In recent years, the United Arab Emirates has explored new avenues in its pursuit of economic diversification and sustainable development. While Singapore has traditionally been seen as a model for the UAE, Norway, with its unique approach to economic management and environmental sustainability, is increasingly cited as an inspiration by Emirati policymakers and experts.

Despite their geographical and cultural differences, Norway and the UAE share commonalities as small, oil-producing states. Both have leveraged their petroleum resources to fuel economic development. Norway consistently ranks high in global competitiveness indices, reflecting its robust economy and efficient governance. The Nordic country has carved a distinct path, gaining global recognition for helping to pioneer the “Nordic model” of development, a mixed-market system that combines a strong welfare state with free-market capitalism.

One of the primary reasons the UAE has turned its attention to Norway, according to a representative from the Ministry of Foreign Affairs, is that both countries recognize the risks overreliance on the fossil fuel industry pose to their economies and environments. Norway has successfully leveraged its oil wealth to establish the largest sovereign wealth fund in the world. Fueled by prudent investments, the Government Pension Fund Global has allowed Norway to accumulate significant capital assets and mitigate the impact of volatile oil prices on its economy.

While the UAE’s first sovereign wealth fund, the Abu Dhabi Investment Authority, which was established in 1976, predates Norway’s Government Pension Fund Global, which was launched in 1990, a representative from the Ministry of Economy mentioned that the UAE has looked to Norway as a model for efficient and responsible sovereign wealth fund management, especially for its other two funds, the Emirates Investment Authority (2007) and Mubadala Development Company (2002). Norway’s success in establishing a transparent and well-governed fund, coupled with its commitment to intergenerational equity, has influenced the UAE’s approach to managing its own sovereign wealth funds. The UAE has studied and implemented best practices observed in Norway’s sovereign wealth fund, emphasizing the importance of diversification, ethical investments, and long-term sustainability.

The Nordic country has also been a global leader in promoting renewable energy, investing heavily in hydropower and wind energy. Norway’s progressive policies, such as incentives for electric vehicles and stringent emission standards, provide a roadmap for the UAE, which outlined its own goals to transition toward a low-carbon economy in its National Agenda 2021 and UAE Green Agenda 2015-2030.

Arctic Alliance: Benefits From Norway’s Maritime Expertise

In the shipping sector, particularly, Norwegian companies are helping the UAE implement sustainable practices. For example, the UAE partnered with DNV, a maritime classification society and international accredited registrar based in Høvik, Norway, to reduce its fleet’s emissions and make them more energy efficient by using alternative fuels. The Ulstein Group is another Norway-based company brought in to make Emirati shipbuilding cleaner and more efficient.

In addition to traditional exports, such as salmon, Norway’s expertise in aquaculture technology and seafood production can contribute to the UAE’s efforts to enhance food security and promote sustainable fisheries. An employee from the UAE’s Ministry of Climate Change and Environment noted that Norwegian experts regularly conduct training sessions and workshops for UAE fishery authorities and stakeholders. These sessions cover aspects of sustainable fishery management, such as quota systems, bycatch reduction, and marine protected areas.

The Blue Transformation Project, a United Nations-led program that Norway participates in, aims to support the UAE’s transition toward a “blue” economy, with sustainable fisheries and environmentally sensitive development. It focuses on improving fishery management, enhancing market access for sustainable seafood, and promoting responsible aquaculture.

With nearly half of Norway’s territory in the Arctic circle, Norway has unique access to vast deposits of critical minerals essential for the development of clean energy technologies and infrastructure. These minerals, such as lithium, cobalt, nickel, and rare-earth elements, are crucial for electric vehicle batteries, wind turbine magnets, and other components of renewable energy systems. Collaboration between the UAE and Norway in exploring and extracting these minerals from the Arctic presents a unique opportunity to accelerate the transition to a low-carbon economy in both countries.

The importance of the Arctic extends beyond its mineral wealth; it is an important maritime route that provides a shortcut between East and West. Collaborating with Norway, which has extensive experience in Arctic exploration and sustainable practices, would position the UAE to leverage this maritime shortcut for economic growth while adhering to environmental stewardship.

The combination of the UAE’s financial resources and expertise in infrastructure development with Norway’s advanced technology and knowledge of the northern environment could unlock the potential of the Arctic’s resources and contribute to a sustainable and mutually beneficial relationship.

Adapting the Norwegian Model for the UAE’s Sustainable Development

The shift toward Norway as a benchmark reflects the UAE’s evolving priorities and its search for a model that better aligns with its current goals and aspirations. Singapore’s legacy remains valuable, especially the lessons offered by its successes in areas such as urban planning, education, and efficient governance. However, Norway’s focus on sustainability and innovation offers a more relevant and complementary model for the UAE at this stage of its development.

The Norwegian model offers valuable lessons in economic diversification and environmental sustainability. The UAE’s unique economic structure, demographic diversity, and regional context make it well suited for a thoughtful adaptation of the Norwegian model. By drawing on Norway’s successes and tailoring them to its distinctive needs, the UAE can carve a path toward sustainable development that is both informed by global best practices and rooted in its own narrative and context.