How new environmental policies and tech will impact the Middle East
How can connected car technology contribute to better environmental policies?
Mental images of the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) often conjure up enormous oil and gas fields and gas-guzzling cars and supercars. But even the Middle East is affected by the concerns of international and local populations about the long-term effect of fossil fuels on the global environment and the need to prepare for a mixed energy future. Like many countries around the world, both KSA and UAE are investigating and investing in technological solutions and government initiatives to help reduce their reliance on fossil fuels and their impact on the environment.
When it comes to getting around in KSA and UAE, people cannot necessarily rely on a very well-developed public transportation system. The intense heat and overall weather conditions also make it very difficult for people to walk any distance comfortably. Additionally, car ownership is so easy to finance, that buying is actually cheaper than renting a car. The high rate of car ownership and usage continue to have a huge impact on the environment, causing both air and noise pollution as well as congestion.
The future of environmentally-friendly transport in the Middle East
Both UAE and KSA Governments have launched a raft of initiatives over the past decade to help solve this transportation issue. One example was the UAE Government’s implementation of a fully integrated Surface Transport Master Plan, followed by the Dubai Green Mobility Initiativeand The Clean Energy Strategy,which aims to increase the contribution of clean energy from 25 per cent to 50 per cent by 2050 and reduce the carbon footprint of power generation by 70 percent.
Other, more immediate initiatives have also been introduced on the ground. Dubai’s Roads and Transport Authority (RTA) has provided 70 free parking spaces for environment-friendly vehicles in 40 paid parking zones across the emirate, to encourage the take-up of eco-friendly vehicles and to help reduce carbon emissions. Whilst a federal mandate that states 10 percent of investments in new vehicles will cover electric and hybrid cars by 2020, will further encourage consumers to make the shift to more environmentally-friendly methods of transportation.
Banks are also being encouraged to provide discounted ‘green’ auto loans to finance environmentally friendly vehicles. For example, Emirates Islamic announced a new promotion on its sharia-compliant Green Auto Finance product for cars financing of up to Dh1.5m.
There is no doubt, that even in the oil and gas-rich countries of the Gulf Cooperation Council (GCC), shifting consumer preferences, climate related policies and advancements in technology are driving the demand for environmentally friendly, fuel efficient and smart vehicles.
In particular, the medium-term outlook remains strong for hybrid vehicles. Tesla launched the first electric vehicle showroom in Dubai and now its cars make up part of the Dubai Taxi Company. In their first six months of operation, they made 64,186 trips with a customer satisfaction rate of 97 per cent and, most importantly, saved ~60,000 gallons of fuel according to the emirate’s Roads and Transport Authority.
Saudi Arabia’s government is among those who have been keenest to respond to the growing demand for cleaner vehicles. In 2016, the country’s Corporate Average Fuel Economy (CAFE) standard was introduced, with the objective of improving the fuel economy on average of light vehicles by 58%, from 12km per litre of fuel to 19km, by 2025.
Car-sharing in the Middle East
Attitudes are also changing to the car-sharing market and it is getting more attention from the government, since sharing cars means reduction of vehicles on roads, less investment on infrastructure and less pollution.
There are currently three leading car-sharing companies in the UAE. Ekar, the UAE’s first and largest on-demand car share operator, which runs a fleet of Minis; friendycar, which enables people to borrow and lend private cars and udrive, providing car rental by the minute. All of these services are gaining traction over time and will infiltrate into all the Middle East markets. They demonstrate how changing consumer attitudes and technology innovation are coming together to create new business models which ultimately help the planet.
And as a variety of electric and autonomous vehicles come onto the roads to help cut emissions, connected car technology, such as the Remoto platform and App, will play its role. The company already works with car-sharing companies around the world, help make their fleet management more efficient, plus many other services that all contribute to making their business as kind to the environment as possible.
Having access to the most up-to-date information about traffic congestion is one of the best ways of being able to ensure that any car journey is eco-friendly. Sitting in traffic idling the engine is a guaranteed way of wasting valuable energy resources and polluting the atmosphere. Being able to reroute or reschedule a trip makes driving more efficient. Bright Box’s AI-first connected car platform, Remoto, provides valuable, real-time data on traffic conditions to help drivers make the right decisions about their journeys. It provides live parking information too for customers to ease frustration and minimise unnecessary time on the road.
Pulling together
Transforming the Middle East’s impact on the environment is so important that we can’t just leave it up to the governments in the region. Business needs to pull its weight, as well as citizens in the area.
Bright Box’s own policy towards environmental responsibility includes recycling, conserving energy and using environmentally-friendly technologies. As a world-leading connected car and car-sharing provider, Bright Box is proud to contribute to the overall promotion and delivery of fuel economy and efficiency in the Middle East and the rest of the world.
When we all pull together, we can achieve our goals to transform our environmental impact in the Middle East, and the wider world.
