Middle East Oil Barons See Green Oil Fields in Clean Technology
August 11th, 2008It’s kind of ironic, but good news: As the world suffers from rising fuel costs and weighs the consequences of global warming, investors and oil barons in Dubai may play a pivotal role in a swift move towards green technology and alternative energy, reports Zawya.com.
Swati Taneja, a director from the Private Equity Forum which recently concluded in Dubai, said that people in Dubai have amassed new fortunes from the rising price of oil and gas around the world. They now see massive opportunities in green investing.
“Green investing is emerging as the new theme for the region,” said Taneja. “It is not hard to discover why. The recent World Wealth Report by Merrill Lynch estimated that about 20 per cent of wealthy investors in the Middle East had already allocated part of their portfolios to green technologies and alternative energy — the highest proportion of any region in the world.”
Nicholas Parker, co-founder and chairman of the Cleantech Group, and a participant in the Private Equity Forum said that the move is a reflection of a global trend to invest in the clean technology sector.
“Private equity and venture capital is clearly becoming increasingly important in the process of diversification away from oil and gas,” Taneja said and noted, “The wealth report also found that while half of those in the west who had invested in green technologies had done so out of a sense of social responsibility, in the Middle East two-thirds said it was because of the potential high returns. Regional investors have identified a new source of income.”
More clean technology stories on Green Prophet:
Eden Springs Gets Wind Power at the Golan Heights
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EWA Powers Air Conditioning With Solar Power
::Zawya
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This is very interesting and very much in keeping with some of what I believe about the Middle East, as described in three of the related posts listed above: A Recipe for Peace Pie, Israel@60 A Light Unto The Nations?, and Don’t Laugh:Can Saudi Arabia become the “Mecca” of Green?
As you suggest, Karin, the move toward “green” in the Middle East can be analyzed on many levels. In one sense, it is a way of making money, by yielding high returns. In another sense, it is a way of protecting the environment, which is in everyone’s best interest.
But with respect to the Middle East, going “green” can accomplish even more good things. It can be used do create good paying jobs, which will help to neutralize extremist thinking. It can be a way of resoring Arab pride, because the Arab world has the funds to become the “Mecca” of green. It can be used to convert oil profits into green profits, and thus diversify Arab investments, so that people could make money on oil and on green at the same time. It can point to the possibility of peace, because nations in the region will have to cooperate when it comes to green technology and clean water, and with such cooperation, there is less inclination to fight one another, especially if people are making money in the process.
In short, there are many ways in which going green could become the hope for the Middle East. You will solve intractable regional problems, and global problems, at the same time, while making a money in the process. It could be a win/win situation for all concerned. Could it be that people will actually become so sensible? Time will only tell.
Dear Nissim,
I would love you to a guest post on Green Prophet about your vision. Would you be interested?
http://www.greenprophet.com
Maybe you could tell me more about your project. This could be something I could feature in a magazine article. Let me know. Karin
Fascinating post…I didn’t realize that investors in the Middle East were focusing on alternative energy. A prudent investor, however, does look towards the future and potential impacts that it will have. In this case, the ongoing improvements in hydrogen-cell technology look like they are about to explode (not literally, hopefully). The largest impediment to electricity replacing oil as the main commodity for transportation has always been the inability to store an electric charge of sufficient power for long periods of time. Looking at the various auto and engine manufacturers and designers, and the rapid strides they have made in fuel cell technology, I think that, within the next decade, there will be a “breakthrough” invention in a rechargable hydrogen cell battery that will be able to store the equivilant of a tank of gas in energy for up to a year with negligable loss in power. Such a battery, easily changeable and mass produced, will quickly replace the gas-burning culture that has been built up world-wide.
A canny investor would certainly benefit from investing in large scale alternative electricity generation now, if this scenario plays out
Karin, I would certainly be interested in getting the word out any way I can. I will study your website and get back to you soon. Thanks for your interest.