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How the UAE’s thriving business ecosystem is leading the region’s sustainability goals
Experts highlight the vital role of PPPs and the startup sector in advancing the country’s sustainability goals and strengthening regional leadership.
Sustainability is a necessity, particularly in rapidly evolving regions like the Middle East. The UAE is leading this transformation with bold initiatives such as the UAE’s Green Agenda 2030. These efforts go beyond meeting environmental targets; they aim to reshape cities, industries, and communities for a greener, more resilient future.
Achieving this monumental change, however, requires more than government mandates—it demands a robust business ecosystem driven by private enterprises, startups, and public-private partnerships (PPPs).
“Governments provide regulatory frameworks and strategic guidance, private enterprises drive innovation and investment, and tech companies contribute cutting-edge solutions,” says Ettiene Van Der Watt, Regional Director, Middle East & Africa at Axis Communications. This synergy of expertise and resources is vital to the region’s evolving sustainability journey.
UNLOCKING THE POTENTIAL OF COLLABORATION
The region is already witnessing the benefits of these collaborations. Max Kaplevich, founder of Sparklo, a UAE-based cleantech company, highlights how European incentive-based recycling systems inspired their approach in the Middle East. Recognizing the regional preference for positive reinforcement over deposit fees, Sparklo introduced Sparklomats—reverse vending machines that reward users for recycling plastic bottles and aluminum cans. He says these machines have been highly successful, encouraging sustainable habits and advancing recycling efforts.
Beyond recycling, the region is tackling broader environmental challenges, such as food waste and climate adaptation, through innovation and collaboration. Alexander Ponomarev, CEO of Syrve MENA, underscores the UAE’s commitment to halving food waste by 2030 through awareness campaigns and citizen engagement.
Ponomarev says technology will be critical in addressing regional challenges such as water scarcity, extreme heat, and limited arable land. He notes how the region is paving the way for a more efficient and sustainable food system with supportive policies, private-sector innovation, and advanced technologies.
AI FOR SUSTAINABILITY
Artificial intelligence (AI) drives many of these transformative technologies essential to sustainability. Ponomarev highlights AI-driven solutions like demand forecasting, automated inventory management, and real-time waste tracking, which enable restaurants to optimize their supply chains and reduce food waste.
AI also enhances recycling technology. Kaplevich shares how AI powers Sparklomats by rapidly identifying container types, ensuring that only recyclable items are accepted quickly and efficiently. Similarly, Van Der Watt from Axis Communications underscores how AI-driven technologies like Zipstream optimize energy-efficient data streaming and contribute to long-lasting, sustainable solutions. “By aligning objectives and sharing expertise, we can collectively drive a meaningful and resilient shift toward a sustainable future,” he adds. These are just a few examples of the many emerging AI-driven sustainability technologies in the market.
STARTUPS AND PPPS AS A CATALYST FOR INNOVATION
With their agility and innovation, startups are often at the forefront of deploying AI-driven solutions to address sustainability challenges. In mobility, for example, where public sector support is crucial, startups align technological advancements with government visions. Adam Ridgway, Founder and CEO of One Moto, a UAE-based sustainable mobility company, highlights the importance of this alignment. “When business goals align with government visions, it can expedite market entry and showcase a united commitment to positive change,” he explains.
While individual efforts by companies and startups are impactful, PPPs remain transformative, as noted by successful examples. These collaborations amplify impact by combining public sector oversight with private sector expertise.
“PPPs allow governments to benefit from the private sector’s innovation while ensuring projects align with public mandates,” Van Der Watt explains. He highlights their role in projects like city surveillance and public safety, integrating energy-efficient, AI-driven solutions, IoT capabilities, and data analytics.
However, Ridgway emphasizes that strong dialogue between public and private sectors is essential for successful PPPs. He notes that high costs often hinder these partnerships, advocating mutual understanding: private enterprises must tailor their offerings to public sector priorities. At the same time, governments need to address startups’ financial constraints, such as limited access to affordable capital. “When both parties consider outcomes from each other’s perspectives, a natural synergy can emerge,” he adds.
Partnerships with multinational organizations can also further empower startups. Ridgway explains that established companies provide resources and networks, enabling startups to overcome challenges like limited capital and credibility. In return, larger firms benefit from startups’ agility and innovation, expediting market entry and expanding portfolios more cost-effectively than through in-house development.
Kaplevich echoes this sentiment, pointing to partnerships with companies like ADNOC, Lulu, and Carrefour, alongside government entities such as Dubai Municipality and the Environment Agency – Abu Dhabi (EAD).
Initiatives like EAD’s Mission to Zero have significantly advanced regional sustainability. Between August and October 2024, the program collected over 7.2 million recyclables in Abu Dhabi, preventing more than 1 million kilograms of CO₂ emissions. “These partnerships are critical in accelerating the adoption of sustainable practices and setting a strong example for a greener future,” Kaplevich says.
POSITIONING THE UAE AS A GLOBAL LEADER
The combined efforts of governments, private enterprises, and startups are not just addressing local challenges but positioning the Middle East as a global leader in sustainable urban development. Kaplevich notes, “This environment has enabled companies like ours to scale from a local startup to a multi-country operation across ten markets in just two years.” The UAE’s supportive ecosystem for cleantech growth and the MENA region’s focus on sustainable technology production for local use and export underscores the region’s capacity for innovation and leadership.
Ponomarev says Masdar City in Abu Dhabi exemplifies this leadership as the region’s first sustainable city. The city showcases how investments in advanced technologies like IoT, AI-driven analytics, and eco-friendly infrastructure can enhance energy efficiency, reduce waste, and improve urban living.
Van Der Watt believes these innovations, sustained investment, and collaborative partnerships will enable Middle Eastern cities to set global benchmarks for tech-enabled sustainability.
The UAE’s sustainability agenda demonstrates the transformative power of collaboration, innovation, and vision. By aligning government policies with private-sector ingenuity and startup agility, the country addresses its environmental challenges and inspires a global shift toward sustainable development.