'People are waking up': How ecopreneurship is booming in the UAE

There are opportunities aplenty for budding eco-conscious business owners to capitalise on sustainability

A growing number of entrepreneurs are launching eco businesses in the UAE. Getty Images

When Ranjitha Raghavan decided the use of plastic across the UAE in the food industry was "really disturbing", it inspired her to find alternatives made from plants that would not harm the environment.

The Dubai entrepreneur launched her company, Back to Nature, four years ago and began selling eco-friendly items such as cassava bags, bamboo cutlery and bagasse containers made from sugarcane pulp.

Fast forward to 2023 and Ms Raghavan has a factory in Umm Al Quwain where she meets the increasing demands of businesses wanting eco-friendly products that are made locally. This demand is expected to increase when the UAE's single-use plastic ban is enforced.

"We've sustained and survived through the ups and downs of the economy, which just shows, yes, there is a way to [be successful] in this market," Ms Raghavan tells The National.

"There are risks from climate change, but also opportunities, and it's good for companies to know that," said Aglaia Ntili, managing director of the Sustainability Knowledge Group, which supports businesses in Europe and the Middle East with sustainability goals.

One of these opportunities is entrepreneurship, she said.

While the European or American markets may be saturated, there are areas in the UAE where entrepreneurs can make their mark. And now is the time to start. "That's where all the businesses are eventually going to move or be forced to move," Ms Raghavan said. "It's definitely one of the best ideas to get into this space."

Areas for growth and investment

Flat6Labs UAE, a seed and early stage venture capital firm in Abu Dhabi, has seen an increase already, general manager Ryaan Sharif told The National.

"We have seen the share of sustainability-related businesses applying to our flagship Flat6Labs Ignite start-up seed funding and mentorship programme steadily increase and we have even invested in some of these organisations."

Mr Sharif says that with the UAE preparing to host Cop28 later this year, “there has been a clear drive by the government to create an ecosystem that enables sustainability businesses to flourish”.

Some of the main investor interest areas Mr Sharif sees are in renewable energy, sustainable transport and innovations in mobility, waste management and recycling, water conservation, as well as the sustainable agriculture sector.

Feryal Ahmadi, chief operating officer of Dubai Multi Commodities Centre (DMCC), which welcomed 708 new companies in a wide range of industries in the first quarter of 2023, said many of DMCC’s member companies are micro, small and medium-sized enterprises “with a very clear focus on sustainability and social impact and are fairly advanced in this journey”.

“At DMCC, we also play an active role in attracting these types of companies,” Ms Ahmadi said. “For example, we currently offer up to a 30 per cent discount on licences to any company that becomes a member of the UN Global Compact, as well as funding opportunities and access to a network of likeminded entities across the region.”

Long-term entrepreneur Chandra Dake, whose group of companies focus on sustainability activities such as water conservation and the development of breathable sand, agrees that there is “huge scope” to make it a viable business.

“Sustainability doesn’t mean people don’t make money,” Mr Dake said. “Right now it’s all about being responsible. Companies that are embarking on being net zero or net positive are able to attract more and more business for their products. Eventually they will be able to secure more business than their peers who are not carbon compliant.”

Self-funding is possible but tough

Clara Strambio and her husband Fadi Abu Ghali launched their sustainable toy shop, My Backyard Chronicles, in Dubai in December 2020 after discovering the joys of "slow play" with their three children while stuck at home during the Covid-19 pandemic. All self-funded, it is now their mission to bring responsibly made, sustainable toys to the UAE market through their online shop, and a new physical outlet in Dubai Hills Mall.

"We set out to find toys that are kind to the environment, ethically manufactured, use sustainable materials and serve an educational purpose," Mr Abu Ghali said. "But are also nice to look at."

One of the biggest hurdles they face is a lack of education in the market — an understanding of why their toys are more expensive than those on Amazon. But they've had "amazing" feedback from customers and big brands, and their products are now sold in places such as Abu Dhabi's Yas Mall, Louvre Abu Dhabi and Level Shoes.

But it has not been an easy path. "Dubai is a great place for big business, but for small businesses it can be a tough environment," Mr Abu Ghali said, referring to business set-up fees. "It's a huge struggle as an eco business to make profit and you're going to have to deal with things that are not sustainable."

But the hard work is paying off, with big retailers approaching them for advice. "People are waking up. It's the Year of Sustainability after all, and we can do better. The small people are putting the big ones to shame."

Beware of greenwashing

While many of their products are sourced from overseas, My Backyard Chronicles tries to buy local as much as possible. But they said the selection in the UAE is not as strong as it is internationally.

"We don't claim to be 100 per cent sustainable" Mr Abu Ghali said. "But at least we're not selling plastic yellow, blue or pink toys that will end up in landfill for 200 years."

The couple are transparent about their efforts, limiting the amount they ship per year. They also plant a tree with every order.

The UAE market may be in its infancy, but transparency is key to building a loyal customer base. "They need proof that you are what you say you are. Customers need hard data and evidence of your sustainability, proof that you walk the talk," Ms Ntili said. "Otherwise, that's how best to greenwash, not how to be sustainable."

This is a huge issue in the field, confirmed Amruta Kshemkalyani, founder of Sustainability Tribe and AK Sustainability Advisory, adding that people should make the effort to familiarise themselves with the terminology. "It's not rocket science, but [sustainability] is a science and people should understand what it means.

“One thing I see a lot of is enthusiastic but half-baked sustainability experts out there who are passionate but haven’t invested enough in learning and gathering proper knowledge about topics.”

Ms Kshemkalyani has worked in the industry in the region for the past 16 years and says greenwashing is "one of the biggest reasons why" many sustainable businesses have opened and closed. While the EU enforces regulations, similar legislation has yet to be introduced in the region, but it is only a matter of time, she said.

“Our consumer is more savvy than they were 10 years ago. They know more than you… and that’s where your business is going to fail.”

Fashion entrepreneur Leen Nizameddin took this to heart from the beginning. When she learnt to sew and create outfits from upcycled materials she found in her wardrobe during the pandemic, she shifted her existing label, Sound.On, to become fully sustainable. It now has a cult following.

“I had always wanted the label to be sustainable, but it was really difficult to source and manufacture locally and find proper sustainable raw materials or a production company that followed a sustainable model, as opposed to greenwashing it.”

Since she now sources her materials from deadstock and thrifting warehouses across the country, she can confidently tell her customers that hers is a zero-waste business.

Clear the hurdles

Ms Nizameddin, Ms Raghavan, Ms Strambio and Mr Abu Ghali have all spent time educating the market about their products, hosting pop-up stalls, attending events and meeting their customers.

Consumer education is one of the biggest hurdles. "[Entrepreneurs] need to be persistent in their efforts," Mr Dake said. "If they believe their solutions can make a change, you can create awareness."

It is all about teaching the market about the long-term advantages, he said. "People need to understand the savings. Awareness is important, as after awareness comes acceptance," he said.

Mr Sharif says securing funds could also be a challenge. "Developing sustainable technologies and innovations can be expensive, and ecopreneurs may need significant capital to bring their ideas to fruition."

Regulation can be potentially complex, too, he added, and then securing the right talent locally could be difficult. “And finally, even when these hurdles have been overcome, there is the question of securing customer buy-in,” he warned.

Of course, none of this means we shouldn’t try, Ms Ntili said. “We still have time to make a difference. We really need to act fast and with conviction, but also with positivity."