Today's Edition
Hussain Alhammady & Mustafa Abdulazeem (Abu Dhabi)
The UAE is transforming into a circular economy that is sustainable and globally competitive. Every sector of the economy is undergoing ‘circular’ changes that are driven by digital applications, said Minister of Economy, Abdullah bin Touq Al Marri, in an interview with Aletihad.
“We aim to create new economic models under the guidance of the leadership, and the circular economy is important to achieving these goals. It’s part of the UAE’s economic diversification plan,” said the Minister.
He said that 22 policies have so far been framed to power the circular economy, and two have already been realised. The UAE Circular Economic Council has been established, headed by Mariam Almheiri, Minister of Climate Change and Environment, with Al Marri as a member.
He said the private sector will play a crucial role in this transformation, and more companies are being encouraged to join the circular model.
So, what is the circular economy? A circular economy lays emphasis on recycling. “For instance, like EV batteries. When they expire, they are recycled,” explained the Minister.
“We have two factories for recycling batteries. One came online last month and the other this month. These factories are equipped with big machines from Italy.”
The UAE is keen to attract more international companies to support the circular economy. “We also have two factories in Dubai and Abu Dhabi for recycling cooking and hydrogenated oils.”
Oils are collected from restaurants and recycled into biofuels that are used for aircraft. Most people never know that the origin of these oils is from restaurant kitchens.
Al Marri said this circular, recycling-based economy is expected to create new jobs and industries. The UAE has a head-start when compared to other countries, he said.
Even trade will follow the circular model, said the Minister. “We are also looking into ideas and projects to transform trade into ‘circular economic trade’ and import some materials from abroad and recycle them to be used in our economy.”
He said the tourism sector has faced many challenges globally during the last three years. However, within 18 months, the sector again saw strong growth in the UAE.
“Under the directives of our wise leadership last year, the UAE Strategy of Tourism 2031 was announced, and AED450 billion was invested into tourism infrastructure.”
Meanwhile, interest in sustainable and green tourism is growing, the Minister added.
The UAE launched the World’s Coolest Winter campaign, which is entering its fourth season now.
“The campaign was a great success in highlighting domestic tourism in the Emirates,” he said.
Today, 60% of tourism is driven by global visitors, and 40% is internal. The Minister said the target is to make it 50:50.
He was confident about the 7% growth set for the country. “But we must be realistic in light of global challenges, such as high interest rates, inflation and challenges facing other economies.
“China’s economy has slowed, but the Indian economy has accelerated, achieving 7% growth last year. Today, we are talking about $60 billion to $70 billion in seven years, but we can achieve $100 billion in the next two or three years. Our trade agreements with Turkey and Indonesia are also paying dividends.”
These agreements provide a transit gateway for international products to the UAE. “We can bring these products into our country, add 30 to 40% VAT, and re-export them to different markets as different products.”
On the country’s nominal GDP reaching $2 billion, he said the government hoped to achieve the targets as soon as possible. “All of this is in line with our targeted 7% growth. In addition to achieving this, we must focus on the new economy. We strive to create a sustainable, diversified economy according to the directions of President His Highness Sheikh Mohamed bin Zayed Al Nahyan.
“The UAE’s agreements and the wise policies of the leadership open the door to the world. Post COVID-19, we are more engaged with the world,” he added.
On COP28, Al Marri said the event will host a convergence of ideas and views, while making a major push for the circular economy that the UAE is piloting.
