The term ‘the Global South’ remains contentious in many circles, but it serves to highlight the disparities in power, development and wealth between the less developed countries of the southern hemisphere and affluent countries in the north. Moreover, Global South countries experience disproportionate impacts from climate change and environmental degradation – further compounding societal challenges and inequalities such as food insecurity, poverty and lack of access to basic healthcare and education.
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It is imperative we start addressing the stark inequalities faced by the 88 per cent of the world’s population living in the Global South. However, countries consistently fall short in their ambitious pledges. A prime example being the Loss and Damage Fund, which has raised only a fraction of the US$215 to US$387 billion the United Nations Environment Programme (UNEP) says developing countries urgently need just to mitigate climate change impacts. With so much to do, the time is now for us to act on our commitments and prioritize the Global South’s needs.
Seeking leadership, not declarations
Even as we look into the Global South’s priorities, the global agenda has grown increasingly complex. The wealth gap has widened, making the chances of bringing about the economic revolution for a timely and just transition appear slim. We can no longer ignore the harsh reality that the climate crisis goes hand-in-hand with deep challenges related to inequality and social justice.
Sadly, the ongoing geopolitical turbulence has eroded trust between nations, highlighting the need to look for new levers of power and influence. Following COP28’s success, it is clear that the Middle East has a vital role to play in shaping the future. In fact, leadership from the Middle East will be crucial to our collective progress made on sustainable development and climate change – the Middle East must step into its role as a critical gateway to the Global South.
Indigenous peoples participating in protests at the COP28 climate summit in Dubai to make their demands heard, which included climate financing from the largest historic polluters. Image: Jessica Cheam/ Eco-Business
The rising star of the Middle East
The Middle East is uniquely placed, serving as a vital gateway for critical knowledge, resources and cooperation with the Global South. Its strategic location and its role in global energy markets already provides significant geopolitical influence. Used well, this influence can can improve relations between Global North and South during the energy transition roll out.
The Middle East, with its strong economic and trade ties to the Global South, is a vital hub for financial services, transportation and trade. This existing infrastructure is invaluable, and can be easily re-imagined to support the sustainable development of Global South countries. Significantly, shared cultural, historical and linguistic ties enhances the potential for understanding and cooperation and should not be underestimated.
More importantly, transitioning into such a gateway role also aligns with the Middle East’s own narrative and trajectory, especially when it comes to climate and energy transition. The region’s commitment to its climate ambitions has been impressive, shining through at COP28 and in preparation for COP29, alongside the realization of the UAE Consensus and the shift from fossil fuels. The region already plays a critical role in uniting agendas and reaching agreements amidst challenging circumstances. With record-breaking temperatures this summer – four of the hottest ever days were recorded by scientists last month – urgent global action is needed and the Middle East can bring voices together.
The island of Tonga is one of the early beneficiaries of UAE’s renewable energy funds. Image: Shutterstock
Leapfrogging traditional models of sustainable development
However, it is not simply about external positioning. The Middle East can drive meaningful change by forming partnerships that leapfrog traditional development models, enabling speedier and more effective sustainable development.
This developmental leapfrogging will largely depend on the nature and scale of capital provided to the Global South over the coming months and years. Powerful Middle Eastern sovereign wealth funds are already looking to these emerging markets and it is well known that their investment teams are scouring for opportunities in sectors such as renewable energy, agriculture and healthcare. A shining example is Abu Dhabi Investment Authority (ADIA) – one of the world’s largest sovereign wealth funds – which has been investing in green infrastructure and real estate in Africa for several years.
Development aid and assistance also have their role – particularly from Gulf Cooperation Council (GCC) member countries – whereby funding is vital in addressing poverty, climate resilience, educational access and other inequalities in the Global South. For example, the Saudi Fund for Development (SFD) focuses largely on Global South infrastructure projects and working to rehabilitate infrastructure in areas affected by natural and man-made disasters. While previously Middle East development aid was limited, it is now reinforcing the region’s position as a future leader on sustainable development.
Looking to the future
There is still a great deal of rhetoric on the Global South’s needs and how these can be met. However, the Middle East’s bold and inclusive approach to fostering collaboration on sustainable development will likely be a game changer – for both the Global South and North. For example, Alterra, the new $30bn catalytic climate investment fund launched at COP28 by the United Arab Emirates, to mobilize investment at scale to finance a new climate economy in emerging markets. This reflects the bold decisions regional governments are willing to take.
As an emerging leader in climate and clean technologies, the region is already exploring how to transfer these technologies to Global South partners. Fostering such economic partnerships will not only bolster regional markets, but also support the Middle East’s own ambitions for economic diversification, climate leadership and equitable development.
