Category: The ‘Power’ Game:

Focus on Géopolia:

Consultancy created in 1995, Géopolia provides insights and solutions based on a geopolitical and geoeconomics approach to prominent stakeholders of the energy industry. 

Géopolia’s founder and CEO, Philippe Sébille-Lopez, is the author of a well-received book on the geopolitics of oil. 

Focus on OilSERV:

Founded in 2006, OilSERV has become a leading integrated oilfield services company in the Middle East. 

‘OilSEV is an established oil and gas services company that provides customers with the complete project life cycle suite of services. OiLSERV is diversified and is involved in various activities from traditional oilfield services, drilling and workover off wells up to the provision of production facilities and operation and maintenance of the facilities. More recently, with the global energy transition move, OiLSERV also provides technologies to support the ESG imperatives of its customers in the Middle East and North Africa region. For example, its Production & Energy Solutions business provides early production facilities while also focusing on Energy Transition and Technology offerings.’

Focus on Dii Desert Energy:

‘Dii was established in the Middle East 11 years ago, so before everyone was taking solar energy as seriously as they are now, when the region’s energy production was still very oil-and gas-focused. Over the years, we have acquired a strong expertise across the whole energy sector, and the company is now a known market enabler in the GCC. Dii advises governments and private practices and brings the two together. In recent years, we have been asked to advise on several projects relating to renewable energy.’ 

Focus on DNV Dubai:

DNV was founded in 1864 in Norway and has now a global presence all around the world. 

 ‘DNV is an organization of more than 11,500 people. Our activity revolves around key infrastructure sectors, including, the entire energy value chain. As DNV is owned by a foundation, all of its profits are recycled back into the organization. As a result, it is able to spends 5% of its annual revenues on research and development dedicated to produce or improve industrial standards and certification testing. Thanks to our deep and specific expertise, DNV also has an advisory activity. In this regard, DNV is focused on supporting our customers to accelerate the energy transition and to meet the challenges of the climate crisis.’ 

Focus on Veolia Water Technologies (VWT):

‘VWT is a subsidiary of the Veolia group. We specialise in energy, waste, and water. The group is determined to become the world’s ecological transformation champion and VWT is contributing to this to a great extent. We are the leading specialist in water treatment, but also provide a range of sustainable solutions, including in the energy sector.’ 

Focus on TotalEnergies:

TotalEnergies is broad energy company that produces and markets energies on a global scale. We focus on different aspects of the energy sector. In fact, we produce a wide range of energies, like oil and biofuels, natural gas, green gases, renewables, and electricity. As a company, we have started a long time ago to rewire our brains to stop focusing about oil and gas exclusively, but rather commit to concrete sustainability goals, and become a world class player of the energy transition.’ 

Focus on EDF Renewables:

‘EDF Renewables is a world leader in renewable energy electricity. The company develops, builds, and operates clean energy power plants in more than 20 countries both for our own account and for third parties. Its development is mainly focused on wind and solar photovoltaic power. EDF Renewables operates mostly in Europe and North America but is continuing to grow by moving into promising emerging regions such as Brazil, China, India, South Africa, and the Middle East. The company has strong positions in offshore wind power, but also in other areas of the renewable energies industry such as energy storage. EDF Renewables develops, builds, operates and maintains renewable energies projects, both for itself and for third parties. As of 30 June 2020, the company’s gross installed capacity amounted to 13,287 MW worldwide, with net installed capacity standing at 8,184.9 MW and gross capacity under construction at 8,869 MW.’ 

Focus on Abu Dhabi-headquartered Clean Energy Business Council (CEBC):

Clean Energy Business Council (CEBC) started back in 2005. We are a not-for-profit membership industry association, that aims to foster the collaboration between the private and public sector on renewable and clean energy within the Middle East and North Africa region (MENA). Essentially, we focus on advancing the policy landscape. To that end, we act as a voice of the private sector, advocate for specific policies, and educate policymakers on what changes can be made in order to accelerate the development of clean and renewable energy. At CEBC our action is divided into five working groups that deal with climate finance (1), energy efficiency (2), the future of mobility (3), hydrogen and energy storage (4), women in clean energy (5).’ 

With the kind contributions of: 

So far, GCC countries, remaining faithful to their international commitments, have made important steps towards transitioning their energy sectors and are committing further to the pivot. 

However, with their ample fossil fuel reserves – Kuwait, Saudi Arabia, and the UAE are in the top ten countries with the largest proven oil reserves, with the latter two also being in the top ten countries with the largest proven gas reserves in the world along with Qatar – GCC countries will continue to supply most of the world’s energy demand in the coming decades. 

Indeed, fossil fuel energy, including oil, gas but also coal, account for 80% of the global energy consumption, which means that investment in new oil and gas production capacity might still be required for several years. ‘This factual situation might still ensure a substantial GDP growth in producing countries, but it also distracts them from their environmental objectives and from the risk of relying on fossil fuels for too long,’ Ahmed Samir Elbermbali (CEBC) estimates. 

Mohammed Atif (DNV Dubai) agrees that GCC countries still need to produce fossil fuels. ‘However,’ he adds, ‘the global energy landscape can change very rapidly. New technologies that provide cheaper and more efficient energy are constantly developed and tested. We might be a few months away from discovering or commercialising a ground-breaking innovation that would shake the whole industry.’ 

‘In addition,’ Philippe Sébille-Lopez (Géopolia) comments, ‘in parallel to renewable energies, we are experiencing the recognition of clean energies. The concept is slightly different and can include nuclear technologies, which are a very efficient way to produce energy. In January 2022, the EU has admitted it as being a ‘green’ or ‘clean’ source of energy. If Western Europe and North America develops their nuclear plants, their reliance on the Middle Eastern energy can decrease quickly.’ 

The region therefore has an interest in furthering its diversification. Towards this end, and given the current states of the regulatory landscape, legal and business professionals have identified possible hurdles that could prevent GCC countries to move to the next level and become key global players. 

The first and most obvious of those is that the private sector still relies on public initiatives and incentives that are both funded by fossil fuel revenues. For Sebastien Bernard (EDF Renewables), ‘GCC governments need to develop financing solutions that are independent from the oil and gas industry. Crucial to the successful implementation of such measure is the inclusion by these countries of their own populations. They too will have to diversify and possibly change some entrenched habits.’ 

Experts also consider that the lack of unified standards in the region’s industry might curb trade and investments as it splits a potentially large market into multiple smaller ones. However, they also suggest that a favourable evolution is possible. 

Although ‘the region consists of six sovereign countries, each with autonomous laws and regulations, with, in some cases, additional local government levels’ as Norma Akoury (TotalEnergies) explains, ‘GCC countries tend to operate based on a deeply integrated cooperation.’ Marthinus Vermeulen (OilSERV) clarifies ‘I can see interests in them coordinating certain policies. It might take some time, but I can imagine them making such decisions when the time has come.’ 

Finally, there is a consensus that broader regulatory issues that do not only pertain to the energy sector could also be ameliorated to bring flexibility and competence in the industry and thus accelerate its growth. 

‘The regional foreign direct investment and business environment is conducive, but some hurdles are indirectly created by the development of policies in separate key areas,’ Sebastien Bernard says. ‘For instance, GCC countries have incorporated a specific concept into their labor law apparatus called Bahrainization, Emiratization, Kuwaitazation, Omanization, Qatarization or Saudization depending on the country considered. These governmental initiatives aim at ensuring that local citizens are employed in the private sector. From a labor market point of view, they are undeniable progresses, however, they might need a bit more flexibility.’ 

In this regard, Ahmed Samir Elbermbali adds that ‘established companies setting up offices or starting projects in a new country invariably need to bring expertise from jurisdictions where they have proven record of success. To some extent this is still possible, but most companies would like to be allowed to hire the best suitable workers regardless of nationality. Prominent law firms have managed to secure legal derogations, but these are restricted and entail having a developed network with the relevant regulators and ministries.’ 

Regardless of how regulations unfold in the months and years to come, Monica Hashemi (Dii Desert Energy) states a few key elements relevant to grasp what is ahead for the renewable energy sector. She is in agreement with Philippe Sébille-Lopez on the evidence that a wide variety of energy types will be needed in the future. 

However, she adds, ‘I understand the struggles of power and influence that are behind a country’s control over its energy production and needs. Nonetheless, if our objective is indeed that the entire world reach net zero-emission, we should have a global rather than a regional or national approach to energy. Nowadays, it is easier to produce energy in some regions than in others, but it is reasonably easy to transport it on long distances. It might be worth it to have a look at the bigger picture and to explore regulations and policies at a much larger scale than we are now.’ 

Energy policies are indeed characterised being under strong national and state control, but for Monica Hashemi, as more interconnected hydrogen networks are developed in the region, there will be a need to subject them to comprehensive, and possibly cross-border regulation. ‘New provisions for a regulation of the GCC hydrogen networks is the critical element missing within the regional regulatory framework. One of our missions at Dii Desert Energy is in fact to help governments coordinate regulations and reduce the regulatory gaps.’ she says.

‘There have been multiple announcements with regards to sustainable financing,’ Marthinus Vermeulen (OilSERV) highlights. ‘They illustrate the fact that regional governments are willing and able to steer investments towards renewables, clean energy and ESG objectives.’ 

For the first time in the history of COP events, finance was one of the major topics discussed at the Glasgow COP 26. Participants agreed that both the public and the private sectors have available or transferable funds to devote to foster the global energy transition and achieve net-zero emissions. 

‘Worldwide, more and more private individuals and companies invest in energy bonds, for instance. A clear trend is emerging,’ Nadine El Gemayel (VWT) confirms. 

Indeed, in 2021, more than one fifth of the world’s largest companies have set their own programmes to tackle climate change. Many of these targets include using renewable energy and to engage in green finance, thus giving an opportunity to the private sector to complement public investments. 

‘In the Gulf, governments have headed in a similar direction, which is essential to mark their intentions in this area and to attract financial flows from major companies that have committed to provide the necessary effort to contribute to the transition,’ Nadine El Gemayel continues. 

As Ahmed Samir concedes, ‘the financing of the large projects currently being carried out is not always apparent. Most GCC countries still need to develop their sustainable finance policy framework, although interesting novelties have arisen.’ 

The most recent initiative and the most talked about by legal professionals is the recent announcement by the Saudi government that green bonds would be issued, in compliance with ESG goals. The National Debt Management Center (NDMC) has declared that green bonds will most likely become their main funding avenue to back renewable energy projects. 

The Kingdom’s Sovereign Wealth Fund has through the Public Investment Fund (PIF) developed a Green Finance Framework aiming at raising capital and delivering long-term sustainable investment to support its switch to renewable energy.  

In the UAE, the Abu Dhabi Sustainable Finance Declaration initiative has been open to private and public companies since 2019. Its purpose was to design guidelines for organizations to reduce their carbon footprint with the support of banks and it proved to be an important milestone int the country’s push towards renewable power. 

The Dubai Green Fund is the longest-established government investment firm dedicated to renewable energy projects. It was created as the investment branch of DEWA as early as 2016 and is now the ‘first specialised green investment fund in the MENA region’. 

‘Similar initiatives’ charters have been signed across the region, notably in Bahrain and Oman,’ Ahmed Samir adds. 

More specifically, though, Gulf countries offer a range of concrete incentives to attract investments in renewable energy. 

In Saudi Arabia, for instance, the National Renewable Energy Program (NREP), in addition to allowing full foreign ownership of onshore projects, also include, under specific conditions, custom duties exemptions for the import of certain raw material and equipment, as well as other tax and land incentives. Similar decisions have been made in Bahrain, Oman and, more recently, in Qatar and Kuwait. 

In the UAE, as most power generation is furnished by IPPs, regulation has focused on the financing of these providers. In particular, the law authorises lease financing for solar photovoltaic equipment, thus encouraging competition in the sector and ensuring more affordable prices for power suppliers and customers. 

Other than that, IPPs are not specifically incentivised and are usually supported by nonrecourse loans or common long-term financial instruments. Generally, IPPs carry contractual obligations for the developer to ensure that all appliances and materials meet the local safety and efficiency requirements. A corollary to this obligation is that promoters are often bound to prioritise the use of locally manufactured equipment, which can add to the overall cost of the investment. 

However, standard IPP agreements typically include take-or-pay clauses which require buyers to purchase a minimum of energy regardless of their need, thus protecting the providers and creating an environment favourable to investors.  

The broader renewable regulatory framework can also ensure incidental advantages that are likely to draw investments. The Renewable Energy Certificates (RECs), pioneered in the region by the UAE and championed by the Abu Dhabi Department of Energy’s Regulatory Policy for Clean Energy Certificates provide a government accreditation to corporate businesses or private households wishing to prove their resort to a measurable amount of renewably produced electricity. Renewable Energy Certificates in general are tradeable financial instruments, meaning that once the renewable energy is fed to the power network, the certificate can be traded as credits that grant the benefits ESG-created value. 

In any case, the foundations for green finance are still being built. Aside from tangible initiatives and proposals in Saudi Arabia and the UAE, everything remains to be done in the other GCC jurisdictions. Indeed, legal professionals and investors are looking forward for this area to expand, which should promote trade in the industry. 

In fact, whilst they anticipate some pitfalls, experts are optimistic about the future of renewables in the region. 

Some of their concerns are related to technology. Like the fact that renewable energy is not currently efficiently storable and has to be used as it is produced or that the renewable energy currently produced worldwide cannot supply the entire planet. In fact, if the fact that if most GCC counties’ infrastructure seems to be compatible with renewables or easily adaptable, other jurisdictions are in the opposite situation, forcing engineers to rethink their facilities on a large scale, requiring time and further extensive investments. Furthermore, renewable energy installations require a lot of space. For example, wind and solar farms need a large amount of space to generate enough energy. 

Other concerns are directly linked to specific regulatory approaches, for which the legal and the business communities offer insights into how the broad landscape could be positively improved. 

The soaring energy demand, owing to the rise of population and the economic growth in the region, challenges the dependency on conventional fossil fuel reserves of GCC countries. The region’s annual energy consumption has rocketed, recording an average growth rate of 6.8 % from 2004 to 2014, which is about 5 % above the global average. 

‘GCC governments also anticipate a rapid growth of their populations in the years to come. The size of their territories explains why they must start developing infrastructure in a safe and efficient way,’ Philippe Sébille-Lopez (Géopolia) comments. 

The role of renewable energy is indeed indispensable in the Gulf, given its geographical features which include vast desertic areas. Renewable energy is regarded as a solution to improve energy efficiency in the medium/long-term in the region whose traditionally high dependency on fossil fuels makes these countries vulnerable to the fluctuations of the global energy prices, potentially causing sharp declines in revenue from export, followed by budget deficits.  

‘Creating norms that would push towards a reduction in energy consumption and a gain in energy efficiency would complement the region’s energy transition in a meaningful way,’ Norma Akoury expands. 

‘In the GCC, as is the case globally, most power is being consumed by residential buildings and transportation,’ Mohammed Atif (DNV Dubai) continues. 

In fact, the transportation of people and goods represents about 25% of the world’s energy; a consumption that is projected to increase globally by an annual average rate of 1.1 % between 2015 and 2050. 

Whilst fossil-fuel-based energy continues to be dominant in transportation, with the increasing focus on electricity as a renewable energy source, the GCC countries have prepared for the new era of sustainable and renewable energy by introducing new regulations and policy frameworks. 

Not only will the emphasis on electricity enhance the sustainability of transport and the promotion of cleaner fuels, it will also provide ‘a formidable opportunity to improve energy efficiency, particularly in the Gulf, where privately owned vehicles are at the bases of the transport pyramid, a sector that still uses petroleum as the main source of energy.’ Mohammed Atif affirms.  

GCC countries have introduced smart mobility to address the challenges they have experienced and are anticipating. Smart mobility refers to the concept of creating open and connected transportation networks by using innovative digital technologies and solutions, which can move people and freight in more efficient and sustainable ways. 

Most GCC governments have included a smart mobility section in their sustainable environment and infrastructure plans. Notably, the introduction of electric vehicles (EVs) in the two most populous countries of the region, Saudi Arabia and UAE, marks the beginning of a new era in the regional mobility landscape. 

‘In a world where speed, connection and availability have become essential to businesses and individuals, and given the impact of oil-powered vehicles, Saudi Arabia and the UAE have begun to allow and improve Electric Vehicles (EVs),’ Norma Akoury points out. 

Saudi Arabia has allowed the import of electric vehicles for personal use since 2018, and in 2020, the Saudi Standards, Metrology and Quality Organization (SASO) created a certificate of conformity which authorises the manufacturing of electric cars in the Kingdom. In 2022 the launch of Ceer was announced, the Kingdom’s first electric vehicle manufacturer. Furthermore, the relevant regulations concerning electric vehicle chargers (EVCs) specifically have not been fully launched in the country.   

The UAE is on its path to becoming one of the leading EVs markets in the world. The country ‘has certainly been at the forefront of innovation and investments. The Emirati government is committed to further enhancing its climate and energy policies and aspires to pair this effort with the improvement of its people and good’s mobility,’ Marthinus Vermeulen (OilSERV) adds. 

Directive Number 2 issued by the Dubai Supreme Council of Energy in 2020, for instance, seems to have given the country a driving dynamic. The Directive includes updated policies from the Dubai Green Mobility Strategy 2030, which among other things, aimed at increasing the number of electric and hybrid vehicles in the public sector. 

With this Directive, Dubai governmental departments and organisations are compelled to increase their purchase of hybrid and electric vehicles to at least 10 % of their overall annual vehicle procurement by the end of 2024. 

In 2021, only a few months after Directive Number 2 was issued,  the Emirate’s Road and Transport Authority (RTA) took the strategy further by publishing a plan that aims to reach zero-emission in public transportation by 2050. 

The effort to promote the use of EVs has since been expanded to the private sector; RTA and the Dubai Electricity and Water Authority (DEWA) have jointly developed incentives that focus on private EV drivers. To encourage individuals to use EVs, DEWA introduced a number of incentives for the EVs buyers:(i) free access to public parking for two years from the purchase of their vehicle; (ii) free road toll passes (i.e., Salik sticker tag); (iii) free registration. It is understood that not all of these incentives are still in place. 

The UAE has been contributing to the above policies on a federal level. In as early as 2017, the government instituted preferential green bank loans and green insurance schemes for all UAE citizens who wished to purchase EVs. In parallel and more recently, the UAE is also working with local regulators to ensure the EVCs that are deployed on its territory by private energy companies meet all technical and safety requirements. In this regard, the Dubai Administrative Decision No.1 of 2017, makes it mandatory for all organisations and developers in Dubai, whether public or private, to acquire an official license from DEWA before they install and operate their stations.  

On a broader scale, EVs are one of the tangible initiatives which have a positive effect on national communities, and not just corporations. The UAE’s forward-thinking decision on the introduction of progressive EVs policies proved to be a success. Following the implementation of the policies, 20% of the country’s fleet belonging to government agencies are electric vehicles, and more than 240 EVCs have been installed throughout the country, the largest public EVs fleet in the world. 

This success has inspired other jurisdictions and the concept is becoming increasingly attractive. Last year, Qatar announced a strategy to establish a network of EVCs across the country, while Oman is expected to open its market to EVs in 2023 and Kuwait is reportedly about to experiment with prototypes. 

Despite the promising outlook offered by the projects, financing remains the crux to the smooth execution of the broad energy transition. Consequently, new renewables-compatible initiatives have emerged throughout the region. 

In line with the UAE’s strong commitment to comply with the 2016 Paris Agreement and the United Nations Sustainable Development Goals, the UAE is progressing towards implementing its Energy Plan 2050. The aim is to reduce carbon emissions by 70% and rely on 50% renewable energy by 2050.  

Solar power is a particular focus area in the Energy Plan 2050. It is currently the primary type of renewable energy deployed in the UAE. To achieve its goals, the UAE has introduced several laws to regulate the generation, transmission, and distribution of renewable energy. It will also need investments of $190 billion along the way. 

Current status in the UAE 

 Although the power to regulate the energy sector vests at federal level in the UAE, in practice, Dubai, Abu Dhabi and, to some extent, Sharjah and Ras Al Khaimah formulate and implement their own electricity policies. Dubai and Abu Dhabi are the most significant in terms of the development of renewables. 

 In Abu Dhabi, the DOE and EWEC are responsible for supervising and organising the energy sector, plus issuing licences to entities to produce and distribute electricity in Abu Dhabi.  

 In Dubai, DEWA (Dubai Electricity and Water Authority) has launched several initiatives, including the Shams 1 solar-thermal plant (100MW) and the Mohammed Bin Rashid Al Maktoum Solar Park. Together, they represent a total investment of AED 1.2 billion.  

 Current regulatory environment  

Currently, all activities connected to generating, transmitting, and distributing electricity in the UAE remain regulated by authorities. Transmission and distribution of electricity, including renewables, remain state-owned and controlled. Although laws contemplate private ownership in Abu Dhabi, so far, private ownership is limited to generation only. 

Market access 

Since January 2021, amendments to the Federal Companies Law allow foreigners to own 100% of a UAE company. Implementation, however, is in the hands of each emirate and might take some time to take effect. It might be a while before foreigners can take advantage of the amendments.  

Free zones allow for 100% foreign ownership, but free zone companies can only operate within free zone areas. 

Who may buy or sell electricity from renewable energy sources?  

Currently, power producers must sell directly to authorities. The DOE is authorised to allow bypass-sales from producers directly to eligible consumers. To date, however, no bypass-sales have been allowed in Abu Dhabi. 

In Dubai, all electricity must be sold to DEWA. Similarly, in the rest of UAE, all power producers must sell directly to authorities. 

What about the transmission and distribution of renewables?  

An often-overlooked aspect of decarbonisation is the transmission and distribution network essential to transport renewable energy to demand centres.  

Currently, all networks within the UAE are firmly owned and controlled by state-owned entities. In Dubai, DEWA is the sole purchaser of electricity and owns the emirate’s generation, transmission, and distribution capacity. 

Are there any incentives to promote investment in distribution facilities?  

The newly established Dubai Green Fund provides financing for renewable energy projects. The fund is accessible to both local and foreign investors, offering tax exemption and visa facilitation benefits. 

 Currently, there are no incentives to promote the purchase of renewable energy in the private sector since it is not permitted. 

Shams Dubai 

Although the UAE encourages investment in renewable energy, rooftop solar investments are limited. It is limited to small-scale solar PV electricity generators connected to distribution networks. It may not exceed an aggregate capacity of 5MW in a single premises.  

In Dubai, to encourage residential and commercial buildings to use solar panels, the emirate passed Resolution 46, known as Shams Dubai, which allows solar energy generators to connect to Dubai’s power distribution system. 

Building owners can generate electricity and export excess to the distribution system. The net-metering credit is a direct exchange of values. DEWA, however, can cap the amount that may be exported.  

There are other limitations: 

• Any electricity generated must be consumed by the building owner at the premises where it was “produced”. Not at any other premises the producer may own. 
•   The maximum capacity to be installed at a plot is capped at 2,080kW.
•   Only registered contractors can do the installation to ensure proper installation and feed into the grid. 
•   In addition, installers are only allowed to use components from DEWA’s eligible-equipment list. The utility also approves design plans and inspects facilities before they can connect to the grid.

Challenges to reaching NetZero targets 

•  Complex approval processes to obtain long-term licenses, permits and approval to authorise new renewable energy projects remain obstacles to renewable energy developments. This is partly due to multiple agencies that oversee the implementation of renewable energy projects in the UAE.
• Access to the national grid – many renewable sites are in remote locations away from the main national grid.

 Challenges to foreign investors include the following:  

• Notwithstanding relaxation in foreign ownership, government procurements will typically include some form of UAE ownership requirements in practice. Often through government or government-owned entities.
• Employment limitations, such as foreign workers must have valid work visas or permits. 

Moving towards NetZero 

We have seen significant regulatory reforms in many countries to open up the renewable energy sector. The Biden administration has committed to leading the way against climate change.  

France is seeking to double its solar capacity, and Italy is seeking to reach a 32% reliance on renewable energy by 2030. Japan implemented a feed-in premium to encourage renewable energy development.  

The UK has implemented a competitive tender process for the development of offshore transmission.  

To achieve its ambitious targets, the UAE federal government will have to encourage private sector participation and foreign investment of funds and skills.  

To raise energy efficiency and conservation awareness, Dubai has progressively reduced most of its subsidies, and Abu Dhabi is considering the same. This could act as a ‘reverse’ incentive to lower excessive local consumption of electricity. The rest of GCC might have to do the same. 

 An investment-friendly environment is essential to attract foreign and private investment. Whilst the amendments to the Companies Act could boost foreign investment, more proactive measures might be needed. The 200 MW Mohammed Bin Rashid Al Maktoum Solar Park is a positive sign for private-sector participation.  

So far, DEWA has received many applications for installations under the net-metering programme, which allows connection to the network and compensation for surplus production fed into the grid.  

Although the current focus is on solar energy, there are also opportunities in the green hydrogen, wind, and waste-to-energy sectors towards reaching NetZero goals.  

‘Even in the most liberal economies, some strategic sectors remain under governmental control. Energy – whether renewable or not – is one of them,’ says Philippe Sébille-Lopez (Géopolia). ‘Each sovereign country can administer the industry freely within the limits of international law and of potential self-binding commitments; the EU being a specific case due to its natural gas and power common markets, on which special regulations on external supplies apply’ he continues. 

In fact, Norma Akoury (TotalEnergies) explains, ‘despite the similarities between GCC countries, there are obvious disparities in the different national regulations in the region.’ 

She agrees with Marthinus Vermeulen (OilSERV) that the UAE and Saudi Arabia have ‘a clear and very exhaustive regulatory framework [supported by policies, incentives, certifications, partnership with research institutions, and suitable infrastructure]. Unsurprisingly, it is in these jurisdictions that large renewables projects are being undertaken.’ 

Ahmed Samir Elbermbali, Managing Director at the Abu Dhabi-headquartered Clean Energy Business Council (CEBC) and Sebastien Bernard, Head of Legal (Project Development and Project Finance) at EDF Renewables Middle East, go further. They agree that these two countries will dominate the regional market leaders in the years to come. 

When it comes to drafting regulations, Saudi Arabia and the UAE have two main common denominators. 

The first, observes Monica Hashemi (Dii Desert Energy), is their ‘determination to find a balance between control and laissez-faire so they can keep the energy sector under governmental supervision and yet attract the companies and investors that will help them shape their economic and energetic future.’ 

The second, Marthinus Vermeulen says, is their overall versatility. ‘In the fourth quarter of 2020 alone, the UAE and Saudi Arabia each published half a dozen laws to address current economic developments. They are not limited to the environment and ESG – in fact, they relate to matters as different as data privacy, labour law and crypto currencies – but this shows their intention to draw innovation and adapt their legislation in accordance with a fast-evolving market.’ 

On this specific part of the normative landscape, Marthinus Vermeulen continues ‘ESG requirements are categorically imposed on public listed companies in the UAE and Saudi. Particularly, they are required to submit sustainability reports. The next possible regulatory step may most likely be to extend these expectations to all private companies as well.’ 

 ‘However,’ he adds, ‘when it comes to renewables, regulations across the region are not particularly pressing. The main noticeable emphasis is on procurements. Public renewable energy procurers, like the Emirates Water and Electricity Company (EWEC) in Abu Dhabi, the Public Renewable Energy Projects Development Office (REPDO), which belongs to the Ministry of Energy in Saudi, or the Oman Power and Water Procurement Company (OPWP) in Oman, have for instance set up rules, with regards to procurement, which apply to the way renewable energy projects are procured and the project documents (such as the power purchase agreement) are drafted.’ 

 In addition to these actors, each country has a designated regulator. ‘Nonetheless,’ Sebastien Bernard continues, ‘regulators, whether the Regulation and Supervision Bureau for Electricity and Water (RSB) in the UAE, the Authority for Electricity Regulation (AER) in Oman, or the Water and Electricity Regulation Authority (WERA) in Saudi Arabia, focus their attention on procurements. More specifically, I have noticed an effort to regulate public tendering and procurement processes.’ In particular, countries now publish tenders and procurement opportunities and regulations on dedicated online portals to enhance transparency, avoid corruption and maximise efficiency. 

Ahmed Samir Elbermbali confirms Sebastien Bernard’s outlook, however. ‘Rather than having dedicated sets of regulations, laws and decrees that would apply to specific sources of energy or utilities, GCC countries have produced sets of intellectual frameworks that allows flexibility for the stakeholders of the renewables industry.’ 

‘GCC countries are creating the kind of ecosystem they need to increase business and investment opportunities,’ Ahmed Samir Elbermbali concludes. 

 GCC countries have indeed resorted to an ecosystem-based approach to diversifying their strategic effort to energy. This shift required the adoption of sustainable practices and sustainable growth in all sectors within each country. Efforts of this kind allow a country to increase its visibility and attractiveness on a global scale. These countries have also developed their ecosystem with the objective to prevent market volatility, improving their economic, political and social disposition, and ultimately encouraging the increase of business for all stakeholders. 

GCC countries which embark on diversifying their economy to create an investment-ready ecosystem, are likely to encourage and build an impressive investment resume for the future. They have opted for a holistic approach, seeking alternative economic development options for other sectors of their economies, such as in tourism, general industry, infrastructure, sports and ICT, while harnessing foreign investment and developing local businesses. 

Thus, GCC countries are establishing their own potential to capture more foreign direct investment as they diversify.

FDI ABCs in GCC: A Foreign Direct Investment Guide 

Both the UAE and Saudi Arabia started to implement their plans to reach their energy strategy plans in 2018, with consequences on foreign direct investment (FDI), financing and access to the market in particular. 

‘In this part of the world, FDI has long been closely monitored,’ says Mohammed Atif (DNV Dubai), ‘but there have been substantial changes in the past few years.’ 

In 2019, the UAE government allowed energy and large utilities projects to be fully owned by foreign nationals. ‘The spirit of this legislation was to attract solar panels and green energy investors, but it actually encompasses all renewables,’ Mohammed Atif explains. 

‘The Saudi government took a similar decree in 2018 and Oman in early 2020,’ Sebastien Bernard (EDF Renewables) imparts. ‘As electricity is a Strategic and protected sector, companies still need to obtain specific licenses from the relevant local regulatory authorities, but these measures have clearly boosted the industry throughout the GCC.’ 

According to Norma Akoury (TotalEnergies), ‘these changes in FDI norms have greatly eased the setting up process for companies.’ 

Historically, corporations have had to settle in one of the many regional free zones for a buffer period. Free zones were created in 1985 in Abu Dhabi and were, for a long time, a remedy to the restrictions of the local federal laws that could not adapt fast enough to the market requirements. Therefore, free zones helped companies to grow and expedite their settlement more efficiently. ‘Under the new frameworks,’ Nadine El Gemayel (VWT) explains, ‘free zones do not necessarily make things a lot easier for renewable energy companies. Regulations are issued to welcome investors and other actors, with the stated purpose to facilitate business, whether in the free zones or mainland, including the setting up of renewable energy companies.’ 

‘An advantage of the free zones is that they allow common law judiciary courts, such as the ones based in the Dubai International Financial Centre. The courts are independent and use the English language, but in all GCC countries, they are contractually accessible from mainland,’ Nadine El Gemayel continues. ‘Therefore, these alternative jurisdictions, although they can help clarify business relations with or between foreign companies, are not necessarily better, not worse than local courts.’ 

Onshore, though parties often opt for alternative dispute resolution, local courts typically have jurisdiction to hear litigation matters. Over the past two decades, GCC countries have developed a more arbitration-friendly culture. Notably, they have joined the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the 1958 New York Convention). A GCC-oriented convention, the Gulf Co-operation Council Convention for the Execution of Judgements, Delegations and Judicial Notifications fosters ‘cooperation relationships among [the governments] in the judicial field’. 

It is to be noted that in all six GCC countries, the system of binding precedents does not apply, which has, at times, resulted in domestic courts favouring the enforcement of national decisions over foreign arbitral awards. In general, the enforcement of foreign judgements is subject to conditions of reciprocity and compatibility with domestic laws. In addition, the overseas court decisions must not conflict with public policy and public order, which can create challenges for foreign investors in conflict with domestic government authorities. 

In specific sectors, like solar power, the relaxation of FDI regulations, combined with regulations introducing Independent Power Producer (IPP) models, have helped the energy transition but have also contributed to meeting rising demand of electricity. ‘Privately financed power generation projects are thriving throughout the region, including in Qatar, Bahrain and Oman,’ says Ahmed Samir Elbermbali (CEBC).

Smaller jurisdictions like Oman and Bahrain, although the energy market is liberalised, still rely heavily on one main public power procurer – the Oman power and Water Procurement Company (OPWP) and the Bahrain Electricity and Water Authority (EWA) respectively. But IPPs are indeed beckoning an increasingly popular model in the Middle East. 

However, Sebastien Bernard clarifies ‘in order to keep energy production and prices under as much control as they can, some governments usually require retaining majority equity in all IPP deals via their public utilities.’ This is the case in Abu Dhabi and Dubai, where government-owned entities usually own 60% of the shares in the project companies. 

Regulatory Determinants of Market Access 

Other than that, legal professionals acknowledge that the Gulf renewables market is relatively accessible, subject to matching some criteria. ‘The very first step, for every company that wishes to develop an IPP project is to prequalify by submitting a request for qualification (RFQ) with the relevant energy ministry. Procurers would usually check the applicants’ balance sheet, capacities to run projects effectively and, if applicable, their experience developing previous projects,’ Sebastien Bernard explains. 

Although countries have developed specific requirements, the IPP model has developed to be congruent across the GCC. Pre-qualified bidders are transparently filtered by the local procuring authority based on their financing and technical capacities. 

Stakeholders have regarded this model as being particularly efficient in the sense that ‘it seeks efficiency’ from both the policy and the investment point of view. In particular, the process provides room for smaller providers. 

In Saudi Arabia, the Ministry of Energy has instituted progressive qualifying thresholds depending on the total capacity of the projects. In this perspective, Sebastien Bernard continues, ‘they tender the projects in two main categories. Category A projects are smaller, while category B ones are usually bigger (around 300 megawatt and above).’ Therefore, a player that qualifies under category A projects would not necessarily qualify under category B projects. 

The prequalification process, Mohammed Atif develops, ‘is an essential safeguard for the governments. Even the wealthiest investors would not be able to start a IPP if they do not demonstrate experience in producing renewable energy. If they lack expertise, they will have to partner with players who have already prequalified.’ 

Qualification processes vary from one country to another, but the Saudi procedure exemplifies what investors and developers can expect in the GCC. The qualification process is divided into several rounds and goes under the supervision of the Saudi Electricity Company (SEC), which has a monopoly on the generation and distribution of electricity in the Kingdom). Typically, the SEC would invite interested companies to bid for specific projects and will investigate their technical and financial capabilities. The SEC would then issue a request for proposal (RFP) to the pre-qualified companies, and shortlisted bidders qualify based on cost and compliance with technical and commercial criteria. 

The regulation, in its current state, proves that the specific dynamic of the Gulf market is suitable for different type of stakeholders. In Ahmed Samir Elbermbali’s words, ‘the Gulf is home to projects of all sizes.’ 

Sebastien Bernard concurs and provides further insight on this specific feature of the market. ‘Jumbo projects of 500 or 800 megawatts or even of 1 or 2 gigawatts like the Al Dhafra solar photovoltaic IPP in Abu Dhabi always dominate the headlines. But so many projects are started in the region, including numerous of more modest ones of 50 to 100 megawatts, that smaller players can create a place for themselves on the Gulf market.’ 

Specifically, a growing trend in the energy sector are the corporate power purchase agreements (PPA). These long-term energy contracts allow private companies to purchase renewable electricity from specific suppliers rather than from traditional licensed electricity producers. In that respect, PPAs have prompted an increasing number of private corporations to tender projects that are based on the use of their existing infrastructure. ‘A graphic example would be one of a company installing solar photovoltaic panels on their warehouse rooftops,’ Mohammed Atif says. 

As power generation by private companies has traditionally been heavily regulated, most PPAs are signed in instances where the energy-producing installation and the buyer’s facilities are adjacent. 

‘IPPs developed under build-own-operate-transfer (BOO), or build-operate-transfer (BOT) schemes can potentially play a significant role in the energy transition,’ Sebastien Bernard continues. ‘Not only does this format allow governments to allocate financing, construction and operations risks management to the private sector throughout the entire lifetime of those projects, but because the price of electricity is usually set out under the PPAs, it also provides them greater clarity on their budgets on the long run.’ 

Nonetheless, there is more to renewables energy than just how it is produced. Energy in general is produced for specific uses that have unique features and impact on greenhouse gas emissions, such as for domestic consumption, transport, commercial and industrial use, and therefore need to be covered by regulations. 

With time, other emission-free energies have been included in the list of renewables. That is the case for green hydrogen. In addition to being the most abundant element on the planet, hydrogen can be efficiently stored and transported. The element is now considered as having immense potential to reduce carbon emissions worldwide and was endorsed as environmentally friendly by the EU CertifHy Guarantee of Origin in 2016. Grey hydrogen has traditionally been produced from fossil fuels such as natural gas and other hydrocarbons, resulting in high carbon dioxide emissions, whereas green hydrogen is created by splitting water by electrolysis, thus potentially having a carbon footprint equivalent to other renewables, depending on each hydrogen-producing country’s power mix. 

Hydrogen is far from being the only option GCC governments are exploring to prepare their economies for a post-hydrocarbon future. The region enjoys abundant solar irradiation, for instance, allowing its exploitation via solar parks and the use of photovoltaic modules (or solar cell panels). In January 2019, Abu Dhabi inaugurated the Noor solar power plant with a total capacity of 1.2 GW, and which supplies Abu Dhabi with clean energy through a long-term power purchase agreement with the Emirates Water and Electricity Company (EWEC). 

In Dubai the Mohammed bin Rashid Al Maktoum Solar Park, is currently under construction and aiming to reach a capacity of 5 GW, upon its completion in 2030. 

In bordering Saudi Arabia, the Sakaka photovoltaic plant, which was inaugurated in April 2021 and consists of 1.2 million solar panels, is the first of eight solar projects commissioned by Crown prince Mohammed bin Salman. 

Aside from a seemingly endless supply of easily accessible solar power, GCC countries have long been exploring other potential renewable energy sources. The publication of the Sustainable Development Goals relating to climate action (the 13th of 17 goals) recommending that the global human-caused carbon dioxide emissions be reduced by 45% by 2030 and that a goal of net-zero emissions (offsetting all emissions) be reached, has encouraged them to explore further solutions and commit to decarbonising their economies either fully or in part. 

Bahrain, Qatar, Saudi Arabia, the UAE, Kuwait and Oman have all ‘announced intentions to curb national carbon emissions between 2030 and 2050, resorting to different strategies’, explains Nadine El Gemayel, Head of General Counsel at Veolia Water Technologies (VWT) in Sharjah (UAE). 

Indeed, Philippe Sébille-Lopez (Géopolia) explains that ‘the region will not exit oil in the short term. GCC countries have specific economies and social constraints they cannot dismiss so easily.’  

He suggests that these countries’ approaches to climate action cannot solely be based on renewables. ‘In the future,’ he continues, ‘all sources of energy will be likely needed to sustain the worlds’ demographic and standard of leaving. Not all countries are equal, and each has its own abilities and needs. What matters, as a first step, is that energy producers understand they cannot resort to fossil fuel indefinitely – resources are limited, and the fragile balance of the planet’s ecosystem needs to be protected.’ 

As a result, the scope of a double strategy has quickly emerged in the region. On the one hand, white papers and actual regulations promote the development of renewable energy production and usage – such as the emerging regulation relating to electric vehicles or the adoption of green bonds –, and on the other, they aim at reducing the social and environmental impact of existing oilfield service companies – particularly by enforcing increasing ESG-related obligations. 

‘The weight of the oil and gas industry is immense in the Middle East,’ says Marthinus Vermeulen, Global Head of the Legal Department at OilSERV, an oil and gas service company with its Management Head Office based in Dubai and with operations throughout the Middle East and North Africa Region. ‘The oil and gas industry is now very focused on Environmental, Social and Governance (ESG) sustainability requirements and so are we at OiLSERV. The term ESG was first coined in 2005 in a UN study which then led to the conceptualization of more responsible ways to do business and invest. Given the current ongoing climate crisis, it naturally includes environmental compliance. Many companies are now investing in technologies to improve their ESG performances throughout the full value chain.’ 

On both sides of that strategy, the Middle East is moving fast. For Marthinus Vermeulen, ‘public investments are so high in the region, that it could possibly be seen as a benchmark for the rest of the world.’ According to him, some US$2.8 billion were awarded for renewable-type projects in 2021 alone. 

The region has strong potential to improve its environmental footprint but also to attract companies that lead the way in terms of environmental innovation and new investors that would be drawn to the growing green industry, rather than to the historic commerce of fossil fuels. 

And this potential is rapidly turning into real opportunities. ‘Projects are blossoming in the UAE, Saudi Arabia and Qatar,’ says Marthinus Vermeulen. 

For Philippe Sébille-Lopez ‘in the past, these countries may have had the reputation of defending the status quo and having slow legislative systems. That is no longer the case. Investors needs to understand that although the decision-making process is different in the region, things are moving fast, even in a strategic industry like oil and gas.’ 

Both agree on the effectiveness of these jurisdictions. ‘In the past few months, the UAE alone has adopted a dozen laws to address current issues. They are not all specific to the environment or the development of renewables, but the speed with which they adapt to a fast-evolving business environment shows how reactive gulf countries can be when they have decided to further their objectives on a specific matter.’ 

Recent reforms aimed at modernising the UAE’s legal system to increase its compatibility with international practices. Amongst others, it partly liberalised foreign investment for Emirati companies, updated the country’s crypto and fintech regime, reinforced the emirates’ arbitration institutions and consolidated data protection.  In addition, federal law no. 26, passed in 2020 and which came into force in 2021, modified the country’s Company Law that requires a minimum of 51% Emirati shareholding in onshore companies and allowed full foreign ownership. The sector remains highly regulated, but these changes help the country achieve the double objective of implementing its green priorities and attracting investors that are re-deploying their capital as per their ESG commitments. 

In part, this dynamism is fostered by the perspective of the COP 28 conferences scheduled to take place in the UAE in November 2023. ‘The spotlight will then also focus on the whole region,’ comments Nadine El Gemayel, ‘and,’ adds Marthinus Vermeulen, ‘GCC countries have already taken the lead and will continue to push an ESG and renewables agenda until then.’ 

Meanwhile, in ‘an attempt to directly address the 13th SDG goals, most GCC countries have committed to various targets with regard to renewable energy and greenhouse gas reduction,’ continues Nadine El Gemayel. In particular, the UAE have pledged to reduce carbon emissions by 30% and to reach net zero emissions by 2050, and Saudi Arabia to generate 50% of its energy from renewables by 2030. 

Norma Akoury, Legal Manager at Total Energies in the UAE, confirms that ‘there is an undeniable political will to pivot from being an all-oil region to becoming more neutral to the environment. The GCC members are looking at the international market and trends, and they are amenable to investing in renewables.’ 

This commitment to change translates into the launch of various projects involving an array of energy sources and the development of innovative technologies, particularly in the hydrogen sector. 

Stakeholders in the industry consider hydrogen as a crucial part of the transition to a clean energy future in the Gulf. As Monica Hashemi, Director Operation Compliance at Dubai-based oilfield service company Dii Desert Energy explains, ‘solar and wind plants – like the Saudi Dumat Al Jandal project, which is the largest wind farm in the Middle East – are being built at a rapid rate, but hydrogen is commensurate with the region’s needs.’ 

Indeed, hydrogen is produced using hydrocarbons including natural gas and oil that are so prevalent in the region. ‘In addition,’ Monica Hashemi continues, ‘GCC countries already have the adequate infrastructure that would allow them to produce and, especially, transport the gas to Europe, Asia and Russia. Finally, the hydrogen economy represents vast employment opportunities that would potentially compensate the slowdown of the oil sector.’ 

Investments in the sector are pouring in and deals are being made across the region. In 2021, Saudi’s ACWA and the government of Oman signed a memorandum of understanding worth USD7 billion, and Abu Dhabi-based clean energy company Masdar agreed with French Engie to invest USD5 billion in the sector. Likewise, Aramco, the world’s biggest oil producer, has announced entering the hydrogen race and its participation in the country’s bid to become the largest supplier of hydrogen. 

Mohammed Atif, Area Manager, energy Systems UAE, of risk management and advisory DNV, echoes these remarks. ‘The share of hydrogen on GCC countries energy balance is going to keep increasing between now and 2050; particularly the blue and green types.” 

In that perspective, Mohammed Atif continues, ‘The Gulf region has the potential to become the main global supplier of hydrogen. I see colossal business potential in the sector in the imminent future’. 

This observation is particularly acute, ‘if you consider that the EU, when it launched its own strategic greenhouse gas emission reducing plan in 2019 – the Green Deal package – has also opted to support green hydrogen,’ Monica Hashemi notes. ‘An EU-wide green hydrogen-specific strategy is also expected to be published in July. Depending on its terms, it is likely to incite GCC-based companies to develop the sector.’ 

This movement towards transitioning the existing model to a renewable one is also supported by an evolving legal and regulatory framework. ‘Countries in the region have had a quasi-monopoly over oil and gas exploration and production for over half a century,’ says Monica Hashemi, ‘therefore governments know they have to find a regulatory balance between all energy industry stakeholders – including oil and gas companies.’ 

The approach decided by UAE Ministry of Energy and Infrastructure exemplifies this bid to find the right equilibrium between all players in the market. In 2021, the Ministry launched the National Integrated Energy Model in cooperation with the International Renewable Energy Agency and the Khalifa University (both based in Abu Dhabi) with the objective to develop a roadmap forecasting the future of the energy sector in the country. The Model brings together researchers, investors, and industry leaders to guarantee both the environmental and economic efficacy of the country’s energy-related policies. 

For Norma Akoury, the GCC governments’ ‘efforts clearly go towards creating a pertinent regulatory setting for the renewable energy industry.’ 

The United Arab Emirates (UAE) and the Middle East as a whole are undergoing a remarkable transformation in their energy sector, reflecting the sustainable energy goals of the global energy industry. This report investigates the Gulf’s renewable energy industry and its regulatory environment through the eyes of various experts in the field. 

In a region historically dominated by fossil fuels, the UAE, and other Gulf Cooperation Council (GCC) countries have embarked on an ambitious course towards a sustainable and environmentally responsible energy future. 

As the first country in the region to ratify the Paris Agreement, the first to commit to an economy-wide reduction in emissions and the first to announce a Net Zero by 2050 strategic initiative, the UAE is committed to raising ambition in this critical decade for climate action. 

This report investigates the dynamic landscape of the UAE’s energy sector, analysing the evolving regulatory framework, the integration of ESG principles in both the public and private sectors, the emergence of clean energy regulations in the GCC, and the exploration of cutting-edge clean energy technologies. 

The report also provides insight from industry experts on the potential improvements in GCC regulations, as well as discusses the importance of ESG requirements in both public and private sectors and the critical role of clean energy initiatives in the diversification of GCC economies. 

To conclude, the report will shed light on the significance of the upcoming COP28 conference hosted in the UAE in November 2023. We will investigate the outcomes of previous COPs and provide a preview of what to expect from COP28, as highlighted by energy experts and leaders. 

COP28, short for the Conference of the Parties, represents a critical moment in global transformative climate action.  

 Member countries convene every year to determine the ambition and responsibilities and identify and assess climate measures. At COP21 in 2015, the world agreed to limit global warming to 1.5°C compared to pre-industrial levels by 2050. Science tells us emissions must be halved by 2030 to remain on target. We only have another seven years to meet that goal. 

At the Glasgow COP26, for the first time in the history of COP events, finance was one of the major topics discussed at a COP. Participants agreed that both the public and the private sectors have available or transferable funds to allocate to the global energy transition and achieve net-zero emissions. 

The most recent initiative and the most talked about by legal professionals is the recent announcement by the Saudi government that green bonds would be issued in compliance with ESG goals. The National Debt Management Center (NDMC) declared that green bonds will likely become their main funding avenue to back renewable energy projects. 

The Abu Dhabi Sustainable Finance Declaration initiative in the UAE has been open to private and public companies since 2019. Its purpose was to design guidelines for organizations to reduce their carbon footprint with the support of banks, and it proved to be an important milestone in the country’s push towards renewable power. 

However, the foundations for green finance are still being built. Legal professionals and investors are looking forward to expanding this area, which should promote trade in the industry. 

COP28 UAE will be a milestone moment when the world will take stock of its progress on the Paris Agreement. It is a prime opportunity to rethink, reboot, and refocus the climate agenda. It will bring the world together at a critical moment for global transformative climate action. 

H.E. Dr. Sultan Ahmed Al Jaber, President-Designate for COP28 UAE, says, “I will strive to build consensus amongst parties to drive climate action. Together, we will prioritize efforts to accelerate emissions reductions through a pragmatic energy transition, reform land use, and transform food systems. We will work to mobilize solutions for vulnerable countries, operationalize loss and damage, and deliver the most inclusive Conference possible. 

The COP Program reflects the sectors and topics raised by stakeholders during consultations, including new action areas like health, trade, relief, recovery, and peace. The thematic days programming also incorporates four cross-cutting themes that underpin effective, interconnected delivery: Technology & Innovation, Inclusion, Frontline Communities, and Finance. 

COP28 will be the first to put global health on the climate agenda. In his closing remarks at the UNGA SG Summit, H.E. Dr. Sultan Ahmed Al Jaber added, “Climate change does not recognize political divisions or national boundaries. It affects everyone, everywhere.” 

What can we expect from COP28?  

In Tech & Innovation, COP28 aims to act as a catalyst, mobilizing the ecosystem of governments, corporates, multilateral, academia, investors, and startups to drive step-change in the development and deployment of climate solutions to bring the world back to a 1.5C trajectory and reduce suffering for the most impacted populations and ecosystems. 

Finance will emerge as a pivotal cross-cutting theme, intricately intertwined with Climate Transition & Adaptation. Mobilising financial resources and innovative funding mechanisms will be paramount in realizing the sustainable transformation needed to combat climate change. 

Finally, COP28 is focused on bringing everyone together (including youth, entrepreneurs, gender groups, and indigenous people) to one table in a more inclusive process than previous COPs – ensuring that the next generation has the correct skill set to flourish and create conditions they need at a future COP. 

As the UAE and its GCC counterparts navigate the complex landscape of the energy transition, this report offers a comprehensive analysis of the current state of affairs, shedding light on the path forward and the pivotal role these countries play in shaping a sustainable energy future for the entire world. 

 We hope this report will inspire you to join us in achieving our sustainable energy goals.