An article by Dr. Stavroula Kalogeras, MBA Programme Director, Edinburgh Business School, Heriot-Watt University Dubai

The concept of a green entrepreneur arises from environmental concerns such as global warming, climate change, and the scarcity of natural resources, which disrupt the ecosystem. To define, a green entrepreneur combines the word entrepreneurship with the environment, and green entrepreneurs cultivate green businesses with green practices. Green entrepreneurship involves developing new products, bringing them to market, and ensuring the environmental sustainability of their businesses. A key factor for green entrepreneurship is to address environmental challenges, and as societies seek to adopt sustainable ways of living, the demand for greener solutions inevitably increases. 

The business landscape in the Middle East and North Africa (MENA) region is evolving rapidly, and entrepreneurs recognise the importance of integrating sustainability into their business models. These business models focus on being socially responsible, environmentally friendly, and economically viable. The green revolution is all about positively impacting the environment, society, and communities while making a profit. A green economy is resource-efficient, socially inclusive, and low-carbon. Eco-inclusive enterprises consist of green and social enterprises that are recognised as catalysts of innovation for sustainable development. 

Green entrepreneurs in the MENA bring new ideas to the market, drive change, and disrupt established practices while investing in our planet’s future. There is a growing need for multi-stakeholder partnerships for the success of a green economy. Sustainable consumption and production involve regulatory frameworks, businesses, and citizenship. Along those lines, the private sector, enterprises, non-profit organisations, and governments play an essential role in the green economy. Moreover, public and private investment drives growth in infrastructure and assets that enhance energy and resource efficiency while reducing carbon emissions and pollutants.

It is highly critical to embrace long-term solutions toward a resilient future. A culture of collaboration, accountability, and strong leadership for climate restoration is required. Businesses shape the climate change narrative, which can stop folks from paying attention to their actions. Corporations play a significant role and are responsible for the state of the planet. A critical factor in the equation of green leadership is the ethical dimension that impacts globally. Green leadership must be displayed in practice as corporations are polluting the atmosphere and must take accountability for their enormous role in the climate crisis. The wealthy need to own up, too!

The Oxfam Report (2024) states, “Billionaires emit more carbon pollution in 90 minutes than the average person does in a lifetime.” Oxfam found that “on average, 50 of the world’s richest billionaires took 184 flights in a single year, spending 425 hours in the air—producing as much carbon as the average person would in 300 years. In the same period, their yachts emitted as much carbon as the average person would in 860 years.” There is a tremendous gap between the carbon footprints of the super-rich and the rest of the people worldwide.

Climate change is one of humanity’s most significant threats, and activists across the MENA region encourage consumers to buy ‘greener’ products. Still, corporations must own up to being the leading proponents of fossil fuel emissions. According to PwC’s 27th Annual Global CEO Survey (2024), “nearly 40% of global CEOs believed their companies would no longer be viable in ten years time if they continued on their current path.” Most CEOs are showing progress in improving energy efficiency (decarbonisation), selling products, services, or technologies that support climate resilience (climate adaptation), and investing in nature-based climate solutions (Nature). Likewise, the recent PwC analysis shows that “climate-related innovation has a positive effect on profit margin, as do a half dozen other climate-related business moves, both individually and when analysed in aggregate.” 

The MENA region's contribution

The MENA region has contributed to the global movement towards sustainability, implementing robust strategic plans aimed at transitioning to a greener economy. Saudi Arabia and the UAE were the initial countries in the GCC to establish the green economy as a goal, as reflected in the UAE's Net Zero by 2030 Strategic Initiative and KSA’s Vision 2030.Egypt and Morocco were among the first countries to recognise the necessity of swiftly transitioning to renewable energy sources, leveraging their favourable climatic conditions to establish two of Africa's largest solar power facilities: the Ouarzazate Solar Complex and the Benban Solar Park in Egypt.

MENA startups and local businesses, as well, had their share of responsibility towards the environment, adopting some of the most creative ideas to save the planet, like eco-friendly products, waste management and green building.

Consumers in the MENA region are awakening and becoming more receptive to the emergent and developing green market, which includes green production and supply chains, to name a few. Several studies show that consumers are more active in incorporating sustainability in their purchasing decisions, seeking sustainable alternatives, and willing to pay more. Affordability and accessibility of sustainable products with government subsidies and tax incentives may provide some relief. Consumers’ growing interest in sustainability, willingness to pay for green alternatives, and proactive approach to verifying businesses’ claims indicate an urgent need for businesses to understand changing consumer sustainability perceptions.

Today, entrepreneurs and businesses face the dual pressures of driving positive impact and growth for businesses and the planet and meeting customer needs and regulatory demands. In the end, it is not just about buying sustainable products. There will be a growing need for solutions that help consumers live more sustainably, and green entrepreneurship has a vital role in the progress of a greener economy. Ultimately, a fundamental transformation of the global economy will be needed for a resilient and greener future.