There are many commonalities between the UAE and Germany, and an obvious one is in the way they understand the challenges they may face in the future. Both, therefore, work to develop solutions for future challenges so as not to be surprised by changes and instead be ready for them. This is an approach that is not adopted by most countries, and particularly developing nations.
In brief, the UAE and Germany do not just make do with diagnosing anticipated challenges, but set visions on how to address them and develop solutions.
This largely explains the economic success achieved by both economies, with Germany’s still the strongest within the EU bloc. Germany continues to play the role of being the EU economy’s locomotive, without which there will be no talk about any European economic unity.
The UAE ranks as the Arab world’s second-largest economy despite the relative smallness of its area and population. It is certainly the more prosperous and diversified among the Middle East’s economies at large, an achievement that reflects the magnitude of the progress achieved over past decades.
One example of similarity between the UAE and German management of the respective economies is the tailored programmes to ensure their energy needs. As is widely known by economists, the issue of energy remains one of the most pressing challenges facing all countries, due to complicated matter surrounding not just assured supplies for development needs, but also because of ecological and security factors as well.
Therefore, Germany, the world’s fourth largest economy, has set in place an integrated programme to ensure its energy needs. The programme depends on two aspects; the first is the increased use of renewable energy sources, especially solar power in the south and wind power in the North. The contribution of renewable energy in power production is to increased from 30 per cent to almost 100 per cent by 2050.
This will strengthen energy security in Germany, and reduce its dependence on gas imported from abroad, which currently exerts developmental and political pressure on Germany. A fact clearly manifested amid Ukraine’s growing crisis and accompanied by Russia’s threats of gas supplies to Europe being stopped.
To achieve the vision of a sound energy secure future, the departments concerned with energy matters, including research centres, have been working round the clock for nearly 10 years. Due to this approach, Germany has become one of the world’s most sophisticated users in deploying solar and wind energy technology. It supplies other countries, including the US and France.
The UAE too has adopted a similar approach in securing the requirements of its future, especially after it gained the confidence of other nations and won the bid to host the headquarters of the International Renewable Energy Agency (Irena). (This was after strong competition from Germany three years ago.)
Masdar City in Abu Dhabi has made significant gains and works actively for the promotion and spread of renewable energy, not only in the UAE but elsewhere, including Britain and Spain.
Within this approach, Masdar’s investments have surpassed $50 billion. An estimated $12 billion will go into renewable energy fields for solar power production at the Mohammad Bin Rashid Solar Park in Dubai, which will reduce the UAE’s reliance on gas for power production.
Recently, Oman announced its plans to set up a solar power generation unit at Al Mathfa in Dhofar with the UAE’s help, to provide power for 16,000 homes at a cost of $200 million.
Focusing on energy is just one instance of similarity between the UAE and German administrations on how to prepare for the future through projects that will help them with any unexpected surprises and ensure them guaranteed and secure supplies.
This is an example that needs to emulated by other countries, including Arab states, because the future will be about sustainable development.
Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.
