SOMA Newsletter

Author

Soma Mater
September 08, 2025

Welcome to the SOMA MATER weekly newsletter.

At SOMA MATER, we specialize in delivering comprehensive research and advisory services with a focus on Food & Water Security and Net Zero Transition in the MENA Region. In order to support our subscribing clients in navigating these topics and understanding the regional narrative, we produce monthly Food and Water Security and Net Zero Transition Intelligence Reports, along with our in-depth analysis and insights.

This weekly newsletter highlights the top 3 stories from the past week in Food and Water Security and Net Zero transition, along with SOMA MATER's analysis and perspective.

Why is water security critically underinvested despite its economic importance, and what solutions might address this investment gap?

How are marine-based innovations like blue bonds and research developments contributing to water security in the UAE?

How do Saudi Arabia and Egypt display contrasting realities of resource management in arid environments, and what circular economy opportunities exist in both scenarios?

Sustainably yours,

The SOMA team

Liquid Assets: How Water Security Became Our Most Undervalued Resource

#FoodandWaterSecurity

Water security is a critically underinvested strategic resource. It threatens $58 trillion in economic value—equivalent to 60% of global GDP. This occurs despite worsening global conditions, such as a third of the world's wetlands being lost since 1970, freshwater wildlife populations plummeting by 83%, and geopolitical tensions rising over shared waterways. The mathematics reveals that achieving global water security demands $12.6 trillion by 2034, yet global climate tech investment in 2024 reached a mere $51 billion, with water innovation capturing just 1.25% of all climate tech investments since 2020.

The investment sector’s neglect to water security innovation stems from structural factors. Unlike the glossy narratives around AI or renewable energy, water infrastructure offers a fragmented market dominated by risk-averse local utilities with tight budgets and regulatory constraints. It is perceived as low-return with high upfront costs and prolonged payback periods. Breakthrough technologies for watershed monitoring or pollution control barely register with investors, leaving entrepreneurs and researchers stranded with solutions trapped in pilot purgatory.

It is necessary to have a shift in water investment that embraces ecosystems, resilience technologies and nature-based solutions through blended finance models. This would combine public, philanthropic and private capital to de-risk early-stage innovation. Yet, positive momentum exists, with the European Investment Bank committing €15 billion by 2027 toward water projects. For investors willing to apply systems-level thinking and multidisciplinary diligence integrating environmental science, engineering and climate finance, water technology represents an opportunity.

SOMA’s Perspective:

Water security is one of SOMA's top focal themes this year, particularly significant as the UAE prepares to co-host the UN Water Conference in December 2026. As we prepare for this important event, we hope the global community and financial sector will recognize the urgency of this issue and implement the necessary changes.

Sources:

Making Waves: The Rising Tide of Gulf Water Innovation

#FoodandWaterSecurity #NetZeroTransition

First Abu Dhabi Bank recently issued the Gulf's inaugural financial institution Blue Bond—a $50 million five-year blue bond designed to fund marine and ocean-based sustainability projects. This signals a change in how the region's financial powers approach water security, with the bond's proceeds earmarked for initiatives ranging from sustainable water management to climate adaptation through conservation of wetlands, mangroves and coral reefs. The issuance aligns with the UAE Water Agenda 2036 and positions the nation favorably ahead of co-hosting the United Nations Water Conference in December 2026.

Following in the wake of global precedents such as the World Bank's $15 million Blue Development Bond addressing marine plastic pollution, FAB's blue instrument can direct capital toward projects supporting Mission Ocean's 3 core objectives: ecosystem protection, pollution elimination, and development of a carbon-neutral blue economy. The bond's structure mirrors conventional debt instruments—investors provide capital to the issuer who repays the principal plus interest over the term—but with proceeds channeled toward initiatives supporting SDGs 6 and 14.

Practical innovation complements these developments. Researchers at the University of Sharjah demonstrated a novel waste-to-carbon technology that transforms discarded shrimp shells into high-performance carbon capture materials. Led by Dr. Haif Al-Jomard, the team's process creates activated carbon with excellent CO₂ adsorption properties and stability across multiple use cycles. Considering that shrimp, lobster, and crab shell processing generates approximately 8 million tons of waste annually worldwide, this represents a circular economy triumph. The material also shows potential for in water purification, solvent recovery, and medical uses.

SOMA’s Perspective:

This innovation showcases the integration of sustainable marine technology and circular economy principles. It represents a perfect circular flow from energy to water to food and back again—exactly what we at SOMA emphasize. This cyclical movement is why our logo is a circle: it symbolizes the interconnected flow of these elements within a larger ecosystem. The cost-effectiveness of this process will be interesting to follow on. This development points to a growing recognition that water resources are not merely environmental concerns but strategic financial imperatives.

Sources:

Holy Smokes! When One Country's Drought is Another's Burning Issue

#NetZeroTransition

Saudi Arabia and Egypt illustrate the stark situations of managing natural resources in arid landscapes. Saudi Arabia has been embracing agroforestry as a solution for sustainable development—combining agricultural production with environmental preservation. Led by the National Center for Vegetation Cover Development and Combating Desertification, the kingdom is advancing forest integration projects that enhance soil fertility, control erosion, and promote closed nutrient cycling. The FAO and the General Department of Forests of NCVC identified and demarcated 491 forests covering 608,000 hectares across 5 Saudi regions: Al Baha (99 forests), Asir (93 forests), Jazan (55 forests), Makkah (147 forests), and Madinah (97 forests) (Figure 1).

Figure 1

In contrast, Egypt faces an abundance of agricultural waste with infrastructure attempting to manage it. The country has amassed 1.4 million tons of rice straw amid steady production. Traditionally burned by farmers, this practice has prompted governmental intervention, with Dr. Manal Awad directing preparations to confront the 2025 pollution season. Though farmers have become increasingly aware of straw's economic value, leading to decreased burning rates and increased collection, Egypt's environmental ministry continues to battle against open burning through penalties.

While one nation struggles to introduce greenery into arid landscapes, its regional neighbor grapples with excess agricultural biomass. Egypt is one of the largest countries in the world in the production of Egyptian rice straw. Yet both situations represent opportunities for circular economy innovation. Egypt's rice straw has demonstrated remarkable versatility—serving as thermal insulation material that enhances concrete properties, and provides raw material for paper production. Unfortunately, agro residues account for only 6–12% of total global paper production..

SOMA’s Perspective:

This presents a striking regional contrast. While Saudi Arabia works to introduce more vegetation into landscapes, Egypt struggles with abundant agricultural waste, particularly rice straw that farmers often resort to burning. It is important to understand circular economy principles and agricultural value systems, as increased agricultural production inevitably generates substantial waste streams. The juxtaposition underscores how MENA region's climate challenges require customized approaches to resource management, creating opportunities for regional collaboration where one country's waste could become another's ecological resource.

Sources:

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

https://wkf.ms/3BmPiPo