The term 'green economy' represents a significant shift in our economic growth and environmental stewardship approach. According to the United Nations, it could generate around 24 million job opportunities worldwide by 2030. The idea has received widespread recognition worldwide, with different industries and initiatives focusing on sustainability and ecological responsibility, striking an equilibrium between economic development and global welfare.

The green economy lies at the intersection of sustainable development and economic growth, and it calls for joint efforts from governments, investors, and entrepreneurs.  

The UAE and its role in the green economy

In the UAE, investments in renewable energy and sustainable technologies have contributed significantly to the expansion of the green economy sector. The UAE remains committed to becoming a global centre and benchmark for the green economy through projects such as the Green Economy for Sustainable Development. The country wants to become a significant player in the international arena while serving as a trade hub for environmentally friendly goods and cutting-edge technologies.

The UAE's Vision 2021 National Agenda recognises the importance of improving air quality, ensuring sustainable water use, promoting clean energy, and integrating sustainable development strategies into all government sectors. The Government's dedication to steering this nation towards a green and sustainable future is further highlighted in its Green Agenda 2030.

Different sectors within UAE's green economy:

Renewable energy: Progress in renewable energy can be evidenced by the Noor Abu Dhabi solar plant, among other instances where the UAE is making commendable strides. In 2023, changes were made to the National Energy Strategy of UAE, which included new targets like creating 50,000 new green jobs and tripling its current renewable energy capacity by 2030. By 2031, the UAE is committed to increasing the share of renewable energy in the total energy mix to about 30%.

Green Construction: The UAE's initiatives in green construction, exemplified by projects like Sustainable City in Dubai, emphasise the country's commitment to ecologically friendly building practices and sustainable urban development. This was a proactive step since it enabled the UAE government to adopt Green Building and Sustainable Building standards in 2010, hence saving AED10 billion by 2030 and reducing carbon emissions by 30%. 

Discussed below are some examples of such policies with regards to:

Sustainable Agriculture: Due to desert agriculture challenges, the UAE has invested in advanced technologies, including vertical farming and hydroponics, to sustain its food supply while minimising water usage and environmental impact. Since the country imports most of its food, it would seem logical that as early as 2019, it set aside AED1 Billion for setting up a global Agtech center.

UAE Sustainable Agriculture System, on the other hand, aims to improve self-sufficiency at an annual rate of five per cent; average farm income should increase 10% each year; growth rates for agricultural workforces should achieve a five per cent rise annually; and water consumption needs to be reduced by 15% every year.

Entrepreneurship Opportunities in UAE's Green Economy

Here is a look at different industries where start-ups and entrepreneurs can find opportunities:

Renewable Energy: The UAE has made considerable investments in renewable energy, including solar and wind power, which offer a rich source of entrepreneurship. Ventures may take the form of innovative solar technologies, energy storage solutions for renewables, or wind energy projects.

Sustainable Construction: Start-ups can major in sustainable architecture, green construction materials, and energy-efficient building solutions with a growing focus on sustainable infrastructure.

Water Management: Given the UAE's water scarcity challenges, effective water conservation and management are critical. Entrepreneurs may explore areas like water desalination, wastewater treatment, and water-efficient technologies.

Electric Vehicles (EVs): The UAE government actively promotes electric vehicles, making this sector a promising avenue for start-ups. Possible initiatives include developing EV charging infrastructure, electric vehicle technology, and related services.

Waste Management/ Recycling: Reducing waste and recycling are priorities for the UAE. These should include waste-to-energy projects, such as recycling technologies and sustainable waste management solutions.

Green Tech Innovations: Start-ups seeking to pioneer carbon-offsetting technologies, improve resource efficiency, or promote a green environment could target this area.

Agtech: Agriculture in the UAE faces challenges due to arid climate conditions. Some opportunities for Agtech include vertical farming, hydroponics, and sustainable agriculture practices, among others, practised by start-ups.

Green Finance: Sustainable finance and other forms of green investment opportunities have grown significantly within the UAE. For instance, entrepreneurs can set up platforms for green investments, develop sustainable banking solutions, or even, per se, offer ESG advisory services.

Smart Cities: In the context of ongoing smart city projects in the UAE, they can provide smart city solutions that encompass IoT technologies, data analytics, and urban planning tools, amongst others, through entrepreneurship.

Research & Development: Collaborating with local research institutions and universities allows for the development of green technologies and solutions and access to government grants and incentives.

Green Certification/ Consultancy: The demand is growing for green certifications such as LEED and BREEAM. Start-ups may offer consultancy services to organisations aiming to enhance their environmental sustainability.

Eco-Tourism: The UAE has a developing tourism sector, including eco-tourism, which offers opportunities for start-ups providing sustainable and eco-friendly travel experiences.

The green economy in the UAE presents abundant opportunities for entrepreneurs, investors, and business professionals. By leveraging the country's dedication to sustainability, drawing insights from global models, and directing efforts towards sectors such as renewable energy, green construction, and sustainable agriculture, individuals and enterprises can make meaningful contributions to local and global green initiatives while enjoying substantial economic rewards. The UAE's remarkable journey towards sustainability exemplifies how environmental consciousness can fuel economic prosperity, inspiring entrepreneurs to actively engage in shaping a greener future. 

Dr. Vahid Razaviarani is an Assistant Professor at School of Engineering and Physical Sciences (EPS), Heriot-Watt University Dubai