The United Arab Emirates remains the leader, by most key measures, in environmental sustainability and climate action across the Gulf and Africa, says a new Agility Global report that tracks government and business policies, practices and investment related to the environment 

The findings, released Wednesday, are contained in a report that updates Agility’s Middle East and Africa Environmental Sustainability Scorecard, issued last November. The Scorecard examined the performance of 17 MEA countries in environmental sustainability outcomes, government policies and corporate practices. South Africa and the UAE led as the top performing countries in their respective regions and overall.

“The UAE shows strong collaboration between the government and private sectors in implementing its environmental sustainability agenda,” the report says. “While further progress is needed in areas such as green finance, lowering barriers to entry in the energy market, and filling remaining regulatory gaps, the country is well positioned to enhance its regional leadership role.”

UAE's green investment initiative

The report noted the country’s leadership in green hydrogen pilot projects, and highlighted its sustainability startup accelerator, Catalyst. It also cites UAE government estimates that the green energy transition could attract US$163.5bn in fresh investment in renewables and clean energy while boosting exports by US$6.8bn and generating 160,000 new jobs in the Emirates.

Agility Global chairman, Tarek Sultan, said, “The UAE is becoming a global leader in sustainability by demonstrating the seriousness of its commitment to clean energy, green infrastructure and climate financing assistance for developing countries. Its US$54bn pledge towards investing in renewables by 2030 and US$30bn commitment to assisting developing countries in making the clean energy transition are notable. We believe that the scope and scale of the Emirates’ sustainability agenda will generate green-growth opportunities for future-minded investors and businesses.”

The UAE report builds on the results of the 17-country Scorecard, which described MEA nations as “relative late comers to global sustainable development” but said they “are rapidly stepping-up their sustainability strategies, programs and investments.”

The Scorecard used 48 performance and progress indicators to assess performance and compare countries. The indicators include data, regulatory frameworks, policy assessments, incentives and corporate practices across six pillar areas: green investment and technology; sustainable infrastructure and transport; governance and reporting; energy transition; environmental ecosystems; and circularity.

Last fall, roughly two-thirds of UAE business people surveyed for the Scorecard said climate change affects their business operations; and half said their companies would allocate 5% to 20% of capital expenditure toward achieving environmental sustainability targets.

The UAE report was commissioned by Agility Global, a multi-business owner and operator and investor, listed on the Abu Dhabi Securities Exchange (ADX). It was compiled by Horizon Group, a Geneva-based firm that specialises in research and analysis for international organisations, governments and leading businesses.

At COP28, Agility joined 13 other businesses to form the World Economic Forum’s leaders for a Sustainable MENA, pledging to address climate change in a region where only 12% of MENA businesses have set a net-zero target. Two of Agility Global’s three largest operating businesses (Menzies and Tristar) have committed to net zero. Together, Menzies and Tristar accounted for more than 74% of FY 2023 revenues. Agility Global’s third-largest business, Agility Logistics Parks, developed the first ever EDGE ADVANCED certified “zero-carbon ready” warehouses in the GCC (in Saudi Arabia) and West Africa (in Côte D’Ivoire)."

Sharjah Publishing City Free Zone (SPC Free Zone) and Aramex have signed a Memorandum of Understanding (MoU) to enhance collaboration and benefit their client bases

The MoU between SPC Free Zone and Aramex signifies a welcomed step towards fostering a more efficient and collaborative business environment in Sharjah. By leveraging each other’s strengths and resources, both entities are set to offer enhanced services and support to their customers.

Mutual benefits and services

Under this agreement, clients of SPC Free Zone will benefit from Aramex’s extensive logistics network, ensuring reliable and timely delivery of their products worldwide. Conversely, Aramex’s clients will gain access to the business-friendly environment and incentives offered by the SPC Free Zone, opening up new opportunities for expansion and growth.

The partnership highlights a shared commitment to innovation, efficiency, and customer satisfaction. By combining their expertise and resources, both organisations aim to create a synergistic ecosystem that supports the growth and success of businesses in Sharjah and beyond.

Innovating business ecosystems

SPC Free Zone, established in 2017, is a cutting-edge free zone dedicated to the print, publishing, and creative industries. It offers over 2,000 business activities and supports businesses with 24/7 assistance, instant licenses, office spaces, and banking services. Incentives like tax exemptions, 100% ownership, and streamlined registration processes make it an ideal hub for entrepreneurs and startups in the UAE.

Aramex, founded in 1982, is a global logistics leader with a strong presence in the Middle East and North Africa. The company provides a wide range of services, including express delivery, freight forwarding, and e-commerce solutions. With a focus on innovation and sustainability, Aramex ensures reliable and efficient delivery worldwide.

Sharjah National Oil Corporation (SNOC) and Emerge Limited, a joint venture between Masdar and the EDF Group, marked a major milestone with the groundbreaking ceremony for Sharjah's largest solar installation to date

Situated at SNOC's Sajaa Gas Complex, the 60MWp ground-mounted solar PV plant will annually offset 66,000 tons of CO2 emissions, equivalent to removing over 14,600 cars from the road each year.

This project underscores SNOC's commitment to decarbonisation and its target of achieving net-zero emissions by 2032. It aims to significantly reduce SNOC's reliance on traditional fossil fuels while providing a cost-effective source of clean energy. Aligned with the UAE's ambitious Net-Zero 2050 strategy, this initiative promotes renewable energy sources, supporting the country's transition to a sustainable, environmentally conscious future for Sharjah and the broader region.

SNOC CEO, Hatem Al Mosa, stated, "SNOC is happy to witness this significant milestone on its path to achieve Net-Zero by 2032 across its own operations and to support the Emirate of Sharjah’s sustainability agenda and commitment to protecting the environment. We value this strategic cooperation with Emerge, Masdar and EDF and we look forward to more prospects in the same path."

Michel Abi Saab, Emerge general manager, said, "Emerge is proud to be a part of this landmark project, alongside our client SNOC. Our turnkey solutions offer businesses like SNOC the ability to transition towards a sustainable future without upfront costs. This project will empower SNOC to achieve its decarbonisation goals, and also to secure a more cost-effective energy future for the Emirate as a whole. We look forward to its successful completion."

Emerge will handle the entire project lifecycle under a Build-Own-Operate-Transfer (BOOT) agreement. This includes financing, design, procurement, construction, operation, and maintenance of the solar modules for a period of 25 years.

DEWA leads Dubai's green economy drive with innovative IPWP models, attracting billions in investments and setting global benchmarks in solar energy pricing and sustainable development

HE Saeed Mohammed Al Tayer, managing director and CEO of Dubai Electricity and Water Authority (DEWA), underscored DEWA's alignment with the vision and directives of HH Sheikh Mohammed bin Rashid Al Maktoum, vice-president and prime minister of the UAE and Ruler of Dubai, to position Dubai as a global hub for the green economy

Al Tayer highlighted DEWA's development of the Independent Power and Water Producer (IPWP) model, incorporating leading international practices tailored to Dubai's legislative and technical requirements. The IPWP model has attracted investments totaling approximately US$11.9bn over a decade, fostering partnerships between the government and private sectors. This approach has enabled DEWA to achieve the world's lowest Levelised Cost of Energy (LCOE) in solar energy projects, establishing Dubai as a benchmark for global solar energy pricing.

"The regulatory and legislative frameworks in Dubai, facilitating private sector participation in energy generation projects, have incentivized international investors and developers to engage in projects like the Mohammed bin Rashid Al Maktoum Solar Park under the IPP model," noted Al Tayer. "Our IPWP initiatives support Dubai's Economic Agenda D33, aimed at doubling the city's economy over a decade and solidifying its position among the world's top three cities. They are also aligned with Dubai's Clean Energy Strategy 2050 and Net Zero Carbon Emissions Strategy 2050, targeting 100% clean energy production by 2050."

Ideal environment for investment

Dubai's conducive business environment has made it a premier destination for foreign direct investment (FDI), attracting US$10.7bn in FDI capital in 2023, creating around 45,000 job opportunities, according to Financial Times Ltd.'s "fDi Markets" data.

Pioneering energy and water projects

This environment supports DEWA's efforts to draw foreign investments through pioneering energy and water projects under the Independent Power and Water Producer (IPWP) model, which DEWA has embraced since 2014, supplanting the Engineering, Procurement and Construction (EPC) model.

Key among DEWA's IPWP projects is the Mohammed bin Rashid Al Maktoum Solar Park, the world's largest single-site solar park slated to produce over 5,000MW by 2030, with a total investment of USD 13.6 billion. DEWA has commissioned five phases of the solar park and is currently implementing its 6th phase, a 1,800MW project costing approximately US$1.5bn. Noteworthy global consortiums, including major firms like Saudi Arabia's ACWA Power and Abu Dhabi Future Energy Company (Masdar), have participated in these phases.

DEWA's other significant IPWP-based projects include the Hassyan Power Complex, a 2,400MW natural gas facility employing state-of-the-art technologies in energy production, and a 180 million imperial gallons per day (MIGD) seawater reverse osmosis (RO) desalination project in Hassyan, the world's largest of its kind using RO technology under the Independent Water Producer (IWP) model, with an investment of approximately USD 925 million.

Henkel Adhesive Technologies, the world’s leading solution provider for adhesives, sealants and functional coatings, has reached a significant sustainability milestone: all manufacturing sites in the Middle East and Africa (MEA) region now operate on 100% renewable electricity.

Henkel's eight MEA Adhesive Technologies manufacturing sites, located in six countries, have successfully transitioned to renewable electricity sources, eliminating carbon dioxide (CO2) emissions from their electricity usage, also known as Scope 2 emissions. This shift includes on-site solar installations and external renewable sources such as hydroelectric and wind energy.

Specific initiatives include renewable electricity derived from on-site photovoltaic (PV) solar and hydroelectricity in Turkey and Kenya, wind energy in South Africa, and solar power in Saudi Arabia and the UAE.

Through this, Henkel has eliminated approximately 10,471 tons of carbon emissions per year from its Scope 2 activities, equivalent to removing the carbon footprint of around 2,500 gasoline-powered cars driven for one year or 2,700 flights from New York to Singapore. By drastically reducing its reliance on fossil fuels, Henkel is making a substantial environmental impact and setting a benchmark for the industry.

Veerabhadra Konakalla, head of safety health & environment Henkel Adhesive Technologies IMEA, stated “By achieving complete decarbonisation of our scope 2 operations in our MEA sites, we’ve turned our commitments into tangible progress on the path to achieving climate positive operations by 2030. This achievement is a testament to the zeal of our IMEA team to drive transformative environmental change and create a more sustainable future.”

The 2024 Agility Index research study by Epicor and Nucleus Research reveals that nearly half of companies in the make, move, and sell industries consider rising costs as the primary challenge for supply chains.

More than half of these companies are using artificial intelligence, automation, or machine learning in at least one supply chain management application to tackle these issues. Notably, 63% of high-growth businesses — those with a revenue increase of 20% or more over the past three years — have already implemented generative AI in their supply chain operations to manage costs and operational challenges.

Nucleus Research surveyed over 1,700 supply chain management leaders globally to explore how they are utilising advanced technologies such as artificial intelligence and machine learning to overcome challenges like supply chain disruptions, rising costs, and skilled labour shortages. The study also highlighted planned future investments in these technologies.

“When workers are empowered to spend more time innovating — what humans do best — that’s where the real value creation happens. That is agility,” said Vaibhav Vohra, chief product and technology officer at Epicor. “Our 2024 Agility Index underscores the growing adoption of AI and other automation technologies as an essential factor in enabling supply chain businesses to better thrive and compete. These cognitive capabilities are coming together to empower workers and their businesses to more readily adapt to shifting market conditions and better serve their customers.”

Survey highlights

Survey respondents indicated they are integrating generative AI into digital supply chain operations across various functions such as product descriptions, customer service chatbots, natural language querying, reporting, and in-application assistance. Specifically, the adoption of generative AI in customer service chatbots, noted by 72% of organisations, is highlighted as the most prevalent use case. This widespread implementation is attributed to the technology's ability to streamline customer interactions across various sectors.

Similarly, 67% of organisations currently employ generative AI for crafting product descriptions, leveraging the technology's capacity to analyse customer sentiment and forecast market demand. This enables a more informed approach to product design and feature development.

Businesses are widely adopting machine learning, particularly in inventory optimisation (45%) and demand forecasting (40%), highlighting the importance of these technologies in managing stock levels and accurately predicting future demand.

Survey respondents indicated that the most anticipated benefits of automation technologies are increased efficiency and productivity (32%), cost savings (26%), and enhanced supply chain automation (23%). This demonstrates a strong confidence in the potential of these technologies to bring substantial improvements in supply chain management.

Amagua's integrated water system in La Puntilla Parish, Ecuador, leverages solar power and Bentley’s 3D modeling to optimise operations, reduce costs, and cut carbon emissions, ensuring a sustainable water supply.

Neda Simeonova, senior product marketing manager, Water Infrastructure, at Bentley Systems, pens this piece for Technical Review Middle East. She has been involved in the water, wastewater, and stormwater infrastructure industry for over 18 years, and has focused extensively on industry trends, technology advancements, and water policies.

^{Neda Simeonova, senior product marketing manager, Water Infrastructure, at Bentley Systems}

Amagua C.E.M. provides drinking water and wastewater management for the La Puntilla Parish in the Samborondón district of Ecuador. Committed to offering a quality, efficient water supply and sewerage service, they also provide complementary preventive system management, as well as consulting for network design, construction, and maintenance of residential facilities. To streamline operations and ensure a reliable water supply, Amagua decided to build an integrated water capture, transportation, and treatment system.

“To have operational autonomy, we determined the need for an integrated collection, conduction, and treatment system that allows it to supply a complete flow of 880 litres per second (l/s),” said Leonidas Dávila, engineer and project director at Amagua.

The project was divided into two phases, providing a flow of 440 l/s in the first phase and an additional 440 l/s during the second phase. It involved designing a catchment, distribution line, and treatment plant. To make the project self-sustainable and reduce its carbon footprint as much as possible, Amagua contemplated using solar panels to power the network and pump the water to the distribution tanks. The solar energy captured by the panels would power surface pumps that draw water from a river or well and pump it to the raw water tank and distribution system, reducing and potentially eliminating the network’s reliance on conventional energy sources, such as grid electricity or fossil fuels.

Addressing undulating terrain and pipeline transients

While solar panels are advantageous to reducing environmental impact and supporting a more sustainable and economical water supply, Amagua needed to consider several factors to optimise pump and network operations. “It is important to consider the appropriate capacity and size of solar panels, as well as the efficiency and capacity of storing energy in batteries, for optimal operation of the pump system,” remarked Dávila. In addition to the panel specifications and energy considerations, Amagua also had to address semi-undulating terrain and irregular topography, as well as avoid problems with transients in the 4.2-km-long pipeline in the high elevation area.

To identify and mitigate potential problems that could affect the pressure and flow and compromise operations, as well as ensure that the solar panels could generate the necessary power to deliver a reliable water supply, Amagua had to perform various modeling scenarios. They needed an integrated 3D design and hydraulic modeling and analysis solution to optimise optioneering, determine the most effective network arrangement, and validate the use of solar energy.

Leveraging Bentley’s 3D design and hydraulic modeling and analysis applications

“It was proposed that MicroStation and OpenFlows Water be used to optimise the execution of the project,” stated Dávila. Amagua selected MicroStation to design the entire architecture of the system in 2D and 3D, as well as OpenFlows Water to model and analyse the pipeline arrangement of the network and estimate energy consumption costs, based on both electricity and renewable energy.

The advanced algorithms and 3D visualisation features of Bentley’s applications allowed Amagua to perform digital simulations of numerous scenarios, verifying the optimization of both the existing and future distribution networks, and validating the use of solar panels as the most efficient source of renewable energy. “Thanks to the usefulness of OpenFlows Water’s energy cost module, we were able to model energy costs when using fossil fuels and when using solar panels, as well as their contribution to the carbon footprint,” continued Dávila. The digital models will also be used throughout the construction and operations phases of the project.

Digital simulation reaps savings and supports sustainability

Using Bentley’s advanced 3D design and hydraulic modeling and analysis applications, Amagua reduced modeling time by 80%. Working in a connected digital platform improved efficiencies in data federation and data exchange processes by 75% and 80%, respectively. Through accurate modeling and simulation, Amagua shortened the planning stage by 15 days, identifying and eliminating 3,530 collisions during the design phase that was equivalent to a potential savings of US$50,000. The integrated technology solution shaved 97 days off the construction schedule to save US$1.2mn while achieving an optimal design that saved 40,000 tons of concrete.

In addition to time, cost, and material savings, the digital simulations supported the use of solar panels, delivering significant environmental and sustainability benefits by reducing energy consumption and the carbon footprint of the project. The solar panels reduced dependency on fossil fuels, eliminating 6,905 metric tons of carbon emissions. “As a result, we were able to achieve a 95% reduction in fossil fuel energy used per year,” stated Dávila. Compared to conventional pumping systems, the solar-powered pumps are easier to maintain and are especially useful in rural or remote areas where electrical infrastructure may be limited, providing autonomous and reliable access to drinking water, improving the quality of life for communities. “The use of water pumping systems with solar panels offers significant environmental, economic, and social benefits,” concluded Dávila.

The International Air Transport Association (IATA) called on South Africa to mobilise its experience, resources, and infrastructure to accelerate the development of Sustainable Aviation Fuel (SAF) production. The call came as government and industry officials gathered in Johannesburg for the IATA Wings of Change Focus Africa conference.

“South Africa has vast potential to become a leading Sustainable Aviation Fuel (SAF) producer in the region. And there is a waiting market for SAF as airlines work to achieve net zero carbon emissions by 2050. More than a strategy in support of aviation’s decarbonisation, it is a strategy for economic development and should be a top priority for the new South African government. Across agriculture, energy, and transportation, new jobs and industries are waiting to be created that would not only help fight poverty but also contribute to greater energy independence,” said Marie Owens Thomsen, IATA’s senior vice president for sustainability and chief economist.

Growth in Africa and across the world

South Africa chaired the 2022 ICAO Assembly at which governments agreed to a long-term goal aligned with the aviation industry’s net-zero carbon emissions by 2050 commitment. The role of SAF in achieving this goal was emphasised by the ICAO CAAF/3 objective of a 5% average global reduction in aviation’s carbon emissions by 2030. As decarbonising aviation will require global collaboration, it is critical that global or regional stakeholders like States, development banks, industry, academia and other relevant parties bring forces together to help countries with SAF potential to develop their industry.

“Airlines are ready and waiting to purchase SAF as evidenced by the fact that every drop of SAF produced has been purchased and used. But the production volumes are a minute fraction of what aviation needs. That’s why it is essential for governments of countries with production potential, such as South Africa, to embrace what is a unique win-win-win opportunity for economic development, energy transition, and decarbonised air transportation,” said Thomsen.

Versatile International has announced the establishment of a new company to manufacture lighting technologies in Saudi Arabia.

Asheil Versatile Lighting Technologies is an end-to-end lighting manufacturer that also provides consultancy and planning services for large scale lighting installations. Asheil will serve destination-scale projects, including the Saudi giga-projects, and the local wholesale market. The company’s operating model is designed to increase supply chain transparency, decrease risk and provide access to a comprehensive range of locally manufactured lighting products.

“Asheil aims to kindle a new lighting technology sector in Saudi Arabia and establish the Kingdom as a producer of world-class lighting technologies,” said Marco Fahd, group chairman and CEO of the Versatile Group and co-founder of Asheil.

“Asheil combines the project governance expertise of Versatile International with the manufacturing capabilities of our partner, Haneco. The company’s unique service offer is designed to address disparity in the market, insulate Saudi Arabia from global supply chain challenges, and support the Kingdom’s signature development projects in delivering against Vision 2030.”

Saudi Arabia, a leader in manufacturing in the GCC

In its first phase, Asheil is building a 5,000 sqm manufacturing facility in Sudair City for Industry and Businesses, 120 km northwest of Riyadh. Ultimately the company plans to have 20,000 sqm of factory space, manufacturing bespoke lighting installations tailored to the specific needs of Saudi Arabia’s biggest development projects.

Asheil’s component portfolio will feature more than 1,000 fully compatible lighting products, each backed by a comprehensive guarantee for maximum transparency and accountability.

Saudi Arabia’s LED lighting market was valued at US$923mn in 2022 and is projected to reach US$1,858mn by 2030. The Kingdom currently imports around SAR 5.25 billion (US$ 1.4bn) in lighting equipment per year, according to data from the Observatory of Economic Complexity. Around 85% of imports come from China, amounting to 3.8% of the Kingdom’s total imports from China.

“Saudi Arabia represents an enormous opportunity for lighting manufacturers willing to invest in the Kingdom’s future,” said Marco Fahd.

“Asheil’s end-to-end lighting technology service, comprising consultancy and design planning, in-market manufacturing and service warranty to Saudi customers, will help large-scale projects develop and procure Made in Saudi lighting solutions with complete transparency and on-the-ground service.”