Saudi Arabia has been experiencing a remarkable and inspiring transformation, capturing global attention with its significant developmental strides. The nation is ambitiously navigating towards a future marked by economic diversity and sustainability, a vision embodied by a comprehensive strategic plan, a plan that is well known to us all now – Vision 2030.
The kingdom is in a unique position to take charge in leading the worldwide narrative. Even beyond Vision 2030, the spotlight shifts more closely towards our region, magnified by the significance of recent events like the FIFA World Cup, Expo 2020, and the anticipation of Expo 2030 in the kingdom.
Additionally, the region has been a focal point for the United Nations Climate Change Conferences – COP 27 and 28, sparking extensive discussions on climate change and related actions. Given its status as the largest economy in the region, the kingdom is poised to assume a pivotal role in these critical global dialogues, influencing outcomes and contributing to shaping the future of environmental sustainability and economic development.
Apart from the overall sustainable practices from governments and large corporations, the actions of the average household are also integral. In this transformative era for the country, the daily practices of Saudi households are increasingly reflecting the nation’s ambitious vision to showcase a shift towards sustainability that mirrors the story of tomorrow’s Saudi Arabia.
Saudi’s transformative economy through Vision 2030
The kingdom’s economic reforms have revitalised the private sector, leading to a robust, multi-faceted economy, driving non-oil GDP growth through the promotion of sectors like tourism, entertainment, technology, and renewable energy. These sectors have contributed significantly to the nation’s GDP, which stands over $1 trillion as of September 2023. This is supported by the surge in non-oil activities that contributed close to 6 percent of the kingdom’s GDP in 2023 despite global oil production cuts.
In line with the global focus on sustainability, Saudi Arabia is forging a path towards a Net Zero future by 2060. This vision is embodied in several key initiatives, including the Circular Carbon Economy programme and the ambitious Saudi Green Initiative. The latter, a groundbreaking endeavour to plant 10 billion trees in the coming years, aims not only to reduce carbon emissions but also to transform the environmental landscape of the kingdom. Alongside this, the kingdom is targeting a shift in its energy mix, aiming for 50 percent of its energy to come from renewable sources by 2030.
Under the leadership of Crown Prince Mohammed bin Salman, these environmental initiatives and commitments have become part of the kingdom’s strategic economic direction. They are seen as catalysts for increasing innovation and bolstering the job market. This strategic approach aligns with both the aspirations of the Saudi population and the global call for a future that is cleaner, greener, and more sustainable.
Energy efficiency in the Saudi household
The population of Saudi Arabia is experiencing a significant surge, having reached 37 million people, an astounding 60 percent increase over the past two decades. Further to this, the population is projected to increase to 38 million by 2025, an annual growth rate of 3 percent that is much higher than other countries in the MENA region at 0.9 percent. With an expanding population, a greater number of people means more houses needing heating and cooling, more devices requiring power, and more daily activities that consume energy.
This surge in energy usage will inevitably lead to higher costs that will create challenges for individuals and families. For the average household, the answer lies in the adoption of energy-efficient appliances and sustainable practices, which can significantly reduce power consumption and lower utility bills. The narrative is therefore clear: as our population grows, so does our responsibility to use energy wisely and sustainably. The shift towards newer energy-efficient appliances and eco-friendly living is an essential step in ensuring a liveable future for the expanding population.
With more than 60 percent of its population under 30 years old the kingdom is on the brink of a significant demographic transformation. A study conducted by PWC on sustainability highlights that young people in the MENA region are becoming more environmentally conscious, particularly in areas such as water conservation, energy saving, and recycling. This demographic change will inevitably lead to a shift in cultural attitudes and consumer preferences, impacting the nation’s socio-economic landscape, setting new trends and priorities for the future.
We are already beginning to see a noticeable shift in Saudi consumer behaviour emerging. There is a growing inclination towards high-quality, multi-functional appliances that are energy-efficient. This trend is fuelled by a combination of factors: the rising number of younger consumers, higher disposable income, and a heightened consciousness about sustainability and environmental impact.
These evolving preferences for eco-friendliness are not just from consumers, they are also supported and encouraged by the objectives of the kingdom’s vision. As a result, companies that adapt to and align with the needs of an environmentally aware and technologically savvy consumer base are setting foundations for success.
Shaker’s role in the Saudi household and Vision 2030
Amid this transformative landscape and consumer demand is Shaker Group. With a history spanning over seven decades, we have established ourselves as a leader in HVAC, home entertainment, and home appliance products in the kingdom. The company aligns with Vision 2030’s objectives, specifically the National Industrial Development and Logistics programme that aims to transform the kingdom into a leading industrial powerhouse and a global logistics hub in various sectors, including energy.
We have also responded to changing consumer preferences by offering a range of products and services that prioritise energy efficiency. With a world-class brand portfolio we stand as a market leader, and our partnership with LG led to the creation of a joint venture factory in the kingdom that received the Saudi Energy Efficiency Ratio (SEER) stamp, signifying Shaker’s dedication to energy-efficient, Saudi-made products.
As the kingdom continues to develop, it becomes necessary to replace legacy infrastructure with newer, energy efficient ones. We are committed to integrating eco-friendly solutions throughout our operations, as evident in our subsidiary, the Energy Services Company (ESCO). Specialising in retrofitting, ESCO provides energy-efficient solutions to government entities, businesses, and major projects throughout the kingdom.
ESCO is the first Saudi private sector company to receive accreditation from the Saudi Energy Efficiency Centre (SEEC) in 2017. As the needs of the kingdom and the everyday Saudi household evolve, Shaker will continue to offer state-of-the-art products and services with the latest in technological advancements and an emphasis on energy efficiency.
Shaping a sustainable tomorrow
Addressing the kingdom’s strategic objectives and aligning with the evolving preferences of Saudi consumers is paramount in today’s environmentally conscious era. Companies are compelled to drive this change, embracing eco-friendly practices as a necessity. As the kingdom strides towards a more sustainable future, it is crucial for all sectors – government, private, and individuals – to continue in staying ahead of the curve. This collective effort is essential in moulding the kingdom into a model of sustainability for the world.
Environmental impact is becoming a critical component of a business’s success, and Shaker’s commitment to energy efficiency sets a benchmark within the kingdom. Shaker’s journey is emblematic of a broader ethos, an optimistic change in the kingdom – leading Saudi households towards sustainable living, better practices, and energy efficiency for the Saudi Arabia of tomorrow.