The future of the blue economy: Insights from Finance Middle East

Oceans are recognised not only for their natural beauty but also for the essential role they play in sustaining global ecosystems and economies. A feature in the November issue of Finance Middle East spotlighted the rise of “blue finance” — investments that support marine ecosystem conservation, sustainable maritime industries and water management. 

According to the article, with an estimated $3 trillion value by 2030 and the potential to generate 40 million jobs, the blue economy is shaping up to be a cornerstone of future sustainability efforts. Yet, as global leaders work to unlock — and protect — the ocean’s economic potential, it becomes clear that innovative financing models are critical to accelerating progress.

The power of blue finance for sustainability and economic growth

Much like the green economy, blue finance is dedicated to achieving environmental and financial returns. Investments in sustainable fishing, eco-friendly shipping, renewable energy and marine conservation offer a new pathway for economic growth. According to Tongai Kunorubwe, Head of ESG Fixed Income at T. Rowe Price, if the blue economy were a country, “it would effectively be a G7 nation, somewhere between Italy and Japan.”

However, there’s still a gap between blue economy potential and actual investment. The blue economy’s impact extends well beyond GDP; it’s also crucial for ecosystem resilience, climate mitigation and economic stability. The challenge lies in drawing in capital that aligns with these goals.

The GCC’s commitment to a blue economy

With their deep cultural and historical connection to the sea, GCC countries have been instrumental in advancing blue economy initiatives. In 2020, the UAE became the first MENA country to join the Global Ocean Alliance, a global association aiming to protect 30% of the world’s oceans by 2030. Since then, Egypt, Saudi Arabia, Jordan and Qatar have also joined the initiative. The UAE Water Security Strategy also aims to reduce total water demand by 21%. These initiatives not only support biodiversity but also ensure that the economic benefits of a healthy ocean are accessible to future generations.

As the conversation around blue finance has grown, so has interest in innovation and technology that can support and advance water security. By using air-to-water technology, businesses can contribute to better water management practices. Alex Guy, Founder and CEO of A1RWATER, emphasised the UAE’s proactive approach to water scarcity and sustainability. In the article, he stated, “The UAE has shown that with the right vision and investment, it’s possible to tackle even the most pressing environmental challenges, including water security.” 

The future of blue finance

For forward-thinking investors and businesses, the blue economy represents one of the most compelling areas for long-term, responsible growth. McKinsey & Company has reported that nearly two-thirds of companies have substantial risk in direct operations or in their value chain due to water stress. Investing in blue finance is therefore not only a strategic priority but also a strategic business decision. For investors, businesses and policymakers alike, this emerging sector offers an unprecedented opportunity to create a future that values and preserves our most vital resource.

Read the full article here.

Learn more about the air-to-water technology solutions, from premium bottled water to large-scale atmospheric water generators, that are reshaping water access.