Global diesel prices and refining margins spiked following the latest round of US sanctions on Russia’s oil trade based on expectations that the measures would tighten supplies, according to analysts and LSEG data.
US imposes tough sanctions
The US imposed its toughest sanctions on Russian producers and tankers yet on January 10 to curb the world’s No. 2 oil exporter’s revenue for its war in Ukraine.
Many of the newly targeted vessels, part of a shadow fleet that seeks to circumvent Western restrictions, have been used to ship oil to India and China. Refiners in those countries have benefited from Russian imports that were banned in Europe following the Russia-Ukraine crisis.
“Diesel [profit margins] are up following news on the sanctions, and we expect meaningful disruptions to Russian diesel exports,” said Energy Aspects analyst Natalia Losada. She added that at least 150,000 barrels per day (bpd) of Russian diesel exports from Gazprom Neft and Surgutneftegas refineries are at risk.
The premium of the first-month European diesel benchmark contract to that six months later LGOc1-LGOc7 spiked to $50.25 a metric tonne on Thursday, a 10-month high, LSEG data shows.
The diesel market was already in backwardation, the term used for a market structure whereby nearby contracts trade at a premium to later delivery contracts. This usually denotes tight prompt supply.
Diesel refining margins LGOc1-LCOc1 stood at a five-and-a-half month high of $20 a barrel on Thursday.
Cold weather in the northern hemisphere was already supporting diesel markets.
Asian diesel refining margins GO10SGCKMc1 jumped 8 per cent on Monday to above $17 a barrel, the largest gain since September, before easing to about $16.50 a barrel on Thursday.
US diesel futures surged more than 5 per cent on January 10, their biggest daily gains since October, and hit a six-month high of $111 per barrel on Thursday.
Front-month diesel is commanding an over $10 premium over the sixth-month contract, the largest premium in almost a year.
Traders and refiners are factoring the higher crude costs into fuel prices and refining runs, two Singapore-based trade sources said, adding that lower Russian diesel flows are unlikely to have a big impact on Asian markets directly.
Even with higher diesel margins, Asia’s complex refining margins have weakened as crude prices have gained at a much faster pace than refined product prices, a third source said.
Nestlé has been a staple in our lives — a comforting, trusted presence, subtly intertwined into the fabric of our daily routines, memories, and even family traditions. From the robust and aromatic flavour of Nescafé and the quiet nostalgia of Nido to a hearty bowl of Maggi soup or noodles to the crispiness of a KitKat bar — the company’s offerings have nurtured generations across continents, through moments of joy and times of uncertainty, particularly in the Middle East.
At the helm of Nestlé’s vast operations in the Middle East and North Africa (MENA) is Yasser Abdul Malak, a man whose own story is as deeply interwoven with the company’s journey as the brands it produces. “When I think of Nestlé, I think of a brand that people know and trust,” says the chairman and CEO with a reflective pause.
Deep roots in the region
For Abdul Malak, who has worked with the company for 25 years, Nestlé’s presence in the MENA region isn’t just about profitability or market share – it’s deeply personal. He recalls an encounter from one of his trips where he visited a family in Lebanon. “I walked into their home, and there it was, a can of Nido sitting on the kitchen counter. The can’s exterior had faded, but you could tell it had been there for decades. It was also home to a small plant,” Abdul Malak shares with a smile. “It was a touching reminder of how our products are more than just food on a shelf.”
The importance of this personal connection isn’t lost on him. Having worked his way up through the ranks at Nestlé, Abdul Malak’s leadership is rooted in a deep understanding of the region’s people, cultures and values. “When I travel across the region (which could be any of the 19 countries he oversees), I am constantly reminded of how integral Nestlé is to families. We’ve been here for over 120 years, adapting and evolving with the people we serve. And that’s what keeps me passionate about what I do.”
Abdul Malak carries the weight of not just corporate aspirations, but also a deep responsibility towards consumers that have relied on the brand for more than a century. It’s a legacy that runs deep. “We don’t just operate here – we belong here. We’re part of these communities,” he says emphatically. His excitement is palpable, as he explains: “Nestlé has had a presence in the region since 1900, with Egypt and Lebanon being some of the first countries to sell the brand. We’ve adapted and stayed relevant by focusing on what our consumers want while maintaining our core values of quality, trust and innovation. Nestlé’s global scale, combined with our local presence, allows us to create tailored offerings such as Nescafé Arabiana – our branded Arabic coffee – and other region-specific products like shawarma and falafel mixes.”
He adds: “Over time, we’ve made significant changes internally, shifting to a more localised leadership structure to ensure we are closer to our consumers and can make decisions faster. Adaptation is key, and we understand that to stay relevant, we must constantly evolve.”
Nestlé’s strategy is clear, Abdul Malak says. “The key to success in the MENA region is staying connected to the local consumer. Understanding their needs, pain points and aspirations is vital. Nestlé’s strength lies in our ability to adapt our global offerings to local tastes while maintaining our commitment to quality. As long as we continue to build on that foundation — with a focus on sustainability, innovation and local engagement — we will continue to thrive in this dynamic region.”
This approach has served Nestlé well; its presence across the region is by no standards modest. The food and beverage giant operates 24 factories across the MENA region, providing direct employment to more than 12,000 people. The portfolio of its brands – over 60 and counting – encompasses everything from dairy products to infant nutrition, coffee and creamers, confectionery, bottled water, breakfast cereals, culinary products, health science and pet care.
Creating shared value
What underscores this growth is the commitment to creating shared value for the global brand that cherishes its local connections. Abdul Malak says, “We’ve made substantial investments in the MENA region. Over the past decade, we’ve invested over $1.1bn in manufacturing across the region. For example, in Dubai, we have state-of-the-art factories that export products to around 30 countries such as Australia, the US and Canada, and some Asian markets.”
The UAE is a key market for Nestle’s operations, with Dubai serving as the regional head office for the MENA region. The company’s office, currently based in Dubai South, will move to Expo City shortly. The company locally produces confectionery, dairy and culinary products, and coffee at two food and beverages factories in Dubai. It also operates two water manufacturing sites, one in Dubai and the other in Abu Dhabi.
Saudi Arabia is also a focus market for Nestlé. The company has committed to investing SAR7bn over the next decade in the kingdom, focusing on human capital, local sourcing, and research and development.
Abdul Malak says, “We are deeply committed to advancing scientific research in Saudi Arabia, collaborating with the government to explore locally sourced ingredients with future potential.”
A core principle at Nestlé is sourcing locally, not only to strengthen the economy but to build resilience against global supply chain disruptions. “Our new, state-of-the-art factory, with a capacity of 15,000 tonnes annually, is set to open in 2025 in Saudi Arabia. It will initially focus on infant food production and contribute significantly to local needs and food security. A major R&D focus for us is fortifying products for children, especially addressing widespread nutrient deficiencies such as iron, through products like Cerelac. We believe supporting children’s health is key to building stronger communities.”
Showcasing Nestle’s operations across other markets in the region, Abdul Malak adds: “In Egypt, we have a strong manufacturing presence and continue to invest in expanding capacity and growth. Egypt remains a key strategic market for us, alongside our facilities in Morocco, Lebanon, Qatar, and Bahrain. Our footprint across the region has made a significant impact, and in the coming years, we are committed to increasing our investments. The Middle East represents a region of immense opportunity, with over half a billion consumers driving demand.”
Investing in youth
Investing in human capital though is a priority for the leader. Abdul Malak understands that nurturing the next generation of talent is key to both Nestlé’s future and the region’s prosperity. “The youth in MENA are our greatest asset. The region has one of the youngest populations in the world, and they bring an incredible amount of energy, ideas, and innovation,” he says, his voice filled with enthusiasm.
The company’s youth initiatives, like the Nestlé Academy in Saudi Arabia, are designed to equip young people with the skills they need to thrive in an ever-evolving job market. “Our Nestlé Academy is not just about upskilling – it’s about empowering young people to take ownership of their careers and their futures. In a region where youth make up such a large portion of the population, we must invest in their potential. We are also investing in the local startup ecosystem, working with partners like Monsha’at to foster innovation in the food service industry.
In addition to the academy, Nestlé MENA has also been actively involved in programmes that focus on entrepreneurship and business leadership. Another initiative that has been pivotal to Abdul Malak’s vision for youth engagement is Next Level (NxL). Launched in 2022 in partnership with L’Oréal, the virtual training programme equips young people with essential skills crucial to thrive in today’s dynamic and rapidly changing workforce, particularly in artificial intelligence (AI) and digitalisation. Since its inception in 2022, the programme has impacted more than 23,000 young individuals across the region. The recently launched Season 3 introduces new key partners, offering modules on AI, digital skills, green skills, entrepreneurship and more.
In December 2024, Nestlé MENA launched the ‘Sustainability Heroes’ initiative in the UAE and Kuwait in collaboration with key partners from the government and private sectors, aiming to empower 200 university students in each country with essential business and entrepreneurship skills. “Another initiative we’re proud of is NesTalent, where we bring 15-20 fresh graduates into the organisation each year. This programme is vital because we not only offer them opportunities for professional growth but also listen to their ideas and encourage them to contribute,” shares Abdul Malak.
The company’s priority on nurturing and developing talent is deeply integrated into its values, says Abdul Malak. “Our commitment to creating a positive work environment is something we take very seriously — it’s not just a slogan, it’s demonstrated in everything we do. External recognitions like being named a ‘Great Place to Work’ in the UAE, Saudi and Egypt, the ‘Best Place to Work’ in Morocco, and being recognised as a ‘Great Place to Work for Women’ in the GCC, are a testament to our efforts.
“At Nestlé, respect for oneself, respect for others and respect for our community are core values that guide every decision. It’s not just about policies or HR initiatives; it’s about living these values every day. We believe that everyone in the organisation is responsible for HR. Everyone has a role in fostering a positive work environment. Our culture is built on trust, transparency, and collaboration. We also foster a deep connection to our people — there’s no hierarchy here that prevents us from connecting and learning from each other. Moreover, we’re pushing to become the most ‘fascinating’ organisation in MENA, and we’ve set up a MENA Council to gather insights from young employees to help make that happen. The idea is to continually evolve and make the workplace a place where people feel engaged, respected, and valued.”
This collaborative approach has helped the company stay strong in the face of challenges, both geopolitical crises and economic pressures affecting the region.
Resilience and response
“The year 2024 has been another challenging one, but we’ve seen some great achievements. First and foremost, I’m proud of the exceptional team we have. Despite the intensity of challenges — global and local — the team has not only met our commitments but also had a positive impact on the community,” says the resolute leader.
He adds: “We’ve continued investing in our brands, people, and sustainability initiatives. One of the standout moments was our ability to keep key products in stock throughout the global supply chain crisis. We did not have a single day of stockouts on essential products, which speaks to the agility and resilience of the team.”
Reflecting on the lessons recently learned, Abdul Malak shares a candid perspective on the importance of humility and realignment. “We’ve made our mistakes, but what’s crucial is how we respond. At Nestlé, we don’t shy away from our challenges. We acknowledge them, learn from them, and then adapt. The key to sustained success is agility — the ability to pivot, to realign our efforts in the face of changing dynamics.”
In an industry as competitive and dynamic as food and beverage, where consumer tastes evolve constantly, the ability to course-correct and stay ahead of the curve is vital.
Abdul Malak emphasises that Nestlé’s success in the MENA region stems from its constant self-assessment and willingness to change when necessary. “I often tell my team that perfection is a process. We can’t afford to get comfortable. Every setback is an opportunity to refine our approach and come back stronger. The companies that endure are those that are not afraid to rethink their strategies, even when things seem to be going well.”
Planning, strategy and teamwork were also key factors driving the company’s response to the crises in Gaza and Lebanon, highlighting the human side of Nestlé’s operations, which are often not public knowledge. “When the crisis in Gaza unfolded, we had to act quickly. Our number one priority was the safety and wellbeing of our people. But we didn’t stop there. We also stepped in to provide essential supplies to those in need,” he recalls.
“Our employees in Lebanon, Egypt, Jordan, and beyond were quick to mobilise, providing aid and offering support to those affected. It was a moment of solidarity that showed us what it truly means to be a global company with a heart for local communities.”
Nestlé has actively supported humanitarian efforts with a total donation of approximately $1.5m for medical assistance extended to Gaza. As part of the support for Gaza, Nestlé enabled the treatment of more than 1,000 children in Egypt in collaboration with the Ministry of Health and the Terous Foundation. Additionally, the company facilitated the air evacuation of 32 critically ill incubated infants from Gaza to Egypt for urgent care. Recognising the urgency, Nestlé also donated a fully equipped mobile hospital to the Jordanian Armed Forces to support medical relief efforts.
“In Lebanon, we have contributed half a million dollars in partnership with local organisations such as the Lebanese Food Bank and Beit El Baraka, ensuring the distribution of one million meals to those in need,” shares Abdul Malak. The company also provided 1.5 million litres of water to those affected, recognising the scarcity and urgency of resources.
“We supported the Lebanese Red Cross, which was in dire need, especially for critical emergency medical services. Internally, we encouraged our people to volunteer and donate, through our Helping Hands initiative, and the response was overwhelming. Whether it was in Egypt, Jordan, Lebanon, or Dubai, we saw incredible solidarity. It’s heartening to see how our teams rallied around the cause — what we call a ‘helping hand to Gaza, a helping hand to Lebanon’.
“At the same time, we focused on ensuring that the team felt supported in these tough times. Acknowledging the emotional strain at the same time, we focused on ensuring that the team felt supported during this tough period. Considering the challenges was important, but we emphasised how, together, we were making a tangible impact.”
This sense of solidarity is at the core of Abdul Malak’s leadership philosophy. He emphasises transparency, authenticity and a deep commitment to people — not just employees, but communities at large.
A new direction
Undeterred by the challenges, Nestlé MENA’s chairman and CEO remains hopeful and optimistic about the future. Nestlé, under the guidance of its new global CEO Laurent Freixe, is entering a new era, one defined by greater efficiency, innovation, and a more sustainable approach to growth. Abdul Malak, along with his team in the MENA region, is fully aligned with this vision.
“The appointment of Laurent as CEO has ignited a fresh energy within the company,” Abdul Malak reflects.
“His vision for Nestlé is clear: Invest more in our brands, our people, and the communities we serve. And in the MENA region, we are fully aligned with this direction. Nestlé MENA is one of the top 10 geographies for the group and will continue to play a key role in driving growth for the company. We are committed to innovation, to being a partner to our local communities, and to ensuring that our growth is not just financial but meaningful.” One of the key areas where Nestlé is focused is sustainability. From reducing the environmental impact of its manufacturing processes to investing in local sourcing, the company is dedicated to making a positive impact in the region.
“Sustainability is not just a buzzword for us. It’s a core part of our strategy. Whether it’s through our work with local farmers in Egypt or our commitment to reducing plastic waste across the region, we’re making tangible changes that will benefit generations to come,” says Abdul Malak.
Hope for 2025 and beyond
As the MENA region continues to evolve, so too does Nestlé. “The future is bright,” says Abdul Malak with conviction. “The MENA region is home to one of the youngest, most dynamic populations in the world. With Nestlé’s unwavering commitment to innovation, sustainability, and youth development, we are perfectly positioned to grow alongside this region and make a meaningful impact.”
He elaborates: “I’m fortunate to be surrounded by some of the brightest minds — people who are passionate, creative and dedicated to pushing Nestlé to the forefront of innovation. That’s how we drive change.”
Looking ahead, the company is primed to address emerging trends and challenges head-on. One of the most significant shifts is the rising demand for convenience, accelerated by Covid-19 and evolving lifestyles. More dual-income households, coupled with an increasingly fast-paced world, have made ultra-convenient products a necessity. Nestlé is responding by innovating products that cater to this need while maintaining its commitment to health and quality. Another key trend is the growing focus on nutrition and preventive health. As consumers become more health-conscious and aware of the role food plays in wellbeing, Nestlé remains dedicated to providing affordable, nutritious options. “Food plays a crucial role in preventive health, and as a nutrition, health and wellness company, we’re committed to addressing malnutrition in the region with fortified products,” says Abdul Malak.
This focus will continue to guide Nestlé’s strategy, ensuring that it meets the nutritional needs of a rapidly growing and evolving population. The rise of e-commerce and omni-shopping also presents new opportunities.
Abdul Malak re-emphasises that Nestlé’s success in the MENA region is driven by more than just market trends. “Our focus on nutrition, sustainability and innovation helps us address the challenges that families face every day. It’s not just about selling products — it’s about improving lives. And that’s why we invest so heavily in the region, from our manufacturing facilities to our community programmes.
We’re here for the long haul, and that’s what matters,” affirms the leader.
___ Leadership lessons: Yasser Abdul Malak
Nestlé MENA’s chairman and CEO shares his mantras for leadership and management
Leading through challenging times has taught me a valuable lesson: As leaders, we face two choices — either we allow the situation to overwhelm us, or we take ownership and keep delivering, regardless of the obstacles. A true leader focuses on finding solutions and closing gaps, rather than justifying delays or setbacks.
The second lesson is the importance of straight talk. In difficult times, sugarcoating only wastes time. Clear, direct communication is essential — it’s not about impressing others but about making progress together.
Another critical lesson is balancing talent management. While it’s important to nurture and hold onto high performers, addressing low performers is equally crucial. A team thrives when it’s made up of people who elevate one another. Throughout my career, I’ve been fortunate to surround myself with incredible leaders and mentors. I’ve always sought to learn from people who are smarter, more experienced, or even older than me.
Transformation is a constant journey. Change is inevitable and, especially in today’s world, it has no endpoint. At Nestlé, we’re unapologetically committed to continuous transformation – to becoming more relevant, stronger, and having a greater impact on our communities and people.
One key aspect of change is speed and agility. We strive to move quickly, but we never compromise on quality or compliance. Speed is critical but so is getting the details right. Leadership at every level understands this balance, and I encourage my team to make decisions confidently.
Mistakes will happen, but what matters is how we respond. Acknowledging mistakes quickly and learning from them is vital. I always tell my team that I won’t blame you for making a mistake, but I will hold you accountable if you don’t make a decision when it is needed.
I believe leadership is about continuous learning, and I’ve always sought to learn from those around me, whether it’s a mentor, my team, or even friends. It’s important to remain self-reflective and acknowledge areas where you can grow.
Staying fit is crucial, especially in leadership roles. I’ve always believed in the idea of “fit to grow”. If I’m not physically and mentally fit, how can I expect my team to be? I make health a priority.
I also encourage my team to prioritise wellbeing, as it’s important for long-term performance. You can’t sustain leadership effectiveness without taking care of that yourself.
WhatsApp rolls out its latest update: Here’s what you need to know
The updates include creative camera effects, personalised selfie stickers, and improved message reactions, with a focus on making the platform more engaging and intuitive
The world’s biggest messaging platform, WhatsApp, has kicked off the new year with a suite of features and design updates aimed at enhancing user experience.
The updates – revealed by WhatsApp’s owner Meta – include creative camera effects, personalised selfie stickers, and improved message reactions, with a focus on making the platform more engaging and intuitive.
Here’s what users can expect in terms of the four key updates:
Revamped camera effects
Users can now transform their photos and videos with 30 new backgrounds, filters, and effects when sending media in chats. The move is designed to provide a more interactive and visually appealing way to communicate.
Personalised selfie stickers
WhatsApp has introduced the ability to turn selfies into custom stickers, a feature currently available on Android and set to launch on iOS soon. To create a sticker, users simply tap the “create sticker” icon, snap a selfie, and personalise their new digital expression.
Enhanced sticker sharing
The platform has also made it easier to share sticker packs. Users can now send entire packs to friends directly through their chats, adding a new layer of convenience to sharing popular stickers.
Quicker message reactions
Responding to messages is faster and more efficient with a new double-tap feature. Users can instantly react to messages and access their most-used reactions with a quick scroll, making conversations smoother and more dynamic.
WhatsApp’s latest updates highlighted in an image created by Meta. (Image: Meta)
WhatsApp is the world’s most widely used messaging app. According to Meta, it has 2 billion daily users who send more than 100 billion messages every day in 60 languages across 180 countries.
Some 400 million of those users are in India, WhatsApp’s biggest market, followed by another 120 million in Brazil.
Arab Health, the region’s leading healthcare event, will celebrate its 50th anniversary from January 27-30, 2025, at the Dubai World Trade Centre, following a successful 2024 edition with over Dhs9bn in business deals and a record 3,627 exhibitors.
The 2025 edition of Arab Health, which is being hosted under the theme “Where the World of Healthcare Meets,” is expected to surpass these figures. It will feature more than 3,800 exhibitors and attract over 60,000 visitors. The premier gathering serves as a vital platform for industry leaders, healthcare professionals, and innovators to converge, collaborate, and shape the future of healthcare in the region and beyond.
With the global healthcare market projected to hit a record $780bn by 2030, the Arab Health 2025 promises to be an even more impactful and transformative experience, offering a plethora of opportunities for attendees.
Here are the key highlights in terms of conferences happening at the event:
World of wellness & healthcare ESG: Situated in the newly expanded Al Mustaqbal Hall, the Eco-Sphere is an all-new show floor feature hosting wellness and sustainability initiatives.
Smart hospital & infrastructure forum: Backed by Cityscape, this immersive showcase will demonstrate innovative and sustainable healthcare technologies, highlighting seamless integration with state-of-the-art medical equipment to enhance patient care environments.
Transformation Zone & Innov8 startup competition: A platform for aspiring entrepreneurs and innovators to showcase their groundbreaking ideas and connect with potential investors. The previous edition saw VitruvianMD win the competition for their technology, which combines biomedical engineering with artificial intelligence.
Executive Networking Lounge: Network with influential healthcare professionals and discover new investment opportunities. This exclusive lounge is designed for high-level venture capitalists, angel investors, private equity firms, healthcare executives, multinational companies, and family offices.
Future Health Summit: Returning with a focus on “AI in Action: Transforming Healthcare Delivery,” this invite-only summit will convene global experts to discuss artificial intelligence’s transformative potential in healthcare.
The four-day healthcare event will feature a wide array of educational opportunities, from 10 Continuing Medical Education (CME)-accredited conferences across various specialities to three new non-CME Healthcare Business Forums. The expanded Arab Health Village will provide a welcoming space for attendees to connect and unwind.
Electric vehicles have recently taken over Dubai’s roads in a big way.
However, charging this eco-friendly transportation might be a task because of the location and the processes involved in charging the electric vehicles.
There are about 400 electric vehicle charging stations in Dubai, which can charge about 740 electric vehicles simultaneously.
Electric vehicle charging account
The very first step towards charging your electric vehicle is to have an EV (electric vehicle) account with DEWA. The users can log in to the account with their user ID or even a UAE Pass.
Dubai residents driving electric vehicles, who have an EV account as well as the ones not registered with the DEWA EV account service, can charge their cars by scanning the QR codes on DEWA Green Charger stations.
The registered customers can also charge their vehicles using the EV Green Charger Card that can be received from DEWA.
Electric Vehicle Account holders can use the following ways to charge their vehicles:-
1- By using the DEWA smart app
While using the DEWA Smart App, the customers need to
• Scan the QR code on the EV Green Charger station
• On being directed to the charger details page, they would have to log in to their Online User ID or the UAEPass
• Lastly, select their EV account and follow the instructions that appear on the page to charge their vehicle
2- By using the smart device cameras
• The customers need to scan the QR code on the EV charger station from their smart device cameras, to be directed to the green charger details page
• This is where they need to log into their DEWA Online ID or the UAE Pass
• Select their respective EV to follow instructions and charge their vehicles
What EV Green Charger Card holders need to do
The EV Green Charger Card holders need to scan their card on the card reader placed on the station and follow the appearing instructions to charge their vehicle.
Not registered with the DEWA EV account service? Here’s what customers can do
1- Use the DEWA smart app
The customers need to scan the QR code on the charging station, by using the smart app to be directed to the Green Charger details page
They need to ‘continue as guest’ from there to get to the login page.
Fill in their details next and verify their emails to select the charging package
Lastly, they can make the payment based on the consumption, once the charging has been completed.
2- Use the smart device camera
The users must scan the QR code on the charging stations and get to the details page
They will have to fill in the form to use the Guest Mode service, verify their email, and select the preferred package
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.
