SOMA MATER Weekly Newsletter

Author

Soma Mater
July 26, 2024

Welcome to the SOMA MATER Weekly Newsletter!

This weekly newsletter highlights the top 3 stories from the past week in food systems and sustainability, along with SOMA MATER's analysis and perspective.

What is Sharjah’s current status on solar energy installations?

What impact will the doubling of Dubai's fruit and vegetable market have on the UAE's economy and food security?

Where do we stand on global progress toward achieving SDG 2: Zero Hunger?

Sustainably yours,

The SOMA team

From Sunburns to Sun Turns: Sharjah's Solar Surge

Since 2016, solar energy installations in Sharjah have surged due to technological advancements, cost reductions, and supportive policies. From 2016 to 2020, solar energy installations in Sharjah rose from just 50 to 200 installations. Their contributions to the energy grid have also increased from 0.5% in 2016 to 3.0% in 2020.

Recently, the Sharjah National Oil Corporation (SNOC) and Emerge Limited (a partnership between Masdar and the EDF Group) celebrated the breaking of ground on Sharjah's largest solar installation. The installation will be a 60MWp ground-mounted solar PV plant at SNOC's Sajaa Gas Complex. Emerge will manage the project lifecycle of solar modules under a 25-year Build-Own-Operate-Transfer (BOOT) agreement, covering financing, design, procurement, construction, operation, and maintenance.

The solar plant is set to reduce CO2 emissions by 66,000 tons annually, equivalent to removing 14,600 cars from the road each year. This initiative supports SNOC's goal of achieving net-zero emissions by 2032 throughout its operations, decreasing reliance on fossil fuels and providing cost-effective clean energy.

Sharjah is becoming an optimal place for solar energy in the UAE. The region experiences high levels of sunlight throughout the year. Net metering schemes and feed-in tariffs have been established by SEWA and the government (respectively) to encourage the adoption of solar energy⁠ in the Emirate. These efforts have promoted the solar installations in various sectors of Sharjah⁠.

Soma’s Perspective:

The UAE is becoming a global example of countries seeking to transition to renewable energy. Sharjah is now leading the charge in the solar sector. The country’s journey to Net Zero is comprised of multiple steps taken by both the private and public sector. SOMA celebrates these achievements as another step in this Net Zero journey.

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Veggies Take the Wheel: Dubai's Fruit and Vegetable Market To Double

Dubai will double the current size of its fruit and vegetable market. It will lead to the creation of the Foodstuffs, Fruit and Vegetable Market, which is set to be the largest such facility in the world.

This development will be spearheaded by Dubai Municipality and DP World. DP World will spearhead the management, operation, and development of the market, while also linking it with markets globally. This initiative is part of Dubai’s strategy to boost investment and economic opportunities. According to the group chairman and CEO of DP World, the sector is witnessing increasing growth in both local markets and exports.

This points to Dubai’s importance as a global re-export trading hub. This sector is vital to the UAE’s economy. In 2022, the total value of re-exports in the UAE was AED 614.6 billion, which accounted for 27.5% of the total value of the UAE's foreign trade. This marked a 14% growth from the previous year⁠. As of last year, the UAE was the world's largest re-exporter of rice, the 3rd largest re-exporter of diamonds, the 5th largest re-exporter of coffee, and the 5th largest re-exporter of tea⁠.

Soma’s Perspective:

Countries in the region have operated as connectors bridging international trade during conflicts. SOMA has highlighted this in previous newsletters. Doubling the Dubai market will enhance the UAE's capacity to move food and vegetables across borders due to its geographic location and unparalleled logistics capabilities. This will also play a role in food security for the country. Expanding the market will allow Dubai to be the hub where fruits and vegetables move through. This will provide the UAE with access to large quantities of food for in-country stock in the face of trade disruption.

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Hungry for Results: SDG 2

The 2024 Sustainable Development Goals Report gives detailed analysis of global progress nine years toward the 2030 Agenda. This year’s report indicates that the world is significantly behind schedule in achieving the 2030 goals.

Of the 135 measurable targets, 17% show regression below 2015 baseline levels. One of these targets is the SDG 2: Zero Hunger. SDG 2 has seen the most significant regression, with approximately a 50% decline. This is why SOMA continues to focus on food.

Rising food prices have exacerbated world hunger. In 2022, almost 60% of countries experienced moderately to abnormally high food prices as a result of conflict spillovers. There was also increase in food prices for the Northern Africa and Western Asia region from 2020 to 2022.

In 2020, 26.1% of countries in the Northern Africa and Western Asia region experienced abnormally high food prices. Two years later, that number jumped to 34.8% (Figure 2). The proportion of countries in the region experiencing moderately high prices has remained the same.

Figure 2 Data Source: United Nations

Soma’s Perspective:

Food security is unattainable if food is available but not affordable. The rising inflation and repercussions of international conflicts have caused food prices to become a challenge to food security. SOMA believes it is imperative to work towards stability to ensure food security for many developing nations in the region. The constant cycle of conflicts in the MENA region is exacerbating food security challenges. Although food aid is welcome as a stopgap, it will not deliver long-term solutions.

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SOMA MATER is writing Intelligence Reports on the topics of Food Security and Net Zero Transition. If you’d like to know more, contact us through the link below:

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