The GCC could see its combined GDP doubled by 2050 if it embraces a ‘green growth’ strategy, according to a recently published report.
The Gulf Investment Report 2023, published by Century International Holdings, states that GDP is currently projected to rise from US$2 trillion to $6 trillion by 2050, but this figure could reach $13 trillion if there is sufficient investment in green and sustainable projects.
The report cites Issam Abou Sleiman, regional director of the World Bank in the MENA region, who said the region “has the potential to be a lead producer of green and blue hydrogen” amid the worldwide transition to a low-carbon economy.
“With the right regulations, policies, and investments to support the transition, GCC countries can emerge with stronger, more sustainable economies that generate rewarding jobs for their youth while simultaneously protecting the planet,” said Sleiman.
However, the enormity of the task was also laid out in another report published by the World Economic Forum (WEF) and Bain & Company.
The report, ‘Closing the Climate Action Gap: Accelerating Decarbonisation and the Energy Transition in MENA’, states that the Mena region faces more severe changes in temperature than elsewhere, but there is a serious lag in sustainability action from the private sector.
According to Gim Huay Neo, managing director for the WEF’s Centre for Nature and Climate, only 12% of the region’s largest 200 companies have a net zero target, and only 6% have a road map.
However, the report also states that there is an opportunity for the region to leapfrog other jurisdictions if it capitalises on its strong natural resource base, untapped land, availability of finance, infrastructure and decisive leadership.
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