The UAE wrapped up 2024 with its declared ‘Year of Sustainability’ and transitioned into the ‘Year of Community’ for 2025 demonstrating a holistic approach to Environmental, Social, and Governance (ESG) principles.. As the name suggests, the UAE dedicated a year to focusing on and reflecting upon sustainable practices at a national level.
During this period, COP28 was hosted, and various Emirati government initiatives were launched to fund sustainability projects. Most significantly, a net-zero goal for 2050 was announced. Given its rapid urbanisation and industrialisation, which have been fuelled by a thriving hydrocarbon economy, the UAE now plays a pivotal role in the global energy transition.
The Year of Sustainability was intended to highlight this evolving historical legacy. Let us explore it in greater detail.
The ‘Year of Sustainability’ at a Glance
Essentially, the ‘Year of Sustainability’ was a centrally coordinated campaign designed to promote sustainable energy and production processes. It was the initiative of President Sheikh Mohamed bin Zayed Al Nahyan, who also launched the ongoing ‘Year of Community’ to address social issues and development challenges. This thematic approach reflects his leadership during a period of rapid transformation.
The initiative draws inspiration from the Emirates’ history before the discovery of oil. Emiratis traditionally relied on fishing and pearling, leading a semi-nomadic existence closely tied to nature. Survival depended on adapting to environmental limitations, however challenging that may have been.
The discovery of oil was a game-changer. Highways to accommodate a car-based transport system, towering skyscrapers, world-class ports, and the rise of Dubai and Abu Dhabi as global commercial hubs followed. Sheikh Mohamed bin Zayed Al Nahyan captures this legacy in his own words:
“Sustainability has been a fundamental principle in the United Arab Emirates since its unification. The nation continues to serve as an exceptional model for environmental conservation and resource management. The late Sheikh Zayed was a global leader in environmental and climate action, leaving behind a legacy that we continue to follow today.”
In line with this legacy, the UAE became the first Gulf state to declare a net-zero goal for 2050. The scale of the initiative is comparable to China’s ‘Beautiful China’ programme, which is similarly structured with incentives and mechanisms to drive sustainable energy development.
While China’s programme is a long-term, state-led effort supported by a highly centralised economy, the UAE’s approach is unique to its own governance and economic structure. To assess its effectiveness, one must examine how the UAE has mobilised its resources for this endeavour.
Alternative governance models
The UAE has demonstrated remarkable growth and adaptability in response to evolving global dynamics. The early 21st century was largely spent capitalising on its booming hydrocarbon economy, but it was also one of the first countries in the region to make serious efforts towards renewable energy.
A prime example is the Mohammed bin Rashid Al Maktoum Solar Park, launched in 2013. Its power output reached 2,800 GWh per year over the course of its expansion, and it is expected to generate 5,000 MW by 2030.
In many countries, such a project would be mired in regulatory red tape. However, while oversight and feasibility assessments are essential, past projects such as the World Islands illustrate the risks of insufficient planning. This ambitious development resulted in significant ecological damage, demonstrating the need for thorough environmental considerations.
Much like China and Saudi Arabia, the UAE represents an alternative model of governance. The prevailing global belief that Western-style democracies are the most effective environments for scientific innovation is increasingly being questioned. This has geopolitical implications for the UAE, positioning it as a significant player in the global energy transition.
Sheikh Mohamed bin Zayed Al Nahyan exemplifies a new generation of Gulf monarchs. Not only do they wield absolute authority over policy, but they are also highly educated and attuned to contemporary global trends. Their ability to modernise governance is crucial—not only to avoid the pitfalls of traditional monarchies but also to secure their influence within the global energy infrastructure.
A core aspect of the UAE’s mobilisation strategy is its approach to stimulating private sector involvement through state-owned and public-private enterprises. This also extends to governance reforms, such as Dubai’s evolving family business frameworks, which are crucial in ensuring long-term economic stability and sustainable business practices. Organisations such as Masdar, TAQA, DEWA, and ADNOC play critical roles in implementing sustainability goals.
What sets the ‘Year of Sustainability’ apart is its emphasis on individual action. Reports indicate that the campaign successfully encouraged behavioural change. A government study found that 67% of residents reduced water and energy consumption, 39% adopted more responsible consumption habits, and 31% opted for environmentally friendly transport.
Businesses were also incentivised to participate, with sustainability endorsements awarded to establishments that reduced their carbon footprint. Additionally, the governance framework for family businesses in Dubai has been strengthened through initiatives such as the Dubai Chamber of Commerce Family Offices Governance Committee, which aims to ensure smooth generational transitions while maintaining strong corporate governance.
Businesses were also incentivised to participate, with sustainability endorsements awarded to establishments that reduced their carbon footprint. Notably, Taste Studio and Spinneys Abu Dhabi received recognition for their efforts. Such initiatives encourage the private sector to align with national sustainability objectives.
Key takeaways
As of 2025, the UAE remains a high-consumption economy dependent on hydrocarbon exports. Its membership in OPEC ensures that it remains under constant international scrutiny. However, this also presents an opportunity to set new benchmarks for sustainability and economic diversification.
The UAE has leveraged its hydrocarbon wealth to establish itself as a geopolitical powerhouse, particularly in the MENA region and East Africa, with growing influence beyond. This financial strength positions it well to lead in technological and economic advancements.
One recurring challenge in energy transitions led by Western or East Asian frameworks is their failure to account for regional-specific issues, including extreme temperatures, water scarcity, and societal reliance on hydrocarbons. The UAE’s sustainability efforts must address these challenges while maintaining public support for change.
Hosting COP28 and initiatives such as the ‘Year of Sustainability’ signal progress in the right direction. While the UAE has supported research into sustainable technologies for over a decade, achieving net-zero targets requires a sector-wide transformation.
Ultimately, sustainability remains a political issue, making political will a decisive factor in achieving these goals. Different governance models will face unique challenges in driving the energy transition.
Western-style democracies, despite their early enthusiasm for sustainability, have faced setbacks due to industry pushback, political realities, and bureaucratic inefficiencies. Germany’s struggles with energy transition planning are a case in point. By contrast, Gulf monarchies such as the UAE and Saudi Arabia operate under highly centralised governance, allowing for more direct policy implementation.
How the UAE and its regional counterparts progress over the next decade will determine their role in shaping the global sustainability narrative. The potential for influence is immense, but the true measure of success will be in tangible, long-term results.
How countries such as the UAE and Saudi Arabia navigate the next few years ahead in truly promoting new sustainable practices and technologies remains to be seen, but the potential for the global narrative is endless.
By: Omar Ahmed