In a region long known as a bastion of oil wealth, a green revolution is quietly unfolding. Sustainable investment trends are gaining traction here, marking a significant shift in how the region views its economic future and environmental responsibilities. No region will evade the consequences of the climate crisis, but MENA is at severe risk, warming at twice the global average and projected to be up to 4°C warmer by 2050. Some research indicates that this threat—compounded by food security, droughts, and pollution—risks human habitability in many cities by the end of the century.
In proactive measures to mitigate the pressing global issue, some countries in the region have begun integrating climate commitments into their strategic planning. The UAE, who hosted the successful COP28 meeting in 2023 and Oman have announced a goal of net-zero by 2050, and the Saudi Green Initiative aims for net- zero by 2060. In support of these goals, ambitious programs to scale decarbonization pathways like renewables and nuclear, and to develop emerging low-carbon technologies like green hydrogen and carbon-capture and utilization systems have been initiated.
The sustainability journey for the Middle East is more than a global trend. It represents a strategic reorientation of its economic compass. The region, known for harsh climates and reliance on hydrocarbons, is redefining its legacy. Mohammed bin Rashid Al Maktoum Solar Park in the UAE is poised to be the largest single-site solar park in the world, and Saudi Arabia’s ambitious NEOM project, which includes plans for massive renewable energy installations. These initiatives aren’t just power projects. They are bold statements moving from an oil-rich past to a new renewable-rich future.
Governments are actively promoting sustainable and eco-friendly practices. The UAE, for example, has taken bold steps towards environmental sustainability with the recent ban on single-use plastic bags, effective from early 2024. As a result, consumers are following suit, seeking eco-friendly formulations, sustainable packaging, and stress-relieving fragrances tailored to regional preferences. Brands prioritizing eco-friendly products and aligning with these evolving consumer trends are poised to capitalize on this evolving opportunity.
Flyn Roberts, Chief Commercial Officer at Messe Frankfurt Middle East, organizer of Beautyworld in the UAE and Saudi Arabia, said, “With a more thoughtful approach to purchasing, the conscious consumer is taking a closer look at a brand’s values and actions in order to make informed and responsible choices. With this important and clear demand, the evolution of our own show segment sits alongside the innovation within the sector and the sheer array of new products, services, and opportunities that the consumer demand has created.”
According to Euromonitor research, 41% of UAE consumers express their commitment to reducing energy consumption and opting for more energy-efficient products as part of their pursuit of sustainable living, aligning closely with the sentiment of 36.5% of consumers in Saudi Arabia.
“The clean beauty market has become a fast-growing category and is redefining the beauty industry in the region. Consumers have grown more conscious of their skincare and overall well-being and are opting for “greener” and “safer” products,” said David Vercruysse, President of Managed Companies Vertical at Chalhoub Group.
