**Middle East Energy Transition: Solar Investments and the Post-Oil Future**

The Middle East, historically synonymous with oil wealth, is at a pivotal moment in the global energy transition.

At the recent UN climate conference in Dubai (COP28), nearly 200 nations agreed to "transition away" from fossil fuels this decade—an unprecedented commitment that is reflective of shifting priorities in the region itself.

**National Projects & Solar Capacity:**
- **United Arab Emirates (UAE):** The UAE is recognized as a regional leader in clean energy innovation.

It is home to iconic projects such as the 2 GW solar photovoltaic plant supporting green hydrogen production, and ambitious real estate developments aiming for massive carbon footprint reductions (e.g., a tower targeting 58% emissions cuts and Platinum LEED certification).

The country aspires to establish itself as a global hub for green economy and clean energy solutions.

- **Saudi Arabia:** New strategic partnerships, such as Positive Zero's entry into the Kingdom and ENERCO’s involvement (a Tamimi Energy subsidiary), highlight Saudi Arabia’s ramp-up in solar and renewable infrastructure.

Large-scale utility projects and policy support aim to maintain Saudi Arabia’s role in the energy export market through clean hydrogen and ammonia, powered by solar.

- **Morocco:** Although in North Africa, Morocco’s investments are a regional benchmark.

Facilities like the Noor Ouarzazate—currently the world’s largest concentrated solar power plant—signal the MENA region’s solar ambitions.

- **Egypt and Jordan:** Egypt leverages its high solar and wind potential along the Sinai and Red Sea, while Jordan’s nine new green energy accords (announced at COP28) further deepen its renewable commitment.

**Government Incentives & Market Structures:**
- National targets, subsidies for solar infrastructure, and regulatory incentives aim to attract public and private investment in renewables.

**Middle East Energy Transition: Solar Investments and the Post-Oil Future**

The Middle East, historically synonymous with oil wealth, is at a pivotal moment in the global energy transition.

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

At the recent UN climate conference in Dubai (COP28), nearly 200 nations agreed to "transition away" from fossil fuels this decade—an unprecedented commitment that is reflective of shifting priorities in the region itself.

Title:

Content: Analyzing The Impact On -And What's Next For- The Middle East After The UAE's Momentous Staging Of COP28 The United Nations climate conference in Dubai made history last month, uniting nearly 200 nations to adopt a resolution to "transition away" from coal, oil and gas in this decade.

By Megha Merani

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

The 28th edition of the Conference of the Parties of the United Nations Framework Convention on Climate Change (COP28) may have wrapped up- but the spotlight still remains fixed on the Middle East, with the UAE at the center, as it emerges as a potential key influencer in the global climate agenda. This focus comes amidst expectations from industry leaders that the summit's resolutions will spark a new wave of innovation and strategic rethinking across the region.

The United Nations (UN) climate conference in Dubai made history last month, uniting nearly 200 nations to adopt a resolution to "transition away" from coal, oil and gas in this decade. The landmark decision on fossil fuels -a first of its kind in the conference's three-decades- was won after intense debate and considerable resistance from leading energy producers.

Fossil fuels, which are responsible for the majority of global warming emissions, still account for more than 80% of the world's energy consumption, even amid a steady rise in renewable energy capacity. COP28 President Dr. Sultan Al Jaber said the deal "delivered a paradigm shift that has the potential to redefine our economies," but stressed the importance of action over rhetoric, signaling a turning point in international energy policies. "We are what we do, not what we say," he said. "We must take the steps necessary to turn this agreement into tangible action."

Salaal Hassan, founder and CEO of Ahya, an artificial intelligence (AI)-powered solution for businesses to measure and reduce emissions, said heightened awareness of climate challenges spurred by COP28 opens key opportunities for both policymakers and the private sector. "The private sector must move beyond an outlook of seeing climate change as corporate social responsibility (CSR), and instead adapt from purely capitalist models to green social capital-based enterprises," he said. To make the shift, he recommends the adoption of "double materiality", a concept that focuses on reinvesting profits into climate protection and accurately assessing climate risk.

Salaal Hassan, founder and CEO, Ahya. Source: Ahya

As for the road ahead, Hassan predicts the COP28 dialogue will be a major catalyst for climatetech innovation in the region, especially for software startups focused on database management, reporting, and reduction processes for climate initiatives. "Such solutions already exist in the US and European Union, but they are not transferable to the UAE due to cost, support, localization, and compliance aspects," he noted. As the region -which has been historically reliant on fossil fuels- pivots towards a sustainable future, Hassan also sees potential for Direct Air Capture (DAC) technology for greenhouse gas mitigation. However, he also pointed out that its capital-intensive nature poses limitations in emerging markets.

Meanwhile, Shukri Eid, General Manager for the Gulf, Levant, and Pakistan at American multinational IBM, said the urgency to measure carbon footprints, as well as the increasing demand for comprehensive data, including environmental, social, and governance (ESG) reporting, have exerted immense pressure on organizations. "To start, organizations need to establish baselines and develop data-driven strategies- deciding what data to collect, where to store it, and how to manage it for audits, performance assessment, and driving improvements," Eid said. Unfortunately, existing data is often "fragmented, incomplete, or outdated," Eid noted.

Shukri Eid, General Manager, IBM-Gulf, Levant, and Pakistan. Source: IBM

But he noted that technologies infused with AI "hold the most promise for climate action," citing IBM's collaboration with the US' National Aeronautics and Space Administration (NASA) on a foundation model for weather and climate. Trained on geospatial information, the model offers a novel approach to tackle climate change. "Unlike traditional AI models, geospatial foundation models can be fine-tuned for diverse applications, from flood detection to fire scars, driving impactful solutions across climate-related challenges," Eid explained.

Closer to home, IBM -which was an Associate Pathway Partner for the COP28 conference in Dubai – has also partnered with Mohamed Bin Zayed University of Artificial Intelligence to map the urban heat islands in the UAE. The research involves a fine-tuned version of IBM and NASA's geospatial foundation model to understand Abu Dhabi's urban environment and the formation of urban heat islands influenced by local landscapes. At the same time, IBM's Sustainability Accelerator is fostering innovation in water management at the University of Sharjah, which is developing a model and application to monitor and forecast water access in the Middle East and North Africa.

The financial sector is also adapting to take the lead in environmental initiatives. Dr. Saeeda Jaffar, Senior Vice President and Group Country Manager for the GCC at global digital payments leader Visa, said that finance and payment players "bear a significant responsibility" in driving adaptation, and that they are essential to bridging the gap between consumers and businesses in instilling sustainable practices. "The imperative for banks extends beyond merely reducing the reliance on cash payments and paper," she said. "It encompasses providing crucial capital to sustainable businesses, and creating an environment that fosters their growth. Any technology or innovation that inspires individuals and businesses to awareness and climate action holds great promise."

Dr. Saeeda Jaffar, Senior Vice President and Group Country Manager GCC, Visa. Source: Visa

Dr. Jaffar cited Visa's collaboration with sustainability-as-a-service startup Ecolytiq to launch an "Eco Benefits" bundle, in partnership with Mashreq Bank in the UAE and Qatar Islamic Bank in Qatar, as a prime example. The solution leverages payments data to allow consumers to track their carbon footprint per transaction, enabling them to understand the impact their spending behavior is having on the environment, and offers guidance on how to offset their carbon impact.

In the UAE, the carbon emissions insights are available to nearly one million Mashreq personal banking customers. "Rather than just offering products and services, we aim to craft experiences that truly benefit our customers," Faisal Al Shimmari, Head of ESG and Corporate Strategy at Mashreq Bank, said. "These products are designed to promote climate-positive behaviors, while delivering tangible impact for Mashreq customers."

Meanwhile, Mashreq is also actively ramping up its efforts to provide sustainable financing with a goal to reach US$30 billion by 2030, making it among the top facilitators of the UAE Banks Federation's (UBF) pledge at COP28 to mobilize $272 billion in sustainable finance by the end of the decade. The bank has already facilitated more than 30 deals in sustainable financing since 2021, including structuring and underwriting the recently closed Bapco Energies' $2.5 billion dual tranche Islamic and conventional term facility, the largest sustainability-linked loan in the region so far. Other projects that have received financing include adaptation-related projects such as water projects in Egypt, the UAE, Qatar, Saudi Arabia and Bahrain.

Related: A Silicon Valley for Climate Tech? It Could Well Be the UAE

Having noted important gaps in climate finance for decarbonization in the UAE, Al Shimmari called it "a matter of national priority". This is why Mashreq is set to launch a UAE ESG Ecosystem Government Accelerator, an initiative uniting public institutions and financial private sector organizations to expedite the UAE's green transition.

Meanwhile, as 2024 now gets underway, Al Shimmari noted that UAE climate startups will need to confront regulatory uncertainties and funding challenges, yet promising avenues for innovation and growth await. "Startups should focus on increasing their technology readiness level through university collaborations and market-funded programs, and work on addressing climate risk stress testing, including data availability and governance challenges," he advised, noting a bright outlook especially for agri- and water-tech sectors.

However, Ahya's Hassan highlighted that the scarcity of capital for climatetech is a major obstacle to progress. "The biggest challenge is that of investors not having the risk appetite or a specialized thesis, due to the need to dive deep into the macroeconomics and regulations, which are distinguishably different from other sectors, as well as the need to see climatetech returns on a mid to long term horizon," Hassan said. "Here, very few investors have a focus on climatetech. And enterprises, whilst having sustainability departments, do not have specialists running them and have a general view of sustainability as an operational expense or CSR function. This can only change through confidence building, and simplifying the macro regulatory context."

Echoing Hassan's view, Victor Sunyer, Partner at Dubai-based investment firm Nuwa Capital, said that venture capitalists, in line with market conditions, "will continue to exhibit increased selectivity and caution." This cautious approach comes just as UAE-based data platform Magnitt noted a significant global investment growth in climatetech. The sector saw $82 billion in investments in 2022, up 20% from the previous year.

Victor Sunyer, Partner, Nuwa Capital. Source: Nuwa Capital

In the more nascent Middle East, North Africa, and Turkey (MENAT) market, climatetech startups attracted $651 million across 148 ventures between 2018 and 2022. However, Nuwa Capital envisions climatetech as "a fundamental area for growth and investment in the region" over the next few years, Sunyer said, motivated by the urgency to mitigate climate change impact. "Consumer sensitivity towards responsible behavior adds momentum to this trend," he said. "We are pursuing investment opportunities in the climate action space, spanning both early and growth stages."

Sunyer also said that the region is seeing "the beginnings of a solid climatetech ecosystem", also pointing to accelerator programs sponsored by major energy companies directing their focus to energy efficiency and transition. ADNOC, for example, launched a $1 million decarbonization technology challenge last year. Sunyer also noted "heightened enthusiasm" for water management and efficiency post-COP28, as well as technologies focused around low-carbon foods and locally grown produce, and on reducing building energy consumption. "Given the relevance of the construction sector and the climatic conditions, implementing energy-conserving measures for buildings is crucial for enhancing overall energy efficiency," Sunyer said. "Anticipated strides by policymakers in this regard underscore the potential impact."

With buildings accounting for nearly 40% of global carbon emissions, Maged Marie, CEO at Egypt-based real estate firm Magnom Properties, emphasized the role of the built environment in global energy transition discussions at COP28. The summit focused on practical solutions to decarbonize the buildings sector, Marie said, describing it as a move to "course-correct."

Maged Marie, CEO, Magnom Properties. Source: Magnom Properties

At the summit, the governments of France and Morocco, alongside the UN Environment Program (UNEP), launched the Buildings Breakthrough, setting a goal for near-zero emissions and climateresilient buildings by 2030– an initiative Marie lauded as one of the "most important sector-specific outcomes" at the conference in Dubai. "While the speed and scale of urbanization globally has brought manifold challenges to the climate crisis, the buildings sector is also uniquely positioned to be part of the solutions as we move forward on the path of net zero," Marie said. "At Magnom Properties, for instance, we are tapping into the long-term potential of clean hydrogen to power 75% of the total energy demands of the Forbes International Tower in Cairo, Egypt, designed to be one of the most sustainable buildings globally."

The Forbes International Tower, a commercial project planned to be constructed in locations including the UAE, Saudi Arabia, and Egypt, will also use solar power, while also incorporating water recycling and smart technologies for efficient use. The tower is set to reduce its carbon footprint by 58%, equivalent to 60 million kilograms of carbon dioxide emissions, and it is also targeting Platinum LEED certification.

Commenting on the industry as a whole, Louise Collins, Head of Engineering and Energy for the MEA, and Head of Project and Development Services for the UAE, at real estate services firm JLL, said that sustainability is "high on the agenda" for both local and global businesses operating in the real estate sector. More time, resources, and money are being spent on sustainability, she said, which is expected to continue in the years ahead. According to JLL, 59% of the top 100 office occupiers in Dubai have carbon commitments.

Louise Collins, Head of Engineering and Energy for the MEA, and Head of Project and Development Services for the UAE, JLL. Source: JLL

Collins said that much of the demand for low-carbon space is coming from international occupiers. But the Emirate faces a unique set of challenges in meeting this demand, she said, including extreme climate conditions, rapid urban development, and high-energy demand buildings. That said, the market also presents unique opportunities. "As Dubai continues to develop rapidly, local government officials and developers benefit from implementing stringent buildings codes and construction practices to ensure buildings are sustainable at the onset– a much easier route than having to go through expensive and complex retrofits," Collins explained. "Building owners can also capitalize on abundant solar energy potential and leverage smart city technologies."

A spokesperson from NWTN, a UAE-based electric car manufacturer and green energy provider, forecasted transformative shifts in the regional energy landscape, including an uptick in investments in renewables like solar and wind power, that would potentially lead to the emergence of new renewable tech companies. "Given the UAE's abundant solar resources, innovations in solar energy, such as more efficient photovoltaic cells or concentrated solar power systems, are particularly promising," the spokesperson said. "Wind energy, especially offshore wind turbines, could also see significant advancements."

Other promising technologies include green hydrogen produced using renewable energy sources. "It can be used in various sectors, including transportation, industry, and power generation, making it a versatile option for decarbonization," the spokesperson said. These, along with advanced energy storage systems including batteries and other novel storage technologies, along with smart grid technology, are essential for managing the intermittent nature of renewable energy sources.

Peter May, Vice President of Operations at Dubai-based proptech startup Silkhaus, underscored the shared collective accountability for climate action. "Climate action is everyone's responsibility across sectors, and not just that of cleantech businesses," he said. But startups face challenges, he added, in "avoiding the lure of greenwashing," and resisting the misconception that purchasing carbon credits is a primary solution. Advocating for a more comprehensive approach, May said companies need to focus on education, optimization, and direct impact reduction.

Peter May, VP of Operations, Silkhaus. Source: Silkhaus

But despite hurdles in the shift to green, May is upbeat about COP28's long-term effect on Middle East economies. Ultimately, the unprecedented agreement is encouraging as it aligns with the region's ambitions to diversify away from oil-dependence, he said. After all, expanding into non-oil sectors -while fostering sustainable practices- is a win-win scenario.

Related: What Are The Climate Solutions That We're Leaving On The Table? Ask Women Entrepreneurs.

Megha Merani

Independent Journalist

Megha Merani is an independent journalist based in Dubai, United Arab Emirates. Her stories have made headlines across a number of publications including Reuters, Associated Press, Entrepreneur Middle EastBloomberg Middle East, Arabian Gulf Business Insight, Arabian Business, and former local daily 7DAYS.

Megha also produces editorial for government platforms including the World Government Summit and World Economic Forum's Annual Meeting of the Global Future Councils. She has been a grant winner of the Thomson Reuters Foundation and The Global Initiative Against Organized Crime funded by the government of Norway to report on the online trade in illegal wildlife.

Megha is also an Associate Fellow (AFHEA) at Murdoch University in Dubai and leads its Digital Newsroom course unit. In addition, Megha serves as a United Nations Women mentor to support equal opportunities for women entrepreneurs, and supports various other programs including TIE Women, 60 Day Startups, and the Watt Inc. Business Incubator.

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**National Projects & Solar Capacity:**
- **United Arab Emirates (UAE):** The UAE is recognized as a regional leader in clean energy innovation.

It is home to iconic projects such as the 2 GW solar photovoltaic plant supporting green hydrogen production, and ambitious real estate developments aiming for massive carbon footprint reductions (e.g., a tower targeting 58% emissions cuts and Platinum LEED certification).

The country aspires to establish itself as a global hub for green economy and clean energy solutions.

- **Saudi Arabia:** New strategic partnerships, such as Positive Zero's entry into the Kingdom and ENERCO’s involvement (a Tamimi Energy subsidiary), highlight Saudi Arabia’s ramp-up in solar and renewable infrastructure.

Title:

Content:   • The agreement marks Positive Zero’s first strategic partnership in Saudi Arabia, boosting the group’s presence and reach across the Kingdom.
  • The collaboration will support attaining Saudi Arabia’s goal of installing 40 GW of solar PV capacity in line with Vision 2030.

Riyadh, Kingdom of Saudi Arabia (KSA): Positive Zero, the leading provider of decentralized energy solutions in the GCC, and Tamimi Energy, one of Saudi Arabia’s pioneers in integrated and sustainable energy services, have announced a strategic partnership to develop and deliver solar power projects across the Kingdom of Saudi Arabia.

The collaboration was formalized with the signing of a Partnership Agreement between SirajPower, Positive Zero’s distributed power generation subsidiary, and Energy Equipment Rental Company (ENERCO), one of Saudi Arabia’s leading power solutions providers under Tamimi Energy.  The agreement establishes a flexible framework for the two parties to leverage each other’s diverse solar project capabilities, enabling them to support the rapid growth of the Saudi clean energy market.

SirajPower and ENERCO will work together by leveraging their complementary capabilities for the development and financing of commercial and industrial solar power solutions across the Kingdom of Saudi Arabia. This will include deploying human talent, equipment, technology, and other resources to the projects they secure jointly.

The partnership follows Positive Zero’s recent announcement of a landmark investment of up to $400 million from BlackRock, the world’s largest asset manager with over $9.4 trillion in assets. The investment will boost Positive Zero’s growth and innovation in the GCC region, where it offers a range of decentralized decarbonization solutions, including solar power, energy efficiency, and mobile battery storage, to support the region’s energy transition and economic diversification goals, as well as the global efforts to combat climate change.

Salah Abdullatif, Executive General Manager at Tamimi Energy Holding Company, said:

"The pace of the clean energy transformation in the Kingdom of Saudi Arabia is picking up rapidly, with the Saudi Green Initiative setting an ambitious target to increase the share of renewable energy to 50% of the primary energy mix by 2030. This is no small feat, and ENERCO, as a key subsidiary of Tamimi Energy, is ideally positioned to play a crucial role in this journey. Our collaboration with SirajPower and the Positive Zero group will perfectly complement Tamimi Energy’s capabilities and open up significant opportunities for both parties to accelerate the adoption of solar power across multiple sectors in the Kingdom."

David Auriau, Co-Founder and CEO of Positive Zero, commented on the occasion:

“The Kingdom of Saudi Arabia is about to experience a surge in demand for clean energy, and photovoltaic solar power will be the foundation for meeting this demand as the key element of the National Renewable Energy Program of Vision 2030. To support attaining the goal of installing 40 GW of photovoltaic solar power by 2030, our partnership with Tamimi Energy will bring out the best of both our groups to the Saudi market, and we could not have chosen a better partner for Positive Zero’s first strategic partnership in the Kingdom. We look forward to playing a crucial role in the transformation of the Saudi energy sector through this agreement between SirajPower and ENERCO to bid on projects and deliver them together.”

Saudi Arabia is one of the top 10 countries in the world with the highest potential for producing centralized solar energy, according to the Shell Global Energy Resources Database, with the Kingdom approving new regulations over the past 18 months to enable the construction and provision of distributed solar energy solutions to increase the contribution of distributed solar PV power to the country’s energy mix.

Positive Zero’s foundational companies have already made remarkable strides in key GCC markets. SirajPower, the company's Distributed Generation arm, leads the region with a 200 MWp portfolio of distributed solar energy, reducing over 223 thousand metric tons of carbon emissions annually - an equivalent to powering over 43,000 homes every year. Taka Solutions, operating as the company's Energy Efficiency arm, has achieved energy savings exceeding 100,000 MWh across eight sectors in the United Arab Emirates, which is equivalent to planting more than three million trees. Situated under the company’s Clean Mobility vertical, our HYPR mobile battery units, the first clean energy delivery service in the region, have provided construction sites and other off-grid locations with cheaper and cleaner power.

About Positive Zero

Positive Zero is empowering a new energy economy by enabling businesses, communities, and cities in the Middle East region to take charge of their energy future. As the leading energy transition partner for the commercial, industrial, and public sectors, Positive Zero helps businesses achieve energy savings as high as 50% by removing upfront investments and operational complexities from the onset.

Positive Zero’s decarbonization-as-a-service offering combines clean technologies with data-driven solutions in distributed solar generation (SirajPower), energy efficiency (Taka Solutions) and clean mobility (fleet electrification, charging infrastructure and HYPR Energy) that reduce cost and consumption, and carbon footprint. In addition to financing, we offer end-to-end services, which means we manage the entire process from engineering, design, installation, construction, maintenance, and monitoring so that businesses can focus on what they do best.

For more information about Positive Zero, visit our website www.positivezero.com and our social media handles on LinkedIn /positivezerohq, Twitter @positivezerohq, and Instagram @positivezerohq.

For media inquiries please contact:
Carine Bouery
Head of Marketing
cbouery@positivezero.com

Large-scale utility projects and policy support aim to maintain Saudi Arabia’s role in the energy export market through clean hydrogen and ammonia, powered by solar.

Title:

Content: Will the Middle East use clean hydrogen to hold onto energy export economies?

September 17, 2022 0 By Frankie Wallace

Ships leaving ports in that area have the potential to allow the region to remain among leaders.

Middle Eastern container ships have the potential to one day shift the nature of the region’s energy leadership to clean hydrogen as the area undergoes a considerable change in economic focus.

The region has broad potential for generating green H2 powered by renewable energy like solar and wind.

Middle Eastern shipping ports are “primed for hydrogen transition”, said ABB Marine & Ports product line manager for electric solutions Jostein Bogen. He went on to say that the company was prepared for handling the expected H2 demand from the current 1,000 metric tons to the 39 to 161 megatons by 2050.

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ABB Marine & Ports is already using fuel cell technology for powering smaller cargo vessels that travel across shorter distance. It’s also applying the H2 to meet larger ships’ auxiliary energy requirements. As a component of the company’s efforts in research and development for this area, it is developing a high-power H2 fuel cell concept that would be able to generate 3 megawatts of electrical energy to be deployed on larger ships.

Many predict that collaboration will be required in the region to maximize the potential of clean hydrogen.

To realize the true potential of renewable H2 for Middle Eastern economies, it will be necessary for ports and producers to collaborate. This could include collaborations such as between the Abu Dhabi National Energy Company, Taqa, and Abu Dhabi Ports, which will generate 2GW of renewable H2 and that will be processed into ammonia for expert and bunker fuel uses. That H2 will be made using electrolysis powered by solar energy from a 2GW solar photovoltaic plant.

Bogen made his statement to the media on the heels of an International Energy Agency Clean Energy Ministerial Hydrogen Initiative (CEM H2I) acknowledgement of the role coastal industrial clusters and ports play in accelerating the deployment of this renewable fuel and fuel cell technology across all components of the economy.

CEM H2I coordinates the Global Ports Hydrogen Coalition, which is a working group aimed at bringing port authorities together for the use of clean hydrogen to decarbonize their activities.

- **Morocco:** Although in North Africa, Morocco’s investments are a regional benchmark.

Facilities like the Noor Ouarzazate—currently the world’s largest concentrated solar power plant—signal the MENA region’s solar ambitions.

- **Egypt and Jordan:** Egypt leverages its high solar and wind potential along the Sinai and Red Sea, while Jordan’s nine new green energy accords (announced at COP28) further deepen its renewable commitment.

Title:

Content:
Jordan Signs 9 Green Energy Accords At COP28, Strengthening Renewable Commitments

(MENAFN- Jordan News Agency)

Amman, Dec. 6 (Petra) -- Amid the UN Climate Conference "COP28" in Dubai, the Ministry of Energy and Mineral Resources penned nine pivotal agreements and memoranda of understanding, solidifying the Kingdom's commitment to advancing sustainable energy initiatives.
These agreements, unveiled during the conference, signify a crucial stride toward fostering green energy partnerships and embracing renewable energy sources, according to a statement by the Ministry on Wednesday.
Among the prominent agreements, five memoranda specifically focus on the production of green hydrogen and green ammonia in collaboration with various reputable companies. Additionally, a significant accord was reached to jointly develop a wind energy project alongside Abu Dhabi Future Energy Company (Masdar), exemplifying Jordan's proactive approach in fostering renewable energy collaborations.
Minister of Energy Saleh Kharabsheh elucidated the specifics of these agreements inked during the climate conference, noting that the agreement with Masdar aims to establish a 1-gigawatt wind energy station accompanied by a battery energy storage system (BESS) within Jordan's borders.
Furthermore, alliances with Aqua Power Saudi Arabia, Korea Electric Power Corporation (KEPCO), Xenel International, Ossur India/Emirates Energy, and Catalyst Investment Management Company were solidified. These collaborations intend to initiate preliminary studies for projects targeting annual production ranging from 100,000 to 1 million tons of green ammonia, demonstrating Jordan's phased approach towards scaling up green energy production.
Kharabsheh highlighted that the initial memorandum, focusing on green hydrogen production alongside Masdar, endeavors to initiate a feasibility assessment, with a primary goal of establishing a green hydrogen facility adjacent to the Aqaba port, to enable an annual production capacity of up to 50,000 tons. "This ambitious venture relies on desalinated seawater and renewable energy sources, ensuring competitive cost-efficiency in the production process," he added.
Furthermore, alliances with Aqua Power Saudi Arabia, Korea Electric Power Corporation (KEPCO), Xenel International, Ossur Energy India/Emirates, and Catalyst Investment Management Company were solidified. These collaborations intend to initiate preliminary studies for projects targeting annual production ranging from 100,000 to 1 million tons of green ammonia, demonstrating Jordan's phased approach towards scaling up green energy production.
The Minister emphasized the government's resolute efforts to position Jordan as a regional hub for green energy production. He highlighted leveraging the country's abundant renewable energy resources and strategic geographic location to ensure access to European markets for high-quality, competitively priced green hydrogen fuel.
He also commended the collaborative efforts both regionally and nationally, emphasizing the significance of partnerships forged with signatory allies. These alliances are in harmony with the ministry's strategic objectives and resonate with Jordan's recently unveiled Economic Modernization Vision (2023-2033). Integral to this vision are substantial investments directed towards green hydrogen production initiatives, emblematic of Jordan's overarching commitment to transitioning towards clean energy practices and striving for carbon neutrality.
Mohammed Al-Ramahi, CEO of Masdar, echoed these sentiments, accentuating Jordan's potential as a global player in green energy due to its substantial wind and solar energy resources. He underlined the strength of long-term partnerships, providing expertise in clean energy technologies to support Jordan's ambitious carbon reduction plans and harness its vast energy potential.
In addition to these agreements, collaborations with the Italian Ministry of Environment and the Canadian Climate Change and Clean Growth Fund were announced. These initiatives aim to fund renewable energy encouragement projects and enhance energy efficiency in Jordanian government buildings, aligning with Jordan's commitments to reduce carbon emissions.
The culmination of these agreements reflects Jordan's concerted efforts to attract investments and bolster energy efficiency across sectors by 2030. The Ministry envisions facilitating the transition to eco-friendly cooling systems in the Middle East and North Africa, as evidenced by discussions held during the Climate Change Conference in the United Arab Emirates.

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**Government Incentives & Market Structures:**
- National targets, subsidies for solar infrastructure, and regulatory incentives aim to attract public and private investment in renewables.


**Summary: Energy Transition Strategies in the Middle East (with Solar Emphasis)**

The Middle East and North Africa (MENA) region, long reliant on oil and gas for economic development, faces urgent environmental and economic imperatives to transition towards sustainable energy.

Fossil fuel dependence has contributed to greenhouse gas emissions and climate change, prompting both global and regional shifts.

The 2023 United Nations climate conference in Dubai saw almost 200 nations agree to “transition away” from fossil fuels within this decade, underlining the global consensus for urgent change.

**National Projects and Strategies:**
- **UAE:** The United Arab Emirates stands out as a regional leader, aiming to become a global hub for the green economy and clean energy.

The country powers significant large buildings with solar and renewable energy and hosts some of the world’s largest solar farms, such as the Mohammed bin Rashid Al Maktoum Solar Park.

- **Egypt:** Egypt has high potential for solar and wind power, especially along the Sinai Peninsula and Red Sea coast, with ongoing investments to harness these resources.

- **Saudi Arabia and Oman:** As oil-dependent economies, both have launched diversification campaigns, investing in renewable energy infrastructure, including major solar projects (such as Saudi Arabia’s Sakaka PV project) and initiatives by the Saudi Public Investment Fund (PIF) to support clean technology and alternative industries.

- **Qatar:** Qatar is investing in the construction of the world’s largest ammonia plant (blue ammonia), capturing CO2 from natural gas to lower the carbon footprint and produce clean fuels.

**Government Incentives & Policy Frameworks:**
Regional governments support transition via various incentives, including renewable energy targets, feed-in tariffs for solar power, and public-private partnerships to attract investment.

**Summary: Energy Transition Strategies in the Middle East (with Solar Emphasis)**

The Middle East and North Africa (MENA) region, long reliant on oil and gas for economic development, faces urgent environmental and economic imperatives to transition towards sustainable energy.

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

Fossil fuel dependence has contributed to greenhouse gas emissions and climate change, prompting both global and regional shifts.

The 2023 United Nations climate conference in Dubai saw almost 200 nations agree to “transition away” from fossil fuels within this decade, underlining the global consensus for urgent change.

Title:

Content: Analyzing The Impact On -And What's Next For- The Middle East After The UAE's Momentous Staging Of COP28 The United Nations climate conference in Dubai made history last month, uniting nearly 200 nations to adopt a resolution to "transition away" from coal, oil and gas in this decade.

By Megha Merani

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

The 28th edition of the Conference of the Parties of the United Nations Framework Convention on Climate Change (COP28) may have wrapped up- but the spotlight still remains fixed on the Middle East, with the UAE at the center, as it emerges as a potential key influencer in the global climate agenda. This focus comes amidst expectations from industry leaders that the summit's resolutions will spark a new wave of innovation and strategic rethinking across the region.

The United Nations (UN) climate conference in Dubai made history last month, uniting nearly 200 nations to adopt a resolution to "transition away" from coal, oil and gas in this decade. The landmark decision on fossil fuels -a first of its kind in the conference's three-decades- was won after intense debate and considerable resistance from leading energy producers.

Fossil fuels, which are responsible for the majority of global warming emissions, still account for more than 80% of the world's energy consumption, even amid a steady rise in renewable energy capacity. COP28 President Dr. Sultan Al Jaber said the deal "delivered a paradigm shift that has the potential to redefine our economies," but stressed the importance of action over rhetoric, signaling a turning point in international energy policies. "We are what we do, not what we say," he said. "We must take the steps necessary to turn this agreement into tangible action."

Salaal Hassan, founder and CEO of Ahya, an artificial intelligence (AI)-powered solution for businesses to measure and reduce emissions, said heightened awareness of climate challenges spurred by COP28 opens key opportunities for both policymakers and the private sector. "The private sector must move beyond an outlook of seeing climate change as corporate social responsibility (CSR), and instead adapt from purely capitalist models to green social capital-based enterprises," he said. To make the shift, he recommends the adoption of "double materiality", a concept that focuses on reinvesting profits into climate protection and accurately assessing climate risk.

Salaal Hassan, founder and CEO, Ahya. Source: Ahya

As for the road ahead, Hassan predicts the COP28 dialogue will be a major catalyst for climatetech innovation in the region, especially for software startups focused on database management, reporting, and reduction processes for climate initiatives. "Such solutions already exist in the US and European Union, but they are not transferable to the UAE due to cost, support, localization, and compliance aspects," he noted. As the region -which has been historically reliant on fossil fuels- pivots towards a sustainable future, Hassan also sees potential for Direct Air Capture (DAC) technology for greenhouse gas mitigation. However, he also pointed out that its capital-intensive nature poses limitations in emerging markets.

Meanwhile, Shukri Eid, General Manager for the Gulf, Levant, and Pakistan at American multinational IBM, said the urgency to measure carbon footprints, as well as the increasing demand for comprehensive data, including environmental, social, and governance (ESG) reporting, have exerted immense pressure on organizations. "To start, organizations need to establish baselines and develop data-driven strategies- deciding what data to collect, where to store it, and how to manage it for audits, performance assessment, and driving improvements," Eid said. Unfortunately, existing data is often "fragmented, incomplete, or outdated," Eid noted.

Shukri Eid, General Manager, IBM-Gulf, Levant, and Pakistan. Source: IBM

But he noted that technologies infused with AI "hold the most promise for climate action," citing IBM's collaboration with the US' National Aeronautics and Space Administration (NASA) on a foundation model for weather and climate. Trained on geospatial information, the model offers a novel approach to tackle climate change. "Unlike traditional AI models, geospatial foundation models can be fine-tuned for diverse applications, from flood detection to fire scars, driving impactful solutions across climate-related challenges," Eid explained.

Closer to home, IBM -which was an Associate Pathway Partner for the COP28 conference in Dubai – has also partnered with Mohamed Bin Zayed University of Artificial Intelligence to map the urban heat islands in the UAE. The research involves a fine-tuned version of IBM and NASA's geospatial foundation model to understand Abu Dhabi's urban environment and the formation of urban heat islands influenced by local landscapes. At the same time, IBM's Sustainability Accelerator is fostering innovation in water management at the University of Sharjah, which is developing a model and application to monitor and forecast water access in the Middle East and North Africa.

The financial sector is also adapting to take the lead in environmental initiatives. Dr. Saeeda Jaffar, Senior Vice President and Group Country Manager for the GCC at global digital payments leader Visa, said that finance and payment players "bear a significant responsibility" in driving adaptation, and that they are essential to bridging the gap between consumers and businesses in instilling sustainable practices. "The imperative for banks extends beyond merely reducing the reliance on cash payments and paper," she said. "It encompasses providing crucial capital to sustainable businesses, and creating an environment that fosters their growth. Any technology or innovation that inspires individuals and businesses to awareness and climate action holds great promise."

Dr. Saeeda Jaffar, Senior Vice President and Group Country Manager GCC, Visa. Source: Visa

Dr. Jaffar cited Visa's collaboration with sustainability-as-a-service startup Ecolytiq to launch an "Eco Benefits" bundle, in partnership with Mashreq Bank in the UAE and Qatar Islamic Bank in Qatar, as a prime example. The solution leverages payments data to allow consumers to track their carbon footprint per transaction, enabling them to understand the impact their spending behavior is having on the environment, and offers guidance on how to offset their carbon impact.

In the UAE, the carbon emissions insights are available to nearly one million Mashreq personal banking customers. "Rather than just offering products and services, we aim to craft experiences that truly benefit our customers," Faisal Al Shimmari, Head of ESG and Corporate Strategy at Mashreq Bank, said. "These products are designed to promote climate-positive behaviors, while delivering tangible impact for Mashreq customers."

Meanwhile, Mashreq is also actively ramping up its efforts to provide sustainable financing with a goal to reach US$30 billion by 2030, making it among the top facilitators of the UAE Banks Federation's (UBF) pledge at COP28 to mobilize $272 billion in sustainable finance by the end of the decade. The bank has already facilitated more than 30 deals in sustainable financing since 2021, including structuring and underwriting the recently closed Bapco Energies' $2.5 billion dual tranche Islamic and conventional term facility, the largest sustainability-linked loan in the region so far. Other projects that have received financing include adaptation-related projects such as water projects in Egypt, the UAE, Qatar, Saudi Arabia and Bahrain.

Related: A Silicon Valley for Climate Tech? It Could Well Be the UAE

Having noted important gaps in climate finance for decarbonization in the UAE, Al Shimmari called it "a matter of national priority". This is why Mashreq is set to launch a UAE ESG Ecosystem Government Accelerator, an initiative uniting public institutions and financial private sector organizations to expedite the UAE's green transition.

Meanwhile, as 2024 now gets underway, Al Shimmari noted that UAE climate startups will need to confront regulatory uncertainties and funding challenges, yet promising avenues for innovation and growth await. "Startups should focus on increasing their technology readiness level through university collaborations and market-funded programs, and work on addressing climate risk stress testing, including data availability and governance challenges," he advised, noting a bright outlook especially for agri- and water-tech sectors.

However, Ahya's Hassan highlighted that the scarcity of capital for climatetech is a major obstacle to progress. "The biggest challenge is that of investors not having the risk appetite or a specialized thesis, due to the need to dive deep into the macroeconomics and regulations, which are distinguishably different from other sectors, as well as the need to see climatetech returns on a mid to long term horizon," Hassan said. "Here, very few investors have a focus on climatetech. And enterprises, whilst having sustainability departments, do not have specialists running them and have a general view of sustainability as an operational expense or CSR function. This can only change through confidence building, and simplifying the macro regulatory context."

Echoing Hassan's view, Victor Sunyer, Partner at Dubai-based investment firm Nuwa Capital, said that venture capitalists, in line with market conditions, "will continue to exhibit increased selectivity and caution." This cautious approach comes just as UAE-based data platform Magnitt noted a significant global investment growth in climatetech. The sector saw $82 billion in investments in 2022, up 20% from the previous year.

Victor Sunyer, Partner, Nuwa Capital. Source: Nuwa Capital

In the more nascent Middle East, North Africa, and Turkey (MENAT) market, climatetech startups attracted $651 million across 148 ventures between 2018 and 2022. However, Nuwa Capital envisions climatetech as "a fundamental area for growth and investment in the region" over the next few years, Sunyer said, motivated by the urgency to mitigate climate change impact. "Consumer sensitivity towards responsible behavior adds momentum to this trend," he said. "We are pursuing investment opportunities in the climate action space, spanning both early and growth stages."

Sunyer also said that the region is seeing "the beginnings of a solid climatetech ecosystem", also pointing to accelerator programs sponsored by major energy companies directing their focus to energy efficiency and transition. ADNOC, for example, launched a $1 million decarbonization technology challenge last year. Sunyer also noted "heightened enthusiasm" for water management and efficiency post-COP28, as well as technologies focused around low-carbon foods and locally grown produce, and on reducing building energy consumption. "Given the relevance of the construction sector and the climatic conditions, implementing energy-conserving measures for buildings is crucial for enhancing overall energy efficiency," Sunyer said. "Anticipated strides by policymakers in this regard underscore the potential impact."

With buildings accounting for nearly 40% of global carbon emissions, Maged Marie, CEO at Egypt-based real estate firm Magnom Properties, emphasized the role of the built environment in global energy transition discussions at COP28. The summit focused on practical solutions to decarbonize the buildings sector, Marie said, describing it as a move to "course-correct."

Maged Marie, CEO, Magnom Properties. Source: Magnom Properties

At the summit, the governments of France and Morocco, alongside the UN Environment Program (UNEP), launched the Buildings Breakthrough, setting a goal for near-zero emissions and climateresilient buildings by 2030– an initiative Marie lauded as one of the "most important sector-specific outcomes" at the conference in Dubai. "While the speed and scale of urbanization globally has brought manifold challenges to the climate crisis, the buildings sector is also uniquely positioned to be part of the solutions as we move forward on the path of net zero," Marie said. "At Magnom Properties, for instance, we are tapping into the long-term potential of clean hydrogen to power 75% of the total energy demands of the Forbes International Tower in Cairo, Egypt, designed to be one of the most sustainable buildings globally."

The Forbes International Tower, a commercial project planned to be constructed in locations including the UAE, Saudi Arabia, and Egypt, will also use solar power, while also incorporating water recycling and smart technologies for efficient use. The tower is set to reduce its carbon footprint by 58%, equivalent to 60 million kilograms of carbon dioxide emissions, and it is also targeting Platinum LEED certification.

Commenting on the industry as a whole, Louise Collins, Head of Engineering and Energy for the MEA, and Head of Project and Development Services for the UAE, at real estate services firm JLL, said that sustainability is "high on the agenda" for both local and global businesses operating in the real estate sector. More time, resources, and money are being spent on sustainability, she said, which is expected to continue in the years ahead. According to JLL, 59% of the top 100 office occupiers in Dubai have carbon commitments.

Louise Collins, Head of Engineering and Energy for the MEA, and Head of Project and Development Services for the UAE, JLL. Source: JLL

Collins said that much of the demand for low-carbon space is coming from international occupiers. But the Emirate faces a unique set of challenges in meeting this demand, she said, including extreme climate conditions, rapid urban development, and high-energy demand buildings. That said, the market also presents unique opportunities. "As Dubai continues to develop rapidly, local government officials and developers benefit from implementing stringent buildings codes and construction practices to ensure buildings are sustainable at the onset– a much easier route than having to go through expensive and complex retrofits," Collins explained. "Building owners can also capitalize on abundant solar energy potential and leverage smart city technologies."

A spokesperson from NWTN, a UAE-based electric car manufacturer and green energy provider, forecasted transformative shifts in the regional energy landscape, including an uptick in investments in renewables like solar and wind power, that would potentially lead to the emergence of new renewable tech companies. "Given the UAE's abundant solar resources, innovations in solar energy, such as more efficient photovoltaic cells or concentrated solar power systems, are particularly promising," the spokesperson said. "Wind energy, especially offshore wind turbines, could also see significant advancements."

Other promising technologies include green hydrogen produced using renewable energy sources. "It can be used in various sectors, including transportation, industry, and power generation, making it a versatile option for decarbonization," the spokesperson said. These, along with advanced energy storage systems including batteries and other novel storage technologies, along with smart grid technology, are essential for managing the intermittent nature of renewable energy sources.

Peter May, Vice President of Operations at Dubai-based proptech startup Silkhaus, underscored the shared collective accountability for climate action. "Climate action is everyone's responsibility across sectors, and not just that of cleantech businesses," he said. But startups face challenges, he added, in "avoiding the lure of greenwashing," and resisting the misconception that purchasing carbon credits is a primary solution. Advocating for a more comprehensive approach, May said companies need to focus on education, optimization, and direct impact reduction.

Peter May, VP of Operations, Silkhaus. Source: Silkhaus

But despite hurdles in the shift to green, May is upbeat about COP28's long-term effect on Middle East economies. Ultimately, the unprecedented agreement is encouraging as it aligns with the region's ambitions to diversify away from oil-dependence, he said. After all, expanding into non-oil sectors -while fostering sustainable practices- is a win-win scenario.

Related: What Are The Climate Solutions That We're Leaving On The Table? Ask Women Entrepreneurs.

Megha Merani

Independent Journalist

Megha Merani is an independent journalist based in Dubai, United Arab Emirates. Her stories have made headlines across a number of publications including Reuters, Associated Press, Entrepreneur Middle EastBloomberg Middle East, Arabian Gulf Business Insight, Arabian Business, and former local daily 7DAYS.

Megha also produces editorial for government platforms including the World Government Summit and World Economic Forum's Annual Meeting of the Global Future Councils. She has been a grant winner of the Thomson Reuters Foundation and The Global Initiative Against Organized Crime funded by the government of Norway to report on the online trade in illegal wildlife.

Megha is also an Associate Fellow (AFHEA) at Murdoch University in Dubai and leads its Digital Newsroom course unit. In addition, Megha serves as a United Nations Women mentor to support equal opportunities for women entrepreneurs, and supports various other programs including TIE Women, 60 Day Startups, and the Watt Inc. Business Incubator.

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**National Projects and Strategies:**
- **UAE:** The United Arab Emirates stands out as a regional leader, aiming to become a global hub for the green economy and clean energy.

The country powers significant large buildings with solar and renewable energy and hosts some of the world’s largest solar farms, such as the Mohammed bin Rashid Al Maktoum Solar Park.

Title:

Content: Monday, 27 June, 2022, 1:59 AM
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Home Op-Ed

Greener cities are critical to regional sustainability

Published : Monday, 27 June, 2022 at 12:00 AM  Count : 73
SARA AL-MULLA

From megacities to metropolises, cities of all kinds are experiencing an unprecedented spectrum of threats associated with climate change, necessitating a serious debate on the importance of transitioning toward greener cities in order to remain sustainable and resilient.

Currently, those living in urban areas make up just over half the global population. But this figure is projected to increase exponentially to a whopping 68 percent by mid-century, according to the UN. The modern urban landscape poses complex challenges for cities, as they are vulnerable to climate-induced hazards that threaten their economies and infrastructures and the well-being of their residents.

An influential 2018 report titled "The Future We Don't Want" - published by C40 Cities, the Global Covenant of Mayors, Acclimatise and the Urban Climate Change Research Network - revealed the manifold threats that cities are facing and will continue to face in greater intensity as a result of climate change. The report stated that 70 percent of cities are already feeling the wrath of climate change in the form of heat waves, rising sea levels, wildfires, storms and droughts. The fact that 90 percent of urban areas are coastal also poses a significant vulnerability to flooding due to rising sea levels and mass destruction from tsunamis.

By 2050, more than 45 percent of the global urban population is projected to live in cities with extreme summer temperatures of at least 35 degrees Celsius, leaving residents susceptible to dehydration, heatstroke, sleep loss, stress, cardiovascular disease and even death.

Many cities are currently counteracting these challenges, such as the case with Seoul, which implements a number of successful interventions when temperatures reach 33 C for two consecutive days. They include advisories to residents with practical advice and guidance to employers about allowing their outdoor workers to take breaks. The city has also installed shaded cooling centers in public locations, planted 16 million trees and expanded its green space by 3.5 million sq m.

The urgency of addressing climate change in the Middle East and North Africa has never been more critical, with UN experts projecting an urbanization rate of 59 percent by 2030. The region is already fraught with high temperatures, droughts, limited rainfall and scarce agricultural lands, and it is considered among the most water-stressed regions in the world. Climate-induced water scarcity alone is projected to cost MENA countries as much as 6 percent of their gross domestic product by 2050, according to the World Bank.

All of these challenges have important policy implications for city governments on how to balance economic growth while reducing environmental impacts and maximizing population well-being. The International Finance Corporation estimates the climate-centered investment opportunity for the MENA region to be $1.7 trillion.

Many cities have already implemented a vast range of interventions to bolster their resilience and successfully transition into greener cities. Chief among these actions is establishing a dedicated agency to plan, coordinate and manage climate-related strategies across the country. Regular extensive assessments of vulnerabilities and climate-related risks will inform decision-makers on the urgent and critical interventions needed.

Cities should also upgrade their infrastructure to ensure resilience in the face of extreme climate events, such as the flooding of drainage systems. Shifting to climate-smart infrastructure is an important step toward reducing greenhouse gas emissions and conserving resources. For example, a number of cities are currently relying on renewable energy and solar energy to power large buildings.

Meanwhile, the government of Dubai has issued regulations for "green buildings" that elaborate on a number of climate-friendly solutions, including creating vegetated rooftops, reducing hazardous waste, limiting pollution and improving energy and water efficiency. Many cities are also experimenting with vertical forests, whereby a variety of plant species are grown on buildings, such as the ones in Milan, Kuala Lumpur, Singapore and Utrecht.

Investing in climate-efficient public transportation and promoting the uptake of hybrid or electric vehicles will offer cleaner alternatives to fuel-reliant vehicles that amplify air pollution. To illustrate, the city of Santiago in Chile invested in electric-powered public buses, which do not generate emissions and cost a remarkable 70 percent less to operate than diesel-fueled buses. In tandem, guidance should be issued to enterprises on how to decarbonize their operations and shift toward electrification and digital solutions.

Launching mass greening and reforestation projects across cities can yield a number of benefits, such as cooling them during summer months and improving biodiversity. This can be done by planting trees to line streets and boulevards and creating gardens, grassy areas, public parks, flowery meadows, miniature urban forests and allotments. For instance, many cities offer allotments for urban farming and recreational gardening projects managed by residents, with an abundance of evidence pointing to improved physical and mental well-being, in addition to the growth of local, seasonal and organic produce.

Additionally, many countries, such as the UAE and Singapore, are capitalizing on vertical farming projects to maximize agricultural yield while relying on climate-friendly solutions to efficiently utilize water and energy.

City governments should also be creative with their public education campaigns to nudge the desired behavioral changes by residents, focusing on recycling, metered consumption and the reduction of wastage. Furthermore, MENA countries should invest in cutting-edge research and innovations related to climate change, which will empower cities to navigate an uncertain future and adjust their climate action plans accordingly.

When imagining the cities of tomorrow, a rather ambitious idea should be explored to include sustainability. By transforming its cities into greener cities, the MENA region can navigate the coming decades with enhanced resilience and competitiveness.
Source: ARAB NEWS

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- **Egypt:** Egypt has high potential for solar and wind power, especially along the Sinai Peninsula and Red Sea coast, with ongoing investments to harness these resources.

- **Saudi Arabia and Oman:** As oil-dependent economies, both have launched diversification campaigns, investing in renewable energy infrastructure, including major solar projects (such as Saudi Arabia’s Sakaka PV project) and initiatives by the Saudi Public Investment Fund (PIF) to support clean technology and alternative industries.

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Tesla Competitor Lucid Raises $1.5 Billion, Majority From Saudi Sovereign Wealth Fund

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Key Takeaways

  • Lucid Group has raised an additional $1.5 billion to support ongoing operations, with $915 million being contributed by the Saudi Arabia Public Investment Fund.
  • It keeps the Fund’s stake in Lucid at around 62%, continuing their status as a majority owner of the company.
  • Despite almost $1 billion in additional investment, it’s a drop in the bucket compared to the funds total value, which is estimated at over $620 billion.
  • It marks a continued diversification of the oil states diversification away from fossil fuels, into a wide range of investment from video games to sports teams to major infrastructure projects.

Electric vehicle (EV) manufacturing has come a long way over the past ten years. Back in 2008 when the first generation Tesla Roadster was launched, EV's were very much a curiosity.

It was the first road legal production EV, and while less than 2,500 Roadsters were sold across the world, it kicked off a trend that continues to pick up pace today.

Tesla wasn't the first company to make an electric vehicle. They’ve been made in one form or another as far back as 1828. But Tesla were the first to mass produce one that was legally able to be driven on the road, and they made it sexy to boot.

Since then, the EV market has exploded.

There have been a huge number of newcomers to the space, with companies such as Rivian, Nikola, Polestar, Fisker and Lucid all vying for their share of the electric gold rush. Not only that, but traditional automakers are pumping billions of dollars into the sector as well.

Companies such as General Motors, Mercedes-Benz, Volkswagen Group, Kia and Hyundai and others have all jumped on the bandwagon and now offer a range of electric vehicles alongside their internal combustion range.

The trend is only going to pick up speed. Many jurisdictions are now seeking to ban the sale of new gasoline and diesel powered cars, such as California and all states signed up to their Zero Emission Vehicle Program, plus the UK and Europe, Canada, New Zealand, Singapore, Japan, Iceland, Norway and even China.

So with all that going on in the background, it’s not a stretch to suggest that the oil states might be getting a little nervous. It’s why we’ve seen such a huge push from places like Sudi Arabia, the United Arab Emirates and Oman to diversify their economies away from just oil.

The Saudi Arabia Public Investment Fund is already a majority owner of Lucid Motors, and with an additional $915 million cash tipped in with this round, their stake remains at sound 62%.

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Lucid raises $1.5 billion

In addition to the $915 million added by Saudi Arabia, Lucid raised an additional $600 million through a traditional secondary stock offering. The funds will be used to help bolster the company’s balance sheet, after it posted underwhelming third quarter results.

The figures showed delivery numbers way down from expectations which had been as high as 20,000 vehicles in 2022. Now the number is expected to be below 7,000.

Lucid is now likely to have over $5 billion in cash reserves, with the newly raised $1.5 billion being added to the $3.85 billion on hand on September 30.

After going public in January 2021, Lucid’s stock price rose very quickly from an IPO price of $14 to hit an all-time high closing price of $58.05 in February of that year. It came back down soon after to settle in the low $20 range, before running up to the high $50’s again in late 2021.

Since then the price has crashed in 2022 and is down over 81% year to date. It currently trades at just under $8 per share.

What is the Saudi Arabia Public Investment Fund?

By far the largest investor in Lucid is the Saudi Arabia Public Investment Fund (PIF), which holds around 62% of the company. The PIF is a sovereign wealth fund that was established by the government of Saudi Arabia in 1971. Its mandate is to manage the country's financial assets and make strategic investments that will contribute to the economic development of Saudi Arabia.

The PIF is one of the largest sovereign wealth funds in the world, with assets estimated at over $620 billion. It is a key financial institution in Saudi Arabia, and it is responsible for managing a large portion of the country's financial resources.

The PIF has made a number of high-profile investments in recent years, including a $3.5 billion stake in Uber, $522 million in Meta, $495 million in Disney, $487 million in Bank of America, $713 million in Boeing and $522 million in Citigroup.

The fund has also made a number of bets on gaming, at various times taking minority ownership in Electronic Arts, Take-Two Interactive, Activision Blizzard, Capcom, Nexon and Nintendo.

It doesn’t end there.

There have been a range of high profile investments in sports as well. In 2021 the fund purchased English Premier League club Newcastle United for $370 million and also launched LIV Golf, a high profile, big money competitor to the PGA Tour.

These investments were made in order to help the PIF diversify its portfolio and generate returns for the benefit of the Saudi government and its citizens.

The PIF has also played a key role in the Saudi government's efforts to diversify the country's economy away from oil. For example, it has invested in a number of infrastructure projects, like the construction of a new international airport in Riyadh and the development of a new city called NEOM - the crazy, 100 mile long, mirror-finished, futuristic ‘line’ in the desert.

These projects are intended to create jobs and stimulate economic growth in non-oil sectors, and they are part of the Saudi government's Vision 2030 plan to transform the country into a more diversified and modern economy.

The PIF is hugely important for Saudi Arabia, and it is expected to play a key role in the country's economic development in the future. It’s responsible for managing a significant portion of the country's financial resources, and it is working to make strategic investments that will contribute to the economic growth and diversification of the country.

Why are oil states moving away from oil?

It’s not just the move to EV’s which is driving this diversification.

At the end of the day, oil is a finite resource, which means that it will eventually run out. The oil reserves in these countries are not infinite, and at some point in the future, they’ll be gone.

That might be a long way off, but nonetheless it will happen.

This is a concern for the governments of these countries because oil has traditionally been the main source of income and economic activity in the region. If they don’t diversify their economies and find other sources of income, they’ll be in big trouble when oil or its demand begins to run out.

Another reason for diversification is that the demand for oil can fluctuate significantly, and this can have a big impact on their economies. For example, if there is a recession or a drop in global oil prices, the economies of these countries may suffer. This is because the demand for oil decreases during these times, and as a result, the revenues that these countries generate from oil exports may decrease as well. By diversifying their economies, these countries can be less reliant on a single resource and be less vulnerable to these fluctuations.

The oil states also recognize that there are increasing concerns about the environmental impacts of fossil fuels and the need to transition to more sustainable sources of energy.

Diversifying their economies can help them achieve this goal by promoting more diverse and sustainable sources of economic activity, such as renewable energy, tourism, and technology.

Overall, diversifying their economies away from oil is seen as a way for the Middle Eastern oil states to ensure their long-term economic stability and sustainability. By having a more diverse and resilient economy, they can better weather economic downturns and other challenges, and continue to thrive in the future.

How can investors benefit?

There’s no denying that moving towards a more sustainable future makes sense. Not just from an environmental standpoint, but from an investment one as well. There is a huge push for new technologies and strategies to make our economy cleaner, and this creates a big opportunity for companies.

In our Clean Tech Kit, we use the power of AI to invest across a range of different green technologies. These include renewable sectors such as EV producers and infrastructure manufacturers, hydrogen fuel cell tech, alternative fuels, battery manufacture, waste reduction and smart water technologies.

Every week our AI predicts how each holding in the predetermined investment universe is likely to perform in the coming week on a risk-adjusted basis, and then automatically rebalances the Kit in line with these predictions.

This includes three ETFs, plus a weekly allocation to between 16-19 individual stocks out of a total universe of 58.

It’s like having a professional investment manager, right in your pocket.

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- **Qatar:** Qatar is investing in the construction of the world’s largest ammonia plant (blue ammonia), capturing CO2 from natural gas to lower the carbon footprint and produce clean fuels.

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Qatar is building the largest ammonia plant in the world

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Al-Attiyah International Foundation for Energy and Sustainable Development confirmed that the oil-rich Arab Gulf countries have a favorable opportunity to invest in one of the promising renewable energy sources, which could reshape their economies and reduce carbon dioxide emissions in the coming years.
It is well known that the countries of the Middle East have abundant reserves of oil and gas, as the Gulf Cooperation Council countries specifically possess about 25 percent of the world’s oil reserves, and about 18 percent of the global reserves of natural gas.
However, the region’s leaders realize that oil and gas will not be the main drivers of their economies forever, and many of them are trying to diversify the sources of the economy and expand the base of non-oil sectors.
The report added that the State of Qatar recently announced a project to build the largest blue ammonia plant in the world, with a production capacity of about 1.2 million tons per year of blue ammonia, and production is scheduled to start in 2026.
The production of green hydrogen is one of the energy sources in which the countries of the Middle East region have begun to invest heavily. Green hydrogen is produced by electrolysis of water through the separation of hydrogen and oxygen, relying on renewable energy sources.
Hydrogen is used in a wide range of applications, including power generation and storage, and transportation. It can also be used to produce jet fuel. Most importantly, hydrogen provides an important way to reduce carbon emissions in heavy industries such as steel, cement, and fertilizers.
It should be noted that blue ammonia is made from natural gas, but the carbon dioxide from the production process is captured and stored. Blue ammonia can be used as a low-carbon fuel in a wide range of industrial applications, including transportation, power generation, and heavy industries such as cement and fertilizer production. Blue ammonia is also a preferred method for transporting hydrogen over long distances.
Accordingly, the Arab Gulf countries are qualified to become a major producer and exporter of hydrogen due to their huge resources in the field of renewable energy for the production of green hydrogen, and they also enjoy a privileged geographical location near major demand centers such as the European Union and Asia, in addition to having huge financial potential to invest in Green hydrogen production projects.
On the other hand, most government revenues in the Arab Gulf countries still come from fossil fuel exports, so the establishment of green hydrogen projects will reduce dependence on oil exports, in addition to achieving an environmental benefit represented in reducing carbon emissions. Despite this, hydrogen production projects are currently subject to great economic challenges and risks, and this must be taken into consideration when making investment decisions in hydrogen projects.

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**Government Incentives & Policy Frameworks:**
Regional governments support transition via various incentives, including renewable energy targets, feed-in tariffs for solar power, and public-private partnerships to attract investment.