Well Oil prices are down and the emerging economies are busy in balancing their Current Account Deficits. On the other hand of the world its being found that crude exporting countries are running down into the depth of current account deficits. We all know this story but the most interesting fact is that Middle East which is the king of crude oil is shifting into alternative energy segment.
Many countries of Middle East particularly Dubai are opting for solar power based roof top where they have created business plans to make this grow among the consumers. The excess power created through solar roof top panels used to supply to the power grid which will further go to someone else. For the excess power being created government would reduce proportionately the cost of your electric power supply. The Middle East government has taken aggressive targets for converting its energy consumption towards alternative energy. Rooftop solar panels have become ever more popular as their price has fallen and also companies are finding it more feasible as ROI has become more attractive.
Million questions rises in the minds but one of the biggest of them is that does Middle East expects its oil reserves to come to end within next 30 to 40 years. This question gets more firmness when digging more facts its being found that Middle East is focusing aggressively to educate its people and create entrepreneurship and business opportunities. In a recent study it has been found that Middle East is focusing on creating Universities where more than 2000 professors and 100000 students could learn. The fear of oil reserves getting depleted is well chasing the Middle East Economy and that’s the another strong reason why they are diversifying their investments in hotels, financial hubs and IT hubs and now at the back of human man power to increase their skill levels so as to save the next 10 to 15 year generation. Such large capacity of Universities and getting top teachers across the globe into the same are clearly indicating about the long term plans for the citizens of Middle East. Further the Middle east fears that as alternative energy segment are going the monopoly of crude is diminishing and also as excavation and drilling technology has grown up many emerging economies might come with their own oil wells. That might be a distant dream but alternative energy is grappling fast on the world economy.
Well the another area of diversification which is coming up from Saudi Arabia is exploiting its huge deposits of phosphates to export fertilizer and is mining bauxite to smelt and roll aluminum. This is creating strong belief about the change of culture which is happening in Middle east that to come out from the 5 decade old theory of crude oil dependency economy. Electric vehicles has also grown up and hence there is an significant threat for crude and demand for solar power based business models as car charging would be required. What the Indian business consultants could do is to create opportunities of solar power plants in Middle East and develop service facilities over there. Further India has enough talent to create business opportunities of installing and supplying roof top solar panels by entering into a long term contract which leads to economies of scale for the Indian business leaders. All you need to do is keep your eyes and ears open and grab these type of long term opportunities. In India many things are adopted only when the world starts disposing hence be proactive.
The real threat to the Middle East economies are that alternative energy followed with the fear of reserves coming to an end and last but not the least Copenhagen which laid the ground for binding agreement, governments have tightened carbon emission limits and other environmental rules in the years since. Energy efficiency improvements have kept coming and will be growing aggressively.
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