Petra Jeffery is assistant professor at Heriot-Watt University Dubai

Nestled in the heart of the Middle East, the United Arab Emirates (UAE) is often renowned for its impressive skyscrapers, opulent lifestyles, and unwavering commitment to excellence. However, beneath this glamorous exterior, the UAE is making noteworthy advancements in a less flashy yet equally vital arena – green technology. In an age where sustainability is paramount, the UAE is becoming a trailblazer in the Middle East and North Africa (Mena) region by actively adopting and investing in green tech. This sets the stage for a future that is not only cleaner and greener but also more sustainable. 

A thriving ecosystem of green startups 

The UAE is currently hosting the 28th Conference of Parties (COP28) at Expo City in Dubai, bringing together around 150 rapidly expanding companies dedicated to addressing climate change and environmental concerns in the Startup Village. These startups, focused on developing renewable energy solutions, optimising resource utilisation, and promoting sustainable waste management practices, demonstrate the potential of technology in combating climate change. The aim is to collaborate with businesses, investment communities, government leaders, and policymakers to turn their green aspirations into concrete results. This effort is a pivotal step in limiting global warming to below 1.5˚C.

The UAE's green technology sector is witnessing exponential growth, with several startups operating in various domains, including renewable energy, water conservation, waste management, sustainable transportation, and green buildings. These startups are addressing environmental challenges and creating new opportunities for economic growth and job creation. 

Government support fostering innovation

Several factors have contributed to the UAE's flourishing of green technology startups. The UAE government has implemented several initiatives to support these startups, including providing financial incentives, access to capital, and mentorship programmes. The UAE has set a target to derive 50 per cent of its energy from renewable sources by 2050. This commitment to clean energy draws the interest of environmentally-conscious technology firms and sustainable new businesses. Progressive building regulations strive to achieve zero net energy consumption. Renovating current structures and adopting sustainable materials are also gaining popularity. The region's first net-zero energy mosque is the latest project to be announced by Masdar City, Abu Dhabi's sustainability and innovation hub. Another initiative is the UAE's Green Growth Strategy, which aims to make the country a global leader in green technology. The government is also establishing a number of green technology accelerators and incubators, which provide startups with the resources and support they need to succeed. These accelerators and incubators offer workspace, mentorship, and access to potential investors. Additionally, initiatives such as the Dubai Clean Energy Strategy 2050 and the Abu Dhabi Sustainable Development Goals accelerator have created a conducive environment for green businesses to thrive.

Investor interest in green technology is also rising as institutional and venture capital firms recognise the potential for long-term returns and positive social impact. The UAE's strategic location and growing market for sustainable solutions are attracting investors from around the world. Moreover, the UAE's growing population and increasing urbanisation drive demand for eco-friendly products and services. Consumers are becoming more environmentally conscious, demanding sustainable alternatives in various aspects of their lives. This shift in consumer preferences creates a lucrative market for green technology startups. The Sustainable Banking Report 2023 states that 93 per cent of UAE investors are interested in climate investing, with 87 per cent actively seeking ways to bolster capital flows. Also, $23 billion is poised to surge into mitigation efforts, with energy storage, energy efficiency, and renewables emerging as the primary magnets for capital. This growth is expected to create new jobs and contribute significantly to the UAE's gross domestic product (GDP).

Notable success stories

The UAE's green technology sector boasts several success stories that showcase the potential and impact of these startups. QANATU, a water technology company, has developed innovative solutions for water management, contributing to Dubai's sustainable water future. Solavio, a solar energy provider, is revolutionising the UAE's energy landscape by making solar power more accessible and affordable. EVERA is transforming urban mobility in the transportation sector by promoting shared, electric, and autonomous vehicles. Nadeera, an energy efficiency firm, is helping businesses reduce their energy consumption and carbon footprint. These are just a few examples of the many green technology startups making a significant impact in the UAE.

Challenges and opportunities ahead

Despite the impressive progress, the UAE's green technology sector still faces certain challenges. Access to capital remains a hurdle for many startups, especially in the early stages of development. Additionally, collaboration among startups, research institutions, and industry players can be further strengthened to accelerate innovation and commercialisation. Despite these challenges, the UAE's opportunities for green technology startups are immense. The country's commitment to sustainability, growing consumer demand, and supportive government policies create a fertile ground for innovation and growth. 

The UAE's green technology startup ecosystem is poised to play a transformative role in shaping a sustainable future for the country and the region. With continued government support, investor enthusiasm, and a growing demand for eco-friendly solutions, these startups are well-positioned to revolutionise various industries and contribute to a greener, more sustainable world. The UAE's commitment to innovation and sustainability will undoubtedly propel the growth of green technology startups, paving the way for a brighter and more environmentally conscious future.