Paving the Way to a Successful Energy Transition: A Comparative Study of Saudi Arabia and the UAE

Abstract

The Middle East and North Africa (MENA) region is disproportionately affected by the negative impacts of global warming due to its naturally arid climate. Climate change is exacerbating the region’s pre-existing environmental issues and causing a myriad of challenges. Recognizing this threat, Saudi Arabia and the UAE have emerged as regional leaders in the global energy transition with the goal of achieving net-zero carbon emissions. With Saudi Arabia’s Vision 2030 and the UAE hosting COP28 in late 2023, these countries have made ambitious pledges, established visions, and developed comprehensive plans for their sustainability efforts. However, Saudi Arabia and the UAE are simultaneously two of the MENA region's wealthiest and largest oil exporters. Given their economic prosperity and the world’s increasing demand for energy, Saudi Arabia and the UAE show no signs of decelerating oil production in the near future. The process of producing oil and burning fossil fuels is the most significant contributor to climate change and the global warming crisis the world currently faces. Thus, an inherent tension exists in the state of the MENA region. With the Middle East facing climate-related challenges, how can Saudi Arabia and the UAE pledge to become net zero while maintaining their positions as the world’s top oil producers? To answer this question, this thesis provides context regarding climate change, the energy transition, and oil production in the MENA region. It then delves into case studies of Saudi Arabia and the UAE, examining their backgrounds, sustainability initiatives, failures and challenges, and strengths and weaknesses. It juxtaposes the two case studies and presents key takeaways by contrasting the energy transitions of Saudi Arabia and the UAE to that of Kuwait. As a result of its more pragmatic approach to the energy transition, this thesis uses Kuwait as a benchmark against which the case studies are analyzed. Using this comparative analysis as a foundation, this thesis offers policy recommendations suggesting actions Saudi Arabia and the UAE should take to move forward in their energy transitions and ensure a sustainable future.