges that hinder the progress of the region’s ESG agenda include the talent gap, how corporates in the region address the need to implement ESG practices, as well as data availability.

Regulatory frameworks

While standardised frameworks and reporting guidelines begin to form, the lack of clear regulations can hinder consistent measurement and disclosure of ESG performance.

Global frameworks have now become more widely adopted in the region such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the newly published International Sustainability Standards Board (ISSB).

The gap in standardisation previously posed challenges for investors and stakeholders who relied on transparent and comparable ESG data for decision-making, however, we are starting to see drastic changes in this area.

Data availability

Many companies in the Middle East still face challenges in collecting, managing, and reporting ESG data, which can hinder their ability to effectively assess and manage their sustainability performance.

Data is the first step to measure any status, but also measure progress. Improving data collection mechanisms and investing in robust reporting systems will be instrumental in addressing this challenge.

ESG talent gap

Organisations need individuals with specialised knowledge and expertise in ESG practices to drive sustainable strategies effectively. Alongside this specialised knowledge, the industry also needs innovators, risk takers, agitators for change, mentors, and communicators in the field. There is however, a shortage of skilled professionals in the region with a deep understanding of ESG principles to drive innovative solutions.

Bridging this gap requires investment in education and training programmes to build a skilled workforce capable of integrating ESG considerations into business practices. Universities and training institutions are therefore increasingly offering courses and programmes on sustainability and ESG and businesses are partnering with academic institutions to develop tailored training initiatives and internships, nurturing a pipeline of talent equipped with the required knowledge and skills.

These efforts will cultivate a sustainable workforce capable of implementing and driving ESG practices in the Middle East.

Implementation by region’s corporates

Despite the challenges, corporations in the Middle East are embracing ESG practices, recognising the importance of sustainability and responsible business conduct. We see this through accelerated electrification and the increase of decarbonizing energy supply.

The GCC’s oil-producing nations have made efforts to diversify energy sources, transitioning towards net-zero carbon fuels for transportation. Investments in renewable energy, such as solar and wind, aim to mitigate environmental impacts and promote a low-carbon economic future transforming the economic system and supply chain.

Additionally, social considerations are gaining prominence. Companies are addressing social issues through initiatives that promote diversity, inclusion, and employee welfare.

Governance practices are also being strengthened to ensure transparency, accountability, regulatory reforms and ethical conduct.

While obstacles in integrating ESG practices persist in the Middle East, corporates in the region are proactively embracing sustainability and responsible business practices.

That the Middle East is emerging as a leader in ESG adoption is apparent through their fullfillment of the UN SDG goals which has driven positive environmental, social, and governance outcomes for businesses and society as a whole.

The United Arab Emirates aims to increase its share of clean energy to 50% by 2050 and has invested in projects such as the Shams 1 solar thermal plant, the Mohammed bin Rashid Al Maktoum Solar Park, and Masdar City.

The UAE announced a National Hydrogen Strategy alongside a pledge to invest up to AED 200 billion (about $54.5 billion) in renewable energy and launched an AED 4 billion renewable plant in Dubai.

Morocco has a target to source 52% of its electricity from renewable sources by 2030 and hosts the Noor Ouarzazate concentrated solar power complex.

Egypt aims to reach 42% of its electricity from renewables by 2035 and has advanced projects such as the Benban Solar Park and the Zafarana Wind Farm.

IRENA and regional assessments estimate that the MENA region could generate more than 60% of its electricity from renewable sources by 2030.

National and local barriers include gaps in policy and regulatory frameworks, financing constraints, limited public awareness, and the need for regional cooperation.

Governments and multilateral partners are using fiscal incentives, concessional finance, and country platforms to mobilize investment, as illustrated by Egypt’s Nexus of Water, Food and Energy program coordinating $14.7 billion worth of projects.

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Content: Egypt leading the way on ensuring net-zero transition is just

Rania Al-Mashat & Erik Berglof

The gap between the resources needed to achieve net-zero greenhouse gas emissions by 2050 and the resources that are available currently amounts to trillions of dollars – and is still growing. As many developing and emerging economies lose ground in the wake of the COVID-19 pandemic, public and private capital must be mobilized to accelerate mitigation and adaptation efforts. But this requires governments to produce credible plans for achieving global sustainability goals, to design and implement these policies themselves and to ensure that their strategies’ costs and benefits are fairly distributed.
Last November’s UN Climate Change Conference in Egypt, known as COP27 and dubbed the “implementation COP,” laid the groundwork for a fairer, more robust climate finance system. The conference’s “guidebook” called on the international community to advance a transformative agenda that accounts for developing countries’ national priorities and ensures equitable access to financial and technical resources. It included, in its definition of climate justice, “equitable access to quality and quantity climate financing” that considers “historical responsibility for climate change” and “supports resilient development pathways, leaving no one behind.”
With this in mind, Egypt launched its Nexus of Water, Food and Energy investment program during COP27, providing a practical and replicable model for ensuring a just net-zero transition through a concept of “country platforms.” These platforms are meant to help countries build state capacities and emphasize the importance of developing countries’ agency (or “ownership,” in aid parlance).
The Nexus of Water, Food and Energy – whose acronym NWFE, pronounced “nuafiy,” is Arabic for “fulfilling pledges” – builds on Egypt’s commitments under the 2015 Paris climate agreement and aims to attract financial support for the country’s development agenda, while accelerating climate action. The stakeholders include multilateral development banks such as the European Bank for Reconstruction and Development, the African Development Bank, the European Investment Bank and the Asian Infrastructure Investment Bank. The Nexus of Water, Food and Energy platform integrates several high-priority water, food and energy projects – all selected by the Egyptian government – worth a total of $14.7 billion. The projects seek to replace existing inefficient thermal power plants with renewable energy; enhance small farmers’ adaptation to climate risks; modernize farming practices to increase irrigation efficiency and boost crop yields; strengthen the resilience of vulnerable regions; create water desalination capacity; and establish early-warning systems.
By using innovative financing mechanisms to mobilize public funds, technical assistance and private investment, Egypt seeks to leverage its partnerships with the multilateral development banks and other development stakeholders to accelerate its climate agenda. This would support the country’s green transition and show that climate action and economic development can go hand in hand. Egypt can also rely on these partnerships to help it phase out “brown” oil, gas and mineral assets. For example, partial concessional financial support from the US will enable the country to retrain (or retire) fossil fuel workers. Yet, the most innovative instrument may be debt-for-climate swaps, whereby Egypt receives partial debt relief from, say, Germany, in exchange for commitments to reduce greenhouse gas emissions. These types of performance-linked financial instruments could provide many developing and emerging countries with an opportunity to lower their debt burden or obtain low-cost funds. By tying development assistance to progress on a common global target, such swaps could also prove to be significant in mitigating the worst effects of climate change.
As a 2018 report by the G20 Eminent Persons Group on Global Financial Governance noted, collective action through country platforms has the power to unlock public and private investment to achieve climate-resilient and sustainable development. Such investment platforms can take different forms. For example, Just Energy Transition Partnerships – first introduced during COP26 in Scotland in 2021 – aim to direct private capital toward decarbonization targets in the energy sector. Since launching in South Africa, Just Energy Transition Partnerships have also been established in Indonesia, India, Vietnam and Senegal. Egypt’s Nexus of Water, Food and Energy initiative provides a useful model for how developing and emerging countries can expedite the implementation of their national climate agendas in line with global priorities. By encouraging coordination among domestic and external stakeholders, such programs can help bridge the information gap, establish shared standards and increase the number of bankable projects.
But the platform’s success hinges on domestic agency, transparency and accountability in managing these partnerships. Most importantly, the green transition must be perceived as just in order to be sustainable. Predictability is particularly important for the poor and fairness is essential to winning long-term public support for climate measures. To achieve these goals, governments must lead on climate finance. The net-zero transition depends on it.

Egypt’s program explicitly links renewable energy investments with broader water and food projects and relies on partnerships with multilateral development banks to attract finance and technical assistance.

Mechanisms such as Just Energy Transition Partnerships and ideas like debt-for-climate swaps are described as instruments to mobilize private capital and concessional support for the green transition.

Municipal and regulatory actions include Dubai’s green building regulations and initiatives to power large buildings with renewable and solar energy.

Regional governments present renewable investment as a path to economic diversification, competitiveness, and new investment opportunities while prioritizing net-zero and climate action.

Other national sustainability actions cited in the region include Saudi Arabia’s circular carbon economy approach, Bahrain’s $2.2 billion sustainability-linked corporate refinancing, and Oman’s exploration of green hydrogen.

Energy developments are also reshaping regional diplomacy, for example Israel’s energy-centric foreign policy, plans to export gas to Europe via Egypt, and a water-for-energy deal with Jordan.

Title:

Content: Energy is changing Israel’s foreign policy - opinion

The Abraham Accords between Israel and several Arab states, including the oil-rich countries, further illustrate Israel’s energy centric-foreign policy.

Israel's Energy Minister Karin Elharrar is seen signing a climate cooperation deal with Jordan in Dubai, on November 22, 2021.
(photo credit: Courtesy)

For centuries, energy concerns have influenced defense, economics, and the environment. Starting with the British Empire’s decision to found coaling stations to support the imperial navy to Russia’s invasion of Ukraine, energy has impacted security decisions at every level.

Future energy sources are destined to be just as transformative and disruptive to the international system. This ongoing transformation is showcased in no better example than Israel’s sensitive energy-centric diplomacy.

Its energy-focused foreign and security policy comes in the wake of the Russian ruble climbing to a seven-year high, owing to high oil prices triggered by sanctions against Russia and the post-COVID global recovery. With Europe reeling due to dependence on Russian gas, Israel has stepped in and is in talks to fill this vacuum with its own gas exports by exporting gas to Europe via Egypt.

However, Israel’s diplomacy and the future of energy politics are not just about changing logistics or suppliers. Dr. Alexander V. Mirtchev, in his groundbreaking The Prologue: The Alternative Energy Megatrend in the Age of Great Power Competition, elucidates on the changing landscape of energy politics. The book provides an excellent model for Israeli diplomacy.

Mirtchev, a vice-chair at the Atlantic Council, a leading Washington think tank, and a founding member of the Council to the Kissinger Institute on China and the US at the Woodrow Wilson International Center, argues that the vigorous pursuit of innovation and an expeditious entry into the realm of the unknown is becoming a key ingredient in the competition between global powers, resulting in energy rebalancing between actors.

The Leviathan gas platform, 10km. offshore Israel (credit: ALBATROSS)

Mirtchev is not alone in this assessment. Former secretary of state and national security adviser Henry Kissinger concurs, stating “Mirtchev’s sweeping exploration of the changing energy landscape looks far into the future and outlines issues that will occupy scholars and policymakers for decades to come.”

Former director of the FBI William Sessions believes the megatrend described by Mirtchev has succeeded in breaking through the complexities of the current alternative energy development strategies. World Bank vice president for sustainable development Rachel Kyte notes, “The alternative energy megatrend as described in Alexander Mirtchev’s book, occupies a large and growing role in the World Bank’s energy portfolio and policy advice.”

It is worth analyzing what this forward-looking trajectory, a megatrend, means for Israel’s changing foreign policy considering the Abraham Accords, the Iranian threat, and its wish to export gas to Europe.

Israel’s foreign policy through the lens of energy

Mirtchev posits that security considerations are driving Israel’s energy strategies. The use of solar-based battery chargers and new approaches to providing energy to military bases are obvious examples. Counterintuitively, Mirtchev also explains how Israel’s booming natural gas industry interplays with technological and regional dynamics: “Combined with the increased use of domestic natural gas, Israel can utilize alternative energy as a balancing factor in its relations with its energy-rich neighbors. These considerations are already leading to advances in alternative energy [...].”

Energy has also recently played a critical role in Turkish-Israeli relations. While some experts speculate on Turkey’s latest charm offensive, hoping to repair long-strained Turkish-Israeli relations, energy is obviously paramount. Turkish President Recep Tayyip Erdogan stated as much in February, “We can use Israeli natural gas in our country and beyond using it, we can also engage in a joint effort on its passage to Europe.”

It is these same energy concerns that drive Israel’s engagement with various Mediterranean states. Israel’s energy alliance with Greece, Cyprus, Egypt and Italy aims to transport Israeli gas to Europe via the Euro-Asia interconnector, which was announced in April, to boost alternatives after the Russian invasion of Ukraine. With these states also announcing the EastMed subsea pipeline to supplement delivery capabilities, it is unsurprising that Turkey is both rhetorically retaliating against Europe and seeking ties with Israel.

The perennial Iranian nuclear issue is another excellent example of this. While seeking nuclear weapons and funding terrorism are political projects, energy is also at their apex. Oil revenues enable their activities, and Iran is now attempting to leverage the Ukrainian crisis to do so.

Last week, Iran announced they are going to increase cooperation with Russia by swapping energy supplies and setting up a logistics hub with a Russian accord. The simple aim is to help both parties bypass sanctions and provide plausible deniability to politically uncommitted buyers. If the international community wants to pressure Iran and Russia successfully, it must find a way to hamper their energy industries and simultaneously pressure both parties.

The Abraham Accords between Israel and several Arab states, including the oil-rich United Arab Emirates and Bahrain, further illustrate Israel’s energy centric-foreign policy. A taste of the future alternative energy paradigm surfaced last November with the signing of a water-for-energy deal between Israel and Jordan. Months later, a UAE-Egyptian consortium announced intentions to buy South African renewables firm Lekela, giving Abu Dhabi’s Masdar, owned by UAE’s sovereign investment company Mubadala, a presence in southern Africa.

Israel’s recent energy-centric diplomacy showcases what Mirtchev argues: “the alternative energy megatrend [...] has already begun to shape the way production choices are made and energy is distributed.”

As alternative energy and technologies advance, this megatrend will create opportunities for relations between states and upset existing power balances. Israel’s foreign policy transformation already acts as a testimony to this major development.

The writer is a Middle East expert, the managing editor at the Jerusalem Institute for Strategic Studies and a Ph.D. candidate at Bar-Ilan University. He is formerly the Middle East correspondent for The Jerusalem Post.

Climate impacts are a material economic risk for the region, with UN and World Bank assessments warning that water stress and climate hazards could cost MENA economies significantly, including a projected cost from water scarcity of up to 6% of GDP by 2050.

Taken together, national solar and renewable projects in the Middle East are being pursued through targets, large-scale projects, fiscal pledges, municipal regulations, and international finance tools to diversify economies and advance climate goals.

In summary, Middle Eastern states are investing in large solar and renewable projects, setting national targets, and using financial and regulatory incentives to pursue economic diversification and climate objectives.


Mystery boxes (blind‑box collectibles) gained popularity in China and overseas in 2020.

Online exports of mystery‑box toys surged more than 400% in 2020 versus 2019.

Pop Mart saw the sharpest growth among mystery‑box sellers in 2020 and accounted for over 35% of overseas mystery‑box sales, per Tmall Global.

Pop Mart’s total sales volume rose more than tenfold in 2020 and its Molly figure was commonly sold in boxes priced about $9.10.

Analysts attribute the boom to commercialization of designer intellectual properties (IPs), which made IP products cheaper than traditional designer toys.

Short‑form social videos amplify unboxing and collection culture; TikTok unboxing videos and plush room tours have drawn hundreds of thousands of views and fuelled fan interest.

Collectible toy companies benefit from avid fanbases, limited runs and active secondary markets, which can raise demand and prices.

Chinese regulators imposed restrictions on mystery‑box sales to protect children, including banning sales to under‑eights without guardian consent.

China’s mystery‑box toy industry has been estimated at about $10 billion.

The provided documents do not include specific information about Labubu, its creator, Rihanna, Pop Mart’s global revenue surge, or the founder’s personal wealth.

Conclusion: These sources do not provide direct information about Labubu specifically; however, they show that blind‑box mechanics, IP commercialization, social‑media unboxing culture, scarcity/resale dynamics, and strong fanbases are key drivers of collectible‑toy virality.

Mystery boxes (blind‑box collectibles) gained popularity in China and overseas in 2020.

Title:

Content: Controversy Erupts On Unboxing Mystery Boxes, Regulator Imposes Ban On Sale

Chinese toy industry has been caught in a controversy for selling dangerous products to children through mystery boxes. Following the criticism from a cross sections of the society, Chinese regulator recently imposed a ban specifically on the sale of mystery boxes to children below eight and made mandatory to get parents’ consent for older children. Several questions have been raised over the sale of mystery boxes by animal rights activists Animal rights activists, several toy makers compromise baby animal rights. Mystery boxes, a toy box that contained one figure from a large selection that is not visible until it is open, gained popularity overseas as well as in the Chinese domestic market in 2020. The online exports surged more than 400 percent in 2020 compared to 2019.

Among them Pop Mart had seen the sharpest growth in 2020.. According to Tmall Global, the company alone accounted for more than 35 percent of overseas sales of mystery boxes, and in 2020 its total sales volume had increased more than tenfold. Its most popular item was the Molly doll, a little girl figurine created by a Hong Kong artist, and a toy box was usually priced at 9.1 US dollars, according to global times.
The mystery boxes became successful due to its commercialization of intellectual properties (IPs), which enabled the consumer to buy IP products at a much lower price than traditional designer toys. As always, China’s mystery boxes was caught in a controversy. Shopping sites in China have been accused of animal cruelty for allegedly shipping “mystery boxes” to customers containing live puppies and kittens. Local reports indicated that many animals suffered significant harm in transit. CNN revealed a horrific practice of animal cruelty in China in which it was found that animals became victims of a shopping craze “mystery boxes”.

The CNN report revealed the dark side of mystery boxes as live animals were found in these harmless looking boxes. The news report revealed that these boxes were sold in person or on online platforms and then shipped by couriers with a hope to lure customers with the promise of a live animal or even a pedigree cat or dog. Chengdu Love Home Animal Rescue Center shared on Weibo in May 2021 claiming that it had found 160 crates containing cats and dogs in the back of a delivery truck in Chengdu. A video from the incident showed distressed animals tightly packed together in small crates, apparently lacking any food or water.

The rescue centre said that it had rescued “hundreds” of very frightened young puppies and kittens, many of which appeared to be struggling to breathe. They said that they disinfected, cleaned and fed them, before sending many to animal hospitals for treatment. According to CBS news, volunteers said that the crates were disguised as regular deliveries, due to be shipped to cities across the country. Shipping live animals in this way is illegal in China. According to the rescue organization, many of these animals end up abandoned if customers are unhappy with their boxes. Many Weibo users had condemned not only the retail sites, but also logistics companies and law enforcement for allowing the issue to continue without consequences. Users said the boxes are both animal cruelty and a public health threat. Many called on the government to introduce stronger legislation to protect animals.

Embarrassed by the criticism on social media platforms which can be accessed from any part of the world, China’s market regulator recently issued guidelines on regulating business practices for mystery boxes, strengthening compliance management of the fast-growing yet thinly regulated market. According to these guidelines, mystery box vendors are banned from selling items to minors under the age of eight without the consent of guardians.

China’s Mystery boxed industry

The mystery boxes toy industry in China is worth an estimated 10 billion US dollars. The industry is growing rapidly, and it is expected to continue to grow in the coming years. Experts said that China faced criticism following the ban because the country has a large population of young children. The ban is an attempt to protect children from the potential dangers of mystery boxes, such as the risk of receiving counterfeit or dangerous products.

Mystery box industry in China

China was selling mystery boxes in other countries, but the ban on the sale of mystery boxes to children under the age of 8 only applies to China. However, the ban is likely to have a ripple effect on the global mystery boxes market. The Chinese market is a major driver of the global mystery boxes market. The ban is likely to lead to a decrease in the demand for mystery boxes from China, which could have a knock-on effect on the demand for mystery boxes in other countries.

Here are some of the dangers of mystery boxes

Counterfeit products: Mystery boxes often contain counterfeit products, which can be dangerous or harmful.

Dangerous products: Mystery boxes can also contain dangerous products, such as sharp objects or small parts that could be a choking hazard.

Unrealistic expectations: Mystery boxes can create unrealistic expectations in children, who may believe that they will always receive valuable or rare items.

Financial risks: Mystery boxes can be expensive, and children may spend more money than they can afford on them. (geo-politik.eu)

What Pop Mart marketing ploy features highly desirable hidden models?

Which products are increasingly viewed as treasures by collectors?

Online exports of mystery‑box toys surged more than 400% in 2020 versus 2019.

Which products are increasingly viewed as treasures by collectors?

Pop Mart saw the sharpest growth among mystery‑box sellers in 2020 and accounted for over 35% of overseas mystery‑box sales, per Tmall Global.

Which products are increasingly viewed as treasures by collectors?

Pop Mart’s total sales volume rose more than tenfold in 2020 and its Molly figure was commonly sold in boxes priced about $9.10.

Which products are increasingly viewed as treasures by collectors?

Analysts attribute the boom to commercialization of designer intellectual properties (IPs), which made IP products cheaper than traditional designer toys.

Short‑form social videos amplify unboxing and collection culture; TikTok unboxing videos and plush room tours have drawn hundreds of thousands of views and fuelled fan interest.

Title:

Content: Yes, You Are Seeing Miffy Everywhere — Here’s Why

Image by Mulberry. Copyright: Mercis bv.
At Refinery29 Australia, we’re here to help you navigate this overwhelming world of stuff. All of our picks are independently selected and curated by the editorial team, but we may earn commission or other compensation from the links on this page.
A familiar face from our childhood has made a stylish reappearance in our adult lives. Miffy has returned — although she never really left — this time, showing up in designer collaborations.
Miffy has been around since 1955, designed by Dutch artist Dick Bruna and featured in children's picture books and decades later, in a string of television series including Miffy and Friends. She's known for her limited colour palette of a dark red, blue, yellow and green, as well as her humble dress and cross-shaped mouth. While Miffy might have been forgotten by many, she's made a triumphant return with a dedicated fanbase that loves her cute aesthetic and charming simplicity.
Advertisement
Last December, Tommy Hilfiger announced its new collection with the sweetheart rabbit, citing Miffy's minimalist aesthetic and dedication to primary hues as the main attraction for the partnership. "Miffy embodies many of our brand values: being adventurous, open to new experiences and having a relentlessly positive attitude," said the titular designer of the "perfect blend of playful-meets-prep" within the 50 new pieces. Mulberry joined in on the fun a month later, with a 24-piece capsule series featuring the bunny on the company's luxurious handbags.
These Miffy collabs are timed perfectly for Lunar New Year, landing on January 22 this year and marking the Year of the Rabbit, which last took place in 2011 and 1999. In the Chinese zodiac, the animal represents luck, wit and optimism, promising a swift and present year ahead. Naturally, it made sense to get Miffy on board to celebrate the Year of the Rabbit in style.
It's also not the first time we've seen Miffy show up in the fashion world, having paired with Converse in 2021 for a capsule of its iconic sneakers emblazoned with the adorable rabbit, while Ghostly International and Pop Trading set the trend three years earlier in limited edition releases. The Chinti and Parker collaboration featuring bright Miffy jumpers and shirts first popped up in 2016, but new releases are still being dropped on Farfetch to this day.
But the cult of Miffy has been around for even longer, sparking whimsical nostalgia for kids and adults alike. It seems that Miffy's overlords are on top of the craze, moving their products from the children's aisles to products designed for adults across the board. Be it DIY accessories or homewares, the sweet rabbit is dominating wardrobes and rooms around the world.
Advertisement
"Over the past 12 months, I’ve definitely seen the rise of Miffy love, mostly on social media," says Miffy aficionado and Refinery29 Australia Living & Wellness Writer Maggie Zhou, who explains why the appeal exists beyond just fashion. "Her classic design — that’s stayed relevant for 68 years — is something to behold. The simple block colours and curved lines are quintessentially Dutch. I almost feel like her recent collaborations with brands and timing of her rising popularity has been a happy coincidence, rather than a strategic choice because she is a rabbit," she shares.
On TikTok, unboxing videos of Miffy plushes and paraphernalia garner hundreds of thousands of views, while vlogs of creative projects dedicated to the beloved rabbit help others recreate their own versions at home. Meanwhile, decked-out Miffy room tours capture decor pieces and extensive stuffed toy collections.
Zhou is in for the long haul when it comes to Miffy, having loved her for years. She is even planning on visiting the rabbit's hometown in Utrecht, The Netherlands this year. Her dedication means that she sometimes feels a little "gatekeepy" when it comes to Miffy, explaining that for a lot of Miffy fans, the love will continue outside of the current trend. Nevertheless, Zhou understands the sudden hype over the rabbit.
"I think — bear with me — she’s an unproblematic fave. I also think her sweet aesthetic is widely loved across time and different cultures," says Zhou. "She’s often mistaken for Japanese; I agree that she’s kawaii! But Miffy’s rise in popularity is mirrored by the general trend of kitschiness and the 'weird girl' aesthetic, which is heavily influenced by Japanese culture — I think of Melbourne stores like Hello Sisi and Pinkys, which specialise in quirky trinkets."
Advertisement
Miffy' second rise to fame comes at a time when other animated mascots dominate our newsfeeds, screens and shopping baskets: think Hello Kitty's enduring appeal, old Moomin clips being recirculated online and the sudden fascination with Kewpie dolls and Sonny angels. So it makes sense that people have hopped on board the Miffy train too, taking in the escapism, simplicity and novelty that she brings.
"Anthropomorphic characters have made up a big part of our childhoods, but also feed into modern-day pop culture (think Minions, The Bee Movie, Ratatouille)," concludes Zhou. "I think a general curiosity and attraction to cuteness is quite common, and it's nice to get excited about something that's low-stakes and comforting."
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More from Trends

How do teenagers gain identity and intimacy?

which social platforms does Gen Z tend to prefer?

Collectible toy companies benefit from avid fanbases, limited runs and active secondary markets, which can raise demand and prices.

Title:

Content: Revealed: How opportunistic eBay sellers are taking advantage of supply crisis by buying up popular Christmas gifts then listing them online for more than DOUBLE the price

  • Savvy eBay vendors are capitalising on parents' desperation this Christmas
  • Popular children's toys have been bought from retailers and sold online
  • The cost of some toys has been inflated by as much as 160 percent on eBay

Opportunistic eBay sellers have been taking advantage of the supply crisis by buying up popular Christmas gifts and listing them online for more than double the price.

As the countdown to Christmas continues savvy vendors are capitalising on parents' desperation to secure the gifts on their children's lists.

It comes after families were warned to start shopping for Christmas last month amid fears that supplies of toys, electrical goods and other products will be disrupted by logjams at UK ports.

Some of the most popular toys are in high demand and quickly selling out from the original sellers, with Lego's Elf Club House featuring a 'hard to find' sticker.

The Lego toy has been seen by MailOnline listed on eBay with a 160 percent price increase. A recommended retail price (RRP) of £84.99 rose to £221.60 when uploaded for sale on the auction website.

Slide me

Some of the most popular toys are in high demand and quickly selling out from the original sellers, with Lego's Elf Club House featuring a 'hard to find' sticker on the website. Pictured left, for sale on the Lego website. Right, at an inflated price on eBay

Other toys being sold online include Ravensburger's Gravitrax starter set which holds a RRP of £64.97

On eBay one UK-based seller had GraviTrax listed for £101.35 - a 56 percent increase

Other toys being sold online include Ravensburger's Gravitrax starter set which holds a RRP of £64.97. On eBay one UK-based seller had it listed for £101.35 - a 56 percent increase.

And a Playmobil Splish Splash Water Park, sold for £49.99  directly from the toy company's website, is listed with a 60 percent increase on eBay - at £79.99

The UK Toy Retailers Association released its 2021 Dreamtoys line-up this week, after game industry leaders predicted which would be the most popular choices.

Another item being sold on eBay is the Paw Patrol Tower playset, which has a RRP of £130, but can be found on eBay at £169.99.

When iNewspaper asked one eBay vendor about the inflated costs they said: 'Prices vary due to this item being very popular.'

Slide me

Another item being sold on eBay is the Paw Patrol Tower playset, which has a RRP of £130, but can be found on eBay at £169.99

Slide me

A Playmobil Splish Splash Water Park, sold for £49.99 directly from the toy company's website, is listed with a 60 percent increase on eBay - at £79.99

Slide me

A Star Wars Galactic Snackin' Grogu is being sold on eBay for £115 despite holding a RRP of £84.99

Slide me

The Air Hogs Super Soft toy has been sold on ebay for £54.45 despite its RRP being £39.99

Another vendor admitted a popular toy was being sold at nearly double the retail price because of the 'lack of stock' elsewhere.

Natasha Crookes, director general of the Toy Retailers Association, said parents should be careful they are not being taken advantage of.

She added: 'Consumers are advised to compare prices between retailers before purchasing and remember that the most competitive price may not always be online.'

An eBay spokesman told MailOnline: 'We understand that high prices for popular toys can be frustrating for parents.

'However, eBay is simply a marketplace, so sellers are free to list non-essential products at the prices they want, and typically if items are over-priced they tend not to sell.

'If shoppers refuse to pay over the odds for these items, sellers will need to lower their prices to make a sale.'

It comes after the Toy Retailers Association warned price increases in the coming months were 'inevitable' with shipping costs having risen a whopping 900 per cent in a year, with a £15 toy truck now costing £7 to ship from the Far East, up from 70p a year ago.

People out stocking up ahead of Christmas at a Smyths toy shop in Slough, Berkshire, last month

A woman pushes a trolley out of a Smyths toy shop in Slough, Berkshire, last month

Shoppers look at products in a Smyths toy store in Slough, Berkshire, last month

Meanwhile in the US, the country's Toy Association said the cost of children's toys has risen by as much as 10 per cent ahead of the Christmas season.

And the British Retail Consortium said last month there were 'clear signs' that the combination of problems were 'starting to filter through to consumer prices' as it said one in three retailers in the UK expect prices to rise in the next three months.

One educational toys firm based in Shropshire said it had been 'hit with increases from every angle - from higher cost of goods, to additional delivery surcharges'.

And a children's publishing business in Bristol told how by the new year it will 'have no choice but to adjust prices to accommodate ever increasing material costs'.

A learning products company based in Milton Keynes said it would 'like to increase our product prices' but it cannot because it doesn't want to lose customers.

The Bank of England has already flagged that inflation could hit four per cent by the end of the year, while supermarkets say food prices could increase by 5 per cent.

Alan Simpson, chairman of the Toy Retailers Association, told MailOnline: 'It is inevitable that prices are going to rise given the extra costs being incurred by retailers due to exorbitant rises in shipping costs.

'The large majority of toys are manufactured in the Far East and we have seen freight rates rise beyond belief - in some cases we are paying 10 times what it costs to ship a container now compared to 12 months ago.

'Suppliers simply cannot absorb this level of increase and price rises are an inevitability. This anomaly is not confined to toys and can be expected to filter through all retail sectors whose product line originates in the Far East.

'This is simply beyond the control of retailers here in the UK and we are at the mercy of several outside factors.'

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EBay sellers are taking advantage of supply crisis by buying up popular Christmas gifts

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The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.

Title:

Content: Stocks

Funko: Strong Earnings Results Due to High Demand

Can Funko (FNKO) net $1 billion in fiscal-year revenue while manufacturing and selling vinyl toy collectibles? The company came one step closer today as it reported Q3 2021 results, which beat expectations on revenue and EPS. The company predicts that its Fiscal Year 2021 sales will reach $915 million.

Funko says, in its Q3 discussion, that it cannot keep up with the demand for its collectible vinyl bobbleheads and other licensed merchandise. The company’s stock price has been on a one-year uptrend of 187% and has plenty of momentum. News of the earnings beat caused its stock price to rise. (See Funko’s stock charts on TipRanks)

Its innovative business strategy and successful financial performance will ensure future growth for the company, as well as a stock price uptrend. The company has a dedicated fanbase of collectors and enthusiasts, while also holding over 1,000 licensing agreements of the most popular brands.

As a result, I rate the company as bullish. (See Analysts’ Top Stocks on TipRanks)

What is Funko POP!?

Funko POP! is a four-inch-tall, vinyl collectible bobblehead figure which comes in a collectible box. The figures come from the hottest brands and franchises, such as Disney, Star Wars, Pokemon, Marvel, DC Comics, and the NBA.

The collectible figures can be found in over 25,000 retail locations, especially big box stores. Funko’s products are often resold online through third parties. There are phone apps like WhatNot for trading rare Funkos.

The company’s success is very much credited to its fan base. A third of its customers are avid collectors while another third are brand enthusiasts. People, young and old, collect Funko products as a hobby and as a past time.

The fans identify with these collectibles, which grow in value over time. The content is successful because it invokes a positive response in the buyer, who has an attachment with the license, character, or franchise. Funko calls it, “high quality, obsession-worthy content.”

Funko manufactures and sells a variety of branded collectible pop culture products, including bobbleheads, keychains, t-shirts, figurines, enamel pins, plush dolls, board games, backpacks, and NFTs (digital collectibles).

The merchandise is licensed and covers a large segment of popular culture, including music icons, movies, television shows, retro 80s, sports, video games, animation, and other cultural icons.

The company is highly engaged with its fan base and its retail distributors. Funko has a large e-commerce site, where fans pre-order special runs and limited-edition POPs. The company has agreements with big box stores for distribution and it makes special run Funko POPs for Walmart, Target, GameStop, Hot Topic, FYE, Amazon, and other companies. Fans are especially interested in these exclusive-run POPs.

NFTs

Funko continues business expansion by gaining new licenses and renewing old ones. The company has also introduced new products and product formats. It recently made its entry into NFTs (non-fungible tokens), which are digital collectibles.

These digital tokens with images are limited releases, and their production history is kept on a blockchain. Funko releases limited edition digital card packs that contain rare cards. Buyers then can sell these rare cards for high dollars on the collectibles market.

Funko partnered with TokenWave to create droppp.io. This was done in order to release its new digital card packs and to serve as a digital wallet for storing the NFTs. The digital content gives additional avenues for engagement with fans. Digital collectibles are thought to be the way of the future. The company is currently sold out of all digital tokens.

Q3 2021 Earnings Results

The company beat expectations on revenue and EPS. It reported revenue of $267.7 million, up 40% compared to last year’s quarter, and a net income of $18.4 million, up 17% compared to last year’s quarter. The company reports increasing revenues year over year.

Its U.S. sales were $191.3 million while its European and International sales were $58.9 million and $17.6 million, respectively. The company’s Funko POP! brand amounted to $193.1 million of the revenue. In addition, 11% of its sales came from its e-commerce site.

The company reported $653 million in net sales for Fiscal Year 2020 and it is estimating $915 million for Fiscal Year 2021. The current revenue estimate for Q4 is $240.74 million.

Wall Street’s Take

According to Wall Street, Funko has a Strong Buy consensus rating, based on three Buys assigned in the past three months. At $27.00, the average Funko price target implies 44.5% upside potential.

Conclusion

Funko once again beat expectations on revenue and EPS in its most recent earnings report. The company’s stock is trading higher and may experience a rally over the news.

The company’s successful performance shows that its products are in high demand to its fanbase of enthusiasts and collectors. I rate Funko as bullish because of its innovative business strategy, the potential for growth, and stock momentum.

Disclosure:  At the time of publication, Alan Sumler had a position in Funko.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only. Tipranks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. Tipranks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by Tipranks or its affiliates. Past performance is not indicative of future results, prices or performance.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

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Chinese regulators imposed restrictions on mystery‑box sales to protect children, including banning sales to under‑eights without guardian consent.

China’s mystery‑box toy industry has been estimated at about $10 billion.

The provided documents do not include specific information about Labubu, its creator, Rihanna, Pop Mart’s global revenue surge, or the founder’s personal wealth.

Conclusion: These sources do not provide direct information about Labubu specifically; however, they show that blind‑box mechanics, IP commercialization, social‑media unboxing culture, scarcity/resale dynamics, and strong fanbases are key drivers of collectible‑toy virality.


Pop Mart was a leading seller in China’s mystery-box market and experienced the sharpest growth in 2020.

According to Tmall Global, Pop Mart accounted for more than 35 percent of overseas mystery-box sales in 2020.

The company’s total sales volume increased more than tenfold in 2020.

China’s mystery-box online exports surged more than 400 percent in 2020 compared with 2019.

Mystery boxes achieved success in part because commercialization of intellectual properties (IPs) allowed consumers to buy IP products at much lower prices than traditional designer toys.

In the supplied context Pop Mart’s most-mentioned popular item was the Molly doll, a figurine created by a Hong Kong artist.

The mystery-box trend attracted serious controversies, including reports of live animals being shipped in boxes and widespread social criticism.

China’s market regulator issued guidelines that banned selling mystery boxes to children under eight without guardian consent and strengthened compliance management for the market.

On TikTok, unboxing videos of collectible plushes and related paraphernalia can garner hundreds of thousands of views, showing strong audience engagement for this content format.

An article about Miffy ties that character’s renewed popularity to nostalgia, a simple and widely appealing aesthetic, and high-profile designer collaborations—factors that help explain why collectible characters can become cultural trends.

The supplied documents do not contain direct information about the Labubu character, its creator Kasing Lung, Rihanna being spotted with a Labubu, or details about Pop Mart’s founder becoming significantly wealthier.

Conclusion: The provided context shows that Pop Mart’s mystery-box/IP commercialization model drove rapid sales growth in 2020 and that social-media formats like TikTok unboxing, plus nostalgia and designer collaborations, help make plush collectible characters go viral, but the documents do not provide direct information about Labubu, its designer, celebrity sightings, or founder wealth.

Pop Mart was a leading seller in China’s mystery-box market and experienced the sharpest growth in 2020.

Title:

Content: Controversy Erupts On Unboxing Mystery Boxes, Regulator Imposes Ban On Sale

Chinese toy industry has been caught in a controversy for selling dangerous products to children through mystery boxes. Following the criticism from a cross sections of the society, Chinese regulator recently imposed a ban specifically on the sale of mystery boxes to children below eight and made mandatory to get parents’ consent for older children. Several questions have been raised over the sale of mystery boxes by animal rights activists Animal rights activists, several toy makers compromise baby animal rights. Mystery boxes, a toy box that contained one figure from a large selection that is not visible until it is open, gained popularity overseas as well as in the Chinese domestic market in 2020. The online exports surged more than 400 percent in 2020 compared to 2019.

Among them Pop Mart had seen the sharpest growth in 2020.. According to Tmall Global, the company alone accounted for more than 35 percent of overseas sales of mystery boxes, and in 2020 its total sales volume had increased more than tenfold. Its most popular item was the Molly doll, a little girl figurine created by a Hong Kong artist, and a toy box was usually priced at 9.1 US dollars, according to global times.
The mystery boxes became successful due to its commercialization of intellectual properties (IPs), which enabled the consumer to buy IP products at a much lower price than traditional designer toys. As always, China’s mystery boxes was caught in a controversy. Shopping sites in China have been accused of animal cruelty for allegedly shipping “mystery boxes” to customers containing live puppies and kittens. Local reports indicated that many animals suffered significant harm in transit. CNN revealed a horrific practice of animal cruelty in China in which it was found that animals became victims of a shopping craze “mystery boxes”.

The CNN report revealed the dark side of mystery boxes as live animals were found in these harmless looking boxes. The news report revealed that these boxes were sold in person or on online platforms and then shipped by couriers with a hope to lure customers with the promise of a live animal or even a pedigree cat or dog. Chengdu Love Home Animal Rescue Center shared on Weibo in May 2021 claiming that it had found 160 crates containing cats and dogs in the back of a delivery truck in Chengdu. A video from the incident showed distressed animals tightly packed together in small crates, apparently lacking any food or water.

The rescue centre said that it had rescued “hundreds” of very frightened young puppies and kittens, many of which appeared to be struggling to breathe. They said that they disinfected, cleaned and fed them, before sending many to animal hospitals for treatment. According to CBS news, volunteers said that the crates were disguised as regular deliveries, due to be shipped to cities across the country. Shipping live animals in this way is illegal in China. According to the rescue organization, many of these animals end up abandoned if customers are unhappy with their boxes. Many Weibo users had condemned not only the retail sites, but also logistics companies and law enforcement for allowing the issue to continue without consequences. Users said the boxes are both animal cruelty and a public health threat. Many called on the government to introduce stronger legislation to protect animals.

Embarrassed by the criticism on social media platforms which can be accessed from any part of the world, China’s market regulator recently issued guidelines on regulating business practices for mystery boxes, strengthening compliance management of the fast-growing yet thinly regulated market. According to these guidelines, mystery box vendors are banned from selling items to minors under the age of eight without the consent of guardians.

China’s Mystery boxed industry

The mystery boxes toy industry in China is worth an estimated 10 billion US dollars. The industry is growing rapidly, and it is expected to continue to grow in the coming years. Experts said that China faced criticism following the ban because the country has a large population of young children. The ban is an attempt to protect children from the potential dangers of mystery boxes, such as the risk of receiving counterfeit or dangerous products.

Mystery box industry in China

China was selling mystery boxes in other countries, but the ban on the sale of mystery boxes to children under the age of 8 only applies to China. However, the ban is likely to have a ripple effect on the global mystery boxes market. The Chinese market is a major driver of the global mystery boxes market. The ban is likely to lead to a decrease in the demand for mystery boxes from China, which could have a knock-on effect on the demand for mystery boxes in other countries.

Here are some of the dangers of mystery boxes

Counterfeit products: Mystery boxes often contain counterfeit products, which can be dangerous or harmful.

Dangerous products: Mystery boxes can also contain dangerous products, such as sharp objects or small parts that could be a choking hazard.

Unrealistic expectations: Mystery boxes can create unrealistic expectations in children, who may believe that they will always receive valuable or rare items.

Financial risks: Mystery boxes can be expensive, and children may spend more money than they can afford on them. (geo-politik.eu)

According to Tmall Global, Pop Mart accounted for more than 35 percent of overseas mystery-box sales in 2020.

The company’s total sales volume increased more than tenfold in 2020.

China’s mystery-box online exports surged more than 400 percent in 2020 compared with 2019.

Mystery boxes achieved success in part because commercialization of intellectual properties (IPs) allowed consumers to buy IP products at much lower prices than traditional designer toys.

In the supplied context Pop Mart’s most-mentioned popular item was the Molly doll, a figurine created by a Hong Kong artist.

Which products are increasingly viewed as treasures by collectors?

The mystery-box trend attracted serious controversies, including reports of live animals being shipped in boxes and widespread social criticism.

What Pop Mart marketing ploy features highly desirable hidden models?

China’s market regulator issued guidelines that banned selling mystery boxes to children under eight without guardian consent and strengthened compliance management for the market.

On TikTok, unboxing videos of collectible plushes and related paraphernalia can garner hundreds of thousands of views, showing strong audience engagement for this content format.

Title:

Content: Yes, You Are Seeing Miffy Everywhere — Here’s Why

Image by Mulberry. Copyright: Mercis bv.
At Refinery29 Australia, we’re here to help you navigate this overwhelming world of stuff. All of our picks are independently selected and curated by the editorial team, but we may earn commission or other compensation from the links on this page.
A familiar face from our childhood has made a stylish reappearance in our adult lives. Miffy has returned — although she never really left — this time, showing up in designer collaborations.
Miffy has been around since 1955, designed by Dutch artist Dick Bruna and featured in children's picture books and decades later, in a string of television series including Miffy and Friends. She's known for her limited colour palette of a dark red, blue, yellow and green, as well as her humble dress and cross-shaped mouth. While Miffy might have been forgotten by many, she's made a triumphant return with a dedicated fanbase that loves her cute aesthetic and charming simplicity.
Advertisement
Last December, Tommy Hilfiger announced its new collection with the sweetheart rabbit, citing Miffy's minimalist aesthetic and dedication to primary hues as the main attraction for the partnership. "Miffy embodies many of our brand values: being adventurous, open to new experiences and having a relentlessly positive attitude," said the titular designer of the "perfect blend of playful-meets-prep" within the 50 new pieces. Mulberry joined in on the fun a month later, with a 24-piece capsule series featuring the bunny on the company's luxurious handbags.
These Miffy collabs are timed perfectly for Lunar New Year, landing on January 22 this year and marking the Year of the Rabbit, which last took place in 2011 and 1999. In the Chinese zodiac, the animal represents luck, wit and optimism, promising a swift and present year ahead. Naturally, it made sense to get Miffy on board to celebrate the Year of the Rabbit in style.
It's also not the first time we've seen Miffy show up in the fashion world, having paired with Converse in 2021 for a capsule of its iconic sneakers emblazoned with the adorable rabbit, while Ghostly International and Pop Trading set the trend three years earlier in limited edition releases. The Chinti and Parker collaboration featuring bright Miffy jumpers and shirts first popped up in 2016, but new releases are still being dropped on Farfetch to this day.
But the cult of Miffy has been around for even longer, sparking whimsical nostalgia for kids and adults alike. It seems that Miffy's overlords are on top of the craze, moving their products from the children's aisles to products designed for adults across the board. Be it DIY accessories or homewares, the sweet rabbit is dominating wardrobes and rooms around the world.
Advertisement
"Over the past 12 months, I’ve definitely seen the rise of Miffy love, mostly on social media," says Miffy aficionado and Refinery29 Australia Living & Wellness Writer Maggie Zhou, who explains why the appeal exists beyond just fashion. "Her classic design — that’s stayed relevant for 68 years — is something to behold. The simple block colours and curved lines are quintessentially Dutch. I almost feel like her recent collaborations with brands and timing of her rising popularity has been a happy coincidence, rather than a strategic choice because she is a rabbit," she shares.
On TikTok, unboxing videos of Miffy plushes and paraphernalia garner hundreds of thousands of views, while vlogs of creative projects dedicated to the beloved rabbit help others recreate their own versions at home. Meanwhile, decked-out Miffy room tours capture decor pieces and extensive stuffed toy collections.
Zhou is in for the long haul when it comes to Miffy, having loved her for years. She is even planning on visiting the rabbit's hometown in Utrecht, The Netherlands this year. Her dedication means that she sometimes feels a little "gatekeepy" when it comes to Miffy, explaining that for a lot of Miffy fans, the love will continue outside of the current trend. Nevertheless, Zhou understands the sudden hype over the rabbit.
"I think — bear with me — she’s an unproblematic fave. I also think her sweet aesthetic is widely loved across time and different cultures," says Zhou. "She’s often mistaken for Japanese; I agree that she’s kawaii! But Miffy’s rise in popularity is mirrored by the general trend of kitschiness and the 'weird girl' aesthetic, which is heavily influenced by Japanese culture — I think of Melbourne stores like Hello Sisi and Pinkys, which specialise in quirky trinkets."
Advertisement
Miffy' second rise to fame comes at a time when other animated mascots dominate our newsfeeds, screens and shopping baskets: think Hello Kitty's enduring appeal, old Moomin clips being recirculated online and the sudden fascination with Kewpie dolls and Sonny angels. So it makes sense that people have hopped on board the Miffy train too, taking in the escapism, simplicity and novelty that she brings.
"Anthropomorphic characters have made up a big part of our childhoods, but also feed into modern-day pop culture (think Minions, The Bee Movie, Ratatouille)," concludes Zhou. "I think a general curiosity and attraction to cuteness is quite common, and it's nice to get excited about something that's low-stakes and comforting."
Want more? Get Refinery29 Australia’s best stories delivered to your inbox each week. Sign up here!

More from Trends

which social platforms does Gen Z tend to prefer?

An article about Miffy ties that character’s renewed popularity to nostalgia, a simple and widely appealing aesthetic, and high-profile designer collaborations—factors that help explain why collectible characters can become cultural trends.

The supplied documents do not contain direct information about the Labubu character, its creator Kasing Lung, Rihanna being spotted with a Labubu, or details about Pop Mart’s founder becoming significantly wealthier.

Conclusion: The provided context shows that Pop Mart’s mystery-box/IP commercialization model drove rapid sales growth in 2020 and that social-media formats like TikTok unboxing, plus nostalgia and designer collaborations, help make plush collectible characters go viral, but the documents do not provide direct information about Labubu, its designer, celebrity sightings, or founder wealth.