Sustainable growth and security in the GCC: Recommendations for the UAE

Why oil-rich Gulf countries need to invest in renewable energy ...

1         INTRODUCTION

 

The wider Arab world and the GCC regions are facing several interconnected dilemmas under the social, environmental and economic sectors of sustainable development. There is a need to design sustainability strategies that are effective and in alignment with the context. Investigations, where contributors have tried to read the obstacles that are barring sustainable developments in the GCC regions, impact of existing development strategies and the pattern in which the countries deal with the regional and global sustainability issues. The case study is aimed for allowing academics to present research that is related to the issues ongoing, and providing possible solutions for betterment of the GCC region. 

The countries of GCC includes Oman, UAE, Saudi Arabia, Qatar and Kuwait are hosts of large amount of fossil fuels, as well as several types of minerals, apart from the cultural richness. The economies of these regions are characterized by an export-import culture of the fossil-fuels. Over the years these trades have gained them significant amount of revenues that have raised the overall per capita standards of living standards (Jemni et. al 2016). The countries saw development through the 1970’s resulting in economic growth, higher job prospects, and a rise in number of immigrant workers. The rise in economy created transformed leadership which changed the face of the GCC countries into modern states with ambitions. However, this structure has been under question in the recent years due to the increasing demands from the surge in population. This has brought a sense of urgency in reviewing the sustainability norms in the region.

 

A gulf region is populated by 40 million people, where 80% of the people have access to high urban lifestyle. 40% of the people living in this region are Asian migrant laborers, who have foreign nationality. The high fertility rates are causing the population to shoot upwards very rapidly.

The case studies based on the GCC region are much focused while attempting to understand the transition of the states towards accepting emerging initiatives and practical lessons for sustainability. These studies help to bring forth the obstacles that hinder the economic and social growth of the region such as high energy subsidies, low prioritization of environmental sustainability, lowering rates of renewables, and socio-political realities.

 

The papers have highlighted how the GCC regions have initially been reluctant towards global sustainability agendas which were supported by the developed countries. This has been despite the progressiveness of the region towards the western hi-end technologies and designing models. The GCC countries have taken such an approach to save their carbon-based economies from being overtly depleted. But the region does not have the luxury to take so much time in implementing measures of better sustainability following the international standards.

 

Example -  the rising demands in limited sources of energy has prompted Morocco to set hiked target for renewable energy sources of 50% by 2030, which is higher than any other GCC country. In countries like Lebanon, the provision of basic education and food for the increasing population (including refuges) is a driving factor for investments in innovative projects like urban agriculture. In contrast, access to food, water and energy along with amenities like fair salary structure and job opportunities have been a privilege for the GCC citizens. The GCC regions are now seeing sustainability as a policy important in the 21st century and also as a necessary tool for sustaining the basic needs of a developing economy to function (Juaidi amd et. Al 2016). Apart from that, it is seen as a means for the states to gain an international legitimacy in terms of being a globally responsible community.

GCC still lagging when it comes to converting wealth to well-being

1         CHALLENGES

 

1.1        CONTROLLED DEVELOPMENT

 

The last three decades have seen the GCC countries experience remarkable economic growth, of which the results are tangible in respect to urbanization challenges, increasing demands, geographical changes and limitations of resources.

 

The countries have taken steps for controlling the rapid development by reducing citizenships, residency rights, making investments in local education sectors, promoting knowledge within local workers and encouraging locals by providing incentives for working in private sectors. These measures have been limited as the rate of consumption have not been controlled and could not cater to rising needs completely. Alternative measures are being reviewed to counter this problem, both in terms of the environment as well as the economy.

 

Example  The issue of rapid transformation towards urbanization in the GCC regions creating cultural and design related identity crisis as well as coastal management and natural hazards (Rizzo , 2017). Again, it has placed the cities under the forefront of global development because they are no longer just seen as places to stay, amenities and production. These cities are now significantly influential in terms of political environment, curbing international and national goals, as well as influencing outcomes of policies. Transformation towards urbanization is a constantly changing process that has reflected in various other regards of life in the gulf. These standards reflect local cultures more than what has been taken from the western patterns, and indicates towards progress.

2         UNNATURAL GROWTH LEADING TO 

DEPLETING NATURAL RESOURCES

 

The natural resources of the GCC region, due to the unnatural rise in demands have been subjected to substantial threat. Climate changes have provoked a bigger issue in the recent times. The existing climate situations have a chance to limit the potential of future growth as the region is exposed to man-made and natural environmental risks.

 

The need to manage the arising risks, along with potential disasters cause by over-usage of natural resources has not received the attention it required all along, while the region engaged in policy-making. Water management, land resources and energy conserves need to be taken care of with better policies in order to protect it from pre-mature depletion.

 

The GCC countries need to include more risk management systems within common practice to cater to the unnatural and natural climate changes such as heatwaves, rise in sea levels, storms, oil spills, cyberattacks, etc.

 

Example -  The decrease in local agriculture has caused changes in the nature of food exports, regional food quality, posing risks in food security. Due to this, the food cost has risen, causing food security to be an issue in the GCC regions that need to be tackled with future policies. This, if not taken care of, can disrupt social contract as well as redistributive strategies which outline society-state relations (Moghaddam et. al 2017). The dependence on international markets for food, and increased food price have caused political and macro-economic instabilities in the GCC regions. The strategies taken up by GCC countries should encompass the agenda of improving efficiency of using resources, conservation and protection, and coming up with alternative resources for example, sustaining farming methods and reuse of water.

1         BALANCING SUSTAINABLE 

RESPONSIBILITIES OF DEVELOPMENT

 

The sustainable responsibilities taken up by the GCC countries do not fulfill the environmental concerns and utilize their natural resources optimally. It happens because basic services needs to be maintained, the capabilities of minor groups needs to be improved, and the international sustainability agenda must be engaged at all cost. Rapid urbanization along with economic and demographic growth has caused a challenge to keep up with demands of fundamental services in the gulf region.

 

Example -  The rising demand of electricity is proportional to the rise in temperature due to climate change. The cost for electricity is rising due to higher use of air conditioners and water desalination procedures. The region has initiated methods to transform efficient renewable technology to achieve ecological modernization, as well as abide by the global agenda of sustainability. In the recent years gulf countries have shown better engagement in global sustainability agendas by undertaking several reforms, realigning their strategies with global goals and joining more international regimes.

 

The importance of social equity and equal education, especially those challenged by humanitarian conflicts is upheld by the civil society of the GCC countries along with donor organizations. This includes the educational programs for the Syrian refugees in Lebanon. The role of women, especially the labor class, are mostly deprived of several rights in the gulf regions. As basic as equal rights to pay, and protection at workplace, women face inadequacies in their rights despite ongoing efforts of improvements.

 

Certain old themes such as economic diversification remain in the list of development strategies of the GCC countries. Since 1970’s very little has been done about this matter in their several attempts in catering to the issue. Since the decrease in the prices of oil from 2014, and current phase, GCC countries, in order to diversify their fuel-based economy, have invested large chunks of their petrol-dollars in start-ups in an attempt to encourage entrepreneur-ships. This is attempted to bring a hike in marketable research outcomes as well as increase job opportunities for locals. The shaking nature of the oil prices, the countries are more likely to ace problems if they depended solely on investments of public companies and state-run diversification initiatives. There is a need to deepen the financial market, make changes in the workforce, privatization and addressing political and legal issues to ensure private sector involvement. However, in recent years there has been considerable growth in the non-oil sector of the gulf region. Sectors such as mining and petrochemical industries in Saudi Arabia are emerging recently which have potential to help the economy. Other than that sectors such as real estate and tourism have chances. These however require factors such as transparency, residency rights and long-term security to flourish (Jayaraman and et. al 2015). Cultural diversity have allowed alcohol consumption, and has lifted restrictions on women and allowed non-Islamic sites of worship in places like UAE, Bahrain, etc. However the other countries need to make similar progress.

 

2         BREAKING POINTS AND CROSSROADS

 

The gulf economies have a very strong commonality that connects them, and that is their religion, and the fact that they are tribal people. Apart from that they all rely on the fossil fuels as revenues, they export energy sources and import technology and labor. However, some divergences are there in terms of sustainability policies. It is possible that some environmental and political catalysts can change the relationship status of the two countries.

 

It has been highlighted how GCC countries along with the UAE stand out as rich and energy-sufficient countries with global ambitions that tare stronger than others. They are even at a higher state in terms of keeping engaged with global environmental policies. UAE has been eager to explore the global scenario and embrace hi-end ideal patterns of environment.

 

Example -  UAE hosted the International Renewable Energy Agency headquarters in the city of Masdar. This is a unique low-carbon mega project that supports the development of ecological innovation. It is also one of the less number of Arab countries to have taken up green-growth strategies, which is the main theme of the 2012 Rio plus20 conference (Third Earth Summit).

 

This kind of engaging interactive event with sustainable growth models form a striking example when compared to countries such as Kuwait and Saudi Arabia which are climate skeptic, and obstructed any development in sectors of environmental sustainability or global issues of climate change. Qatar has been involved in global agendas regarding climate change, especially during the climate action talks before the drop of oil prices in 2014. They held the 2012 conference on climate talks. As the only exporter of natural resource in the region, Qatar, a small and rich country has a bright chance of surpassing the UAE in terms of energy-efficient construction of buildings, knowledge production and renewable targets. 


Example -  the UAE is hosting the World Expo of 2020 while Qatar is hosting the football World Cup in 2022. The events indicate huge investments infrastructure, which are obvious to bring about change, as they are faced with a challenge to live up to a global standard of grandeur and technology for backing these events. Although these mega events are criticized for being extravagant, they serve as a huge part of competition between the two regions for domination the status symbol icon in terms of economic model and lifestyle.

 

UAE is accepting towards a more westernized model. This competition has a chance of setting the two regions at crossroads. This is too early to predict the future of development in this region, but it may act against cooperative measures to act towards environmental and economic crisis in the gulf region.

 

Case studies show that there are several warning signs for the gulf countries to be unable to change and cope with economic demands, especially Saudi Arabia, where the rising demands in energy, might dry up all the oil produced for the purpose of exports, well before it is 2030. Apart from that, the gulf countries may not be equipped for external influences such as climate changes, economic uncertainty and depletion of resources (Krane 2018).

 

Dubai’s crisis in debt is evident how improper communication and lack of consultation with the investors have prolonged their economic troubles as they were not aware of UAE’s increasing debt problems. This posed questions at the substantial development and transparency of the region, which are otherwise needed to stop hindering the flow of FDIs. Trust, stable nature of politics and fundamental needs for human rights as also problems which need to be considered before foreign investors involve in transactions. Recent event of the murder of journalist Jamal Khashoggi, made international investors raise their voices questioning the not just the authority of Mohammad bin Salman, but also frowned upon the credibility of his innovative idea that initially started with the aim of relaxing religious dogmas as well as making economic diversification effective.

 

1         FUTURE DIRECTIONS AND LESSONS 

FOR SUSTAINABILITY

 

1.1        WELCOMING TRANSITION 

The economic, social and environmental aspects of policy-making considered by the GCC countries showcase a shift in nature. For instance, awareness programs, economic reforms for subsidies, increase in capacities of reuse and recycling in order to battle the high consumption issues are increasing in practice. 

The governments concerned are coming out in the open about their problems regarding environmental issues as well as the economic crisis which will facilitate higher chances of coming up with agendas to counter the crisis. However, the eagerness to include transitions does not give us the picture of a future free of these issues, yet. The major measures are centered on enhancing efficiency and technology along with improving the capacity to produce knowledge about the issues. There are emerging signs of transition towards ecological modernization but it cannot be entirely linked to environmental issues entirely. However, some trends like development of energy-incentive industries, supporting local agriculture without developing water resources can mess up the whole transition that has begun. The way in which resources can be secured in the gulf region is by balancing the supply and demand working towards sustainable strategy of using the resources (Brown and Al-Saidi 2018). The local agriculture can be developed by means of sustainable options such as reusing water and other such methods. However, this has faced several criticisms regarding its credibility in the long run due to possibilities of food supply being subject to politicization as well as other supply-chain issues that go beyond the control of importers. The need is to form national policies that will identify products for import, storage, and locally produced goods. Such policies are lacking not only for food security issues but for climate change too.


1.2        COOPERATION

The sustainable development of a country is a responsibility that must be taken by the entire society. It requires partnerships among several stakeholders, including the private sector, government, and other civil groups. GCC countries are yet to achieve effective partnerships that are cross-sectoral. The predominant mode of work are still top-down government-led strategies. The involvement of the private sector needs improvement. There is a need to form partnerships with a common outlook to ensure socially equitable, environmentally acceptable and economically sound plans. As a first step, a change in the mindset of the Arab Forum for Environment and Development is needed towards the approach of policy making (Al-Naqbi & Alshannag 2018). Further, local partners are required to be involved more in making collaborations within the local network to make sure that local needs are taken care of. There must be continuation of working with local communities and maintaining an alignment with their inventions. This will help to promote a ‘sustainability mindset’.

It is important to understand that the most important part of partnerships lie in hands of the generations who will carry forth these efforts and maintain them. Developing efforts to educate the next generations cannot be exempted. Education efforts and capacity development within local communities, universities, schools, and general public around must be taken into consideration. People need to understand the importance of these agendas for transformation, and recognize how each one has an important role to play. For example, by implementing some steps such as incorporating messages within the school curriculum, investing in studying elective subjects in universities, assessing the religious perspective on sustainability, urging further research, engaging influential personalities and community leader to promote sustainable development measures. Working from the lower levels to the upper levels will help to solidify the efforts of the government and help to transform the policies into real time practices and bring the people closer to the results.

1.3        INVESTMENT IN RESEARCH, TECHNOLOGY AND 

INNOVATION i


The gulf countries need to put into effect means to encourage entrepreneurs’ efforts and make developments in the local markets, all of which will align with sustainable concepts and theories. The region however is still lagging in this sector. Clusters of skilled labors along with knowledge-production centers need to come into existence for infrastructure an innovation. This will help the capacity and efficiency of relevant technology to grow. The gulf countries need to invest in these sectors of fundamental and applied science along with advance information technology infrastructures. Comparative advantages can be provided by certain environmental technologies such as energy and desalination industries, because the region’s productions are relatively high. Use of renewable resources must be implemented as a way of improving and expanding agricultural productions where clean energy sources can be used. 

However, the methods implemented must ensure that non-renewable water resources are not over-used. Environmental friendliness and efficiency can be factors kept in mind while industries transform. Projects like building solar desalination plants such as in Saudi Arabia, improving carbon capturing and storage in gas and oil industries in Qatar are amazing examples. As discussed earlier, the GCC countries are putting an emphasis on strengthening the education system, so that more number of local citizens contribute towards making the gulf countries collectively a brighter economy. The National Agenda of 2021 aims at UAE being transformed into a knowledge-based economy, instead of just being known for the natural resources they possess. This will be possible by promoting research and innovation, strengthening frameworks to regulate such innovation and encouraging adding value to the respective industry.

The policies on innovation in the gulf countries need to include rules and regulations regarding intellectual property rights, encouragement and incentives for development and research, procuring sophisticated products by the government and openness towards international trades and investments. These policies should be linked to training programme, networks for entrepreneurs, availability of capital providers during risks and provisions for start-up infrastructures. Right now the number of new firms in the gulf countries is low despite their substantial expenditure on innovations. There is no such evidence of a well-developed environment of learning for the locals or aspirants for further research (Al-Zo’by 2019). To ensure a holistic reading of the sustainable development, a new research culture is very essential to set a right path in the coming future. This will help to address the problems where the research will come up with a more solution-oriented outcome, aligning to the local contextual needs and realities. This will make the process of policy-making much more effective and will help better involvement of the local community, rather than having them as mere targets or subjects.

 

1.1        PRESERVING IDENTITY AND COHESIVE SOCIETY

 

The UAE’s National Agenda, is the Vision 202, which strives to attain and preserve a viscosity society that will be proud of its identity. A sense of inclusiveness in the environment with regards to all the segments of the society will help to preserve UAE’s unique culture, traditions and heritage, while reinforcing social and familial cohesion. Apart from that, the National Agenda aims at making UAE one of the highest ranked countries in the index of Human Development.


1.1        SAFE AND FAIR JUDICIARY

 

The aim of the National Agenda 2021 for the UAE is to reinforce safe and fair, equal and transparent judgement for all. This will ensure that the legal systems are strengthened. This will help future policies and protection of rights to function more smoothly. Food safety and other issues such as rules regarding security services will be implemented more smoothly if the judiciary acts justly.

 

1.2        COMPETITIVE KNOWLEDGE

 

As discussed earlier, the GCC countries are putting an emphasis on strengthening the education system, so that more number of local citizens contribute towards making the gulf countries collectively a brighter economy. The National Agenda of 2021 aims at UAE being transformed into a knowledge-based economy, instead of just being known for the natural resources they possess. by promoting research and innovation, strengthening frameworks to regulate such innovation and encouraging adding value to the respective industry (Al-Saidi and Saliba 2019). Apart from the above directions that UAE has taken up towards sustainable development, the Dubai Municipality, being one of the largest public sectors in the UAE, plays a huge role in this developmental process. The five years (2016-2021) strategic plans serves both the aims of the UAE Vision 2021 as well as the Dubai Plan 2021. A department specially taking care of the sustainable developments being made in the gulf has been formed in the year 2016, which is focused on the above discussed factors and future prospects. The major roles include:

·         Monitoring, formulating and implementing the sustainability-related projects, while keeping in consideration the best global practices.

·         Managing the complete life-cycle of renewable and sustainable energy projects, alongside taking care of the international and domestic stakeholders’ engagements.

·         Raising awareness on issues of sustainability and renewable energy projects.

·         Adopting new strategies that are focused on future developments and reviewing and implementing new initiatives for sustainable practices.

 

Some of the sample projects include:

·         Solar power generation for treating sewage

·         Sewage Treatment Plant converting Bio-gas to Energy

·         Landfill Gas to Energy

 

2         CONCLUSION

 

The private sectors of UAE have contributed majorly to the sustainable development of the country which includes driving critical SDGs such as sanitation and clean water, responsible production and consumption, and climate action. Companies, in the process of transformation have faced several challenges which need to be addressed for future progress. The challenges mostly adhere to lack of awareness on priorities related to sustainability, under-developed governance and isolated attempts. Although market players are getting aware more and more about sustainable developments, some of them are yet to incorporate the SDGs into their strategies. However, the private sectors of UAE have started to address these challenges more intelligently now, working closely with the existing government. Capitalization and maintenance on this collaboration is a key to overcome all the challenges and embracing further sustainable developments in the UAE.


REFERENCES

Jemni, M., Khribi, K., Othman, A., Elghoul, O., & Jaballah, K. (2016). AlecsoApps: Toward empowering mobile applications development in the Arab world. In State-of-the-art and future directions of smart learning (pp. 87-93). Springer, Singapore.

Juaidi, A., Montoya, F. G., Gázquez, J. A., & Manzano-Agugliaro, F. (2016). An overview of energy balance compared to sustainable energy in United Arab Emirates. Renewable and Sustainable Energy Reviews55, 1195-1209.

Rizzo, A. (2017). Sustainable urban development and green megaprojects in the Arab states of the Gulf Region: limitations, covert aims, and unintended outcomes in Doha, Qatar. International Planning Studies22(2), 85-98.

Moghaddam, V. K., Changani, F., Mohammadi, A., Hadei, M., Ashabi, R., Majd, L. E., & Mahvi, A. H. (2017). Sustainable development of water resources based on wastewater reuse and upgrading of treatment plants: a review in the Middle East. Desalination and water treatment65, 463-473.

Jayaraman, R., Colapinto, C., La Torre, D., & Malik, T. (2015). Multi-criteria model for sustainable development using goal programming applied to the United Arab Emirates. Energy Policy87, 447-454. Hanieh, A. (2016). 19. Inequalities in the Arab region. World social science report, 2016: Challenging inequalities; pathways to a just world, 101.

Krane, J. (2018). “Political Enablers of Energy Subsidy Reform in Middle Eastern oil Exporters.” Nature Energy 3 (7): 547–552.

Al-Naqbi, A. K., & Alshannag, Q. (2018). The status of education for sustainable development and sustainability knowledge, attitudes, and behaviors of UAE University students. International Journal of Sustainability in Higher Education19(3), 566-588.

Al-Zo’by, M. (2019). “Culture and the Politics of Sustainable Development in the GCC: Identity between Heritage and Globalisation.” Development in Practice 29 (5): 559–569.

Al-Saidi, M., and S. Saliba.( 2019). “Water, Energy and Food Supply Security in the Gulf Cooperation Council (GCC) Countries-A Risk Perspective.” Water 11 (3): 455.

Brown, J., P. Das, and M. Al-Saidi. (2018). “Sustainable Agriculture in the       Arabian/Persian Gulf Region Utilizing Marginal Water Resources: Making the Best of a Bad Situation.” Sustainability 10 (5): 1364.

 

 

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