Soma Mater Newsletter – 31.08.2026
Welcome to the SOMA MATER weekly newsletter.
At SOMA MATER, we deliver comprehensive research and advisory services focused on Food & Water Security and Net Zero Transition in the MENA Region. To help our clients navigate these topics and understand the regional narrative, we accelerate problem-solving and unlock new opportunities through Strategic Advisory and/or Projects.
This weekly newsletter highlights the top 3 stories from the past week in Food and Water Security and Net Zero transition, along with SOMA MATER’s analysis and perspective.
How do Gulf companies react to the overlapping ESG reporting rules coming from the EU?
How could the UAE’s Naseej circular-textiles policy reshape resale, repair, and producer responsibility incentives across Gulf re-export supply chains?
What does PIF’s 2026–2030 shift to value creation and private sector-led mean for investment priorities for Saudi businesses?
Sustainably yours,
The SOMA team
CBAM Squeeze: How EU Emissions Rules Raise The Stakes For Gulf Companies
#NetZeroTransition
EU directives on emissions have been pressuring Gulf companies. Although the EU is delaying its end-date and slowing the annual tightening of an emissions cap, Gulf executives see this retreat as only a temporary pause to the pressures. The schemes still ask companies to report on issues such as carbon emissions and supply chain impacts. These provisions will affect large foreign corporations with substantial EU operations.
The bigger worry is that overlapping rules stack up fast for Gulf groups. This “accumulation” of rules is emerging as the central sticking point for energy exporters and other conglomerates, especially as the UAE, Saudi Arabia and other Gulf states also build their own environmental, social and governance frameworks. This has led to serious pushback from multinationals and criticism from finance teams as directives continue being rewritten.
The focus is now on the Carbon Border Adjustment Mechanism (CBAM) and its impact on aluminium exports. Emirati exports to the EU covered by this regime are worth $2.7 billion, while Bahrain’s are around $1.3 billion. Bahrain has 99.2% of its in-scope goods tied to aluminium. Analysts frame this as risks that usually go unpriced in a company due to their complexities. Yet, organizations that proactively price this risk can avoid worst-case scenarios and achieve real savings.
SOMA’s Perspective:
The diagram above shows that some food-systems performance is failing where enforcement matter most, specifically for indicators like food system emissions change and agricultural water withdrawal. Regions like Africa are bound to need the most change to meet these goals. SOMA believes the indicators that are regressing or under-measured indicate where progress can stall and can become a starting point for redesign.
Naseej Threads: UAE’s Circular Textile Policy Gets A Global Playbook
#NetZeroTransition
The UAE is turning circular ambition into policy through the Naseej initiative. The Ellen MacArthur Foundation is now helping write a national textiles circularity policy framework for the UAE. The aim is to replace linear use and disposal with a system that keeps materials in play and protects long term value. The Foundation says the priority is real-world implementation and will map policy instruments to support circular economy outcomes.
This collaboration is the translation of lessons from abroad into the Gulf market. The Foundation has shaped the EU Textile Strategy and helped design Extended Producer Responsibility (EPR) design in multiple places. It now plans to bring this expertise to the Gulf context and use its network to surface execution hurdles and market opportunities. The UAE’s important role as a re-export hub is a lever to put circular models into trade flows and supply chains.
Progress in the resale and repair segment largely depends on policy details. For many countries, a linear tax system can punish circular business models. Across Canada, the EU, and the United States, resale and repair businesses are growing and creating jobs, but margins are squeezed by how taxes are applied. Resale models often only compete when labour heavy steps like sorting and collection come at minimal or no cost.
SOMA’s Perspective:
The Naseej framework could help the UAE use its re-export role as a practical advantage for resale, repair, and material recovery. Borrowed global best practice will work best if they realign with local incentives across trade flows and producer responsibility. With the Ellen MacArthur Foundation helping shape a UAE framework, there is opportunity to bring a change in the community’s perspective of items resold and repaired.
From Growth to Generations: How PIF’s 2026–2030 Plan Moves to Value Creation
#FoodandWaterSecurity #NetZeroTransition
The Public Investment Fund (PIF)’s 2026-2030 Strategy is to evolve from rapid scale-building to sustained value creation. The fund is shifting from expansion to integration and durable performance. It now manages more than $900 billion in assets and supports up to 11% of Saudi non-oil GDP. In 2024 it delivered a local content score of 57% while directing the majority of procurement spend to Saudi businesses and local suppliers.
PIF is grounding this new phase in results from the prior cycle. It invested more than $199 billion in Saudi projects from 2021 to 2025. The period from 2015 to 2020 was transformation as PIF became a central driver of national priorities. The years from 2021 to 2025 were growth and acceleration as capital deployment scaled and the portfolio expanded. The current plan targets a faster path to private sector-led growth, with decision-making anchored in a generational horizon.
At the same time, 2027 was designated as the “Year of Water” in Saudi Arabia. The country has built momentum through a series of local, regional, and international initiatives. During Saudi Water Week 2026, 38 agreements were signed among government bodies, private companies, and universities. It established a “Road to Riyadh 2027” roadmap toward hosting the 11th World Water Forum. The Arab Water Forum highlighted reducing dependence on non-renewable groundwater and scaling proven pilots into bankable programs. The Innovation Driven Water Sustainability (IDWS) Conference 2025 advanced deals on brine/discharge management and AI-driven RO desalination.
SOMA’s Perspective:
This new strategy signals a shift toward private sector-led growth in Saudi Arabia, offering an indication on which sectors will be prioritized. Some areas of Saudi’s water targets still face challenges towards execution. For example, the Qatrah program pledged to cut per‑capita water use by 43% by 2030 (from 263 to 150 liters/day), yet consumption remains above 250 liters/day. Water-sector privatization has been discussed since 2019 but has faced delays, and groundwater protection efforts remain challenged, with water-table declines of over 100 meters in parts of the Saq–Ram aquifer. With PIF’s new strategy, it is possible to help bring real progress to such areas until 2030.
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