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Energy

As the UAE accelerates its national sustainability agenda, climate action is shifting from voluntary pledges to formal regulatory expectation. Federal Decree-Law No. 11 of 2024 on the Reduction of the Effects of Climate Change marks a turning point, introducing enforceable obligations around emissions management, alongside administrative penalties for non-compliance.

While the finer details of implementation and reporting pathways are still evolving, the direction of travel is clear.

Organisations are now expected to show real progress in measuring, managing, and governing their climate impact.

For many businesses, this represents more than a compliance update. It is a signal that sustainability data is moving into the same category as financial data, something boards and executives must understand, trust, and use to make decisions.

Against this backdrop, companies across sectors, from industry and real estate to logistics, finance, and investment, are reassessing how ESG data is generated and validated. We spoke with Jomy Joseph, Director at CoralDune Partners and former Regional Director for UL Solutions in the Middle East and Africa, about what Decree 11 means in practice and how organisations can respond without turning sustainability into a box-ticking exercise.

According to Joseph, adoption of the new law is already under way, but not in a uniform manner. “What I see on the ground is a phased adoption, rather than a single switch being flipped,” he says. Large groups, particularly those with international investors, lenders, or global customers, are leading the way. Many have been reporting emissions in some form for years, and Decree 11 is pushing them to tighten governance, improve data quality, and clarify accountability.

Assessing supply chains

The next wave, he explains, will come through supply chains. Contractors, manufacturers, logistics providers, and service companies are increasingly being asked to provide credible emissions data by customers who are themselves responding to regulatory and investor pressure.

For the mid-market, awareness is still uneven, but Joseph expects that to change quickly. “The UAE has made it clear through its Net Zero 2050 commitment and wider sustainability agenda that climate action is no longer optional. Decree 11 turns that ambition into a structured expectation.”

While the law allows for significant financial penalties, ranging from AED 50,000 up to AED 2,000,000 and rising for repeated violations, Joseph believes the earliest impacts will often be commercial rather than regulatory.

Companies may find themselves excluded from tenders where sustainability disclosure is part of the qualification process, subject to greater scrutiny from banks and insurers, or exposed to reputational risk if their figures cannot be supported with evidence. “Even before enforcement is felt directly, the market itself is already moving in the same direction as the regulation,” he notes.

emissionsuae

The UAE has supported initiatives to reduce emissions over the decades

At CoralDune Partners, Joseph and his team focus on helping boards and CEOs embed ESG reporting as a core governance and performance management function. Drawing on his background in testing, inspection, certification, and enterprise sustainability, he stresses that effective ESG reporting is not a marketing exercise. Instead, it starts with clarity around what actually matters for a specific business, sector, and geography.

That means defining a measurable baseline, agreeing on calculation methods, and ensuring consistency year on year. It also requires clear ownership, internal controls, and audit trails, so that reporting is defensible and repeatable.

Crucially, it involves building a practical roadmap that links emissions reduction to real operational levers, such as energy use, procurement, logistics, product design, and buildings. For mid-sized companies, the challenge is doing this without unnecessary complexity. “The goal is not to copy large enterprise reporting, but to build a credible, scalable foundation that leadership can rely on,” Joseph says.

Technology, and particularly AI, has a growing role to play. While spreadsheets remain familiar tools, Joseph argues they were never designed to support long-term, regulated reporting under investor scrutiny. AI can help automate data capture from invoices, fuel logs, utility bills, and ERP systems, classify it correctly, and flag anomalies before numbers reach management.

It also enables faster scenario planning, allowing companies to see how changes in suppliers, equipment, or logistics routes affect both emissions and cost. “The real issue is not the tool, but the outcome,” he says. “Can the organisation produce numbers that are consistent year after year, backed by evidence, and ready to be checked?”

Importantly, Decree 11 does not only apply to large enterprises. The focus is on activities and emissions sources, not company size. Smaller businesses and startups should not assume they are automatically out of scope.

For them, compliance does not mean producing lengthy reports. A basic emissions baseline, clear calculation records, and a short list of practical actions that reduce both cost and emissions are often enough to start. Many will first feel the impact through customer and supply chain requirements. Being prepared early puts them in a far stronger position.

Challenges ahead

One of the biggest issues Joseph sees is trust in the data itself. Many organisations can produce a sustainability statement, but far fewer can clearly explain where the numbers came from and whether the same approach will be used next year. This is where ESG reporting becomes a board-level issue, as weak data translates directly into regulatory, commercial, and reputational risk.

To reduce greenwashing risk, Joseph points to the importance of moving from claims to evidence and assurance. Structured measurement, reporting, and verification processes, independent assurance under standards such as ISO 14064-3, product-level tools like life cycle assessments and environmental product declarations, and recognised built environment frameworks all help convert intent into measurable performance. “If a claim cannot be supported with data and documentation, it should not be made,” he says.

Globally, Joseph sees useful benchmarks in the European Union’s focus on structure and comparability, Singapore’s practical and business-friendly approach, and the UK’s emphasis on transition planning. The UAE, he believes, has the advantage of speed. With strong digital government infrastructure and clear national targets, it has the potential to move rapidly from policy to execution.

Ultimately, credible ESG reporting is becoming inseparable from competitiveness. As sustainability data increasingly shapes access to capital, insurance, and investment, Decree 11 is not just about compliance. It is about how companies position themselves for the next phase of growth in a low-carbon economy.

Energy

The Middle East and North Africa (MENA) region could emerge as a global leader in sustainable aviation fuel (SAF) production and trade, according to a new white paper examining the region’s feedstock, infrastructure and policy advantages.

While SAF production is currently concentrated in Europe and North America, the paper, published by the SAF MENA Congress, argues that MENA has a unique opportunity to scale both biobased and synthetic fuels at pace, driven by abundant renewable energy, established hydrocarbon infrastructure and strong domestic aviation demand.

A central pillar of this potential lies in synthetic SAF, produced via power-to-liquids (PtL) pathways using green hydrogen and captured carbon dioxide. The region benefits from some of the world’s highest solar irradiation levels and growing wind capacity, enabling access to low-cost renewable electricity. This, combined with large-scale electrolysers and emerging carbon capture infrastructure, positions Gulf states in particular as highly competitive producers of e-SAF.

Unlike many regions facing land constraints and grid congestion, MENA can deploy renewables at scale and co-locate projects with industrial hubs, export terminals and aviation infrastructure. The paper highlights that existing refining, storage and pipeline assets can be repurposed for SAF, reducing costs and shortening project timelines.

The report also challenges assumptions that the region lacks viable biobased feedstocks. Urban waste, used cooking oil, animal fats and agricultural residues are identified as underutilised resources, particularly in Egypt and Turkey. In addition, desert-adapted biomass such as algae, halophytes and wastewater-grown crops could provide non-competitive feedstock options suited to arid climates.

Geography is another strategic advantage. Situated at the crossroads of Europe, Asia and Africa, MENA already hosts some of the world’s busiest aviation hubs. Short shipping distances, established fuel trading ecosystems and high volumes of long-haul refuelling make the region well placed to become a global SAF bunkering and export centre as international mandates tighten.

Policy alignment and access to sovereign capital further strengthen the region’s position. Several governments have adopted net-zero targets, hydrogen strategies and state-backed aviation offtake, creating conditions for large-scale investment and accelerated deployment.

The white paper concludes that SAF leadership will be determined not by technology alone, but by scale, cost and speed. With rising global demand and regulatory pressure, the question is no longer whether MENA can play a major role in aviation decarbonisation, but how quickly it chooses to do so.

 

Mining

Critical Metals Corp., a critical minerals company headquartered in New York, has signed a non-binding term sheet to form a 50/50 joint venture with Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company (TQB), a 75-year-old industrial conglomerate based in Saudi Arabia.

The partnership aims to establish a state-of-the-art rare earth processing facility in the Kingdom, creating a fully integrated mine-to-processing supply chain and securing long-term offtake rights for 25% of the Tanbreez Project’s rare earth concentrate production.

The facility will produce separated rare earth oxides, metals, and downstream products, including magnet-grade materials for aerospace, defense, and advanced industrial applications. All finished materials are planned for shipment to the United States to support the country’s defense industrial complex, strengthening supply chain security for Western-aligned markets.

Tony Sage, Chairman of Critical Metals Corp., said, “This agreement represents a transformational milestone for Critical Metals Corp. By partnering with a leading Saudi Arabian industrial group and securing long-term offtake that brings Tanbreez to 100% committed production, we have effectively de-risked the project’s commercial pathway from mine to market. The establishment of an integrated processing platform in Saudi Arabia not only diversifies global rare earth processing capacity beyond China but also strengthens supply chain security for allied nations across Europe, the Middle East, and beyond. This transaction positions CRML as a cornerstone supplier of critical minerals essential to advanced manufacturing, energy transition technologies, and national security applications for decades to come.”

Under the JV framework, CRML will retain its 50% ownership interest on a carried-interest basis, without issuing equity or incurring debt for the construction of the processing facility. The partnership ensures 100% of Tanbreez production is now under long-term offtake agreements, providing full revenue visibility and supporting allied markets. A jointly governed development committee will oversee engineering, construction, commissioning, and market entry for the processed products.

Abdulmalik Tariq Al-Qahtani, CEO of TQB, commented, “Following the successful official visit of His Royal Highness Prince Mohammed bin Salman to the United States, we are pleased to announce the signing of a Memorandum of Understanding focused on cooperation in the development of critical materials. Critical materials—sourced from strategically important regions including Greenland and other resource-rich jurisdictions—form the foundation of modern technologies across energy, advanced manufacturing, artificial intelligence, defense, and data infrastructure. Securing diversified and resilient supply chains for these materials is essential to long-term technological progress.”

CRML and TQB will now work together to finalise the technical, commercial, and regulatory foundations of the JV, including plant design, development timelines, product specifications, and commercialisation strategy. The initiative is a major step toward diversifying rare earth processing capacity, reducing reliance on China, and strengthening global supply chain resilience.

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Energy

Energy

The Renewable Carbon Initiative (RCI) has published an extended second version of its latest report, presenting eleven peer-reviewed lifecycle assessment (LCA) case studies that examine the carbon footprint of materials and products made from renewable carbon compared with fossil-based alternatives.

The case studies represent what RCI describes as the highest possible scientific standard and have all been peer-reviewed by external, independent experts. They assess products developed by RCI members Avantium (Netherlands), BASF (Germany), Braskem (United States), Econic (United Kingdom), Fibenol (Estonia), IFF (United States), LanzaTech (United States), Lenzing (Austria), Neste (Finland), Peter Greven (Germany) and Primient Covation (United States).

According to the report, the carbon footprint of chemicals and materials has become one of the most critical indicators at a time when the United Nations continues to issue “Code Red” warnings on climate change. Fossil resources are identified as the primary driver of human-induced climate change, accounting for more than 70% of global warming. While sectors such as energy can decarbonise by shifting away from fossil fuels, carbon-dependent industries face a different challenge.

For the chemical and materials sectors, carbon is an essential feedstock that cannot be eliminated. Instead, the report argues that defossilisation is required to prevent further influxes of fossil carbon into industrial carbon cycles and the atmosphere. This involves replacing fossil feedstocks with renewable carbon sources, including bio-based, CO₂-based and recycled carbon.

However, the report also stresses that alternative production pathways cannot be assumed to be automatically better for the climate. Transparent and robust evaluation is required, taking into account process emissions, energy demand and current production scales. Without this, claims of environmental superiority risk being misleading.

The eleven peer-reviewed LCAs presented in the report provide what RCI describes as conclusive proof that renewable carbon products already available on the market can deliver substantial greenhouse gas reductions. Across the case studies, GHG savings range from 30% to as much as 90% when compared with fossil-based counterparts. The findings also indicate that, as technologies mature and scale up, there is significant potential for further emission reductions in the future.

RCI said the evidence base created by the report is intended to inform both policy-makers and investors, countering concerns that the climate benefits of renewable carbon remain theoretical. A central conclusion is that reducing the introduction of additional fossil carbon today will lessen the future reliance on costly atmospheric carbon removal technologies.

By enabling more circular carbon loops, the report concludes that renewable carbon feedstocks already represent a proven and viable pathway for defossilising chemical industries in line with global climate targets.

Water

Water

Ecolab, a global leader in sustainability solutions for water, hygiene and infection prevention, has signed a non-binding MoU with the Saudi Water Authority (SWA) aimed at accelerating water innovation and supporting the Kingdom’s long-term sustainability ambitions.

The agreement reflects a shared commitment to advancing more efficient, resilient and circular water systems in line with Saudi Arabia’s Vision 2030.

The MoU was formalised during the US-Saudi Water Summit 2025, held last month in Palo Alto, California. The summit brought together international water sector leaders to discuss emerging challenges, technological advances and collaborative models capable of transforming water management across the Kingdom. Against a backdrop of rising demand, climate pressures and industrial expansion, the agreement highlights the growing importance of public-private partnerships in securing Saudi Arabia’s water future.

Under the MoU, SWA and Ecolab will collaborate to position sustainable water management as a strategic enabler of national development. By improving water efficiency and reuse, the partnership aims to help safeguard scarce water resources while enhancing water quality across key sectors. These efforts are also expected to deliver wider environmental and economic benefits, including reduced energy consumption, lower CO2 emissions and improved operational efficiency for industrial and commercial operators.

The framework for cooperation includes the exchange of technical insights and best practices across sectors such as data centres, refineries, petrochemicals, heavy industry, desalination, manufacturing, food and beverage, and hospitality.

Key areas of partnership

The collaboration also covers support for water source selection, regulatory development and performance monitoring, alongside workshops focused on advanced digital solutions such as smart water systems and predictive maintenance. In addition, the partners will explore pilot projects within Saudi industrial cities, applying Ecolab’s global technologies under local operating conditions, and identify opportunities to support innovation initiatives, including Rabigh Oasis, the Global Water Innovation Prize (GWIP), collaborative research and development roundtables, and broader innovation promotion programmes.

Ecolab has maintained a strong presence in Saudi Arabia for more than four decades through its Nalco Water business, supporting major industrial players in optimising water use. Today, its solutions are deployed across energy, manufacturing, food and hospitality, helping organisations conserve water, reduce energy consumption and strengthen long-term business resilience while meeting sustainability goals.

His Excellency Abdullah bin Ibrahim Al-Abdulkarim, President of the Saudi Water Authority, highlighted the partnership as a step toward building a world-class water sector that safeguards resources, supports national growth, and demonstrates how innovation and sustainability can secure water for future generations in line with Vision 2030.

Stefan Umiastowski, Ecolab’s Senior Vice President & CEO for India, Middle East, and Africa, said, “This collaboration represents an important step in advancing Saudi Arabia’s Vision 2030 commitment to long-term water sustainability in a region where water is one of the most critical resources. As digitalization and AI reshape economies and create new demand patterns, intelligent water management has become essential for sustainable growth. By combining Ecolab's global innovation capabilities with the SWA’s vision and local expertise, we're creating a powerful platform to scale water transformation across the Kingdom's most strategic industries.”

Overall, the MoU demonstrates how closer collaboration between government and industry can translate sustainability ambitions into measurable outcomes, supporting the transition towards Net Zero while enhancing industrial competitiveness and water security across Saudi Arabia.

Construction

Construction

As the Middle East accelerates the adoption of smart buildings and next-generation construction technologies, the need for clear regulatory frameworks and internationally aligned standards is becoming increasingly critical.

The International Code Council (ICC) will contribute to two technical symposiums at Intersec 2026, taking place from 12-14 January at the Dubai World Trade Centre. ICC’s participation underscores its commitment to supporting the safe, scalable and compliant evolution of the built environment across the region.

Through its involvement, ICC will engage in policy-driven dialogue and technical knowledge exchange, reflecting its integrated approach to enabling innovation while safeguarding safety, performance and resilience. Mohamed Amer, Managing Director, ICC MENA, will represent the organisation at both the Smart Building Summit 2026 and FCIA–NFCA PFPCON ’26, which are being held alongside Intersec 2026.

At the Smart Building Summit 2026, ICC will take part in the panel discussion titled “Navigating the Global Regulatory Landscape: Standards, Policies & Incentives for Smart Buildings.” The session will explore how regulatory frameworks, certification schemes and government incentives are influencing smart building adoption across the region. ICC’s contribution will focus on the role of globally recognised codes and standards in aligning international best practice with local regulatory requirements, while supporting performance assurance and long-term operational efficiency within smart building ecosystems.

ICC will also deliver a technical presentation at FCIA–NFCA PFPCON ’26, a specialist symposium held during Intersec 2026 in Dubai. Entitled “Building the Future: Enabling Safe Adoption of 3D Printing & Modern Methods of Construction,” the presentation will examine regulatory, safety and compliance considerations linked to emerging construction technologies. It will further highlight how performance-based codes and standards can support responsible innovation while maintaining structural integrity, fire safety and quality assurance.

By linking smart building regulation with advanced construction practices, ICC continues to advocate a coordinated, standards-led approach to delivering safer, more resilient and future-ready built environments across the Middle East.

Mining

Mining

Energy Capital Group (ECG), a Riyadh-based specialist investor, has launched a $300 million private equity fund aimed at supporting Saudi Arabia’s industrial transformation and advancing the Kingdom’s Vision 2030 objectives.

The ECG-Industrial Metals and Services Fund will focus on investments in integrated industrial and mining services that strengthen local supply chains and support long-term industrial growth.

The fund has already secured around US$100mn in soft commitments from investors. ECG focuses on energy, industrial and resource-based sectors, with a strategy centred on building and scaling businesses that reinforce critical supply chains and contribute to sustainable industrial development across the region.

Saudi Arabia’s Vision 2030 sets out an ambitious agenda to diversify the economy, attract domestic and international investment, and position the Kingdom as a global industrial and investment hub. Through targeted investments in metals services and supply chains, the new fund is intended to support these goals while capitalising on the Kingdom’s expanding mining and industrial base.

Ali Alturki, Managing Partner of ECG, said, “The aim of this fund is to capitalise on Saudi Arabia’s generational mining investment opportunity, supporting the localisation of essential services and driving innovation across industry and downstream processing.
This new fund will support the Kingdom’s ambition by investing in Saudi-based service platforms, positioning metals supply as a reliable, contracted service to the Kingdom’s industrial base.

“For this fund we are partnering with Jay Hambro and the Verdigris team who bring broad knowledge of the metals sector and an excellent track record of value delivery.”

Jay Hambro has joined ECG as Managing Partner for the ECG – Industrial Metals and Services Fund, with the team from Verdigris Strategic providing sector-specific strategic advice. Verdigris Strategic is a metals supply chain services advisory group with experience across global markets.

Hambro said, “ECG’s new fund’s strategy places it at the forefront of a rapidly evolving sector critical to the energy transition and supply chain resilience. Saudi Arabia has identified US$2.5 trillion in untapped mineral resource capability which is being scaled rapidly through licencing rounds, public capital and policy support. The Kingdom has recently issued over two thousand exploration licences and is targeting a US$75bn contribution to its GDP before the end of the decade.

“My team and I have been working with ECG, one of leading industrial services private equity investors in the region, for nearly four years and the fund is a natural evolution in this partnership.”

The fund was launched at the 2026 Future Minerals Forum in Riyadh, a government-led platform focused on shaping the future of the global minerals sector, held at the King Abdulaziz International Conference Center.

Manufacturing

Manufacturing

A new report from management consultancy Arthur D. Little warns that rising product portfolio complexity is quietly eroding profitability in the manufacturing sector, constraining digital growth, and limiting operational flexibility.

The study, Rise of Complexity in Manufacturing, highlights that companies must take decisive action to simplify their offerings and leverage modularisation to stay competitive.

“Unchecked complexity is a silent profitability killer,” the report states. “With resources limited and markets increasingly commoditised, companies must reduce product portfolio complexity to drive profitability and innovation.”

Manufacturers often expand product variants to meet customer demand, but without systematic portfolio pruning, these efforts generate hidden costs. Non-customer-facing complexity such as outdated products, excessive SKUs, and intricate internal processes can slow development, reduce scalability, and impede time to market.

The report identifies four key challenges for manufacturers: maintaining profitability amid market commoditisation, differentiating through digital solutions, ensuring supply chain resilience, and balancing legacy systems with emerging technologies such as new materials, battery-powered engines, or alternative fuels.

Arthur D. Little recommends a data-driven approach to complexity, starting with measuring the cost of complexity (CoC) across product lines and functions. A monetary proxy for CoC can capture inefficiencies in development, manufacturing, warehousing, and support, helping firms identify underperforming products for phaseout.

Strategic modularisation is highlighted as a crucial tool for managing complexity. By designing standardised, interchangeable product modules, manufacturers can simplify portfolios, accelerate time to market, and reduce costs while enabling cost-effective customisation.

The report cites Electrolux, which cut component numbers by 40% and reduced development time by 30% through modular design, and Siemens, which applied modularity to its industrial automation systems, reducing design time by 40% and improving scalability.

Arthur D. Little stresses that complexity reduction requires more than technical solutions: it demands cross-functional coordination, strong governance, and a cultural shift away from short-term gains. Companies must embed modular principles in product development, eliminate low-performing products, and ensure that both hardware and software systems are designed with simplicity in mind.

“Reducing product portfolio complexity is not a technical fix — it is a strategic transformation,” the report concludes. “By making complexity measurable, pruning underperforming products, and embedding modular design, manufacturers can release trapped value, improve speed to market, and build more resilient operations.”

The consultancy urges manufacturers to act decisively now, turning awareness of complexity into structured strategies for long-term profitability and innovation.

Jimmy Joseph, director of GDS Middle East. (Image source: GDS Middle East)

Logistics

Fincantieri looking to expand in the Gulf (Image source: Fincantieri)

Logistics

Italian shipbuilder Fincantieri and ASRY (Arab Shipbuilding & Repair Yard) have signed an Memorandum of Understanding (MoU) to explore new opportunities for collaboration in the shipbuilding sector

Under the MoU, the two sides will jointly evaluate opportunities for the design and construction of offshore service and military vessels up to 80 metres in length, as well as the potential for export contracts in the Gulf area.

The agreement also includes maintenance, repair, and overhaul (MRO) services for military, commercial and offshore vessels, as well as the exchange of know-how in naval design and production process optimisation.

The military vessels would be intended for use by the Bahrain Navy and Coast Guard.

ASRY is a leading operator in ship repair and marine services in the Gulf of Bahrain.

Fincantieri was represented by its chairman, Biagio Mazzotta, and Eugenio Santagata, general manager of the Fincantieri Naval Vessels Division, who signed the agreement together with Ahmed AlAbri, CEO of ASRY.

Pierroberto Folgiero, CEO and managing director of Fincantieri, said the MoU represents an opportunity for Fincantieri to enter the Bahraini shipbuilding market and is a further step in consolidating the group's strategy and presence in the Middle East.

“This agreement strengthens our strategic position in the Gulf and confirms Fincantieri's desire to develop long-term industrial partnerships with leading partners such as ASRY,” said Folgiero.

“By combining complementary skills and converging visions, we are laying the foundations for a solid and structured presence in the Bahraini shipbuilding market, in line with the objectives of our integrated export platform in the Middle East.”

The signing of the MoU took place on the sidelines of the 46th Gulf Cooperation Council Summit in the presence of Italian President of the Council of Ministers Giorgia Meloni, and Bahrain’s Crown Prince and Prime Minister His Royal Highness Salman bin Hamad Al-Khalifa.

Separately, Fincantieri announced a partnership In Saudi Arabia with King Abdullah University of Science and Technology (KAUST) to establish a scholarship aimed at supporting young researchers in maritime security, cyber-resilience and emerging applied navigation technologies.

It follows an MoU signed last January and reflects a shared commitment of both sides in promoting excellence in education and technology transfer, in line with Saudi Arabia’s Vision 2030, a Fincantieri statement read.

“The scholarship will enable young and talented researchers to develop innovative solutions to counter new threats to navigation, such as recent cases of AIS and GPS spoofing, which can alter vessel positions and compromise the safety of shipping routes,” it stated.

The programme will focus on three strategic areas: the advanced authentication of AIS signals to prevent manipulation; the opportunistic detection of GPS spoofing through intelligent satellite data analysis, and star-based position verification enhanced by machine learning algorithms.

Fincantieri added that the goal is to develop an operational software platform that can be integrated into on-board digital systems, strengthening the collaboration between universities and industry and contributing to the growth of the Fincantieri Digital Ecosystem (FDE).

 

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