Category: Insights

Saudi Arabia’s Vision 2030 is a comprehensive reform strategy that seeks to transform the nation’s economy and society, with a particular emphasis on sustainability. One of the central pillars of this vision is addressing environmental challenges, particularly greenhouse gas (GHG) emissions, which are primarily driven by the Kingdom’s reliance on fossil fuels. Vision 2030 sets ambitious targets to diversify the country’s energy sources, reduce carbon emissions, and promote sustainable urban development.
The Kingdom has long been one of the world’s leading oil producers, and its rapid industrialization has brought significant environmental costs. The energy and heat sectors, for instance, contribute heavily to GHG emissions. Transportation and fugitive emissions follow closely, further exacerbating the country’s carbon footprint. Recognizing this, Vision 2030 outlines a plan to incorporate renewable energy sources, such as wind and solar power, into the national grid, reducing the dependency on fossil fuels and creating a more sustainable energy mix.
By 2030, Saudi Arabia aims to generate 50% of its energy from renewable sources. The Kingdom is already making strides in this area, launching national programs focused on renewable energy and integrated waste management. These efforts are expected to help mitigate rising GHG emissions. These emissions have steadily increased due to electricity demand and industrial activity.
Agriculture and oil production are also key contributors to carbon emissions, and Vision 2030 focuses on modernizing these sectors. The introduction of sustainable farming techniques and a reduction in energy consumption within the agricultural sector are seen as critical steps toward reducing emissions. Similarly, initiatives such as the Circular Carbon Economy (CCE), which emphasize carbon capture and recycling, aim to lessen oil production’s environmental impact.
Nevertheless, sustainability presents challenges. While agriculture and oil production remain areas of concern, the industrial sector has begun to improve. Industries that have embraced renewable energy and sustainable practices show reductions in CO2 emissions. This indicates that Vision 2030 policies are taking effect.
Energy efficiency is another key focus of Vision 2030. The Kingdom is working to enhance efficiency in transportation, building infrastructure, and manufacturing processes. This includes encouraging electric vehicles, upgrading public transportation, and promoting energy-saving technologies in homes and businesses. These initiatives are crucial for reducing the country’s overall carbon footprint and ensuring a sustainable future.
In conclusion, Vision 2030 is a transformative initiative that sets Saudi Arabia on a path toward environmental sustainability. While the transition to a greener economy will take time and present its own set of challenges, the Kingdom is making significant progress. By prioritizing renewable energy, enhancing energy efficiency, and fostering sustainable development, Saudi Arabia is positioning itself as a leader in the global effort to combat climate change. Vision 2030 will benefit the Kingdom and contribute to broader global sustainability efforts.
References
Altouma, A., Bashir, B., Ata, B., Ocwa, A., Alsalman, A., Harsányi, E., & Mohammed, S. (2024). An environmental impact assessment of Saudi Arabia’s Vision 2030 for sustainable urban development: A policy perspective on greenhouse gas emissions. Environmental and Sustainability Indicators, 21, 100323. https://doi.org/10.1016/j.indic.2023.100323

In today’s fast-paced business world, companies must make innovation central to their strategy. Prioritizing innovation enables businesses to adapt to changing market conditions, meet evolving customer needs, and gain a competitive edge. Building a culture of innovation requires a deliberate approach, a commitment to continuous improvement, and supportive leadership.
Innovation matters – Innovation drives adaptability, resilience, and growth. Companies that integrate innovation as a core value create environments where employees feel empowered to take risks, collaborate, and learn from setbacks. This mindset fosters a culture that is responsive to change and encourages knowledge-sharing and problem-solving.
In addition to fueling growth, an innovation-centered culture enables businesses to better understand customer demands, leverage new technologies, and anticipate market trends. This approach enhances flexibility, allowing teams to adjust as needed and remain relevant in a shifting landscape.

Leading companies that have ascended to the top of their industries have done so by cultivating a robust culture of innovation, which has been instrumental in driving significant business growth and the creation of competitive products, services, and business models. This commitment to innovation goes beyond mere product development; it encompasses a holistic approach that permeates every aspect of the organization.

These companies adopt agile methodologies, and prioritize research and development (R&D) as a critical component of their strategy, investing substantial resources to explore new technologies and ideas. Here are some examples:

One of Clayton M. Christensen’s notable quotes on innovation is: “Disruptive technology should be framed as an opportunity, not a threat”. This reflects his belief that cultivating innovation involves recognizing and embracing new technologies and ideas to drive business growth rather than fearing change. Christensen emphasized the importance of organizations being adaptable and open to disruptive innovations to thrive in a competitive environment.

In summary, establishing a culture of innovation requires intentional strategies, proactive leadership, and an emphasis on continuous improvement. It begins with creating an environment where creativity is encouraged, and employees feel safe to share their ideas without fear of criticism. Companies must prioritize open communication and collaboration across all levels of the organization, nurturing a sense of belonging and teamwork.

Leadership plays a crucial role in this process; leaders must not only advocate for innovative practices but also model them. This involves being receptive to new ideas, taking calculated risks, and demonstrating a willingness to pivot when necessary.

Furthermore, implementing structured processes for idea generation and evaluation can streamline innovation efforts. Regular brainstorming sessions, innovation labs, and cross-functional teams can help harness diverse perspectives and drive creative solutions.
By adopting these key practices, companies can build a resilient, adaptive workforce that thrives on change and embraces challenges as opportunities for growth. This proactive approach positions organizations for sustained success and growth in a rapidly evolving market, enabling them to stay ahead of competitors and meet the ever-changing needs of their customers. Ultimately, a strong culture of innovation not only enhances employee engagement but also drives long-term profitability and market relevance.

The Kingdom of Saudi Arabia is embarking on a bold path to redefining its future, placing sustainability as a cornerstone for a thriving future. The Saudi National Vision 2030, underpinned by strong, forward-looking approach to embedding sustainability practices into the fabric of the Saudi society and economy, transcends beyond the conventional environmental initiatives to encompass a diversified economy, coupled with social welfare and governance reforms. This transformative shift not only positions the Kingdom as a globally competitive economic powerhouse with sustainability at the core, but also sets new benchmarks for the region and the world.

Vision 2030 lays a promising foundation for driving the circular transition in the Kingdom, promoting novel and innovative economic models that favor reuse, recycling and closed loops processes. While formal legislation and a national strategy for circular economy are still in development, momentum is building through pioneering circular economy initiatives. Across different sectors, governmental bodies as well as several organizations are paving the way, proving that a circular future for the Kingdom is not only possible but within reach.

Circular Carbon Economy (CCE) Framework:

During its presidency of the G20 in 2020, the Kingdom promoted the concept of the Circular Carbon Economy as a compelling and effective approach to address climate challenges through all available technologies across the “4Rs”—Reduce, Reuse, Recycle, and Remove. Spearheaded by the Ministry of Energy and key industry players, the framework fosters a balanced carbon cycle to help meet Saudi Arabia’s net-zero goal by 2060, as part of the ambitious Saudi Green Initiative

National Waste Management Initiatives:

The Saudi Green Initiative (SGI) is revolutionizing waste management practices across the Kingdom. Both the National Center for Waste Management (MWAN) and the Saudi Investment Recycling Company (SIRC) are leading a waste management transformation initiative as part of the SGI, aiming to divert 94% of waste generated in Riyadh away from landfills and compost more than 1.3 million tons of biodegradable waste by 2035. The initiative will result in a reduction of 4.1 mtpa of CO2e emissions and create a proven waste management model that will be implemented across the Kingdom. MWAN is also leading another initiative as part of the SGI to develop a National Waste Management Master Plan pioneering circular economy practices in the Kingdom by 2025.

Saudi National Industrial Strategy:

Within its National Industrial Strategy, the Saudi Ministry of Industry and Mineral Resources has introduced the Circular Economy as a one of the focus areas for several high-impact sectors, including construction materials, plastic and rubber, and mining industries. As part of this strategy, the Saudi Authority for Industrial Cities and Technology Zones (MODON) is currently leading an initiative within industrial cities to implement circular economy principles. This effort aims to enhance the efficient use of natural resources in manufacturing and improve process efficiency by integrating advanced technologies, ultimately contributing to waste reduction and recycling.

NEOM’s Oxagon City:

NEOM’s Oxagon, designed as the world’s largest floating industrial complex, embodies the Kingdom’s vision for regenerative, closed-loop urban and industrial ecosystems. Oxagon will combine Industry 4.0 and advanced circular economy technologies to establish a zero-waste, zero-emission environment. As a flagship Vision 2030 project, Oxagon will set new global standards for circularity in industrial development, proving that sustainable urban growth can be a reality.

SABIC’s TRUCIRCLE™ Initiative:

SABIC’s TRUCIRCLE™ initiative is setting a standard for plastic recycling in the Kingdom, aiming to process over 1 million metric tons of plastic waste. The TRUCIRCLE™ portfolio showcases circular innovation, offering circular and bio-based products that include mechanically recycled polymers, closed-loop initiatives, and designs for recyclability. SABIC’s efforts illustrate the potential for circular innovations in petrochemical industries, establishing an actionable model for responsible resource management.

Saudi Aramco’s Circular Economy Initiative:

As a cornerstone of the Saudi economy, Saudi Aramco is embedding circular practices within its operational DNA through its Circular Economy Taskforce, established in 2020. By incorporating seven key circular principles, Aramco is optimizing resources and minimizing waste at every level, from extraction to final production.

With each initiative, the Kingdom inches closer to a national circular economy strategy, backed by comprehensive legislation. Such a framework would unify and streamline efforts across all sectors, paving the way for organizations to adopt this transition and achieve an impact at scale. The Kingdom’s Leadership is setting the stage for a greener, more resilient future that promises lasting impact for generations to come. The momentum is undeniable; the potential, boundless.

Since the industrial revolution, our economies have grown following a linear ‘one-way’ pattern of use of natural resources consisting basically of “take, make, use, waste” model based on the false belief that resources are infinitely available and accessible at an affordable cost, both economically and environmentally. The truth is that the earth system failed to sustain such pattern—with the world’s consumption today outpacing the earth’s capacity—whose cost turned out to be very high in terms of scarcity of materials and the environmental drawback affecting the earth ecosystem.
Current figures speak volumes. According to the World Counts estimation, we would need about 1.7 Earths to provide resources for our consumption and absorb our wastes. Yet as per the Circularity Gap Report, our world is currently only 7.2% circular. This means that, out of 100 billion tons of resources that we consume every year, only 7.2 billion tons are cycled back into the economy, while the rest is wasted!
With our resources dwindling, and the environmental costs of a “take-make-use-waste” system surging, coupled with the negative impacts on biodiversity and climate stability, the shift from extraction-based economies to fundamentally circular ones becomes critical. But what is a circular economy?
Ellen McArthur Foundation defines Circular Economy as an economic system of closed loops, where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation, retaining their value for as long as possible, before being returned to nature safely and without causing any harm.

Despite there being over 221 definitions, misconceptions about the circular economy still prevail. Here, we highlight three common myths about the circular economy to reveal what it truly means to be circular—and why understanding this distinction now matters more than ever.

Myth 1: It is just better waste management

The journey to circular economy begins with rethinking waste, but circular economy is more than efficient waste disposal. While waste management may be the first step, it’s the bottom rung of the circular economy ladder. The focus of the circular economy is to fundamentally design waste outside the system, rather than designing with waste. It reorients thinking toward maximizing resource use at every step, not simply handling waste better. In essence, the best waste is no waste!

Myth 2: It is all about recycling more

Recycling is only one component of the circular economy, and even then, it is a last resort. The real focus lies in keeping products and materials at their highest value for as long as possible, which involves rethinking product design, durability, and lifecycle.
Most materials are recycled only once or twice before actually heading to landfills. Even then, materials end up “downcycled” in many cases, such as recycled plastic used in road filler. A circular economy focuses on products that retain their initial high-value or are designed to be easily repurposed without losing quality.
In fact, 80% of a product’s environmental impact is influenced by decisions made at the design stage, before the product leaves the factory—before recycling is even an option. Circular Economy thus requires designing with longevity, repairability, and reusability in mind.

Myth 3: It is a fancy word for sustainability

The circular economy is not a different shade of green; it’s a fundamentally different system by design. The circular economy does not aim to sustain our current system. It is about designing differently from the outset, by reshaping production and consumption patterns, rather than mitigating and reducing the impact of something that has already been created. It is not about being “less bad”, but rather “more good”.
While it is indeed a broad societal transition, circular economy is just one strategy among many in our efforts to thrive in a world that is economically viable, socially just, and environmentally safe.
So, as we stand at the crossroads of economic and environmental transformation, are we prepared to break from the status quo and build an economy that not only sustains but actively restores our planet?

Innovation is the pulse of progress, transforming how we live, learn, work, and connect. It’s more than a trend; it sparks change, solves problems, and pushes boundaries. From classrooms tco healthcare, innovation drives the profound shifts shaping our world. But what exactly is innovation, and how can societies harness its potential for a brighter future?

What is Innovation?

Innovation, as Peter Drucker describes, is an economic and social concept, not just technical progress. Broadly speaking, innovation is about introducing something new, be it a technology, a method, or even a way of thinking, with a focus on usefulness and improvement. Often driven by “creative destruction”, it challenges established norms to envision better solutions. From AI to social innovations in healthcare, innovation enhances efficiency, adaptability, and unlocks new possibilities across industries.

Breakthrough Ideas: Innovation Across Industries

Technology: The tech industry is a prime example of rapid innovation, with developments like the internet, smartphones, and AI transforming communication, work efficiency, and creativity.

Healthcare: Innovation saves lives in healthcare. Telemedicine and wearable health tech improve remote access, while biotechnology breakthroughs, like CRISPR, open new treatments for genetic disorders.

Sustainable Energy: Combating climate change depends on sustainable energy innovations. Solar, wind, electric vehicles, and smart grids provide cleaner, cost-effective alternatives to traditional energy.

Agriculture: Innovation in agriculture enables sustainable practices. Precision agriculture technologies, such as drones and satellite imagery, help monitor crops, optimize resources, and support food security with climate-resilient crops.

The Innovative Mindset

The true driver of innovation isn’t capital or technology but a mindset, one driven by curiosity, resilience, and a willingness to take risks to seize new opportunities. It requires:

• Curiosity and Openness: Innovators challenge assumptions, ask questions, and seek knowledge, understanding that new ideas often come from connecting unrelated concepts.
• Adaptability: With change inevitable, adaptability is key. Innovators and organizations stay flexible, seeing failures as growth opportunities rather than setbacks.
• Collaboration: Powerful innovations emerge from diverse collaboration. Teams with varied backgrounds and perspectives generate breakthrough ideas by addressing problems from multiple angles.
• Vision: Innovators look beyond the present, anticipating future needs and trends, positioning themselves to drive impactful change.

Innovation is about empowering people, driving change, and progress. It’s an evolving process, shaped by the journey as much as by outcomes. It sparks the creation of transformative products and experiences.

The Role of Innovation in Society

Innovation has a profound impact on society, addressing issues like poverty, inequality, and climate change through social innovations like microfinance and digital platforms for social good. It empowers marginalized communities and supports inclusive growth. Innovation also strengthens societal resilience; in crises like natural disasters or pandemics, it provides critical solutions, as seen during COVID-19 with rapid vaccine development and remote work technologies. This adaptability highlights the role of innovation in building a sustainable and resilient future.

Conclusion

Innovation goes beyond driving progress; it paves the way for resilience, adaptability, and impactful change. Anchored in curiosity, collaboration, and a readiness to question the status quo, innovation equips us to tackle today’s challenges and prepare for what lies ahead. By adopting this mindset, we foster economic growth, solve critical issues, and lay the foundation for a future that is more inclusive, sustainable, and vibrant for all.

Saudi Arabia is undergoing a transformative shift, especially within its consultancy sector, as part of its broader Vision 2030 objectives. The Kingdom is working diligently to reduce its dependency on foreign labor, particularly in high-skilled professions. In line with this, the Saudi Ministry of Human Resources and Social Development has mandated that 40% of consultancy workers must be Saudi nationals by March 2024. This move is poised to reshape the consultancy sector and the broader business landscape.

The localization plan aims to boost local employment, primarily in fields like financial advisory, project management, and cybersecurity. This initiative is part of a broader effort to develop local expertise, streamline operations, and stimulate economic growth. The push to Saudize key roles will enable businesses to better understand and navigate regional regulations and market conditions.

However, the shift is not without its challenges. Many companies face the task of quickly upskilling Saudi professionals, who will now fill roles previously held by expatriates. To tackle this, companies are encouraged to create mentorship programs and invest in professional development initiatives. These efforts will help bridge the skill gap and ensure a smooth transition as more Saudis enter the consultancy field.

Industry experts see this initiative as a positive step towards long-term sustainability. Having local professionals in key positions will allow businesses to be more agile and responsive to Saudi market nuances. This change also aligns with the country’s vision of building a knowledge-based economy, reducing capital outflow, and creating high-value jobs for its citizens.

While this transformation brings opportunities, it also presents obstacles. Mid-career professionals are scarce. Many young Saudis may gain early career experience in consultancy but retaining them beyond the first few years is a challenge. Companies need to devise strategies to retain talent, particularly in specialized sectors like defense, tourism, and entertainment. These sectors are increasingly a focus of Vision 2030.

The localization initiative will also drive changes in how consultancy services are delivered in sectors like construction, healthcare, and tourism. Local professionals will understand Saudi Arabia’s culture, laws, and market dynamics. This will make companies more competitive and better suited to tackle country challenges.

In conclusion, Saudi Arabia’s localization plan for the consultancy sector is a bold move that aligns with Vision 2030’s broader goals. While it presents challenges, the long-term benefits of building local expertise, fostering innovation, and creating a sustainable economy are immense. By investing in local talent, the Kingdom is setting the stage for a more self-sufficient and resilient consultancy sector that will play a pivotal role in shaping its future.

References
Arab News. (2024, May 21). Saudi Arabia’s localization plan is reshaping the consultancy sector. Arab News. https://www.arabnews.com

Building Adaptive Leaders in a Changing World

As much as it may sound like a cliché, but yes, the only constant in life is change.

As the business landscape continues to evolve, the need for adaptable leadership has never been greater. In an age defined by rapid technological advancements, economic fluctuations, and shifting customer expectations, organizations must develop leaders who can pivot, problem-solve, and inspire in the face of change. Adaptive leaders are essential for navigating today’s complexities and building resilient, future-ready organizations.

How do we at RASI understand Adaptive Leadership?

“Survival of the Fittest”! The fittest is not the one that is the strongest, the smartest but rather the one that can adapt the most, because this is the key to survival. Adaptive leadership goes beyond traditional management. It’s about embracing change, making decisions amid uncertainty, and leading teams through transition. Adaptive leaders are those who approach challenges with agility and openness, viewing obstacles as opportunities for growth. They recognize that in a constantly shifting environment, flexibility and resilience are key to sustaining progress.

It takes a lot of training to create adaptable leaders, they are not just born; they’re developed through a commitment to learning and self-awareness.

What are the main skills that are needed for that you may ask?

1. Agility: Adaptive leaders can quickly pivot when strategies need adjustment, remaining effective even under new conditions.
2. Open-mindedness: They remain receptive to new ideas and perspectives, fostering an inclusive culture that encourages creativity.
3. Strategic Decision-Making: These leaders are comfortable making quick, informed decisions even with limited information, relying on strong critical thinking skills.
4. Resilience: Adaptive leaders can maintain stability during challenging times, serving as an anchor for their teams and inspiring confidence.

At RASI, we believe that to cultivate adaptability among leaders, there are certain practices that can be applied to achieve this powerful competence:

1. Cross-Functional Experiences: Creating frameworks for rotating leaders through various roles and departments, which provides them with diverse perspectives, enhancing their ability to adapt.
2. Problem-Solving Exercises: Regularly engaging leaders in complex problem-solving exercises honing their critical thinking and creative solution skills.
3. Resilience Training: Developing programs that are focused on stress management and resilience, which equip leaders to stay grounded in times of upheaval.

Developing adaptive leaders is essential for organizations looking to thrive in a world of constant change. By fostering agility, resilience, and open-mindedness, organizations can equip leaders to turn challenges into opportunities and build stronger, more dynamic teams. Adaptive leadership is not just a response to change; it’s a proactive approach that prepares organizations for long-term success, and we at RASI can definitely assist your organization to achieve that!

Whether you are aware of it or not the elements of power have changed, similarly to all the change this world has been witnessing. In today’s dynamic world, organizations that thrive are those that recognize and unleash the full potential of their people. The success of any company depends on the abilities, motivation, and creativity of its team members.

We do not live in an age of information anymore, knowledge is found everywhere, and AI has made it easy to access by the click of a button, however it is only potential, capabilities and competencies that are built on untraceable algorithms in the human mind, and that we are still able to explore and develop. By cultivating an environment that values personal development and growth, companies can not only enhance productivity but also foster human potential.

Human potential refers to the untapped capabilities within each person that, when realized, can lead to remarkable achievements. This potential lies beyond technical skills or job-specific knowledge. It encompasses an individual’s unique strengths, creativity, and passion for contributing meaningfully. For an organization, harnessing this potential means moving beyond viewing team members as resources and instead as individuals with talents that, when encouraged, can drive the organization forward.

When team members feel valued and see opportunities for growth, they’re more engaged, productive, and loyal. To create such a culture, organizations can foster open communication, support risk-taking, and recognize team members’ contributions, cultivating a sense of belonging and purpose. The keyword here is belonging, because no matter how we see it, at the end of the day, we are subjective human beings that operate best when our heart is there. And it is these components that are considered the new power skills in any successful work environment.  

It all lies in inspiring creativity and initiative! Effective leaders actively listen to their teams, provide constructive feedback, and encourage team members to set personal and professional goals. This approach not only builds trust but also helps team members see the value in their work and the possibilities for their growth within the organization.

How do we at RASI assist organizations to do so?

After diagnosing exactly what each organization needs to raise the potential of its team members and identifying the power skills needed for the specific job roles. Organizations can implement several strategies to help team members realize their potential:

1. Personalized Development Plans: This would be primarily based on unlocking the potential and having the team members understand their status and then setting their own goals accordingly.
2. Skills Development Opportunities: According to the Economic World Forum, there are power skills that will be in demand by 2030, mainly they revolve around creativity and problem solving but delve into others that are key factors for success; something we might tap into in future articles.
3. Teamwork: 90% of learning acquisition happens when we teach others. Therefore, pairing team members with mentors from the team who can provide guidance, support, and inspiration, would allow exchange of expertise and raise the level of work outcomes produced.
4. Feedback: One of the rare human traits that is also another human mind power is self-evaluation, a higher order thinking skill that is definitely! a key means of development. Providing feedback that is linked to the goals set in point one is a major drive for improvement and creates a sense of achievement for the better by each team member.

At RASI, we know that when team members feel empowered to reach their potential, they’re more engaged, motivated, and committed to helping the organization succeed. We focus on the individual strengths of team members and create a culture that values continuous improvement. Accordingly, we help institutes cultivate an environment of innovation and resilience through addressing these power skills and capabilities.