GCC Countries: Paving the Way to Sustainability in a Post-Oil Era

What comes after oil? This question inevitably follows the turning point reached this week when the six states of the Gulf Cooperation Council—Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, and Oman—recast their economic bases. Ever since the advent of the oil age, these countries have based their wealth on vast oil and gas reserves. But with the increased momentum toward sustainable energy, the region has been increasingly under pressure to diversify its economy, cut carbon footprints, and prepare for a future where fossil fuels no longer take center stage. But what does this transition look like, and to what degree is such a pivot to sustainability realistic for oil-dependent nations?
Why would GCC countries, which are traditionally focused on oil, move towards sustainability? It finds its reasons in the combination of global economic trends, climate urgency, and awareness of the finite nature of fossil fuels. Starting with the decrease in the cost of renewable energy and ending with the global movement to cut carbon emissions, here come additional challenges and opportunities for the GCC.
Beyond the environmental factors, reliance on oil builds economic vulnerability. Economic instability has been witnessed, with economies going up and down with fluctuations in oil prices. For instance, the 2014 oil price crash prompted a renewed drive for economic diversification. For GCC countries, sustainability is not solely an environmental consideration, but also an important economic and social strategy.

The diversified ways of diversification

Every GCC country is trying different methods to diversify its economy while making full use of its own comparative advantages.
Ambitious marks of economic and social reform, with the mainstays of tourism, technology, and renewable energy, characterize the Saudi Vision 2030. This vision presents NEOM: a $500 billion high-tech, zero-carbon city presently under construction, that in many respects represents a global innovation pole. The town embodies Saudi Arabia's leap toward the post-oil economy and further fuses ecological awareness with economic growth.
UAE Renewable Energy Programs: At the same time, through Abu Dhabi and Dubai, the UAE has attempted diversification through tourism, finance, and trade. The UAE announced that, by 2050, 50% of its power will come from renewables through projects such as Mohammed bin Rashid Al Maktoum Solar Park. Other plans reflecting this character include Masdar City, an ecologically friendly urban development that further seals the fact that the UAE is to be a leader and an example of sustainability in the Middle East.
Qatar National Vision 2030: The Qatar National Vision 2030 depicts the readiness of Qatar to transform itself into a knowledge-based economy. Qatar invests in education, health, and technology to develop human capital for the no-oil economy to thrive. This was illustrated very well in most of the green stadiums and infrastructures during the FIFA World Cup 2022, as they were less damaging to the environment. That pledge is also perfectly represented by the 1974 Stadium, with its new eco-friendly renovations and energy-efficient upgrades, representing Qatar's general strategy of modernization in harmony with historical landmark protection. This legacy structure transformation is setting quite an example for sustainable building practices throughout the region.
Knowing that these projects seem so ambitious, they also come with risk. While the region is still developing, these projects require huge investment, advanced technologies, and an excellent workforce.

Investing in Solar and Wind
Famous Lebanese electrical engineer Hassan Kamel Al Sabbah suggested building huge solar panel farms in the Arab deserts and profiting from the huge quantity of sand, which can be transformed into the silicon metal required for the industry of solar panels. However, this idea poses huge logistical challenges such as the extraction and purification of Silicon, economic feasibility, and the lack of skilled workforce. Still, GCC countries are making significant strides in renewable energy.
The Saudi Commitment to Renewables: Indeed, Saudi is committed to the goal of deriving 50% of its energy from renewables by 2030.The large-scale projects therein represent one aspect through which Saudi works out its commitment. This will help in solving the issue of inadequate water supply, a situation that is dire in the arid GCC region, using sustainable energy.
The Dubai Solar Vision: Dubai's Mohammed bin Rashid Al Maktoum Solar Park is a facility designed to be the largest single-site solar park in the world. It has an estimated capacity of 5,000 MW by 2030 and reflects the commitment towards sustainability, coupled with the vision laid down by Dubai for the reduction of carbon emissions.
GCC countries are scaling all these projects up, and it is creating problems for storage and distribution. Renewable energy sources will take some time to prove as reliable as fossil fuels. Effective development of storage will be crucial if solar and wind energy are ever going to be realistic propositions across the region.
The Emergence of smart cities: As GCC countries try to look at life beyond oil, they are embracing another concept of "smart cities"—an urban area using digital technology to enhance efficiency and sustainability.
NEOM's Futuristic Vision: NEOM in Saudi Arabia has been envisioned to be a no-carbon city where all transportation will be electric and full automation will be carried on the tracks driven by AI-powered infrastructure. NEOM is meant to act as a blueprint for how cities in the future could be built with technology and sustainability in mind.
Dubai's Smart City Initiatives: To that effect, Dubai has initiated the use of technology to improve public services, including autonomous transportation, smart grids, and digital healthcare. This is in line with the city's "Smart Dubai" program to make Dubai the happiest city on earth through technological innovation coupled with sustainable urban planning.
The beginning of smart cities marks one of the boldest moves toward sustainability, but at what cost. Are they feasible or accessible? What possible scaling and maintenance of such projects could be accomplished over the rest of the GCC nations? What are the potential challenges to their data privacy, infrastructure, and costs?

Desert Conservation and Afforestation: Similarly, Green Arabia will grow 10 billion trees in Saudi Arabia because of desertification and air quality improvement. The UAE has initiated a desert conservation reserve by the name of Al Marmoom to save its flora and fauna while promoting ecotourism.
Marine Protection and Coral Rehabilitation: Both Oman and Qatar are working toward the protection of marine ecosystems. Projects aimed at restoring coral reefs will be important in this regard for biodiversity and can help contribute towards local fisheries, eventually supporting economic diversification.
These are promising commitments to conservation, but equally challenging. Desert afforestation is so water-intensive that its sustainability is in question. Marine protection will require ongoing funding and technological support—resources that are heavy on the budget.

GCC countries stand at a crossroads between tradition and transformation-seeking ways to preserve their economic success in a world without oil. Various ambitious plans concerning smart cities, renewable energy, and conservation demonstrate a commitment to sustainability, despite the continued hurdles. The way forward is through rapid technological innovation with a balance of nature's constraints and specificities related to landscapes and resources. Ultimately, such a transition by the GCC would provide a rich perspective for most oil-dependent regions around the world in relation to how they will approach the future characterized by sustainability and resilience.

References:

Vision 2030. (n.d.). Saudi Vision 2030. Government of Saudi Arabia. Retrieved November 12, 2024, from https://vision2030.gov.sa/

Ministry of Energy and Infrastructure UAE. (n.d.). Home. Retrieved November 12, 2024, from https://www.moei.gov.ae/

NEOM. (n.d.). NEOM - Made to Change. Retrieved November 12, 2024, from https://www.neom.com/

Smart Dubai. (n.d.). Smart Dubai. Retrieved November 12, 2024, from https://www.smartdubai.ae/

Government Communications Office of Qatar. (n.d.). Qatar National Vision 2030. Retrieved November 12, 2024, from https://www.gco.gov.qa/en/about-qatar/national-vision2030/