RIYADH: The combined gross domestic product of countries in the Gulf Cooperation Council could exceed $13 trillion by 2050 if the region properly implements green growth economic strategies, a top World Bank official said.
Issam Abu Suleiman, regional director of the GCC at the World Bank, noted that the combined GDP of the GCC countries will be $6 trillion if they continue to operate as usual without properly implementing a green growth strategy.
The official said last year the (combined) GCC economy was valued at $2 trillion. “If they (GCC countries) continue business as usual, what they have done for the last three or four decades, and growing approximately at an average of 4 percent, the combined economy of the GCC will be $6 trillion. If they go into a green growth strategy that will improve their productivity, then they will go above $13 trillion,” Abu Suleiman told the news agency WAM.
The focus of green growth strategies is ensuring that natural assets can deliver their full economic potential on a sustainable basis.
According to Abu Suleiman, embracing a green growth strategy will help create more jobs, reduce the gender gap, and ultimately result in the diversification of the economy.
He added: “The green growth strategy is an important strategy that can benefit diversification (strategies). If they go into a green growth strategy, they can use more of the technology that is available there, and by doing that they will increase their productivity.”
Abu Suleiman further noted that the UAE is playing a pivotal role in reducing the repercussions of climate change in the Middle East and North Africa region.
He also added that the upcoming UN Climate Change Conference, also known as COP 28, in Dubai will accelerate the implementation of commitments related to climate change issues.
“The UAE’s hosting of COP28 demonstrates international recognition of the country’s efforts in the field of climate sustainability,” he added.
He further pointed out that the UAE has been spearheading climate initiatives for more than 30 years and added that the country is investing in projects aimed at reducing climate change repercussions.
According to Abu Suleiman, COP28 will provide a great opportunity to push toward green technology and carbon sequestration investments which is crucial for the world to achieve net-zero emissions by 2050.
He added that COP28 will also provide an opportunity to move to an economic path of green growth which could ultimately diversify the economy while making a positive impact on the climate.
Abu Suleiman said that the World Bank is the first institution to finance climate-related projects worldwide and added that it provided financing worth $31.7 billion last year.
He also predicted that the world needs at least $4 to $5 trillion a year to reach climate goals outlined in the Paris Agreement.
The agreement is an international treaty on climate change that was produced in 2015 and compels signatories to work toward limiting the global temperature increase to 1.5 °C above pre-industrial levels.
