Economics

Assignment

Green economy in United Arab Emirates

Name
ID
 Table of Contents

Introduction .....................................................................................................................................2

Energy Sector ................................................................................................................................. 3

Industry Sector ................................................................................................................................5

Buildings, construction and real estate ...........................................................................................6

Transport and logistics ....................................................................................................................7

Trash management ......................................................................................................................... 9

Land use and agriculture ................................................................................................................ 9

Financial Services ........................................................................................................................ 10

Other initiatives and investments in green economy ................................................................... 11

Tourism and Hospitality ............................................................................................................... 12

Conclusion .................................................................................................................................... 14

References .................................................................................................................................... 15

Interview Questions ..................................................................................................................... 16

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 Introduction

The United Arab Emirates is witnessing a major economic boom that is reflected in the economic
growth and strong position of the UAE as one of the leading economies in the Middle East and the
world. The Ministry of Environment and Water recently launched the first report of its kind in the
world under the title "The first national report of the state of green economy in the United Arab
Emirates United Arab Emirates" to analyze the current situation in the country in accordance with
international standards and monitor progress on the level of efforts of the government sectors and
to help move forward on the right path towards achieving a green economy. The report, the first
green economy report at the national level in the world, aims to highlight the "United Arab
Emirates Green Development Strategy" and review the plan and the mechanisms adopted for its
implementation.
This report addresses all green economy initiatives currently being implemented across nine key
sectors in the United Arab Emirates: oil, gas, water, electricity, industry, construction, and
construction, real estate development, transport and logistics waste management, agriculture and
land use, tourism and hospitality.
I met Mr. Marwan Abdulaziz Janahi - Executive Director of Dubai Science Park, and then I made
an interview with him regarding to get information about my report “the green economy for UAE”
here with this report.

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Energy Sector:

In the oil and gas sector, which accounted for 33 percent of the country's GDP in 2018, efforts and
initiatives were as follows:
 To reduce the burning of natural gas
 Developing profitable technologies for all parties
 Enhance the use of clean fuel for vehicles
 Establish green service stations
In the water and electricity sector, there is a strong and accelerating increase in demand due to
several factors such as population growth, economic expansion and climatic conditions. Today,
the United Arab Emirates has the potential to make the most of the available resources and enhance
the economic, social and environmental benefits of clean energy. Both Abu Dhabi and Dubai are
seeking to increase their renewable energy production.
The Emirate of Abu Dhabi aims to increase production capacity to generate renewable energy by
7 percent by 2020.
The Government of Dubai established the Supreme Council of Energy in Dubai in 2009 to oversee
all aspects and activities related to energy in the emirate. It also launched the Dubai Integrated
Energy Strategy 2030 to reduce carbon and rationalize energy use.
According to Mr. Marwan Abdulaziz Janahi that by 2030, the Emirate of Dubai plans to generate
at least 5 percent of electricity using renewable energy, 12 percent using clean coal, and 12 percent
using nuclear power as alternative energy sources.
The United Arab Emirates began implementing the Comprehensive Nuclear Program under the
direct supervision of the International Atomic Energy Agency (IAEA), with the first nuclear power
plant in the country being launched in 2013.
The United Arab Emirates has limited natural water resources and therefore relies on desalination
techniques as a major solution. Today, the largest proportion of water in the country (or 42 percent
of the total water demand) is produced from some 70 major desalination plants in the country,
representing about 14 percent of the world's desalinated water production capacity.
The United Arab Emirates is committed to achieving global leadership in the development of
renewable energy projects, as evidenced by the ongoing development of a number of high-level

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solar power stations, among the largest in the world. The focus is now on research and development
in solar water production, in a move to link desalination technologies to renewable energy. In order
to manage energy more intelligently, United Arab Emirates has adopted the Energy Demand
Management System (DSM), which focuses on reducing and rationalizing energy consumption as
an alternative option to meet demand, especially at peak times, at the lowest possible cost.
There is a growing need for responsiveness and cooperation from citizens and residents of United
Arab Emirates to achieve the objectives of the Energy Demand Management System (EDM)
programs. The organization for regulation and supervision, the independent body responsible for
regulating the water, wastewater and electricity sector in Abu Dhabi, has launched a series of
initiatives focused on the effective use of water and energy resources. Initiatives are primarily
aimed at positively influencing consumer behavior by helping community members gain access to
a comprehensive understanding of water and electricity rationalization and recognizing the
importance of doing so based on the collection and sharing of reliable data and a comprehensive
knowledge base.
As the trend towards energy control by charging fees as an effective choice to rationalize
consumption under the Energy Demand Management policy has been rising, the United Arab
Emirates maintained electricity and water charges at low levels under government subsidies.
The United Arab Emirates has developed a civilian nuclear energy program under the direct
supervision of the International Atomic Energy Agency (IAEA). The United Arab Emirates
Nuclear Energy Corporation (ENEC), established in 2009, is responsible for the implementation
of the nuclear program, with particular emphasis on training and qualifying national manpower in
the field of atomic energy.
Standards, specifications and brands in many countries have long been recognized as the most
effective tools to help consumers make better choices and enhance their sense of responsibility to
the environment. At the local level, the United Arab Emirates Standards and Metrology Authority
(ESMA) has been mandated to develop unified national standards and promote the adoption of an
environmental product label. Numerous initiatives have been launched in the United Arab
Emirates, including:
The progressive implementation of a "mandatory coding and energy rating system" on household
appliances to help consumers make more effective energy conservation choices. The initiative is

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expected to provide AED 400 million, US $ 109 million, of government support per year by 2020
from energy savings from air conditioners alone.
Launch of the "United Arab Emirates Lighting System" to prevent the entry of low-quality light
bulbs into local markets and to ensure the improvement of energy-saving light bulbs such as
compact fluorescent lamps (CFLs) and LEDs.
According to Mr. Marwan Abdulaziz Janahi that implementation of the United Arab Emirates'
lighting system in the residential sector is likely to reduce energy consumption in the United Arab
Emirates by 500 megawatts per year, equivalent to about half of the average capacity of a gas-fired
power plant. The move could also help reduce carbon dioxide emissions by about 165,000 vehicles
per year, with around AED 668 million, equivalent to US $ 182 million per year.
As an effective energy conservation option, Sharjah and Dubai adopted an electricity and water
fee system in 2008 that applies to consumers in the residential, industrial and commercial sectors.
The Abu Dhabi Regulatory and Control Bureau announced the introduction of new fees, January
2015.
In addition, the United Arab Emirates has also launched a comprehensive civil energy program
under the direct supervision of the International Atomic Energy Agency (IAEA) aimed at
establishing four nuclear power plants in the country with a total operating capacity of 5.6
gigawatts by 2020, Nuclear power to meet 25 percent of the country's electricity needs while
reducing carbon dioxide emissions by 12 million tonnes a year. As part of its commitment to the
United Nations' "Sustainable Energy for All" initiative, the United Arab Emirates has played a
pivotal role in providing renewable energy technologies to developing countries that continue to
face energy difficulties across their remote and poor regions. In July 2014, His Highness Sheikh
Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of
Dubai, launched the "United Arab Emirates" Foundation, which aims to provide new, innovative
and low cost solutions to meet the needs of millions of individuals around the world who suffer of
scarcity, scarcity and pollution of drinking water.
According to Mr. Marwan Abdulaziz Janahi also announced that the launch of a US $ 1 million
global award to find sustainable solutions to address water scarcity around the world using solar
energy for desalination and water purification.

Industry Sector:

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In pursuit of economic diversification, over the past few decades, the United Arab Emirates has
stimulated large-scale investment in the manufacturing sector, which has become one of the largest
contributors to the growth of the country's non-oil GDP by 13 percent, equivalent to about 9
percent of GDP total. While industrial activities require the intensive use of energy, the state is
keen to take advantage of its abundant sources of energy and low-cost raw materials. Many
companies and institutions working in the field, including United Arab Emirates Aluminum
International, Sharjah Cement Factory, MicroSol and Al Khazna Leather Factory, are working to
mitigate the impact of their operations on the environment and surrounding communities.
ENPARK is a free business zone dedicated to facilitating and encouraging growth in alternative
energy and environment sectors.
According to Mr. Marwan Abdulaziz Janahi that the Ministry of Environment and Water is
carrying out many regular day and night field visits to quarries and crackers throughout the
country, which will total 50 visits in 2017. The significant decline in the number of closed factories
between 2017 and 2018 is clear evidence of continuous efforts and strong actions by the ministry.
In 2004, the Dubai Chamber of Commerce and Industry (DCCI) established the Center for
Business Ethics to assist Chamber members and the business community in implementing
responsible business practices that enhance the competitive performance and competitiveness of
businesses. .

Buildings, construction and real estate:

The growth of the building sector implies the potential for increased environmental impacts.
According to estimates by the United Nations Environment Program (UNEP), buildings use about
40% of the energy and 25% of the world's water, as well as 40% of global natural resources while
producing about one third of greenhouse gas emissions. Accordingly, the Government of the
United Arab Emirates has taken a decision to improve measures to enhance the sustainability of
the sector, including building efficiency standards. Indeed, the "Green Building Guidelines for the
United Arab Emirates" were implemented in 2010, while some key aspects of sustainability were
included in local building codes.

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There is a growing trend in the United Arab Emirates towards the adoption of LEED, a widely-
recognized LEED Energy and Environment Design (LEED) classification system. Specialized
statistics indicate that 850 projects have been awarded or registered for the "Leadership in Energy
and Environment Design" certification.
According to Mr. Marwan Abdulaziz Janahi that there is a steady increase in the number of green
buildings, most notably the Dubai Electricity and Water Authority (DEWA) sustainable building,
which was completed in February 2013 in the Al Quoz area of Dubai. In March 2014, Dubai
Municipality's Al Fahidi market opened in Bur Dubai to become the first green commercial
building. In July 2014, a green mosque, the first of its kind in the Islamic world, was opened in the
Port Said area of Dubai. The mosque, which accommodates 3,500 worshipers, was built using the
latest green technology to earn the silver certification of the "Leadership in Energy and
Environment Design".
In the Emirate of Abu Dhabi, the 29-storey Twin Towers are the true embodiment of the absolute
balance between the rich cultural and architectural heritage of the Arabian Gulf region and the
latest environmental requirements. Abu Dhabi Towers is the headquarters of the Abu Dhabi
Investment Council (ADIC), the investment arm of the Abu Dhabi Government.
In terms of smart and sustainable cities, United Arab Emirates has achieved a strong presence
through quality projects, notably Masdar City in Abu Dhabi, which is described as a model that
embodies the image of a green future city. Dubai Sustainable City, the first energy-free city in the
Emirate of Dubai, is one of the most ambitious projects to become an international model of
sustainable and integrated cities for business, housing, education and leisure.

Transport and logistics:

The United Arab Emirates has established its strategic position as a global hub for transport and
logistics. It has expanded and developed its ports, airports and road network, as well as measures
to increase the capacity of public transport systems to reduce reliance on private vehicles and
reduce traffic congestion on roads. In 2009, the Department of Transport in Abu Dhabi launched
a comprehensive transport plan in response to the Abu Dhabi Vision 2030, while the Dubai Road
and Transport Authority (RTA) operates according to the Dubai Strategic Plan 2015.

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Use of modern public transportation - The Dubai Metro contributes to the reduction of carbon
dioxide emissions by more than 645 tons per day due to the decline in the use of private vehicles.
The Dubai Roads and Transport Authority (RTA) plans to add three new metro lines by 2030 and
expand the red line to the Expo 2020. Tram Dubai is the first tram project to be developed outside
of Europe and operates a ground-based power supply system. For its part, the Emirate of Abu
Dhabi has begun the construction of an integrated metro network with a length of 131 km, in
addition to the project of the Union Rail network, which extends over a distance of 1200 km and
is expected to contribute to the upgrading of the public transport system in the country. There is
also the Masdar City project, which aims to build a pedestrian friendly city free from vehicles.
Private parking spaces will be provided only at the city's entrances and accessible through public
transport.
Transforming traditional transportation into green and clean solutions - following the success of
the first "green bus" experience, RTA plans to use biofuels in 118 other buses, which has the
potential to reduce carbon dioxide emissions by 33 percent compared to with traditional buses.
The Commission has also piloted hybrid cabs, which also contributed to the reduction of carbon
dioxide emissions by 33 percent.
Developing the sport of aerobics as an alternative to mobility and exercise - According to Mr.
Marwan Abdulaziz Janahi that Dubai RTA has developed a comprehensive plan for the
implementation of special routes for bicycles 850 km in the central and new commercial areas, in
order to stimulate the ride as an alternative solutions to internal mobility. Nextbike has developed
a European bicycle rental system with more than 100 bicycles to be rented from dedicated stations
in both the city center and the Dubai Marina area.
Motivating responsible use of private vehicles - Salik has been launched to address traffic
congestion and congestion problems in Dubai. The Roads and Transport Authority (RTA) also
legislated the car-pooling service in the emirate to increase the occupancy rate of the vehicle seats
and thus traffic management. In turn, the Department of Transport (ADTA) in Abu Dhabi launched
a "Row and Transport" service, which aims to facilitate the movement of cars and traffic in the
city. This service comes in the context of the Department's efforts to provide convenient,
sustainable and integrated transportation services.

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Contributing to making the air transport sector greener - Etihad Airways, in coordination with
Boeing, Tackerir, Total and the Masdar Institute for Science and Technology, launched the Abu
Dhabi Biofuel Initiative to support Sustainable biofuel industry in United Arab Emirates.

Trash management

The Emirate of Abu Dhabi, with the assistance of the recycling center, aims to transfer 85% of its
waste from landfills by 2020. In contrast, Dubai Municipality Waste Management has prepared
the Dubai Integrated Waste Management Master Plan to reduce the amount of waste sent to
landfills to zero within 20 years. On the other hand, according to Mr. Marwan Abdulaziz Janahi
that Sharjah has established the waste management company within the framework of the public-
private partnership program to transfer waste from landfills by 100% by the end of 2019. The
Electricity and Water Authority handle sewage treatment in the United Arab Emirates. Following
unprecedented levels of urban development, the Government attaches great importance to large-
scale investment in the modernization, development and expansion of sewage systems.
No more non-biodegradable plastic bags - The Ministry of Environment and Water launched the
"United Arab Emirates Free of Plastic Bags" initiative to limit the use of bags made of non-
biodegradable plastic and other materials with environmental damage.
No Waste of Wastewater - Wastewater is increasingly used for irrigation in the United Arab
Emirates, with treated wastewater reaching 14 per cent of total water use in 2013.
Transforming waste into an energy source in the future - Waste-to-energy is an attractive waste
management option in United Arab Emirates. It is currently witnessing the completion of many of
these projects, which will contribute to support efforts to preserve the environment and achieve
sustainability.
Waste Collection Automation - The automated waste management system was adopted on Yas
Island in Abu Dhabi, which contributed up to 90% of the time spent on garbage collection, thus
reducing carbon emissions and providing a healthy environment.
Product Lifecycle Through E-Commerce - United Arab Emirates supports the concept of "reducing
consumer exploitation", where reuse of services is encouraged more sustainably through the
trading and trade of used products.

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Land use and agriculture:

The National Water Conservation Strategy, launched by the Ministry of Environment and Water,
has introduced an integrated approach to meet future water demand by investing in the
development of new and improved water infrastructure and improving the efficiency of existing
water supply. The strategy also focused on monitoring fishing activities and regulating fisheries
work. There are many initiatives to develop a series of artificial reefs to increase fish availability,
while investment in fish farming has begun to boost stock. In return, the United Arab Emirates is
committed to achieving the objectives of the United Nations Convention to Combat Desertification
(UNCCD), which seeks to further strengthen the protection of fragile habitats and the protection
of aquifers, as well as the management of desert lands based on integrated and sustainable land
management practices. In 2014, the National Strategy to Combat Desertification was updated in
United Arab Emirates, in line with the 10-year strategic plan of the United Nations Convention to
Combat Desertification.
Application of advanced techniques within the traditional sector - prioritizes the expansion of the
use of hydroponics based on the use of water rich in plant nutrients using a light layer of soil or
without soil.
Organic agriculture to meet health and social needs - The United Arab Emirates Standards and
Metrology Authority has issued the organic product certificate applicable to local and imported
foodstuffs.
Promoting local products through interactive marketing - Selling fresh local produce such as
vegetables, dates, eggs, honey and live birds directly to customers through local markets.
Fish consumption without compromising fish stocks - The United Arab Emirates Wildlife Society
in collaboration with the World Conservation Fund (EWS-WWF) has launched a "wisely choose"
campaign that classifies fish into three major groups: red, orange and green based on their current
state of Were species exposed to poaching, rare species or sustainable species available in the
UAE. Fish farming is gaining momentum in the United Arab Emirates, which opened the world's
largest fish farm on an area of 56,000 square meters by the United Arab Emirates.
RAK Pearls aims to celebrate the pearl industry in the United Arab Emirates by increasing interest
in Ras Al Khaimah not only by promoting tourism but also by reviving pearl culture in the Arab
Gulf region.

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Financial Services:

The financial sector in the United Arab Emirates has succeeded in meeting the challenges faced
by the major international banks in 2012 following the financial crisis in the euro area. This
performance was strong in terms of growth of bank assets and loans, completion of immediate
repayment procedures for bonds and loans and activating mechanisms of restructuring the sector
to keep abreast global changes. These efforts have contributed to the growth of the country's
financial sector, with the sector's contribution to non-oil GDP rising from 6.8 percent in 2015 to
10.2 percent in 2018. A recent report also confirmed that existing banks in the United Arab
Emirates and the potential to meet potential challenges and scenarios.
SWFs in the United Arab Emirates play a pivotal role in supporting the global investment market,
supported by the country's large oil and gas revenues. By focusing on long-term returns, these
government-owned investment funds help mitigate the volatility of oil and gas revenues and drive
the development of new technologies and emerging sectors that support the non-oil economy while
stimulating savings for future generations.

Other initiatives and investments in green economy:

Investing in future energy - Masdar Investment aims to build a comprehensive portfolio of

promising renewable energy and clean technology companies around the world as part of its
commitment to focus on world-class investments and help companies in its portfolio achieve
growth and development by providing them with the necessary capital and management expertise.
These funds are invested in two funds: the Masdar Clean Technology Fund (MCTF) and the
Deutsche Bank-Masdar Clean Technology Fund (DBMCTF).
London Matrix is a joint venture between three leading global clean energy companies, E.On,
Dong Energy and Masdar. The 175-turbine plant can supply nearly half a million homes in the UK
with electricity and reduce carbon dioxide emissions by more than 900,000 tons a year. Masdar's
AED 11 billion (US $ 3 billion) investment in this project is an important step in further cementing
its position as one of the world's leading companies in the use of state-of-the-art renewable energy
technologies.

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Masdar has acquired a 35 per cent stake of AED 3.16 billion (US $ 860 million) from the offshore
wind project on the coast of Norfolk, UK, in partnership with the Norwegian companies Statoil
and Statkraft. Once completed, the plant's production capacity is expected to reach 402 megawatts,
enough to feed some 410,000 homes in the UK with electricity.
In October 2014, Masdar signed an agreement with the Rural Areas Electricity Company of Oman
for the construction of a wind power plant at a cost of US $ 125 million. The plant has 25 turbines
with a capacity of 50 megawatts of power. The station is the first of its kind in the GCC, including
the United Arab Emirates.
In January 2013, TAQA acquired a 50 per cent stake in the 205.5 MW wind power plant in Jackson
County, Minnesota, from a subsidiary of the French Electricity Company. The project consists of
137 Ge-GE turbines with a capacity of 1.5 megawatts each. The plant has a total capacity of 205.5
MW of clean energy to supply more than 68,000 homes with electricity.
Enhancing energy efficiency through innovative financing - The costs identified in advance for
investing in new equipment are a major impediment to building and facility owners to implement
energy efficiency improvement standards, although return on investment is high in the long term.

Tourism and Hospitality

The tourism and hospitality sector in the United Arab Emirates is of great importance in supporting
the economic development plans adopted by the State over the past two decades. While the emirate
of Sharjah was the first to support the tourism industry in the United Arab Emirates in the late
1980s, the opening of the Burj Al Arab Hotel in Dubai in 1999 was a major step that paved the
way for a new phase of tourism growth, attracting many hotels, resorts and shopping centers.
Moreover, leisure facilities to the emirate, which has contributed to the country's status as one of
the fastest growing tourism destinations in the world.
In 2012, United Arab Emirates ranked 31st in the world and the first in the Arab world, ahead of
Egypt in terms of hotel and travel revenue of US $ 10 billion, according to a report by the World
Travel and Tourism Council (WTTC). During the same year, the domestic tourism and travel
sector recorded direct and indirect revenues totaling AED 193.6 billion (USD 52.8 billion),
equivalent to 14.3 percent of the country's GDP at the time.

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According to Mr. Marwan Abdulaziz Janahi that World Travel and Tourism Council reports that
the United Arab Emirates will receive 26 million global tourists by 2023, compared with 16 million
in 2012. The contribution of the tourism and travel sector to the country's GDP is expected to rise
to about 16.4 percent over the next 10 years, with an average annual growth rate of 5 percent,
which will also contribute to revenue growth to AED 325.4 billion ($ 88.7 billion). The report also
estimates that 245,000 direct jobs will be available in the tourism and tourism sector by 2023, in
line with expectations that investment in the sector will grow by 4.5 percent annually to reach
143.4 billion dirhams ($ 39.1 billion) by 2023.

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 Conclusion

In light of these positive indicators, the United Arab Emirates is currently working on the
implementation of green standards in various fields and arenas related to the tourism sector and
travel, especially in the provision of greener hotels. This is evidenced by the fact that the sector
has received many international certificates in the field of sustainability and the green
environment. For example, DTCM is currently collaborating with the United Arab Emirates Green
Building Council to implement all Green Key certification program standards. In line with the
efforts of government agencies in this context, many of the leading hotels in the United Arab
Emirates have started to adapt their business and activities to the highest standards of sustainability
in order to enhance their competitiveness at the local and international levels.

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References:

AlMahri M.A., Jung K., Alshehhi M., Bastidas-Oyanedel JR., Schmidt J.E. (2019) Techno-
economic Assessment of Microalgae Biorefinery as a Source of Proteins, Pigments, and Fatty
acids: A Case Study for the United Arab Emirates. In: Bastidas-Oyanedel JR., Schmidt J. (eds)
Biorefinery. Springer, Cham.
Dougherty W.W. et al. (2019) The Energy-Water-Health Nexus Under Climate Change in the
United Arab Emirates: Impacts and Implications. In: Qudrat-Ullah H., Kayal A. (eds) Climate
Change and Energy Dynamics in the Middle East. Understanding Complex Systems. Springer,
Cham.
Farooq Fazli S., Farooq A. (2018) Organisational Effectiveness of Private Enterprises and
Diversification in the Gulf Countries. In: Mishrif A., Al Balushi Y. (eds) Economic Diversification
in the Gulf Region, Volume I. The Political Economy of the Middle East. Palgrave Macmillan,
Singapore.
Hvidt M. (2018) The United Arab Emirates: Modernity and Traditionalism in Petroleum Sector
Management. In: Overland I. (eds) Public Brainpower. Palgrave Macmillan, Cham.
Ouis P. (2010) “And an Island Never Cries”: Cultural and Societal Perspectives on the Mega
Development of Islands in the United Arab Emirates. In: Badescu V., Cathcart R. (eds) Macro-
engineering Seawater in Unique Environments. Environmental Science and Engineering
(Environmental Engineering). Springer, Berlin, Heidelberg.
Young K.E. (2014) Clean, Mean and Dirty: Energy in the United Arab Emirates. In: The Political
Economy of Energy, Finance and Security in the United Arab Emirates. International Political
Economy Series. Palgrave Macmillan, London.

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Interview Questions:

√ How do you see the energy sector in UAE in the respective with green economy?

√ Could you give tell me about any example from energy sector please?

√ Does UAE government interest with green economy?

√ Could you give us an example about some projects please?

√ Is it possible to green economy within tourism? How?

√ Do UAE working on implementation of green standards in all its sectors?

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