PHOTO
Investing in green and sustainable projects could expand the gross domestic product (GDP) of Gulf countries to $13 trillion by 2050, according to a new report.
The figure is double the projected $6 trillion regional GDP, the Gulf Investment Report 2023, published by Century International Holdings, said.
The combined GDP of the GCC states has already reached the $2 trillion mark and is initially forecast to reach $6 trillion by 2050.
The new $13 trillion projection can be reached “if the countries embrace a green growth strategy”, the report said.
To realise this potential, among the areas the GCC states can focus on is the production of green and blue hydrogen.
The region also has the potential to realise up to $300 billion in foreign direct investment (FDI) “if they move quickly” to establish itself as the hub for global value chains (GVC) "that are being reconfigured towards resilient and sustainable industries", the report said, citing Strategy&.
Issam Abou Sleiman, Regional Director of World Bank in the MENA region, noted that the average growth in the GCC surpassed 7% last year, led by Saudi Arabia, the region’s biggest economy.
He said the transition to a low-carbon economy has been accelerated by high oil and gas prices and the need for greater energy security in the wake of the Russia-Ukraine conflict.
“Renewable energy industries will witness trillions of dollars of new investment as well as opportunities in upstream and downstream industries,” Sleiman said.
“The region also has the potential to be a lead producer of green and blue hydrogen. With the right regulations, policies and investments to support the transition, GCC countries can emerge with stronger, more sustainable economies that generate rewarding jobs.”
Some countries in the region have been investing in green and sustainable projects to lower carbon emissions.
The UAE alone has allocated more than $40 billion in clean energy over the last 15 years and intends to spend an additional $163.5 billion in clean and renewable energy sources over the next 30 years.
Early this month, the UAE commenced operations of its first utility-scale wind farms that can power 23,000 homes.
(Writing by Cleofe Maceda; editing by Seban Scaria)
