Green Energy in the ME: Reality or Fiction

Report: 1 to 15 November 2021

This report is also available in Arabic.

Will the Middle East transform into a clean energy-driven region?

Several countries around the world have been hit with energy crises during the past month. This alone is indicative that the world must start to shift to cleaner forms of renewable energy. The Middle East is no stranger to what’s happening and has begun implementing some projects in some areas that aim to decrease dependency on fossil reserves. While some countries fair better than others, some have yet to adopt such new way of thinking due to corruption or the absence of any government intent to develop the country.

The socio-economic situation

Egypt

Corona cases, deaths and recovered are distributed as follows:

-254,984 corona confirmed cases

-187,446 recovered

-14,766 deaths

Hala Al-Saeed, Egyptian minister of Planning and Economic Development. (AFP/File).

After harnessing the great fiscal rewards that emanated from foreign investment in the country, Egypt is shifting its attention to for sustainable local development. As such, it has allocated 1.45 billion USD to build bridges and improve the infrastructure of sanitation, transport, hospitals, power stations, and other sectors. Not only it would be improving the lives of its people, it is providing a more suitable environment for businesses and foreign companies to operate. Consequently, this will lead to the stream-lining of future investments into the Egyptian market and therefore lay the foundation for more local development projects.

In any case, Egypt is sprawling economy with a forecasted growth rate of at least 5% for this year and the one ahead. Moreover, the country is receiving good feedback and ratings from nearly all reputable credit rating agencies. Additionally, its bilateral relationships with other countries are only getting stronger. For instance, Egypt’s Minister of International Cooperation Rania Al-Mashat launched a cooperation program with Switzerland for 2021-2024 that will focus on Egypt’s transition towards a green economy and adaption to climate change. It is all good news for Egypt, and it wouldn’t be a surprise if the country would transform into a regional and international economic power in the future.

Jordan

Corona cases, deaths and recovered are distributed as follows:

-731,436 corona confirmed cases

-711,614 recovered

-9,384 deaths

ACC President Khalil Haj Tawfiq, http://jordantimes.com/.

In a beneficial step to rebuild its economy and to assert itself in the Palestinian market, Jordan signed a deal that would give Jordan freedom to export more goods to Palestine. The Amman Chamber of Commerce (ACC) claimed that enhancing the access of Jordanian products and goods to the Palestinian market represents an opportunity to speed up the recovery of the national economy from the pandemic's repercussions. At the same time, the ACC referred to Jordan's support to the Palestinian people and their just cause, adding that His Majesty King Abdullah "always affirms that the Kingdom will remain the true support for Palestinians". Also, there are current rumors, that the Jordanian government is in talks of possible expansion of business ties with Pakistan. However, this is a just a speculation as no statement from either Pakistan or Jordan has come to light. Nevertheless, observers seem confident that the move will happen in the near future.

Iraq

Corona cases, deaths and recovered are distributed as follows:

-1,172,042 corona confirmed cases

-1,086,612 recovered

-16,214 deaths

The Al-Huwaiza marshes in southern Iraq are considered one of the most important wetlands in the world and is being heavily impacted by climate change  © Asaad Niazi/AFP/Getty.

Iraq is aiming to decrease its reliance on fossil fuels and switch to cleaner forms of energy, not because of energy shortages. After all, Iraq is a major OPEC member with an abundance of fuel reserves. It is because the UN Environment Program labeled Iraq as the fifth country in the world to be vulnerable to changes in climate: Very high temperatures are becoming more common, and drought more frequent, resulting in desertification and therefore threatening 54 % of Iraq’s agricultural lands. As a result, Iraq is aiming to invest $3 billion annually to replace the burning of liquids at its power plants with natural gas. Meanwhile, Iraq is also in the process of finalizing multi-billion dollar deals with Saudi Arabia that will see some sectors booming. The same can be said for Iraq’s Kurdistan region which had attracted 133 new investment projects worth $8.5 billion over the past two years. According to the Kurdistan Region Investment Commission, more projects are in the pipeline which will provide thousands of jobs to Iraqis.

Lebanon

Corona cases, deaths and recovered are distributed as follows:

-538,668 corona confirmed cases

-511,931recovered

-7,684 deaths

A vegetable and fruit vendor empties a crate containing apples along a street. (AFP).

Every month, a new story or drama unfolds in Lebanon affecting one way or another the already-destroyed economy. This time, diplomatic relations with Gulf took an unprecedented turn and imports were banned from Lebanon. As a result, Lebanon will lose nearly 250 million USD as different products will remain in their warehouses, gathering dust or expiring and going to waste. This also comes during a time when dollar shortage has become more profound in which it is valued at approximately 20,000 LBP in the parallel marke. With the absence of a national long-term strategy that aims to assist farmers and domestic manufacturers from one end and to improve agricultural and Industrial abilties from the other, the citizen is left to fend for himself.

Currently, Lebanese decision makers are eyeing how things will evolve with the IMF. One thing is for sure however, the organization will not dispatch funds before the elections in March and a deal will be brokered by the end of this year or early next. 

Palestine

Corona cases, deaths and recovered are distributed as follows:

-305,777 corona confirmed cases

-298,502 recovered

-3,470 deaths

A Palestinian woman walks past a graffiti-filled wall in the West Bank. Palestine’s economy shrunk by 11.5 per cent last year, one of the sharpest contractions on record. AFP.

Palestine’s fiscal crisis is not getting any better and seems to only be getting worse; the UN had warned that the financial situation is at a “breaking point”. With the lack of EU funding and new Israeli threats to completely cut-off electricity from Palestine over 120 million dollars in overdue bills, the Palestinian authority is in a precarious situation. The good news however, is that Jordan was able to broker a deal with Israel in which it was allowed to export more varieties of products in Palestine. Moreover, the World Bank transferred 80 million USD to support the economic welfare and durable opportunities for Palestinians. Although both are good developments, the fact remains that Palestine’s economy has been shrinking over the past years and still is. 

Syria

Corona cases, deaths and recovered are distributed as follows:

-24,187 corona confirmed cases

-21,560 recovered

-1,740 deaths

Syria's President Bashar al-Assad meets with United Arab Emirates Foreign Minister Sheikh Abdullah bin Zayed, in Damascus [Syrian Presidency].

In an obvious divertion from past foreign policies concerning Syria, the UAE foreign minister convened with the Syrian President Bashar al Assad in Damascus as a symbolic gesture of normalization. Bin Zayed, being the first Emirati official to visit Damascus since 2011, discussed with the president “new horizons” to bolster bilateral ties and commercial partnerships. Such an act comes during a time when the US is still against normalization with Syria but doesn’t seem willing to do anything about it. As such, the United State’s key allies such as Jordan are also reproaching with Syria. This was evident in the phone call between Jordan’s King Abdullah II and the Syrian President and the opening of the borders.

As for the domestic situation in Syria, things are still difficult. The rise in prices are inflicting more economic hardship on people especially when critical shortages have been noticed. For instance, the Butane gas shortage in Syria has reached 5,000 tonnes a day forcing the government to double the price. This inturn caused several citizens via social media platforms to decry low wages and economic hardships as the purchasing power of Syrian pound hits its lowest since 2019. Moreoever, increased inflation forced increased costs on farmers threaten to worsen food inflation at a time when the inflation rate is at a record high.

Cyprus

Corona cases, deaths and recovered are distributed as follows:

-72,011 corona confirmed cases

-66,557 recovered

-356 deaths

Transport Minister calls for continued reforms to shield Cypriot economy. In-cyprus.com.

Unlike the rest of the Middle Eastern neighborhood, Cyprus is actually carrying out its reform agenda to adapt to the changing circumstances. COVID-19 and the energy crisis around the world made it clear that certain new strategies and policies have to be enacted to guarantee the endurance of the state. One new policy recommendation for instance, which Minister of Transport, Communications and Works Yiannis Karousos, spoke about how important it is for public and private sectors must further modernize through an extended implementation of innovative ideas and technologies, especially those in the green energy saving field. For now, Cyprus seems to be in a relaxed economic position and can enact necessary changes to how things are run.

Communication and Public Relations Department