[위기극복의 새 길, 신중동]
Saudi Arabia plans to invest heavily in hydrogen
UAE transitions to high-tech manufacturing
“Joining Korea in search of future food sources”
Recently, Middle Eastern countries are putting all their efforts into preparing for the ‘post-oil’ era. This is to break away from an economic structure that relies solely on oil and find sustainable future food sources. In particular, they are investing astronomical amounts of money in new businesses using oil money. In Saudi Arabia alone, the total size of projects being carried out under the future strategy ‘Vision 2030’ amounts to $880 billion (approximately 1,140 trillion won). Amid these changes in the Middle East, new business opportunities are also being created.
According to KOTRA and others on the 8th, representative areas that Middle Eastern countries are citing as new growth engines include decarbonization, new and renewable energy, and advanced manufacturing. Saudi Arabia has set a goal of diversifying energy sources, focusing on renewable energy, and investing heavily in hydrogen. Saudi Arabia plans to cover 50% of its electricity production with renewable energy and the remaining 50% with natural gas by 2030. Crown Prince Mohammed bin Salman also announced at the Saudi Green Initiative Forum in October 2021, “We will reduce carbon emissions to ‘zero’ by 2060.”
The United Arab Emirates (UAE) is carrying out the ‘Operation 300 billion’ project, which aims to transform the concentrated industrial structure of oil, aviation, and tourism into the 4th industry and advanced manufacturing from 2021. The UAE plans to increase the proportion of clean energy in total energy to 50% by 2050. To this end, a Dubai Green Fund worth $27.5 billion was created in 2021.
Since 2008, Qatar has been promoting the ‘Qatar National Vision 2030’, which aims to break away from the carbon-dependent economic structure and transform the country into a knowledge-based, high value-added industry. We are establishing a mid-term national development strategy every five years and promoting development in the human resources, society, economy, and environment (energy) sectors. Oman’s goal is to become the world’s largest hydrogen producer by 2030. It was decided to invest $30 billion just to revitalize the hydrogen economy.
Middle East experts advised a ‘two-track’ strategy to promote new business while maintaining existing cooperation with Middle Eastern countries. This is because the post-oil strategy of Middle Eastern countries does not mean giving up oil, but rather finding a balance between oil and non-oil.
Gwang-ho Yoo, a specialist researcher in the Africa and Middle East team at the Korea Institute for International Economic Policy, said, “We must continue to cooperate with Middle Eastern countries in the oil and construction fields, which we have traditionally done, while seizing opportunities in hydrogen, eco-friendly plant projects, and new and renewable energy based on the trust we have built.” advised. He also said, “There is a high possibility that various projects will come out in the Middle East in the future,” and “If we win a business contract in the Middle East, our track record (performance) will build and it can serve as a stepping stone for further growth.”
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.