Skip to content Skip to footer

Building Resilience: How SMEs Can Lead the Sustainability Charge in the UAE

In an era where the global sustainability agenda faces turbulence, small and medium-sized enterprises (SMEs) have a pivotal role in driving climate action. While the US experiences ESG pushback and parts of Europe soften their climate ambitions, the UAE has taken a bold step by enacting its first climate law — a landmark policy signaling that the region is ready to transform net-zero pledges into enforceable action.

In our latest episode of Sustainability Unplugged, Olive Gaea’s Co-founder Jessica Scopacasa sits down with Adrienne Doolan — founder of SustainGlobal and board member at the UN Global Compact UAE — to discuss why this could be a defining moment for sustainability in the region.

“We cannot continue to pledge net zero by 2050 without enacting concrete laws or mandates to support that goal. This climate law introduces accountability across every industry, and there is no turning back — our region is already on a trajectory to becoming significantly warmer.”

Adrienne Doolan — Founder of SustainGlobal and board member at the UN Global Compact UAE

For sustainability leaders in SMEs, the message is clear: regulatory momentum is building, and preparation must start now.

Below are the key takeaways from the podcast, along with practical steps that businesses can take to strengthen resilience, ensure compliance, and lead the climate transition in the UAE and GCC.

1. Understand the Regulatory Landscape

The UAE’s climate law mandates strict accountability for achieving net-zero targets, with penalties ranging from AED 50,000 to AED 2 million starting May 2026. Saudi Arabia’s Green Initiative is also accelerating corporate climate commitments, backed by substantial investments.

What businesses can do:

 

2. Move Beyond “Tick-Box” ESG

Many organisations still view sustainability as a CSR or PR activity. With climate impacts intensifying — including Abu Dhabi recording 51°C temperatures this year — SMEs can no longer delay embedding sustainability into business strategy.

As Adrienne notes:

“We must stop treating sustainability as a PR or CSR exercise and treat it as a matter of survival.”

What businesses can do:

  • Incorporate climate KPIs into core business metrics.
  • Embed ESG practices across procurement, product design, and operations
3. Harness SME Agility for Innovation

SMEs hold a competitive advantage: agility. Across the GCC, smaller firms are innovating with waste segregation, landfill diversion, and energy efficiency retrofits.

What businesses can do:

  • Launch low-cost pilot projects with measurable climate benefits.
  • Collaborate with innovation hubs to scale sustainable solutions.
4. Build the Business Case with a “Cost of Inaction” Analysis

Quantifying the climate risks of inaction is one of the most persuasive ways to secure executive and investor buy-in. Using AI and digital tools, SMEs can calculate the financial and operational impact of climate risks like supply chain disruptions.

What businesses can do:

  • Use scenario modelling to assess potential financial losses from climate change.
  • Present findings in strategic planning sessions to prioritize sustainability investments.
5. Strengthen Supply Chain Integration

Joining sustainable supply chains is vital for SMEs looking to expand their market reach. Larger buyers are increasingly setting strict environmental standards and favouring suppliers with transparent sustainability reporting.

What businesses can do:

  • Align procurement with recognized climate and environmental standards.
  • Obtain certifications such as ISO 14001 to boost credibility and market access.
6. Foster Regional Leadership and Collaboration

Adrienne emphasizes the importance of developing climate solutions tailored to the GCC:

“If we keep yo-yoing between EU and US trends, we won’t progress. We need regional leaders who act because it’s the right thing to do.”

What businesses can do:

  • Join GCC-focused sustainability coalitions to share best practices.
  • Advocate for funding and policies that address regional climate realities.
7. Empower the Next Generation

The region’s youth represent a dynamic force in advancing climate innovation. Their energy and entrepreneurial spirit can fuel SME-led sustainability projects.

What businesses can do:

  • Develop youth mentorship programmes focused on green skills.
  • Partner with universities to co-create sustainability-focused innovations.
Final Call to Action for SME Leaders

Sustainability in the GCC has entered a new era where inaction is both legally and economically risky. The UAE’s climate law, Saudi Arabia’s green agenda, and accelerating climate impacts demand urgent action.

As Adrienne concludes:

“Each individual must take responsibility. Businesses need to wake up — the cost of procrastination is far too high.”

 

For SMEs, the path forward is to embed sustainability into every decision, leverage agility for innovation, and actively contribute to the region’s net-zero goals. The moment for decisive climate leadership is now. 

Ready to future-proof your business? Contact Olive Gaea’s sustainability experts today to develop tailored strategies that ensure compliance, reduce emissions, and unlock long-term growth.

 

Leave a comment