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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.

^{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.

The inaugural IFAT Saudi Arabia aims to accelerate investment in sustainable waste and water infrastructure across the Kingdom. The event will focus on knowledge exchange, policy dialogue, and sector collaboration through a strategic summit and a CPD-certified conference programme.

Taking place from 26-28 January at the Riyadh Front Exhibition & Conference Center, IFAT Saudi Arabia is designed to support national development goals and market readiness. The Summit and conference stages will examine how policy, capital, and technology can enhance waste and water systems, promote circular economy models, and strengthen long-term environmental resilience.

“Strengthening waste management systems is a key priority for supporting environmental protection, operational efficiency and resource recovery,” said Dr. Abdullah Al Sebaei, CEO of the National Center for Waste Management (MWAN). “IFAT Saudi Arabia creates a focused environment for stakeholders to exchange knowledge, review international experience and align on strategic approaches that support the Kingdom’s regulatory direction and circular economy ambitions.”

The invite-only IFAT Saudi Arabia Summit on 26 January will bring together senior government officials, regulators, investors, and industry leaders to discuss the strategic direction of the Kingdom’s waste and water sectors. Sessions will focus on impact investment, public-private partnerships, stakeholder engagement, and future readiness, featuring regional and international case studies and policy insights.

Key discussions include the Leaders Panel, which will assess the evolving waste and water economy in Saudi Arabia, and the Water Security Panel, led by the Saudi Water Authority, focusing on governance and integrated strategies for national water security. “A secure and resilient water sector requires long-term planning, strong governance and close coordination across public and private stakeholders,” said Eng. Mamdooh Alshuaibi, Vice President of Sustainability and Water Sector Services at the Saudi Water Authority. “IFAT Saudi Arabia provides a timely setting to discuss policy priorities, investment frameworks and technical approaches that support efficient water use, system resilience and sustainable service delivery across the Kingdom.”

Complementing the Summit, the CPD-certified conference programme will run across two thematic stages. Orange Stage will focus on waste management, recycling, and circular economy practices, featuring sessions on smart municipal solid waste systems, operational efficiency, and the role of digitalization and cybersecurity. Highlights include a panel marking the launch of the World Bank’s latest report on Solid Waste Management in MENA, in collaboration with the International Solid Waste Association.

Blue Stage, running 27–28 January, will explore water resilience, desalination, reuse, and digital transformation for utilities and industrial users. Sessions include a panel on Middle East water resilience organized by German Water Partnership, a brine mining case study led by NEOM, and discussions on financing and PPP models led by the International Water Association.

By connecting policy, investment, and applied solutions, IFAT Saudi Arabia aims to drive informed decision-making, cross-sector collaboration, and practical delivery across the Kingdom’s environmental ecosystem.

International law firm Addleshaw Goddard has strengthened its Abu Dhabi presence with the relocation of two senior partners and the appointment of a Construction & Engineering specialist, signalling a long-term commitment to supporting the emirate’s strategic priorities in construction, transport, and energy.

Andrew Carter, a Partner in the firm’s Commercial practice with a focus on transport and mobility, relocated to Abu Dhabi in December, while Matthew Williams, Partner and Co-head of Power, Infrastructure Projects & Energy, joined from the UK in early January. The firm has also welcomed Richard Davies as Partner, Construction & Engineering, who will be based in Abu Dhabi.

Carter brings extensive experience advising both public and private sector clients on complex transport, logistics, and mobility projects, contributing to the development of integrated and future-ready transport networks. Recognised in Legal 500 and Best Lawyers International for his work in the transport sector, he said, “The UAE is advancing ambitious transport and mobility initiatives, including the upcoming launch of Etihad Rail passenger services and the large-scale roll-out of autonomous vehicles. Being based here allows us to work more closely with clients shaping the future of infrastructure and movement across the UAE and the wider region.”

Williams adds decades of experience spanning the full lifecycle of energy projects and sector-specific M&A, including conventional power, renewables, and energy transition mandates. He serves as the client relationship partner for several major energy market participants across Europe and the Middle East and has been recognised in the Legal 500 power sector ‘Hall of Fame’ for six consecutive years. Reflecting on his relocation, Williams said, “Energy transition and infrastructure investment are central to Abu Dhabi’s future. Relocating enables us to provide more immediate, strategic support on complex projects and transactions transforming the region’s energy landscape.”

Richard Davies, who joins from another international Abu Dhabi firm, has more than 15 years’ experience advising on construction and engineering projects across the UAE. His work spans rail, air mobility, airports, urban development, district cooling, and desalination, covering both contentious and non-contentious matters. “Abu Dhabi continues to see significant investment across complex infrastructure and development projects. Joining Addleshaw Goddard’s Abu Dhabi office allows me to work closely with clients on the ground, supporting the delivery of major projects across construction and engineering sectors that are critical to the emirate’s long-term growth,” he said.

These moves build on Addleshaw Goddard’s expansion in Abu Dhabi, including the opening of its office in Abu Dhabi Global Market in June 2025, and demonstrate the firm’s strategy to embed senior, sector-led expertise aligned with the emirate’s economic diversification and sustainability ambitions. Robin Hickman, Head of Middle East at the firm, said, “Andrew’s and Matthew’s relocations, along with Richard’s hire, underscore our long-term commitment to Abu Dhabi. By embedding senior sector specialists on the ground, we are well positioned to support clients delivering some of the capital’s most strategically important transport and energy projects and transactions.”

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.

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.

Saudi Arabia has claimed the top spot globally in the Road Network Connectivity Index, according to a report by the World Competitiveness Forum. The Kingdom also ranked fourth among G20 nations in the Road Infrastructure Quality Index, highlighting its ongoing investment and development in the road sector.

For a country of Saudi Arabia’s size, these rankings underscore its growing international prominence and the strategic importance of its transport network. The Kingdom’s road system stretches over 73,000 km—almost double the circumference of the Earth—providing critical domestic connectivity while linking Saudi Arabia to eight neighbouring countries, including GCC states, Jordan, Iraq, and Yemen. The network supports key sectors such as Hajj and Umrah, tourism, trade, and broader logistics, positioning the Kingdom as a regional hub.

A spokesman for the Roads General Authority (RGA) attributed the achievements to the adoption of global best practices and safety-focused regulations. “We have launched the Road Code as a unified technical reference for all entities responsible for roads, guaranteeing the highest standards of planning, design, implementation and maintenance,” he said.

The authority has also introduced the Road Right-of-Way Permits Regulation, which organises activities within road corridors, enhances safety, and improves user experience, the spokesman added.

The RGA continues to roll out major projects and initiatives under the Roads Sector Program to strengthen infrastructure and achieve strategic targets. These include aiming for sixth place globally in the Road Quality Index by 2030, reducing road fatalities to fewer than five deaths per 100,000 people, implementing road safety features across the network in line with the International Road Assessment Programme (IRAP), and maintaining advanced service levels to meet growing traffic demands.

Saudi Arabia’s recognition in these international rankings reflects its commitment to combining world-class infrastructure with enhanced safety standards, while supporting economic growth and regional connectivity. The Kingdom’s road network is increasingly seen not just as a transport system, but as a driver of development and a vital component of national strategic planning.