Green TechnologyInviting Possibilities

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TABLE OF CONTENTS

Overview of Green Technology Sector

Investment opportunities

Summary

About us

Construction Private Sector Production Masdar League of Green Businesses Smart Grids Waste and Recycling

Vision Mission Responsibilities

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Overview Of Green Technology Sector

Dubai and the UAE in general are making giant strides towards renewable and sustainable energy and the benefits to the ecology as well as the economy are vast and varied. Green technology brings with it an industry in its own right, with essential key sectors linked in such as construction, ICT, transportation, manufacturing, distribution, research, development, education, waste management and financial and business services among many others.

While there is no doubt that the attention and capital invested in alternative energy has increased dramatically, the Middle East is still very much in a ‘catch-up’ situation. The Gulf countries are highly energy intense, and the demand for power and energy are projected to increase over the next decade by over 100 per cent in some cases. The International Energy Agency also predicts that demand in the Middle East region as a whole will double by 2035.

To combat this, investment levels in alternative power sources are on the rise. In 2010, the Middle East and Africa increased investments in renewable energy by more than 104 per cent to $5 billion1.

And the UAE’s drive towards sustainability is leading the way. Business Monitor International recently reported that the government aims to attract AED 367 billion (USD 100 billion) of investment in alternative and sustainable energy projects by 2020.

With the unenviable reputation as a nation with one of the highest carbon footprints per capita in the world, the UAE is constantly seeking green innovation and implementation. The commitment and the resources are there, but in many cases the research and implementation of many of these projects will need foreign expertise, experience and support services.

Companies and individuals are realising that savings through green technology have enormous potential, and so the desire as well as the need for sustainable energy is generating even more interest and growth.

As part of the new Dubai Integrated Energy Strategy, the Government of Dubai is driving its green policies to set renewable energy benchmarks in the Middle East, aiming to reduce its carbon emissions by 30 per cent by 2030.

At beginning of 2012, Mohammed bin Rashid Al Maktoum solar park was launched as the first utility-scale production capacity park of its kind in the region and a prelude to the introduction of promising projects to use renewable energy in electricity production in Dubai. This project will use solar radiations that are available all year-round to produce electricity using the latest technology available in international markets. This will play an important role in supporting sustainable development plans and preserve natural resources while protecting the environment from pollution. The first project of the park will witness the production of power using photovoltaic cell technology, with a production capacity of 10MW by 2013. By 2030, the park will produce 1,000MW on the completion of all its phases.

Moreover, in Mid 2012, The Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum also unveiled the ‘Dubai Green Economy Partnership’ programme which seeks to spur sustainable and green growth of Dubai economy and promotes its position in global green economy value chain for green and clean technologies and sustainable consumption.The partnership aims to boost public-private strategic partnership to create new commercial

Economy and market trends

The Dubai Electricity and Water Authority (DEWA) estimates that the emirate’s energy demand will increase by at least 100 per cent in the next decade. In order to meet this exponential growth, traditional sources such as oil and gas must be supplemented with natural energy.With its trademark vision to ensure a sustainable future, Dubai is taking steps to integrate these energy sources. By 2020, the Dubai Supreme Council of Energy (DSCE) plans to meet Dubai’s electricity needs with 71 per cent from gas, 12 per cent from coal, 12 per cent from nuclear, and 5 per cent from solar.

By supplying 5 per cent with solar energy, the investment levels needed just to put this into motion would be worth between AED 5.5 billion – AED 11 billion ((USD 1.5 billion – USD 3billion)2. This is very clearly a rapidly growing, relatively untapped market which will create thousands of overseas opportunities.

Concentrated Solar Power (CSP) combines new and existing technology to harness and maximise the energy efficiency from sunshine. The German Aerospace Institute estimates that 10 per cent of UAE land is suitable for CSP plants, which could generate the equivalent of more than 360 times the country’s yearly requirement.

Construction

And while energy creation is crucial, energy preservation is an equal priority. From 2014, all private sector developers in Dubai will be required to follow the government’s self-imposed mandate and abide by new green building codes. Again, this is another potentially lucrative policy which will open new doors to private businesses.

Private Sector Production

In 2011, a Dubai law was passed to allow the private sector to participate in the production of electricity and water. Under the law, DEWA may establish project companies to participate in the power sector and the opportunity is open to international investors.

Masdar

The UAE leads the Middle East in green technology, particularly with the development of its flagship Masdar project. Aspiring to be one of the most sustainable cities in the world, Masdar hosts a clean-technology cluster that places its resident companies at the heart of the global renewable energy and clean-tech industry.

Investment Opportunities

1 Source: United Nations Environment Program, (UNEP).

opportunities through facilitating smooth adoption of technological solutions with economic and ecological proven feasibility and application of best practices in optimum and economic use of resources and conservation of the environment and natural resources. This will also create opportunities for transfer of knowledge and best practices.

Dubai FDI, The Foreign Investment Office of Dubai, will act as a liaison point between local, regional and international founding partners and companies interested in the programme’s local and overseas events.

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Masdar City is a high-density, pedestrian-friendly development where current and future renewable energy and clean technologies are showcased, marketed, researched, developed, tested and implemented. Since its launch in 2006, Masdar has understandably been the focus of large multinational investors, practitioners and researchers. And in a show of faith and recognition of the UAE’s investment and commitment to a greener future, in 2009 the United Nations appointed Abu Dhabi as the first headquarters for the International Renewable Energy Agency (IRENA), which is now based in Masdar City. The unique Masdar project, just 17km from downtown Abu Dhabi, will house 40,000 residents and hundreds of businesses, integrating the full range of renewable energy and sustainability technologies, across a living and working community.

The first residents are the students from the Masdar Institute, a science and technology university developed in cooperation with the Massachusetts Institute of Technology (MIT). Other major partners include Siemens, which will establish its Middle East headquarters and Centre of Excellence in Building Technologies, General Electric, which will establish the world’s first Ecomagination Centre, Schneider, which will operate an essential research and development facility, BASF, and the Korea Technopark Association.

League of Green Businesses

Associations such as the Emirates Solar Industry Associate (ESIA) and the Clean Energy Business Council (CEBC) are establishing a league of green businesses to provide a business-friendly environment. Initiatives include conferences and pilot projects, and the opportunity to present business ideas to potential investors.

Smart Grids

With so many independent forecasts predicting a power shortage in the coming decade, the need to manage power supply and demand is essential and developing a smart grid may be one of the most attractive options. The implications for investment and foreign assistance could represent massive opportunities.

Waste and Recycling

With the city’s rapid population growth and urbanisation, waste generation has increased dramatically – Dubai has one of the largest rates of waste production per capita and according to Dubai Municipality generates about 10,000 tonnes of solid waste a day. A law now in place banning the export of all types of waste from the Emirate could see a rapid increase in the market to recycle waste.

Vision

To become the preferred investment destination globally.

Mission

To develop and sustain a competitive investment environment to support, stimulate and grow key economic sectors, job creation, and community support in alignment with the Dubai Strategic Plan.

Responsibilities

Dubai FDI is the Foreign Investment Office of Dubai, part of the Dubai Department of Economic Development. Dubai FDI targets and attracts new foreign direct investment projects, facilitates growth of investments and looks after the retention of foreign investors in Dubai, while also working on enhancing the overall investment landscape.

Our team guides new investors through the various stages of the investment process, advising on the business location, the legal structure that best fits their needs, as well as linking them to government and non-government bodies as required.

Additionally the team offers on-going support for the growth and expansion of established companies in Dubai, and undertakes voicing investors’ concerns that may be inhibiting growth or development and affecting the overall investment environment.

SUMMARY

ABOUT US

The increasing business opportunities for all sectors involved in green technology are vast and the Middle East is set to be one of the fastest growing markets. As with so many other industries, Dubai has its sights set firmly on being at the forefront of research, development and, crucially, implementation.

The enormous desire across the region to move towards renewable energy makes Dubai an ideal location to be involved both in its own initiatives, and also as a platform to service those neighbouring markets which are also investing so heavily in green, clean power and technology.With AED 367 billion (USD 100 billion) earmarked for investment in alternative and sustainable energy projects by 2020, this must be one of the most attractive propositions for any companies who are either looking to set up or expand their operations in the Middle East.

Dubai’s world class infrastructure, connectivity, strategic location, proven track record of intelligent investments, corporate and personal tax free environment, business-friendly attitude and unrivalled expatriate quality of living are why so many of the world’s most successful multinationals and SMEs alike have chosen the emirate as their business headquarters and family home.

2 Price at going to print approximately AED 5.5 (USD 3) per watt installed.

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