Businesses hail move on green economy
Despite being a major oil exporter, the UAE is well placed to export and re-export solar energy
Dubai: The business community welcomed the government's initiative to launch a "green economy" in the UAE that promotes sustainable development and investment in green technology despite the short-term costs.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, launched the initiative on Monday under the slogan "A green economy for sustainable development" to coincide with the World Future Energy Summit 2012, WAM reported.
"Our goal from this national initiative is clear, that is to build an economy that protects the environment as well as an environment that supports the growth of the economy.
"We in the UAE, within the vision 2021, are striving to build a diversified economy based on knowledge and innovation, through which we can provide excellent employment opportunities to our citizens.
"Through this, we can protect our natural and environmental resources and strengthen our competitive position in global markets, especially in the areas of renewable energy products and technologies on the green economy," Shaikh Mohammad said.
Although the UAE is a major oil exporter and has one of the largest carbon footprints in the world, it is well placed to invest in, export and re-export solar energy, Giyas Gokkent, chief economist with National Bank of Abu Dhabi, told Gulf News.
"The UAE as a whole, because of its circumstances, like water scarcity, is compelled to look at long-term sustainable solutions for such key problems. As the saying goes, ‘necessity is the mother of invention' and the UAE is well placed to enter the field," he said.
The renewable energy sector is in its "infancy" but the UAE has the infrastructure and financial means to nurture it and attract global green companies here, he added.
"Has it [the sector] matured? No, it has a long way to go but I think it is positive and encouraging to see the country with a large carbon footprint take a long-term view to develop it," he said.
For local businesses, the green economy will have an initial impact on their pockets.
"It would be expensive for businesses initially," said David Fisher Chief Executive of Grant Thornton in Middle East, a business advisory firm.
Despite the initial investment cost, there are long-term benefits in creating a sustainable business.
"We won't have a green economy overnight, we start with small steps and build up," he said.
