< PreviousSUSTAINABILIT Y 40 Vol. 24/12, 16–31 October 2023 The promise of nature-positive tourism in Umm Al Quwain The UAE pays great attention to ecotourism as it is one of the types of sustainable tourism that contributes to the preservation of natural and cultural heritage activities such as coral reef diving, wildlife observation and general tour- ism in the vicinity of the coral reefs. The UAE pays great attention to ecotourism as it is one of the types of sustainable tourism that contributes to the preservation of natural and cultural heritage. During the last two decades, ecotourism has witnessed significant growth as a result of an increase in environmental awareness among travellers and tourists, with tourists speci cally seeking out expe- riences that are aligned with sustain- ability standards during their stay, and the preservation of the environ- ment and national heritage. The Emirate of Umm Al Quwain has designed a distinct and integrated tourism model that prioritises the preservation of coastal and desert ecosystems whilst also ensuring the authenticity of the rich archaeological and heritage sites that characterise the emirate. One of the most impor- tant tourist sites that supports Umm Al Quwain’s aspirations and latest environmental best practices is the pristine “Mangrove Beach” which overlooks Al Sinniyah Island and the coastal lagoon Khor Al Yafra, and offers multiple public recreation BY SHEIKH MAJID BIN SAUD BIN RASHID AL MUALLA, CHAIRMAN OF TOURISM & ARCHAEOLOGY DEPARTMENT OF UMM AL QUWAIN SUSTAINABILITY The UAE pays great attention to ecotourism as it is one of the types of sustainable tourism that contributes to the preservation of natural and cultural heritage Ecotourism has emerged as one of the most important drivers of the global tourism market, valued at an estimated $200bn in 2022 and making up nearly 10 percent of this vital economic sector. Ecotourism is projected to continue to grow at a rate of 12.9 percent annually during the next decade. Much of this tourism depends on the quality of natural ecosystems, as well as their associated biological diversity and wildlife. This is best illustrated by a study conducted by the World Bank, which found that coral reefs for instance represent a signi - cant economic value estimated at about $36bn annually in the form of arabianbusiness.com 41 SUSTAINABILITY Umm Al Quwain is characterised as a fertile land of natural resources and one of the country’s richest areas in terms of marine and coastal biodiversity activities through which visitors can enjoy the exceptional beauty of its ora and fauna. A coastal ecosystem full of natural capital and cultural value One of the most prominent natural sites in the emirate is Khor Al Beidah, a multi-system seascape that covers more than 138 sq km and embraces a variety of critical marine habitats such as mangroves, seaweeds, mud ats, sabkha, hard rock bottom, and local salt meadows. The coast lagoon is also a valuable natural blue carbon sink, with the potential to sequester and store large amounts of carbon. These habitats are home to many species listed on the International Union for Conservation of Nature’s list such as the Halavi Guitar sh (Glaucostegus halavi) which is facing extinction. The coastal lagoon is also home to a large colony of the Socotra cormorant, which represents 15-35 percent of the bird’s population in the world. In an adjacent part of the khor lies Al Sinniyah Island, which is distin- guished by its historical, archaeolog- ical and natural values. One of the largest natural islands in the emirate, Al Sinniyah features a green belt of lush mangroves and houses many archaeological sites such as a Chris- tian monastery and the oldest pearl diving city. It is also the home of the founders of the emirate of Umm al Quwain and its tribes. Protecting the past and the future Umm Al Quwain is characterised as a fertile land of natural resources and one of the country’s richest areas in terms of marine and coastal biodiversity, with is unique coastal vegetation of mangrove trees and seagrass beds. Recognising this rich natural capital, the Umm Al Quwain government launched its pioneering Sustainable Blue Economy Strategy (SBE) 2031 during the World Government Summit 2022, with an aim to design and implement Nature-based Solutions (NbS) and nature-positive tourism across the emirate. Featuring eight key projects, the strategy charts the course for Umm Al the rst environmental project super- vised by the o ce as part of the Sustain- able Blue Economy Strategy 2031, and aims to protect the natural environment, through optimal use of resources, and to contribute to the development of ecot- ourism in the emirate. The reserve includes the Mangrove Beach project, which allows visitors to learn about the importance of mangroves and explore the natural areas and coastal environment. Scaling up nature-based solutions The emirate’s SBE strategy was devel- oped in cooperation with Emirates Nature-WWF and born out of the work conducted through the UAE’s agship Nature-Based Solutions (NbS) project. As part of the project, environmental scientists assessed the diversity of marine life and blue carbon value in a vital coastal area in Umm Al Quwain, which, along with Al Sinniyah Island, makes up the undisturbed and pristine marine landscapes on the western coast of the country. During the coming years, Umm Al Quwain will continue its work to design plans for blue economy projects and integrate all the environmental and cultural components that characterise the emirate, in order to protect our coastal ecosystems and biodiversity in a sustainable manner. The adoption of sustainable and innovative ideas will also contribute towards achieving our vision of enhancing nature-positive ecotourism. Khor Al Beidah lagoon in Umm Al Quwain is home to a variety of critical marine habitats such as mangroves, seaweeds, mud flats, sabkha, hard rock bottom, and local salt meadows Umm Al Quwain will continue its work to design plans for blue economy projects, says Sheikh Majid Quwain to become a global model for the blue economy. It also establishes the Sustainable Blue Economy as a key pillar of the local economy, with plans to contribute 40 percent to the emir- ate’s gross domestic product by 2031 and achieve a positive carbon outcome. As part of this endeavour, the Blue Economy O ce launched the rst natu- ral reserve to protect and renew the marine and coastal environment in the emirate of Umm Al Quwain. The Umm Al Quwain Mangrove Reserve represents 42 Vol. 24/12, 16–31 October 2023 TECHNOLO GY Food security and climate change: Carrot and stick needed to drive sustainability Multiple global crises have exposed structural weaknesses in our food systems and threatened the survival of many It seems like every other week we hear a new statistic about climate change that brings our very exist- ence into sharp focus. Ninety nine percent of the species that have evolved on earth are now gone. What an ironic twist, that in our search for perpetual growth and prosperity, our unsustainable way of living could be our own undoing. Food as survival Food is pleasure, but it is also survival. That is where we are now, globally, ghting for survival. Much of the discourse about climate change rightly focuses on cleaner transport, and less carbon-intensive manufacturing, but we are not talk- ing radically enough about reorient- ing our food systems in order to help us survive. BY RICKY SHAH, HEAD OF CONSULTING SERVICES, MIDDLE EAST AT OCO GLOBAL SUSTAINABILIT Y The GCC’s wealth has enabled the region to make massive strides in food securityarabianbusiness.com 43 SUSTAINABILIT Y In a world where climate change doesn’t discriminate, the region cannot rest on its laurels, and needs to set the stage now to ensure future generations can not only survive, but thrive, in the GCC The 2022 World Food Prize winner Cynthia Rosenzweig put it perfectly when she said “Climate change cannot be restrained without attention to food system emissions, and food security for all cannot be provided without resilience to increasing climate extremes”. Multiple global crises (Covid-19, the Russia-Ukraine tension and more) have exposed structural weaknesses in our food systems and threatened the survival of many. In and amongst the sirens of war, concessions to enable the transport of critical grains from Ukraine demonstrate the ‘above- all-else’ imperative of food. Food as a destructive luxury The GCC’s wealth has enabled the region to make massive strides in food security, in terms of the availability, a ordability and quality of food. This has been achieved through a range of means, including buying agricultural land abroad, and investing in some of the largest food producers. Shopping for food in the region is second to none – go into any super- market and you’re inundated with apples from every corner of the earth, as well as mangosteens, rambutans and lychees that one could only dream of nding in the UK. But this is a core part of the prob- lem. While the GCC countries perform exceedingly well in most metrics of the Food Security Index, all six coun- tries’ lowest scores in the 2022 edition were in the sustainability and adapta- tion dimension. This does not come as a surprise. The region imports around 85 percent of its food, much of this by necessity. It is simply not possible to produce enough food locally to meet demand – that simply doesn’t happen anywhere, and that’s not the argu- ment here. Rather, a rebalancing is needed to reduce the reliance on imports, grow locally where feasible, and drive changes in consumer behaviour. Opportunity in crisis Just as the fuel e ciency of US cars environment and signi cant govern- ment incentives on offer, a host of leading agritech companies have set up across the GCC, allowing the region to build on this early success to accelerate the growth of local production capabilities. Pure Harvest and Madar Farms have noticeably changed things in the UAE; go into any supermarket and you’ll increasingly see fruit and vegetables made in the country – a sign that it is possible to grow food in the desert! GCC governments are increas- ingly doing their part to drive systemic change. The UAE government’s AgriTech Sector Development Team, Qatar’s hosting of the International Horticultural Exhibition in 2023, and Oman’s empowerment of farmers through smart agriculture, does demonstrate important engagement in the topic Consumers as the nal hurdle Despite these green shoots, consump- tion patterns in the region are the primary challenge to overcome. By its very nature, the region attracts millions of global citizens; each one wants a taste of home, which has its own price tag for the environment. So, what’s the answer here? Can the GCC really maintain its strong value proposition to foreign labour, and clamp down on some of what keeps them connected to their past? In part yes; if governments in the region can attract more investment into smart agriculture, they can drive more local production. If they can drive consumer awareness campaigns that make obvious the ‘luxury vs survival’ question, companies and people may decide to reorient their consumption patterns. The region has so far been shielded from some of the economic turmoil that’s gripping the globe. However, in a world where climate change doesn’t discriminate, the region cannot rest on its laurels, and needs to set the stage now to ensure future genera- tions can not only survive, but thrive, in the GCC. increased signi cantly following the 1973 oil crisis, the aggregation of different climate and food-related challenges provide a fertile ground for innovation and action. The GCC’s wealth and desire to act as global leaders across a number of fields mean that it is well placed to drive innovation in food systems, and act as an exemplar to the rest of the world. Recognising the stable regulatory $22.6BN The projected value of the worldwide agritech market by 2025, according to a report by Deep Knowledge Analytics The region has so far been shielded from some of the economic turmoil that’s gripping the globe, says Shah44 Vol. 24/12, 16–31 October 2023 SUSTAINABILIT Y Why battery storage investment is vital to the Middle East’s clean energy transition Governments, industries, and investors must recognise the pivotal role of battery storage As the world embraces sustain- able and low-carbon energy systems, the integration of renewable energy sources into power grids has become essential. Accom- panying this transition is the develop- ment of battery storage technology. The nature of renewable energy sources means that they are inter- mittent, which makes it challenging to ensure consistent and reliable power. By using rechargeable batter- ies to store electrical energy and other forms of flexibility, energy consistency in the grid is ensured when fluctuations in renewable energy sources occur. This makes it possible to maintain a stable volume and high quality of electricity, allow- ing continuous operation, which is BY DAVID CULLERIER, VICE PRESIDENT, FLEXIBLE GENERATION, ENGIE SUSTAINABILIT Y Ensuring reliable and stable energy access is a top priority for governments in the Middle Eastarabianbusiness.com 45 SUSTAINABILIT Y By leveraging the use of battery storage, the MENA region can quickly establish itself as a pioneer in the renewables market and achieve national renewable energy targets essential in meeting global commit- ments from a G20 perspective. An excellent example of a battery storage project in Australia is the Hazelwood Battery Energy Storage System, which is one of the largest privately funded and owned utili- ty-scale battery in the country with a capacity of 150 MW/150 MWh of exi- ble energy. The battery is located at the site of the former Hazelwood Power Station in the Latrobe Valley and will play a critical role in increas- ing renewable energy capacity in Victoria, while delivering further grid stability for the state. The project was funded by ENGIE and Macquarie’s Green Investment Group (GIG) and will be built, operated, and main- tained over a 20-year period by Fluence – a global market leader in energy storage products and services. Investing in battery storage is crucial for a successful energy transi- tion in the Middle East, as it enables the realisation of the full bene ts of renewable energy. Governments, industries, and investors must recog- nise the pivotal role of this technology and take bold steps towards its devel- opment and implementation. Battery storage presents a critical opportunity for the region to achieve its national renewable energy targets in the medium term, with the UAE aiming for net zero by 2050 and Saudi Arabia by 2060. Ensuring reliable and stable energy access is a top priority for governments in the Middle East, and batteries serve as enablers for energy consistency and reliability during the transition to intermittent renewables. Battery storage also presents opportunities for companies and institutions with high energy demand to supply their needs in case of emer- gency, such as hospitals, and reduce energy usage and carbon emissions for high emitting industries, such as manufacturing or construction. MENA countries must rapidly deploy Battery Energy Storage Systems (BESS) into their power grids if they are to meet their national renewable energy targets. According to reports, there are 30 BESS projects planned in MENA between 2021 and 2025 with a total capacity/energy of 653 MW/3,382 MWh. The share of batteries out of MENA's total energy storage landscape is expected to jump from 7 percent to 45 percent by 2025. With the global solar energy and battery storage market size projected to reach $26.08bn by 2030, growing at a CAGR of 16.15 percent from 2022 to 2030, batteries are a new and prom- ising market, and the Middle East can leverage this opportunity to become a pioneer in the battery energy storage system market. The region is already making moves in the new value chain, with Saudi Arabia planning to invest $905m in a chemical complex to produce the elements needed to recharge lithium-ion batteries for electric vehicles and renewable energy storage. By leveraging the use of battery storage, the MENA region can quickly establish itself as a pioneer in the renewables market and achieve national renewable energy targets in the medium term. The development of battery storage infrastructure is an innovative and sustainable way to ensure energy consistency and relia- bility, while contributing to the goal of the low-carbon economy. $26.08BN The projected size of the global solar energy and battery storage market by 2030 The Middle East can leverage the opportunity to become a pioneer in the battery energy storage system market, Cullerier believes Hazelwood Battery Energy Storage System is one of the largest privately funded and owned utility-scale battery in Australia46 Vol. 24/12, 16–31 October 2023 SUSTAINABILIT Y Re-imagining the intelligent network: A roadmap With the right solutions in place, network management can be easy while driving highly impactful outcomes for businesses solutions and thrive in the latest tech- nological era. The AI, cybersecurity and Big Data market is expected to be a $28bn industry by 2025, and to accommodate this growth, the Minis- try of State for Arti cial Intelligence in the UAE has made it a goal for the region to become a global leader in AI by 2031. At the same time, Saudi Arabia is transforming its workforce by improving data literacy and develop- ing 20,000 AI and data-qualified experts. It is exciting for us to be part of this fast-paced development. As we approach GITEX Global 2023, the world’s largest technology event, we’re thinking more and more about how and when companies succeed at push- ing the boundaries of what is digitally possible. We believe we know the answer: Digital evolution is built upon an intelligent network foundation. Let’s dig deeper into that. All of these new trends and solutions heavily rely on data and information, and lots BY MAAN AL SHAKARCHI, REGIONAL DIRECTOR – META, EXTREME NETWORKS TECHNOLOGY Businesses need to ensure they have followed the roadmap for a robust, secure and intelligent network that will allow them to unlock new potential We live in a time during which technological innovation happens daily, if not hourly. Generative AI, IoT, Wi-Fi 6E and other solutions have already evolved from emerging technologies to today’s standards, and organisations that had the agility and foresight to be early adopters of these solutions are already reaping the bene ts. In the Middle East, governments and enterprises are embracing this early-adoption approach, with concrete plans to leverage emerging arabianbusiness.com 47 TECHNOLOGY Like any other strategic asset, the network needs investment, time and e ort for optimised operations of it – the network is the central nerv- ous system of all technology used in an organisation. If you want to extract value from AI or integrate next-gener- ation IoT devices and applications into your business practices, you need a reliable and powerful network that can gather, transmit, protect and analyse your data from thousands of touch points. That data then becomes the fuel to drive decisions around other tech- nology solutions. So if the network determines our capability to embrace and successfully deploy next-generation technologies, how do we ensure we are leveraging it strategically? Ensure it is always on. Did you know that, according to Gartner, 30 minutes of network downtime costs companies an average of $5,600 per minute? A network must be resilient and reliable enough to maintain performance even when experiencing a high volume of tra c. Take for example an international, premier F1 racing destination here in the Middle East. During every event, thousands of visitors, sta and race team members rely on constant access to the network. Downtime can cause interruptions to the entire event and visitor experience. When this venue’s IT team needed to upgrade its network, they selected a network fabric solution that enables tra c to be re-routed over the most optimal network path. This decreases the chance that device malfunctions or tra c overloads could impact network performance, ensuring key functions like cashless transactions or devices like security cameras stay online. The team also has greater network visibil- ity after adopting a machine-learn- ing-driven cloud network platform, enabling them to quickly identify and resolve potential issues before they impact users. Test and re-test defences If we are only as strong as our weakest link, then it’s particularly important to constantly ensure network security, which links all other technologies together. This holds especially true in ing number of tourists arriving at major attractions here in the region that are looking for memorable expe- riences, public venues need to be able to respond to higher footfall and provide seamless digital services and enhancements. For example, BAPS Hindu Mandir, the rst Hindu temple in the region, has deployed a high-performance network across its campus to provide secure, scalable connectivity for both visitors and internal operations, supporting day-to-day needs as well as support- ing temporary large requirements like events or festivals. Leverage AI and automation Finally, we need to make our networks as smart as possible, automating and streamlining network management to ensure faster troubleshooting and free IT teams from getting mired in tedi- ous, repetitive tasks that AI can handle. Increasing network intelli- gence is also what allows our networks to accommodate new capabilities such as IoT with minimum disruption and increased ease, while also giving organisations actionable insights into user behaviour and preferences. An example of this in action is in major sports venues, where professional leagues rely on the network to power fan experiences like AR/VR as well as more basic needs like downloading mobile tickets. With robust, AI-driven network analytics, operations teams can see into real-time fan activity and network performance insights, allow- ing them to continually enhance services and tailor o erings to peak demand. With the right solutions in place, network management can be easy while driving highly impactful outcomes for businesses. Businesses need to ensure they have followed the roadmap for a robust, secure and intel- ligent network that will allow them to unlock new potential. Like any other strategic asset, the network needs investment, time and e ort for opti- mised operations, enabling organisa- tions to fearlessly adopt new technol- ogy and build toward the future. Al Shakarchi says it’s particularly important to constantly ensure network security the case of industries with enormous amounts of sensitive and digitised information that needs to be trans- mitted on a daily basis – like hospitals. Dr. Sulaiman Al-Habib Medical Group (HMG), one of the largest healthcare providers in the Middle East, had ambitious plans to elevate patient care by digitising medical records and providing personalised digital expe- riences. Leveraging network fabric in combination with Wi-Fi 6E enabled HMG to ensure mission-critical medical devices were separated from guest Wi-Fi traffic, minimising the possibility that a lateral cyberattack could impact patient care while o er- ing signi cantly more bandwidth to easily run new innovative medical applications. Scaling to growth As more international entities set up their presence in the region, it is vital that their networks can expand along with them to accommodate increased demand and wide-spread operations. Looking at public venues, with an ever-growing population and increas-SUSTAINABILIT Y 48 Vol. 24/12, 16–31 October 2023 UAE’s rst- ever Dirham- backed stablecoin will challenge $125bn market DTR is eyeing a head start for DRAM by targeting to corner a single-digit share in the stablecoin market in the near term attempt globally to make a dent in the $125bn market, currently dominated by US dollar-backed stablecoins. The rst Dirham-backed stable- coin, DRAM, launched by Distributed Technologies Research Ltd (DTR), a 10-month-old decentralised nance (DeFi) startup founded by former SoftBank top executive Akshay Naheta, plans to leverage the more liberal approach of the UAE to cryptocurren- cies and the Web3 ecosystem to make an impact in the market and capture a single-digit share in the near-term. Stablecoins, which are cryptocur- rencies intrinsically tied to an under- lying asset such as a fiat currency, nancial instruments or exchange- traded commodities, facilitate cross-border payments at an excep- tionally low cost. Tether (USDT), USD Coin (USDC) and the recently introduced PayPal USD (PYUSD) are among the most popular stablecoins, with an esti- mated combined market cap of around $125bn. “The launch of Dirham-backed stablecoin shows that the digital asset market in the region is entering a more mature phase and is ready for BY JAMES MATHEW, ARABIAN BUSINESS CRYPTOCURRENCIES $ TR The estimated worth of volumes processed by stablecoins The launch of Dirham-backed stablecoin is a watershed moment for the UAE digital asset industry The UAE is set to trigger a major milestone in the global cryptocurrency market, with its evolved policy framework for the sector providing the launch ground for issuing a Dirham-backed stable- coin, a move widely seen as the rst arabianbusiness.com 49 CR YPT O CURRENCIES Stablecoins o er a streamlined solution, enabling seamless transactions with unparalleled security and traceability the next phase of growth on the back of evolved regulatory frameworks,” Manhar Garegrat, Country Head – India and Global Partnerships at Limi- nal, a wallet infrastructure and custody solutions platform, tells Arabian Business. “The UAE market has already surprised us with their commitment to become leaders in the digital assets space and it is not surprising to see such highly innovative and simple-to- use Web3 products emerging from the nation,” Garegret says. DRAM launches watershed moment for UAE digital asset industry Satyandre Yadav, CEO of Metamorph, a crypto consultancy, says the launch of Dirham-backed stablecoin is a watershed moment for the UAE digital asset industry. “The stablecoin market is one of the most mature segments of the crypto industry and has been the most popular use case as it empowers users to transfer monetary value at a very low cost,” he says. Yadav says the move will make the digital asset economy in the UAE more localised and less dependent on foreign currency-based stablecoins such as USDT and USDC. Industry experts say the newly launched local currency-linked stablecoin DRAM is expected to thrive owing to the fertile regulatory land- scape in the region. Experts believe that as crypto regulations keep developing across more regions, the market will see a corresponding growth in the popular use cases as well. Dirham-linked stablecoin to facilitate cross-border payments of UAE users at exceptionally low cost Garegrat says the primary utility of stablecoins lies in their ability to facil- itate cross-border payments at an exceptionally low cost. “As per a JP Morgan report, globally, corporations shuffle approximately $23.5 trillion across borders each year. The associated transaction costs for these massive sums tally up to a stag- Garegrat also stresses that these transactions can easily be facilitated through regulated and compliant custody solutions providers. DTR eyeing a head start, to corner single-digit market share in near-term DTR is eyeing a head start for DRAM by targeting to corner a single-digit share in the stablecoin market in the near term. Akshay Naheta, DTR promoter, has reportedly said the startup created a very attractive alternative for anyone who has a dollar-based stablecoin to be in a currency that is linked to the dollar. and which has a better macro- economic outlook than the greenback. Every DRAM token will be backed by 3.6725 Dirhams, which is equivalent to $1. DTR will licence its stablecoin technology to Hong Kong-based DRAM Trust, which will hold the reserves backing the tokens. The token is already available on most global decentralised exchanges, with centralised exchanges likely to follow suit soon. DTR is said to be planning to issue DRAM coins worth up to $10m initially. According to industry reports, stablecoins are estimated to have processed $11 trillion worth of volumes, compared to $11.6 trillion transactions processed by card payments network Visa. Manhar Garegrat, Country Head – India and Global Partnerships at Liminal The stablecoin market is one of the most mature segments of the crypto industry, according to experts gering $120bn annually,” he says. This process is also plagued by issues like trapped liquidity, delayed settlements, and the need for foreign currency conversions. “In this context, stablecoins o er a streamlined solution, enabling seamless transactions with unparal- leled security and traceability on a distributed ledger technology.”Next >