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Aldar’s new sustainability incentive programme to support UAE ICV goals

The initiative is aligned with the UAE’s Net Zero 2050 Straegy and Aldar’s commitment to become Net Zero by 2050

Gulf Business
Gulf Business

16 January, 2025

Aldar’s new sustainability incentive programme to support UAE ICV goals
Image: Getty Images

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Aldar Properties has launched a pioneering sustainability incentive programme aimed at rewarding suppliers with green bonuses, combining both financial and non-financial benefits.

The initiative, designed to support the UAE’s National In-Country Value (ICV) Programme, evaluates contractors based on a range of sustainability metrics, including recycling rates, renewable energy use, carbon emissions intensity, and efforts to eliminate single-use plastics.

The new programme was announced during Abu Dhabi Sustainability Week, where Aldar also signed a collaborative agreement with the Ministry of Industry and Advanced Technology (MoIAT).

It is the first sustainability incentive programme of its kind in the region and aligns with the UAE’s Net Zero by 2050 target, the Industrial Decarbonisation Roadmap launched at COP28, and the Green Public Procurement Pledge.

Incentives based on sustainability performance

Suppliers will be evaluated through a rating system based on their sustainability performance. Key factors include sustainability data, the implementation of employee wellness programmes, and adherence to Aldar’s low-carbon materials policy. Participating contractors must also meet specific criteria related to worker welfare and sustainability metrics.

“Suppliers who align with these sustainability goals will be rewarded with various incentives, including financial bonuses, training opportunities, recognition, and expedited payments,” Aldar said in a statement.

Companies that have participated in the Real Estate Climate Pledge, launched by Aldar in partnership with MoIAT and the Ministry of Climate Change and Environment, will also receive additional benefits. Over the past two years, more than 70 members have joined this initiative.

Aldar’s sustainability incentive programme further strengthens the company’s commitment to a low-carbon supply chain and sustainable construction practices for upcoming projects.

MoIAT and National ICV Programme Expansion

Salama Al Awadhi, Assistant Undersecretary for Industrial Development at MoIAT, expressed strong support for Aldar’s new programme, highlighting its role in advancing the UAE’s Net Zero objectives. “The National Strategy for Industry and Advanced Technology (Operation 300bn) focuses on enhancing sustainability within the industrial and service sectors as one of its key pillars,” she said. “The programme will stimulate local businesses, create more investment opportunities, and enhance the sustainability of the national supply chain.”

The National ICV Programme, which aims to increase local sourcing, has seen significant growth, with more than 6,500 companies obtaining the ICV certificate and over 8,000 ICV certificates issued in 2024, up from 7,000 in 2023. The programme’s expansion underscores the UAE’s efforts to create a more resilient and self-sufficient economy.

Aldar’s commitment to sustainability and local growth

Faisal Falaknaz, chief financial and sustainability officer at Aldar, emphasised the company’s dedication to supporting sustainable practices within its supply chain. “We are determined to implement a whole value chain approach to decarbonisation, working closely with our suppliers and encouraging them to integrate sustainability into their operations,” he said. “Incentivisation is one of the most effective ways to catalyse change, and we aim to set a standard for increasing the adoption of such programmes across the region.”

Aldar has also significantly contributed to the National ICV Programme, with the company contributing Dhs10.5bn in 2023, prioritising local businesses to channel spending into the national economy.

The newly launched sustainability programme is a cornerstone of Aldar’s ongoing efforts to foster a low-carbon economy and promote sustainable practices within the real estate sector.

Arab Health 2025 marks 50th anniversary with 180 countries participating

A total of 180 countries are expected to participate, reinforcing Dubai’s role as a key hub for international healthcare collaboration

Gulf Business
Gulf Business

16 January, 2025

Arab Health 2025 marks 50th anniversary with 180 countries participating
(Source: Getty Images)

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Arab Health 2025, the Middle East’s largest healthcare event, is set to welcome a record-breaking international presence as the global healthcare market continues its rapid expansion.

According to Verified Market Research, the consumer healthcare market is projected to reach $780bn by 2030, up from $360bn in 2023, reflecting an 8.8 per cent compound annual growth rate (CAGR).

Amid this backdrop of a growing market, Arab Health will mark its 50th anniversary and feature over 40 country pavilions, with Morocco and Latvia making their debut. A total of 180 countries are expected to participate, reinforcing Dubai’s role as a key hub for international healthcare collaboration.

“In the last five decades, Arab Health has grown alongside the incredible expansion of the global healthcare market, evolving from a regional exhibition to a pivotal event on the international stage,” said Ross Williams, group event director at Informa Markets.

“With the anticipated market growth, Arab Health, more than ever, has an integral role in facilitating global business and addressing the latest healthcare trends worldwide,” he added.

The UK and Saudi Arabia will significantly expand their presence this year, alongside major country pavilions from the United States, China, India, Singapore, and Taiwan.

Arab Health 2025 will also welcome first-time international exhibitors, including Daigo, Fapomed, Global Medical Technology, Global Pharma Healthcare, Levity Products, and Mark Ortho Care, all of whom will showcase their innovations in the newly introduced Al Mustaqbal Hall exhibitor zone.

Driving Healthcare Innovation

The Arab Health Congress, held under the patronage of the UAE Ministry of Health and Prevention, will feature nine Continuing Medical Education (CME) conferences and three Healthcare Business Forums, bringing together over 250 international experts who will lead more than 110 sessions across four days.

Key features of the 50th edition include:

  • The debut of the World of Wellness and the Healthcare ESG Conferences – Addressing sustainability and wellness trends in healthcare.
  • The Smart Hospital & Interoperability Zone, powered by Cityscape – An immersive showcase of the future of healthcare technology.
  • The Transformation Zone – Featuring product showcases, expert talks, and the popular Innov8 Start-up competition.
  • The Future Health Summit – Bringing together global experts to discuss AI in action: Transforming Healthcare Delivery.

Long-term industry presence

The Association of British HealthTech Industries (ABHI), which has attended Arab Health for over 20 years, will once again lead a UK delegation comprising healthtech businesses, hospital groups, regional accelerators, government partners, and healthcare leaders.

Michelle Michelucci, head of international events at ABHI, said: “ABHI runs a portfolio of UK Pavilions at over 15 key global trade shows, but none match the scale and significance of Arab Health.”

“During our 20-year tenure at Arab Health, we’ve witnessed a significant evolution in the healthcare industry, driven by technological integration and international collaboration fostered at the event. The UAE and the wider Middle East region have grown significantly, with the healthcare sector expanding to meet the demands of a burgeoning population and increasing healthcare needs,” said Michelucci.

Backed by key government, industry leaders

Arab Health 2025 is supported by the UAE Ministry of Health and Prevention, Dubai Health Authority, the Department of Health – Abu Dhabi, and Dubai Healthcare City Authority, reinforcing its role as the region’s most influential healthcare platform.

The event takes place from 27 – 30 January 2025 at the Dubai World Trade Centre. For more information and registration, visit www.arabhealthonline.com.

Aramco to set up minerals exploration, mining JV with Ma’aden

The venture will focus on energy transition minerals, with commercial lithium production scheduled to commence by 2027

Kudakwashe Muzoriwa
Kudakwashe Muzoriwa

16 January, 2025

Aramco to set up minerals exploration, mining JV with Ma’aden
Image credit: Dado Galdieri/ Getty Images

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Aramco and Ma’aden have agreed to set up a joint venture for mineral exploration and mining in Saudi Arabia.

The venture will focus on energy transition minerals, including extracting lithium from high-concentration deposits and advancing cost-effective direct lithium extraction technologies, as the kingdom pursues a bigger role in mining. Lithium is a key component in the batteries of electric cars, laptops, and smartphones.

The total global demand for lithium has tripled over the past five years, and its compound annual growth rate is anticipated to exceed 15 per cent per annum through 2035. Aramco said lithium demand in Saudi Arabia is expected to grow twenty-fold between 2024 and 2030, contributing to an estimated 500,000 electric vehicle batteries and 110 gigawatts of renewables.

“Aramco has identified several areas with a high lithium concentration of up to 400 parts per million,” the state-owned energy giant said in a statement while noting that commercial lithium production is expected to commence by 2027.

“The proposed JV will enable extraction of energy transition minerals, contributing meaningfully to the growth of more sustainable energy solutions while diversifying our portfolio for a lower-carbon future,” said Nasir K. Al-Naimi, Aramco Upstream President.

Al-Naimi emphasised that the venture will leverage Aramco’s upstream expertise, including cost-effectiveness, technological innovation and extensive subsurface knowledge, to meet the kingdom’s and potentially global lithium demand.

Bandar Alkhorayef, Saudi Arabia’s Minister of Industry and Mineral Resources, also said that Aramco is partnering with King Abdullah University for Science and Technology (KAUST) to pilot the lithium mining project.

Lithium Infinity, also known as Lihytech, a startup launched out of KAUST, is leading the extraction project in partnership with Ma’aden and Aramco.

Meanwhile, Ma’aden agreed to acquire SABIC’s 20.62 per cent stake in Aluminium Bahrain (Alba) as part of Saudi Arabia’s broader strategy to accelerate the expansion of its metals and mining industry under Vision 2030. The sale proceeds are expected to be between $963.25m-$1.06bn (BHD363m-398m).

Read: Saudi Ma’aden to buy nearly 21% stake in Bahrain’s Alba for $1bn

Kenya turns to the UAE for railway funds after China cut financing

The two nations signed a trade agreement that aims to boost trade volumes by removing barriers and promoting investments

Reuters
Reuters

16 January, 2025

Kenya turns to the UAE for railway funds after China cut financing
Image credit: Emirates News Agency

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Kenya has started discussions with the UAE to secure financing to complete a regional railway, President William Ruto said after China cut infrastructure funding to the project.

The railway connecting the Kenyan port of Mombasa with landlocked neighbours, as part of China’s Belt and Road Initiative, ended in the Rift Valley in 2019, 468 kilometres short of the border with Uganda, after Beijing withdrew support.

“We are exploring a partnership agreement with the UAE to extend the Standard Gauge Railway to connect Kenya, Uganda and South Sudan,” Ruto said on X late on Tuesday after meeting UAE officials in Abu Dhabi.

Both sides will carry out a feasibility study on the extension of the railway, he said, “due to its capacity to foster regional integration and promote trade”.

Ruto’s office did not respond to Reuters’ request for more details.

Ruto, who took over in September 2022, has pursued closer ties with the UAE, and Kenya is also finalising a $1.5bn commercial loan from the UAE for budget support.

The East African nation and the UAE signed a comprehensive economic partnership agreement on Tuesday, aiming to boost trade volumes by removing barriers, simplifying customs processes and promoting investments.

“Kenya is going to be a gateway for sure for East Africa,” Thani Al Zeyoudi, the UAE’s minister of trade, told Reuters on Tuesday.

Trade between Kenya and the UAE has more than doubled over the last decade, Ruto’s office said. The UAE is the sixth biggest export market for Kenyan goods and its second biggest source of imports.

The value of the trade stood at $3.44bn (KSH445bn) in 2023, with the UAE buying agricultural products while Kenya gets petroleum products, machinery and chemicals.

The UAE’s ADNOC and Emirates National Oil Company were among three Gulf firms Ruto’s government picked in 2023 to supply Kenya with oil on longer credit terms, in a shift from an open tender system.

Read: Kenya in talks for a $1.5bn commercial loan with UAE

Insights: Taking AI-driven data centres into the future

Prioritising modular and energy-efficient principles, and improving resource utilisation through zero water cooling, recycling, and low-carbon energy sources will power the growth of data centres

Otmane Benamar
Otmane Benamar

16 January, 2025

Insights: Taking AI-driven data centres into the future
Image: Supplied

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The pace of technological innovations in the last decade has seen the game-changing impact of artificial intelligence (AI) and machine learning (ML) permeate all aspects of our daily lives.

This democratisation of AI in an ever-growing digital economy has also led to explosive growth in the data centre industry as the demand for cloud services and the expanding use of web-enabled devices globally are spiralling upward.

The growing need for more and larger energy-intensive data centres brings with it an exponential growth in power requirements. A 2024 report by the International Energy Agency (IEA) estimates that data centres have the potential to double their energy usage by 2026. These critical infrastructures are an important new factor of higher electricity consumption, and this accelerated demand is expected to reach more than 1,000 terawatt-hours (TWh) — roughly equivalent to the entire electricity consumption of Japan.

Data centres today consume around 1.5 per cent of the world’s electricity, which accounts for around 1 per cent of energy-related greenhouse gas emissions.

Electricity demand in data centres primarily comes from two key processes. Computing activities account for around 40 per cent of the total energy consumption, while cooling systems that are essential for maintaining stable processing efficiency, contribute another 40 per cent. The remaining 20 per cent is used by other associated IT equipment.

As of March 2024, there are more than 10,000 data centres globally. As new facilities are commissioned, growth will be driven by increased adoption of 5G networks and cloud-based services. The rapid growth of AI-related services in the past year alone and the race to build more powerful generative AI models have significantly escalated usage, as the latest chatbots and AI models are computationally intensive.

On average, a ChatGPT query needs nearly 10 times as much electricity to process as a Google search. New AI capabilities like audio and video generation are expected to further increase energy demand.

Growing energy needs of data centres

This growing appetite for power imposes an increased challenge on utilities and the energy sources they manage. They see this as a challenge to their climate pledges (when faced with the challenge of expanding operations and accessing more power while remaining sustainable and reducing their carbon footprint).

To meet the growing energy needs of both data centres and traditional businesses and industries while maintaining the agreed pathways to net zero for their respective country, utilities have been moving from carbon-intensive conventional sources such as coal and liquid fuels to lower carbon power generation such as natural gas — ideally with hydrogen capabilities — and nuclear, and deploying cutting-edge renewables and energy storage technologies, especially battery energy storage systems (BESS), known for its capability to provide short-term storage.

While these technologies are engineered to mitigate the carbon footprint and address the power density challenges significantly, an often-overlooked aspect is that of AI’s ‘water footprint’. For instance, even a short conversation comprising roughly 20 to 50 questions and responses with ChatGPT requires 500ml of water to cool down the servers. This amount could vary depending on the type of power plant and the region, as water usage is influenced by local weather conditions and the cooling technology employed.

This significant water demand is driven by the cooling processes of both power generation and data centre operations. To offset the intense heat generated, most data centres are air-cooled in a process known as swamp cooling, which uses large amounts of water to reduce the temperature of the surrounding air.

Data centres are therefore turning to novel techniques such as liquid cooling which chills the equipment directly, and immersion cooling, a new liquid bath technique where servers are submerged into tubs of coolant to improve their performance and energy efficiency while reducing water usage. Rear-door heat exchangers, on the other hand, encourage better running conditions in dense server environments.

Energy efficiency and greenhouse gas emissions have become mainstream in the sustainability strategies of data centres, but to truly build toward sustainability, water must be part of the equation too, especially as a mid-sized centre in the US uses about 300,000 gallons of water a day, equal to the water consumption of 100,000 homes.

In 2027, the accelerated global AI demand is expected to account for 4.2 to 6.6 billion cubic metres of water withdrawal.

Solving the ‘trilemma’

Solving the power, carbon, and cooling trilemma in data centres will be key going forward, as providers work towards fulfilling the demand reliably and more sustainably. A promising, more modern and sustainable technology to power even the largest data centres with a significantly smaller carbon footprint than reciprocating engines, all the while complementing renewables, are aero-derivative gas turbines, like GE Vernova’s LM series technology, and even heavy-duty gas turbines like GE Vernova’s H-Class. Their fuel diversity attribute allows these turbines to run on various alternate fuel sources, including hydrogen, blends of natural gas, and associated gas, supporting data centres on their sustainability journey, including the path towards net zero carbon emissions and low water consumption.

In addition to advanced power generation, grid technology also plays a critical role in ensuring the reliability of power supply in data centres, which is crucial for their continuous operation. By integrating advanced grid systems, data centres can maintain a stable and uninterrupted power flow, even in the face of fluctuations or disruptions in energy supply. This reliability is vital for preventing downtime and data loss, which can have significant financial and operational consequences.

Furthermore, grid technology can enable seamless integration with BESS and renewables, supporting the decarbonisation efforts.

The sustainability challenges associated with data centres will have implications in the Gulf countries too with the UAE and Saudi Arabia on their path to becoming regional AI superpowers. With a 15.3 per cent increase in live IT capacity, reaching 235.3 MW, the UAE is the top data centre hub in the Middle East and North Africa (MENA) while Saudi Arabia’s 29.7 per cent rise in live IT capacity (109MW) positions the kingdom as the fastest-growing data centre market in the region.

The future of data centres is inextricably linked to the future of energy, and in a water-scarce region like the Middle East, there is a greater urgency to shape a more sustainable digital landscape by integrating sustainable practices into data centre operations.

Prioritising modular and energy-efficient principles, and improving resource utilisation through zero water cooling, recycling, and low-carbon energy sources will power the growth of data centres in a way that aligns with national and global sustainability goals.

The writer is the CTO of EMEA, Gas Power, GE Vernova.

GE Vernova has recently published a whitepaper focused on data centres, that can be downloaded here.

Five opportunities for growth in GCC’s industrial sector in 2025

The region’s strengths and strategic initiatives provide a solid foundation for growth and innovation that will enable manufacturers to thrive, despite the obstacles ahead

Frederic Ozeir
Frederic Ozeir

16 January, 2025

Five opportunities for growth in GCC’s industrial sector in 2025
Image: Supplied

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The Gulf Cooperation Council (GCC) is well-positioned to see robust industrial activity in 2025. Contrasting with other leading economies, GCC countries offer stable economic outlooks and increasingly attractive investor and business environments.

Still, to make gains in the coming year, GCC countries will have to navigate a landscape fraught with challenges, including geopolitical tensions, global trade wars, and skills shortages.

Here are five opportunities for the GCC to capitalise on while also tackling challenges that may arise

1. The friendshoring opportunity: Friendshoring — relocating manufacturing and sourcing to countries that share similar values and interests — is a strategy that aims to mitigate geopolitical risks for both governments and businesses, enhance supply chain resilience, and strengthen economic ties with nations or regions that have mutual interests.

The GCC is well-positioned to become a strategic hub for friend-shoring, owing to its perceived neutrality on the global scene and its significant competitive advantages. The region boasts world-class infrastructure, including state-of-the-art ports, warehousing facilities, and transport networks.

Additionally, the GCC offers low utility and energy costs, robust regional demand, access to essential raw materials, and supportive industrial policies designed to boost competitiveness.

2. The advanced manufacturing opportunity: The Oliver Wyman Industrial Goods Europe Index indicates that semiconductors are a bright spot for rising valuations. This aligns closely with the initiatives undertaken by GCC countries to localize semiconductor manufacturing and, more generally, boost advanced manufacturing.

Notably, Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics have expressed interest in establishing semiconductor manufacturing facilities in the UAE, The Wall Street Journal reported in September.

Meanwhile, Saudi Arabia’s $100bn Alat project, led by its sovereign wealth fund, seeks to position the nation as a global leader in advanced industrials and semiconductor manufacturing.

3. The China opportunity: Chinese companies are increasingly targeting markets abroad due to a domestic slowdown In addition, they are facing increasing trade barriers and pressure on their exports. This presents an opportunity for the GCC to work with Chinese companies to establish localised manufacturing within the region, thereby providing access to both local and global markets.

Nearly 40 Chinese firms are reportedly planning to build manufacturing plants at the China-UAE Industrial Capacity Cooperation Demonstration Zone (ICCDZ) in Khalifa Industrial Zone Abu Dhabi (Kizad), representing a $10bn investment under the Belt and Road Initiative.

Additionally, a Saudi delegation in early 2024 led by the Ministry of Industry and Mineral Resources embarked on a high-profile economic visit to East Asia, to enhance bilateral relations, attract investment, and exploring joint-venture opportunities. This is in line with Vision 2030’s goals to diversify Saudi Arabia’s economy and establish the Kingdom as a leader in the industrial sector.

4. Green industrial potential: GCC countries have an opportunity to diversify their economies and become hubs for green industries, while also reducing emissions of greenhouse gases. This won’t happen overnight due to a lack of access to renewable energy, limited supporting policies, and unfavourable local demand conditions – despite low-cost green energy and ambitious green hydrogen plans.

Leveraging these competitive advantages to decarbonise their industrial sector by producing green steel or green cement is essential to meet future demand and ensure compliance with both today and tomorrow’s regulations across global markets.

5. Addressing the growing regional demand: The outlook regarding industrial goods in the Middle East cannot be completely separated from global risks.

The majority of the industrial products manufactured in the GCC – mostly large-scale globally traded commodities such as petrochemicals and basic metals – are expected to face recessionary pressures, either due to oversupply or decreasing oil prices.

In addition to diversifying into advanced manufacturing as discussed above, GCC countries should look to shift their focus to manufactured goods that boast strong regional demand, such as materials for oil and gas infrastructure, construction, utilities, and ports.

While 2025 will pose challenges for industrial goods and manufacturing companies, there is cause for optimism in the GCC. The region’s strengths and strategic initiatives provide a solid foundation for growth and innovation which will enable manufacturers to thrive, despite the obstacles ahead.

The writer is the IMEA head of Automotive and Manufacturing Industries at Oliver Wyman.

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