Last Updated on December 18, 2023 by News Editor
PwC recently released a report that revealed that global climate technology investment originating from the Middle East soared by nearly 200 percent to reach $5 billion by the end of September 2023.
In 2022, it was $1.8 billion in 2022. It almost tripled to reach $5 billion in 2023. PwC Middle East Climate Tech report showed that investments were allocated across different sectors and regions, prominently in the US, Asia, and Europe. Saudi Arabia accounted for a significant portion. The country spent about $3 billion.
Climate Tech Innovation
Yahya Anouti, Partner at Strategy& and Sustainability Leader at PwC Middle East, highlighted that climate tech innovation in the Middle East is being spearheaded by some of the region’s most dynamic entrepreneurs. These entrepreneurs are championing new technologies to expedite the transition toward achieving net-zero emissions.
The report underscored that the surge in global investments coincided with an 84 percent year-on-year decline in funding for regional entrepreneurs. Local companies had only $152 million. Despite this decline, the study shows that companies continue to be resilient and are actively tackling regional climate issues with creative solutions.
Anouti said that even if Middle Eastern organizations are investing more in climate technology globally, there is still a lot of room to grow and support regional business owners. The ‘missing link’ in their plan may be these neighborhood business owners.
He called on businesses and governments to take the lead by establishing off-take agreements and special funding. These initiatives would increase demand in the climate tech industry while lowering investment risks.
The report also pinpoints the primary hurdles faced by climate tech innovators in terms of growth.
For local and regional climate tech entrepreneurs, there is still a significant financial deficit, with investment falling from almost $1 billion in 2022 to $152 million in 2023.
Challenges hindering the growth of green tech in the Middle East challenges include intricate regional legal and regulatory frameworks, funding constraints, and the quest for skilled talent.
PwC Middle East Jon Blackburn, who works in the Energy, Resources, and Sustainability business, said that, more generally, it is acknowledged that the area is experiencing a scarcity of qualified individuals with expertise in green technology, much like the rest of the world. The global green tech sector needs more qualified professionals, such as environmental engineers to specialists in cutting-edge sectors like carbon capture. These professionals play a critical role in the development of green technologies.
In addition, data from Blackburn’s Middle East CEO Survey, which was made public earlier this year, revealed that 35% of area executives cited skills shortage in specialized industries. The severe rivalry for experienced workers makes this scarcity worse.
Reducing common issues in the industry would increase interest and investment in green technology. The awareness that rising pollution not only aggravates global health problems but also plays a role in climate change can spark interest and heighten investment in the sector.
PwC’s Middle East Climate Tech report gave insights on green tech investment in different countries across the Middle East. Green tech is one field many companies are releasing different innovations to grow the sector.