April 18, 2022
Elia Haddad
Sales Manager, Arloid Automation

The Shape & Direction of the Energy Sector in the GCC & the Market for AI

“The appetite for AI here is huge. I believe AI holds the answer to the region’s drive for energy security and environmental sustainability – and Arloid is at the forefront of this. No one else can compete with the consistency of our results, and our innovative technology.”

Leader of Arloid’s most successful commercial team, Elia Haddad is spreading word of our pioneering solution to energy efficiency to businesses all over the UAE, Gulf Cooperation Council (GCC) and the MENA region. With 23 years’ experience in the UAE real estate sector, Haddad possesses a unique insight into the market’s receptiveness to AI. In a region that is heavily reliant on revenues from fossil fuels but driven by a desire to create better global energy security and efficiency, our innovative AI is ready to help catalyse the sustainable transformation.

Here, Haddad explores the driving forces behind the GCC & MENA markets and explains why AI is proving so popular.

Supporting the GCC’s Energy Strategies

The UAE and the rest of the GCC are nations at the forefront of the fossil fuel industry. Though they control 40% of the world’s known oil reserves and 23% of proven natural gas reserves, GCC nations are actually acutely aware of the need for energy conservation, with resources tight and demand increasing year on year (source).

Dubai already has a range of strategies in place aiming to drive energy decarbonisation and safeguard future efficiency. The Dubai Clean Energy Strategy 2050 aims to generate 75% of the city’s energy from clean sources by 2050 – but climate change is largely a consumption issue. Generating clean energy to replace fossil fuel derived demand is always going to be an uphill struggle. That’s why it’s not where we source energy that needs to change, but how we go on to use it – something AI can automatically and proactively work to address. For example, in the real estate sector, building management systems optimised using our AI require far less energy to function, resulting in savings of up to 30%.

Many experts in the UAE state that energy security and energy transition is not an either/or choice, but two initiatives that can work together to drive our sustainable future (source). Until renewable energy can scale up to meet demand, or demand can scale down to meet supply, our reliance on fossil fuels will continue. That’s why Arloid’s AI can prove invaluable – capable of limiting demand for fossil fuels and reducing operational costs through centralised HVAC connectivity.

Unlike other forms of smart technology which require investment in equipment, our AI is hosted in the cloud, meaning there are no upfront costs. As soon as the AI has learnt how to behave, the energy savings begin. Already our technology has been implemented in shopping malls, hotels, hospitals and schools all over the country. The appetite for AI in the GCC’s built environment is continuing to grow.

The Power of Deep Reinforcement Learning to Transform the Built Environment >

The World’s First Smart Eco-City

The potential of AI adoption in the GCC does not stop at Dubai and the UAE. Saudi Arabia also presents a huge market – in fact, it is the largest digital economy in the MENA region (source). Saudi Arabia is investing heavily in smart technology and sustainable urbanisation through the Neom project – purported by investors to be the world’s first cognitive city. Neom will be created in the Tabuk region and will include a tourist destination called Trojena in the highest mountains of Saudi Arabia, 2,500 metres above sea level. The smart eco-city will have its own judicial system formulated by investors, and be fuelled by data and technology that seamlessly interacts with its inhabitants.

Advocates for the project’s potential say it is about enabling future proof urbanisation, and building a new model for sustainable living, but critics question whether urban self-sufficiency is possible in the desert, and on an equitable basis. In a country whose wealth comes largely from the fossil fuel industry, some say Neom is a bold plan to wean the country off oil, offering a model to test if it can work more broadly across the country.

With these ambitions in mind, AI has the potential to be a vital asset in Saudi Arabia’s real estate market. Arloid’s innovative AI is capable of supporting the dual aims of reduced energy consumption and decarbonisation through optimising HVAC systems at any scale. When demand is reduced, green and clean energy initiatives are more practicably possible on a large scale.

Why Arloid is Leading the Way: In Conversation with Mohd Asjad >

Innovative Arloid Makes Waves Across the GCC & MENA Regions

In these markets, no other solution comes close to the efficiency and effectiveness of arloid.ai, and businesses in Dubai, Saudi Arabia, and beyond are all taking note of what we can do. Using Deep Reinforcement Learning, our AI learns the correct way to behave in a variety of environmental conditions, continuously and proactively managing HVAC systems and making minute alterations to maintain an equilibrium of simultaneous user comfort and energy efficiency. We can help GCC and MENA nations thrive whilst minimising the impact of their built environments on the planet. In the drive to create a sustainable, carbon-free future for the GCC, our AI is proving an invaluable tool.

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