DUBAI: Even before the Ukraine war began, one thing became clear quickly — that demand for conventional energy was not going away. Now, with Brent crude hovering around $107 per barrel and natural gas costing $6.95 per MMBtu amid heightened risks of supply disruptions, the impending fiscal windfall gives the Gulf Arab states extra resources to accelerate their transformation into “green economies.”
From ambitious “circular carbon economy” and net-zero emission pledges to investments in renewables and electric vehicle production, the past year has already witnessed the launch of numerous initiatives by these energy-exporting countries in response to calls for accelerated action for combating climate change.
At the same time, the Gulf region has made notable progress in the development of utility-scale solar and wind power, including phase three of the Mohammed bin Rashid solar project in Dubai completed last year and the inauguration of Saudi Arabia’s first wind farm at Dumat Al-Jandal.