Reflecting On 2023: The Year of Sustainability, Adaptability, and Innovation

By John Iossifidis , GCEO, Al Ghurair Investment

As 2023 draws to a close, it is only fitting to reflect on a year that has been transformative, both globally and particularly in the UAE.

Despite the macroeconomic headwinds in 2023 marked by global economic slowdown, interest rate fluctuations, geopolitical uncertainties, and supply chain disruptions, the UAE's response was one characterised by resilience, economic diversification and a push towards innovation, technological advancements, and sustainability.

Historically, embracing flexibility and innovation has been key to sustaining growth in the UAE. And so, the year witnessed remarkable strides in technology, with breakthrough innovations impacting various industries, from artificial intelligence (AI), Internet of Things (IoT) and solar PV, through to green hydrogen, 3D printing and electric vehicles. These technologies have experienced tremendous growth in the last two decades , and offer immense potential for businesses. For instance, GenerativeAI (GenAI) could generate $9.9 of economic growth for every $1 invested. At that rate, the overall economic impact of GenAI could reach $23.5 billion per year by 2030 within the GCC alone.

This period of significant change and adaptation is similar to our own experiences at Al Ghurair Investment, mirroring our efforts to navigate these global challenges whilst staying true to our commitment to sustainable growth. This year, our commitment to innovation shone through the latest edition of our Ideanation series, our internal Group-wide idea generation and innovation series, this time centred on AI and automation. Our collective ability to adapt and embrace change has been a driving force behind these achievements.

A major driving force in today's business landscape is sustainability, with corporate environmental, social and governance (ESG) commitments on the rise globally – spurred by both consumer demands, and in many cases, evolving regulations.

The focus on sustainability, particularly with the hosting of COP28 and the emphasis on the 'Year of Sustainability', has been a guiding light for businesses and the economy. Ahead of COP28, there has been an acceleration around the adoption of ESG-led practices. A recent survey of UAE-based companies saw 98% of respondents state that measurement and reporting on environmental issues inform their strategic and operational decision-making.

The financial sector is also taking a similar stance. One of the most definitive announcements to come out of COP28 has been by the UAE Banks Federation (UBF), which has pledged to mobilise AED1 trillion (US$270 billion) in green finance by 2030. This is a loud and clear signal of the growing support to tackle climate change.

In a similar vein, our portfolio also explored opportunities to further the sustainability drive. Earlier this year, Al Ghurair Properties signed a 21-year partnership with solar energy solutions provider SirajPower, to set up a solar project that will generate 4,160MWh of clean energy, with 840MWh generated in the inaugural year alone.

The year also saw the launch of our EVERGY initiative – combining ENERGY FOR EVER – an internal energy savings audit introduced by Al Ghurair Foods (AGF) and Al Ghurair Resources International (AGRI). The EVERGY programme encapsulates the organisation's steadfast commitment to sustainability and energy efficiency.

On the mobility front, Cars Taxi, one of the country’s largest taxi service operators, announced the purchase of 1,300 Toyota Camry hybrid vehicles. Today, 100% of Cars Taxi’s fleet is now comprised of hybrid/compressed natural gas (CNG) vehicles, aligned with the UAE’s vision of reducing carbon emissions and achieving net zero by 2050.

The world we live in today calls for increased collaboration on a global scale. Businesses, governments, and individuals must actively collaborate to address shared challenges, leveraging diversity and collective intelligence. At Al Ghurair Investment, our strategic alliances with global industry leaders have been pivotal in driving our growth and enhancing our operational capabilities.

Earlier this year, we partnered with various leading organisations to drive enhancements for the better across a wide range of fields, including talent development with Abu Dhabi Global Market (ADGM) Academy, food production and security with Khalifa Economic Zones Abu Dhabi (KEDAD), and automotive distribution and servicing with EXEED Motors and Sukoon insurance. All of these partners share our vision for progress, innovation and future-thinking.

Against the tapestry of 2023's challenges and accomplishments, one truth stands out: the transformative power of consistent, purposeful action. These actions, woven into our daily efforts, drive our journey toward progress.

As we embark on a new year, it's essential to carry forward the lessons learned and build on the successes of 2023. Embracing change, fostering collaboration, and maintaining a commitment to sustainability will undoubtedly shape the year to come – one we eagerly await.

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