UAE puts focus on Technology & Trade for a post-oil future
The UAE has always been a region that is quite famous for being an oil-rich zone in the world. History has seen how the region has found its best possible way to attain the optimum economic stature. The UAE has always, therefore, relied on its revenue generation through oil. However, in recent times, there has been a paradigm shift and the UAE is preparing itself for the post-oil world. There have been several governmental and private sector investments to make the process much smoother and give the best possible outcome. Its pivotal aim is to work toward decreasing the amount of carbon emissions in the environment and find ways that are sustainable for the environment.
In 2014, the UAE witnessed a spur in oil prices and this has made them realize how vulnerable the situation can turn into at any moment as the global market fluctuates. Consequently, the world has quite sensitized itself to the growing impacts on the environment and hence steps have been taken to diversify the economy for the best output.
Oil has always been the one constant factor of the UAE which is generally relied on, but over the years there has been more inclination toward rapid digitization, health sectors, education, transportation, and other public service domains. The government found it a lucrative way to shift from the trade of crude oil and thus launched national funds to help smooth out this transition for their country.
This could be a misconception for other nations that the UAE is relinquishing its status as a global energy leader by completely prohibiting the production and export of crude oil, as this is not happening anytime soon. Instead, the UAE is aiming to re-establish itself as the renewable energy production leader and is focusing on producing almost 44% of the energy mix by the year 2050. This will include an investment of around $163 billion into renewable and clean energy technology in the upcoming decades, with solar energy playing a crucial role in it.
Many leading nations are currently laying eyes on the next steps to be taken by the UAE. This inclination would surely leave the economic situation of the UAE floundering and would push the other countries to join the bandwagon soon. As more and more countries follow this regime, the transition will become quite challenging.
