Middle East has golden opportunity to go green

The World Bank has just published its “Gulf Economic Update” for autumn 2022, looking at green growth opportunities in the GCC. This is perfect timing, aligning with the COP27 climate conference that is happening at the moment in Egypt.

It reports that diversification away from oil is progressing slower than projected. With the effects of climate change having a bigger impact sooner than expected, this could be seen negatively. However, it has actually helped the economies in the Gulf region in an unexpected way.

The global recovery, post-COVID-19, was going well until the Russian invasion of Ukraine in February caused a huge global economic issue, mostly due to reductions in the export of oil, gas and wheat from the area. Added to this, China’s firm lockdown response to outbreaks of COVID-19 caused further supply chain delays. However, while these knockbacks caused a downturn in many nations — with global gross domestic product growth predicted to only reach 3.2 percent by the end of the year — the response in the GCC was more positive, with oil prices rising. While OPEC+ has declined US requests to increase oil production, the amounts produced have decreased in alignment with the group’s original plans. The result of the added demand for oil from the region is expected to ensure more than double the global growth in the Gulf, at 6.9 percent.

The GCC could even get the best of both worlds. It is currently providing the oil that the world needs, but as the war in Ukraine encourages nations to move away from a reliance on gas and oil, the Gulf also has the opportunity to put its “vision” pledges — such as Saudi Arabia’s Vision 2030 — into action and invest heavily in green, clean energy.

The World Bank’s report claims doing so could more than double the GCC’s expected GDP by 2050, from an estimated $6 trillion to $13 trillion. There has been much caution over moving away from oil, but this could be a real opportunity for the Middle East to be a global green energy leader. There is certainly the land, finances and resources to make it happen, with projects already well underway.

And it is not merely about providing green energy; it is also about the infrastructure that goes alongside major projects, such as roads, buildings, health and safety, shops, catering, and housing for workers. More than that, it also requires cars, engines and everyday household goods that can run off these new systems and types of energy.

All in all, a deep dive into the development of green energy builds opportunities for construction workers, site managers, engineers, chefs, project managers and scientists. It offers a great boon for employment, potential for young people, skills development, international investment, and entrepreneurs. This needs to be something that the Middle East moves with right away, as the time is completely right.

Not only are people nervous about being tied down to oil and gas, with their increasing prices and restricted supplies, they are also starting to see an increase in floods and droughts, record temperatures, and wildfires. This is driving publics to push their governments to do more to slow climate change, such as by providing more alternative, planet-friendly energy.

And with the region’s economies bouncing back strongly from the pandemic, there is a wave of positivity in financial spending and increased GDP that should definitely be ridden.

This is the perfect chance for Middle Eastern countries to use these funds to put their vision policies into action and invest in the infrastructure required to develop green energy. The world is, or soon will be, clamoring for this — and we can provide it. It is exactly the right time and way to divest away from oil at a steady pace. Provide the oil that is needed, while building the structure to offer a planet-safe alternative that also reduces pollution. Let us seize the opportunity.

• Dr. Bashayer Al-Majed is a professor of law at Kuwait University and visiting fellow at Oxford. Twitter: @BashayerAlMajed