The United Arab Emirates (UAE) has emerged as a global leader in sustainability and green initiatives. In recent years, the country has made remarkable strides in environmental conservation, renewable energy, and sustainable business practices. As part of its commitment to achieving a greener future, the UAE has created a fertile ground for green businesses to thrive. This article explores the rise of green businesses in the UAE and the benefits of setting up a green business in the UAE.

The Green Business Landscape in the UAE

1. Government Initiatives Driving Growth

The UAE government has introduced a series of initiatives and policies aimed at fostering sustainability and promoting green businesses:

• UAE Net Zero by 2050 Strategy: The UAE is the first Middle Eastern country to commit to achieving net-zero carbon emissions by 2050. This ambitious goal has created a surge in demand for green technologies and solutions. This has led to creation of businesses such as green bus services and the Green Aviation Technology Hub, which promotes collaboration between the government and businesses.
• Dubai Clean Energy Strategy 2050: Dubai aims to generate 75% of its energy from clean sources by 2050. This strategy has paved the way for investments in renewable energy projects, such as the Mohammed bin Rashid Al Maktoum Solar Park.
• Green Building Regulations: Mandatory green building standards, such as Estidama in Abu Dhabi and Al Sa’fat in Dubai, have spurred the growth of sustainable construction businesses.
• Blue Visa: The Blue Visa is a 10-year residency visa aimed at individuals who have significantly contributed to environmental protection and sustainability, both within the UAE and internationally. This program attracts entrepreneurs in green businesses to the UAE.

1. Market Opportunities in Green Sectors

The UAE’s transition to a green economy has opened opportunities in various sectors:

• Renewable Energy: Solar power, wind energy, and other renewable energy projects are rapidly expanding. The UAE currently has around six gigawatts of renewable energy and it is targeting to develop more than 15 gigawatts by 2030, signaling huge growth potential in the renewable industry.
• Sustainable Construction: The demand for eco-friendly materials and green building designs continues to grow. The hospitality industry is one such sector pushing for increased consumption of sustainable materials and solutions in buildings.
• Waste Management: Innovative waste recycling and management solutions are highly sought after. Recycling businesses have increasingly gained traction among consumers in the country and have helped in connecting stakeholders in the recycling industry.
• Eco-Friendly Consumer Products: Organic food, biodegradable packaging, and sustainable fashion are gaining popularity among consumers. For instance, the Ras Al Khaimah Economic Zone (RAKEZ) actively promotes sustainability in the Food and Business industry, addressing the growing consumer demand for eco-friendly practices. Businesses have setup facilities relating to sustainable hydrogen production unit, plant, and fish farming in RAKEZ due to its sustainable policies.

1. Consumer Awareness and Demand

The UAE’s residents are becoming increasingly conscious of environmental issues, leading to greater demand for sustainable products and services. According to reports, over 40% of consumers in UAE are dedicated to cutting down their energy consumption and choosing more energy-efficient products to support sustainable living. This shift in consumer behavior is encouraging businesses to adopt greener practices to remain competitive.

Benefits of Setting Up a Green Business in the UAE

• Government Support: Entrepreneurs in green sectors benefit from incentives such as grants, subsidies, and tax benefits. Various programmes have been set up to provide assistance to green businesses by the government, like the Mohammed Bin Rashid Innovation Fund, as well as by free zones such as the Abu Dhabi Global Market’s Hub71+ Climate Tech. At COP28, the UAE announced the ALTERRA climate investment fund, committing $30 billion to drive international efforts towards a fairer climate finance system.
• Strategic Location: The UAE’s geographic position makes it a hub for green technology distribution across the Middle East, Africa, and South Asia.
• Business-Friendly Environment: Free zones and streamlined licensing processes make the UAE an attractive destination for green startups. The Masdar City Free Zone (MCFZ) is one such free zone. The MCFZ particularly accommodates and promotes businesses that specialize in renewable energy, sustainable technologies, human resources development, healthcare, and community services.
• Global Recognition: Establishing a green business in the UAE aligns with international sustainability standards, enhancing credibility and marketability.

The UAE’s active efforts in becoming a global leader in sustainability and green initiatives is a result of its forward thinking leadership which recognizes the need to adopt sustainable practices. In furtherance of the same, the country has introduced various policies and a favourable business climate for green businesses to operate and contribute towards a more sustainable future and also ensuring commercial viability. These measures make certain for green businesses to thrive in the UAE.

How MBG Corporate Services Can Help

Setting up a green business in the UAE involves navigating complex regulations, securing funding, and ensuring compliance with environmental standards. MBG Corporate Services offers comprehensive support to entrepreneurs, including:

• Market research and feasibility studies
• Business registration and licensing
• Legal and compliance advisory
• Strategic partnerships and networking support

Our team of experts is dedicated to helping you establish a successful and impactful green business in the UAE. Contact us today to start your sustainability journey.