Dr Nawal Al-Hosany is permanent representative of the UAE to the International Renewable Energy Agency
October 24, 2024
The geopolitical and economic instability in the world this past year has exposed the fault lines in the global energy system. Months of uncertainty have threatened to throw the transition to a renewable-based future further off track.
Amid these unfolding challenges, the twin goals of tripling global renewable energy capacity and doubling energy efficiency by 2030, set out in the UAE Consensus, have become more important than ever.
But right now, we are not even close to our targets – as the International Renewable Energy Agency’s (Irena) first report since it was commissioned by the Cop28 UAE Presidency to track the progress of the tripling renewables target makes plain.
A rooftop ongrid solar panel system is fixed on a roof of a house in Allahabad, India, on October 14. AP
By tracking the progress we’ve made and, crucially, identifying the gaps we still need to bridge, Irena’s report on ‘Delivering on the UAE Consensus’ is a wake-up call and a blueprint for the international community.
The numbers reveal a stark reality. Current national plans are only halfway to meeting the renewable energy targets, with a projected global shortfall of 3.8 terawatts (TW) by 2030 looming large, unless we act to close the energy gap now.
Irena’s report lays out the scale of the task ahead. To hit the 11.2-TW goal, we must add 1,044 gigawatts (GW) of renewable power every year – which requires a 16.4 per cent annual growth rate.
Governments must put renewable energy at the heart of policymaking
Yet, current growth trends show we’re only on track to achieve half that. Despite a record 473 GW of new capacity added in 2023, and the continued robust growth of solar energy solutions, the world needs to triple onshore wind, increase offshore wind six-fold, and scale geothermal capacity 35 times to meet the goal.
And this challenge is not evenly spread. The gap between developed and developing regions is widening. Asia, Europe, and North America account for 85 per cent of global installed capacity, while Africa lags with just 1.6 per cent. If this trend continues, the energy transition will leave vast regions behind.
The are clear roadblocks standing in the way of faster progress. Outdated infrastructure, inadequate financing, and a shortage of skilled workers are slowing the progress of the energy transition. Grid capacity is falling behind, with 3,000 GW of renewable power waiting to be connected.
Policymaking, too, is not evolving fast enough to remove delays, streamline permitting, and incentivise renewable energy capacity building.
The current state and pace of scaling up renewable solutions calls for strong leadership from governments to reform the obstacles currently clogging up regulatory frameworks and removing the barriers that delay renewable projects.
Policymakers must act faster, smarter and take bold steps urgently to address a trifecta of solutions that sit at the centre of the energy transition.
First, infrastructure must be modernised. It’s no longer enough to plan – grids need to be expanded, digitised and equipped to handle larger volumes of variable renewable energy. Storage solutions must also be accelerated, with battery storage capacity needing a four to ten-fold increase by 2030 to keep pace with the expansion of renewables.
Second, financing needs to scale up. Irena’s report it makes clear that we’re falling short by a long way. The world needs $1.5 trillion annually in renewable investments by 2030. But last year, only $570 billion was invested. And that funding is unevenly distributed: 84 per cent went to just three regions: China, the EU and the US. Emerging economies, especially in the global south, need better access to concessional finance and grants to fund their energy transitions. Without this, the transition will remain uneven, and the 1.5°C goal will slip further out of reach.
Third, we must develop the human capital capable of powering this energy transformation. The energy transition will create millions of jobs, but only if we invest in education and training. Countries must prioritise upskilling and reskilling workers, developing technical expertise, and empowering the next generation of energy leaders. If we fail to do so, the lack of a skilled workforce will become a bottleneck to progress.
The next six years are critical. The decisions we make today will determine whether we meet the UAE Consensus goals or fall further behind in our mission to deliver a climate resilient, energy secure future.
We have a clear roadmap, but it’s time to accelerate. As the world heads towards Cop29 in Azerbaijan, there is no room for hesitation. We need bold leadership, swift action and unyielding commitment from every corner of the world.
Governments must lead by example. They must raise their ambitions, align their energy plans with the tripling target and put renewable energy at the heart of policymaking. The global community must come together, support those most vulnerable, and ensure that no country is left behind.
We know what needs to be done. The path is clear. But the window of opportunity is closing. The future of our planet depends on whether we act now. We cannot afford to wait any longer.
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened. He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia. Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”. Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
'The Coddling of the American Mind: How Good Intentions and Bad Ideas are Setting up a Generation for Failure'
Greg Lukianoff and Jonathan Haidt, Penguin Randomhouse
UAE currency: the story behind the money in your pockets
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
How to avoid crypto fraud
Use unique usernames and passwords while enabling multi-factor authentication.
Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
Avoid suspicious social media ads promoting fraudulent schemes.
Only invest in crypto projects that you fully understand.
Critically assess whether a project’s promises or returns seem too good to be true.
Only use reputable platforms that have a track record of strong regulatory compliance.
Store funds in hardware wallets as opposed to online exchanges.
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
