Over the last few decades, the United Arab Emirates (UAE) has experienced a dramatic economic rise. As in many other such instances, this growth has also been accompanied by an increase in population and, by extension, resources. To remedy this, the Government of the UAE, in partnership with a number of its Ministries, laid out a 10-year policy plan in 2021 to move away from a “degenerative linear economy”. The plan commits the country to a Sustainable Consumption and Production model that goes beyond what was previously declared in its ‘Vision 2021’ and ‘Green Agenda 2030’ plans. While this Op-Ed does not seek to be an exhaustive piece on circular Emirati policy, it delves into the main points stated by the plan and what future it details for the country.
The policy is intended to present comprehensive and realistic ways by which the UAE can transition to a circular economy. Again, while it aligns with the aforementioned short/medium-term prosperity plans, it incorporates a long-term vision for the country that seeks to make the UAE the “best country in the world” by 2071. Central to this vision is the pursuit of sustainable economic management and the efficient utilisation of natural resources. In short, the policy seeks to foster a circular economy and promote sustainable consumption and production practices that alleviate environmental stress while meeting basic needs. It also encourages the private sector to adopt cleaner industrial production methods and techniques, including the integration of Artificial Intelligence (AI). In this line, it identifies four priority sectors with the potential to stimulate the transition based on their current position in the Emirati industry.
Main policy focus areas
Since its formation in December of 1971, the UAE’s manufacturing sector has grown significantly. Although not known to be a significant producer of global goods, its influence in the region has made it so that the industry contributes to approximately 11% (2022) of the country’s Gross Domestic Product (GDP). With an export value totalling $142.5bn in 2021, the UAE positions itself as the leading exporter of manufactured goods in the Arab World. In its role as a regional leader, it therefore seeks to separate itself from the linear model of consumption and production it has followed thus far, citing its unsustainability for long-term prosperity. It views the change not as a burden but as an opportunity to recalibrate and adjust course to better meet the goals established in its ‘Centennial Plan 2071’.
Evidently, the Circular Economy Policy does not limit itself to manufacturing. It also explores how circularity can be implemented in its food production sector. While this is a lesser-known area of the Emirati industry, it proves critical to the sustenance of its citizens today, tomorrow, and beyond. The issue at hand does not primarily concern itself with the food produced in the UAE (totalling around 10% of all consumption) but rather the country’s freshwater demand. In a region where every drop counts, the current linear production methods only see 30% of the water used in agriculture reach the end consumer. The rest is either lost during transport, not absorbed by crops, or lost through food waste. By transitioning towards more sustainable practices, it aims to produce more nutritious and resilient crops, reduce food waste and reuse organic waste more efficiently.
Lastly, and perhaps most notably, the policy includes both the transport and infrastructure sectors in its plans. Home to the Burj Khalifa and a pronounced automobile dependence, the UAE has identified two major issue areas for the transition to be truly impactful. Currently, 15% of its carbon emissions are linked to personal car use and up to 75% of the total mass of solid waste it produces is due to construction and demolition. While these emissions are projected to rise until 2030, it lays out a plan for long-term change. By promoting the use of environmentally friendly and efficient modes of transport, the country anticipates a future with less congestion and where people’s first choice of mobility is oriented towards public transport. The global infrastructure giant also plans to revolutionise its infrastructure sector by adopting more sustainable practices that make the Emirati built environment more liveable, efficient, and productive.
The process: from concept to reality
Like other plans before it, the Circular Economy Policy presents a number of initiatives to undertake this transition. First and foremost, it recognises the importance of making citizens informed and aware of the need for change. Effectively disseminating information across all sectors is essential for engaging stakeholders and fostering a shared commitment to the transition. To support this shift, capacity building and business support programs will equip companies with the necessary skills and resources to adapt to new practices, laying the foundation for an increasingly sustainable economy.
Research, development, and collaboration are critical components of this transition, as continuous innovation is needed to respond to any shifts in the regional/global geopolitical and scientific landscapes. By promoting partnerships between government, academia, and industry, the policy encourages the conception of cutting-edge solutions that are quickly integrated into practice. Additionally, public procurement and infrastructure investments by the government set a strong example, creating demand for sustainable solutions and ensuring that the physical foundation necessary for the transition is firmly in place.
For the policy to bear fruit, a robust legal and regulatory framework is also required. Ensuring that circular practices are not only encouraged but enforced constitutes a shift towards sustainable thinking and social norms. Updated laws and regulations create a level playing field, drive behavioural changes, and ensure compliance across sectors. Economic incentives further motivate businesses and individuals to align with the policy’s goals, offsetting initial costs and making the transition economically viable. Together, these elements ensure that the shift from concept to reality is both feasible and impactful, driving long-term sustainability and innovation.
Monitoring and readjustment
Since the publishing of the plan in 2021, the world has undergone a number of changes affecting supply chains, regional dynamics, and economic futures. It does not come as a surprise that these arenas may well continue to change as time goes on. In this sense, the Government of the UAE has decided to implement a number of metrics to monitor the progress of its policies. Currently, these are mainly economic and resource-centred indicators (for renewable energy & greenhouse gas emissions, resource productivity, and waste generation). The so-called Specific, Measurable, Achievable, Relevant, and Timebound (SMART) targets will help officials grasp the circular economy’s development on social and business levels.
On the economic front, said performance indicators include the number of companies operating under circular economy principles, their size, investments, contribution to GDP, and growth rates. Resource productivity will be measured by domestic material, energy, and water consumption per unit of GDP. Waste generation indicators will focus on hazardous waste, construction and demolition waste, and municipal solid waste. Renewable energy production and greenhouse gas emissions will also be tracked, with a focus on the proportion of clean energy and CO2 emissions per unit of GDP.
Outlook
Looking ahead, the success of the Circular Economy Policy will depend on the continued collaboration between the government, private sector, and civil society. By creating an environment of innovation, supporting businesses in their transition to sustainable practices, and maintaining a robust legal and regulatory framework, the UAE can achieve its ambitious goals. As the policy evolves, it will serve as a critical tool for the country’s transformation, enabling the UAE to balance economic prosperity with environmental stewardship and setting a benchmark for sustainable development globally. While it remains the third largest producer in the Organization of Oil Exporting Countries, the paper marks an encouraging starting point for sustainable development in the country and broader region.