Author: Mohammed Al Dhuhoori, Chief Development Officer Published by: Logistics Middle East Over the past decade, sustainability has quietly moved from the margins of corporate policy to the centre of how business is done. Climate goals, new regulations and investor scrutiny have made it a practical concern, not a PR line. Many of the world’s largest asset owners now screen every deal for ESG factors, and close to 80% of investors review a company’s carbon reporting before committing funds. That kind of attention inevitably filters through to the industrial zones where global firms build and operate. Choices on power supply, waste management and building design now help determine whether those firms can meet their climate pledges. Industrial hubs are beginning to act on that reality. Across the Gulf, zones are redesigning energy systems, tracking emissions and setting measurable sustainability targets. Ras Al Khaimah Economic Zone (RAKEZ) has been among the early movers, establishing a framework that integrates low-carbon growth into how tenants plan their operations, rather than an afterthought. How sustainability shapes investment Investors are increasingly viewing sustainability as a fundamental criterion, rather than an added bonus. This pattern is already evident in trade policy. The EU’s Carbon Border Adjustment Mechanism is one example that is forcing exporters to demonstrate the true environmental impact of their production. At the same time, global manufacturers are facing steady pressure from shareholders to show that their supply chains can withstand climate scrutiny. In practice, this means that location decisions now weigh energy use, certification, and renewable access alongside transport links and tax incentives. Economic zones that can show clear progress on resource efficiency are becoming safer long-term bets. RAKEZ sits within this movement. Its ISO 50001 certification sets a formal process for improving energy performance, while every new project in the zone meets the Barjeel green building standards introduced across Ras Al Khaimah. Environmental responsibility Across heavy industry, energy efficiency increasingly doubles as cost control. Firms that design for lower consumption end up less exposed to global fuel swings. Better insulation, smart metering, and modern cooling systems bring steadier bills and smaller carbon footprints simultaneously. Water reuse and automated utility systems add another layer of resilience. They limit waste and help firms maintain output during maintenance cycles or peak summer demand. The data bears it out. RAKEZ has reduced electricity use by nearly 1%, lowered water consumption by close to 2%, and cut streetlighting energy consumption by more than 60%. Incremental gains like these stack up year after year, easing operating costs and stabilising performance across large facilities. Sustainability and the UAE vision In the UAE, sustainability has become part of industrial strategy. Net Zero 2050 and Operation 300bn now anchor most new investment policy, encouraging factories and logistics networks that run cleaner and waste less. Ras Al Khaimah’s Energy Efficiency and Renewable Energy Strategy 2040 extends that vision locally, targeting reductions in energy intensity and promoting renewable generation across the emirate. RAKEZ’s role fits neatly into that national framework. It sits on the UAE’s Energy Efficiency and Renewables Executive Committee, sharing data and operational insight from its industrial base. Its adherence to ISO standards and Barjeel regulations isn’t a compliance exercise – it’s about how regional initiatives contribute to the country’s broader sustainability goals while providing manufacturers with practical tools to compete globally. Building sustainable communities Sustainability also touches daily life across industrial zones. In Ras Al Khaimah, this idea has been incorporated into planning for housing, mobility, and worker well-being. RAKEZ’s new staff villages, for instance, are designed around efficient cooling, shaded walkways and shared spaces that stay usable through the long summer months. Transport routes are shorter and better connected, reducing commute times and fuel consumption. These choices aren’t purely social policy. They help companies retain staff, reduce turnover and build a more stable workforce. For many, the quality of living space and local amenities now play a direct role in investment decisions. It’s part of a wider shift in how sustainability is being understood, not only as energy performance but as the foundation for long-term industrial resilience. Growth through green credentials Across global supply chains, ESG standards are fast becoming an entry requirement. Large buyers want traceable data on emissions and waste before signing new contracts. As reporting frameworks tighten, zones that already meet those standards are in a stronger position to attract new tenants. RAKEZ’s certifications and measurable performance indicators are beginning to translate into tangible advantages, such as better investor confidence, smoother access to markets, and stronger alignment with global brands seeking low-carbon partners. The direction of travel seems clear. Economic hubs that incorporate sustainability into their core model are likely to capture the next cycle of industrial growth. Sustainability has become the test by which competitiveness will be measured. Investors, regulators and customers are now asking the same questions about efficiency and accountability. Zones that have already embedded those principles into their infrastructure are quietly pulling ahead, attracting capital that looks beyond the next quarter. The adjustment isn’t complete yet, but it’s well underway, and those who’ve acted early are already seeing the returns.
Author: Mohammed Al Dhuhoori, Chief Development Officer Published by: Logistics Middle East
Over the past decade, sustainability has quietly moved from the margins of corporate policy to the centre of how business is done. Climate goals, new regulations and investor scrutiny have made it a practical concern, not a PR line. Many of the world’s largest asset owners now screen every deal for ESG factors, and close to 80% of investors review a company’s carbon reporting before committing funds. That kind of attention inevitably filters through to the industrial zones where global firms build and operate. Choices on power supply, waste management and building design now help determine whether those firms can meet their climate pledges.
Industrial hubs are beginning to act on that reality. Across the Gulf, zones are redesigning energy systems, tracking emissions and setting measurable sustainability targets. Ras Al Khaimah Economic Zone (RAKEZ) has been among the early movers, establishing a framework that integrates low-carbon growth into how tenants plan their operations, rather than an afterthought.
Investors are increasingly viewing sustainability as a fundamental criterion, rather than an added bonus. This pattern is already evident in trade policy. The EU’s Carbon Border Adjustment Mechanism is one example that is forcing exporters to demonstrate the true environmental impact of their production. At the same time, global manufacturers are facing steady pressure from shareholders to show that their supply chains can withstand climate scrutiny.
In practice, this means that location decisions now weigh energy use, certification, and renewable access alongside transport links and tax incentives. Economic zones that can show clear progress on resource efficiency are becoming safer long-term bets.
RAKEZ sits within this movement. Its ISO 50001 certification sets a formal process for improving energy performance, while every new project in the zone meets the Barjeel green building standards introduced across Ras Al Khaimah.
Across heavy industry, energy efficiency increasingly doubles as cost control. Firms that design for lower consumption end up less exposed to global fuel swings. Better insulation, smart metering, and modern cooling systems bring steadier bills and smaller carbon footprints simultaneously.
Water reuse and automated utility systems add another layer of resilience. They limit waste and help firms maintain output during maintenance cycles or peak summer demand. The data bears it out. RAKEZ has reduced electricity use by nearly 1%, lowered water consumption by close to 2%, and cut streetlighting energy consumption by more than 60%. Incremental gains like these stack up year after year, easing operating costs and stabilising performance across large facilities.
In the UAE, sustainability has become part of industrial strategy. Net Zero 2050 and Operation 300bn now anchor most new investment policy, encouraging factories and logistics networks that run cleaner and waste less. Ras Al Khaimah’s Energy Efficiency and Renewable Energy Strategy 2040 extends that vision locally, targeting reductions in energy intensity and promoting renewable generation across the emirate.
RAKEZ’s role fits neatly into that national framework. It sits on the UAE’s Energy Efficiency and Renewables Executive Committee, sharing data and operational insight from its industrial base. Its adherence to ISO standards and Barjeel regulations isn’t a compliance exercise – it’s about how regional initiatives contribute to the country’s broader sustainability goals while providing manufacturers with practical tools to compete globally.
Sustainability also touches daily life across industrial zones. In Ras Al Khaimah, this idea has been incorporated into planning for housing, mobility, and worker well-being. RAKEZ’s new staff villages, for instance, are designed around efficient cooling, shaded walkways and shared spaces that stay usable through the long summer months. Transport routes are shorter and better connected, reducing commute times and fuel consumption.
These choices aren’t purely social policy. They help companies retain staff, reduce turnover and build a more stable workforce. For many, the quality of living space and local amenities now play a direct role in investment decisions. It’s part of a wider shift in how sustainability is being understood, not only as energy performance but as the foundation for long-term industrial resilience.
Across global supply chains, ESG standards are fast becoming an entry requirement. Large buyers want traceable data on emissions and waste before signing new contracts. As reporting frameworks tighten, zones that already meet those standards are in a stronger position to attract new tenants.
RAKEZ’s certifications and measurable performance indicators are beginning to translate into tangible advantages, such as better investor confidence, smoother access to markets, and stronger alignment with global brands seeking low-carbon partners. The direction of travel seems clear. Economic hubs that incorporate sustainability into their core model are likely to capture the next cycle of industrial growth.
Sustainability has become the test by which competitiveness will be measured. Investors, regulators and customers are now asking the same questions about efficiency and accountability. Zones that have already embedded those principles into their infrastructure are quietly pulling ahead, attracting capital that looks beyond the next quarter. The adjustment isn’t complete yet, but it’s well underway, and those who’ve acted early are already seeing the returns.
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