Across the Middle East, countries are adopting smart technologies to create the next generation of sustainable cities, and businesses are adapting rapidly to take advantage of this transformation.

As urban populations increase, so do problems such as pollution and the demand on resources. Smart cities are increasingly seen as a way to create urban ecosystems using digital technology to improve services and make cities more liveable, with solutions ranging from reducing traffic jams to better waste management.

By 2050, an estimated 80% of the world’s population, or 6.3 bnpeople, could be living in urban areas. There is a clear potential to develop green and resource-efficient cities of the future, creating urban infrastructure and services that are both resilient and sustainable.

The global smart cities market is forecast to nearly double to USD 873.7 bn by 2026 from USD 457 bn in 2021 at a compound annual growth rate (CAGR) of 13.8% during the period. It’s also expected that the smart building market will almost triple in value to USD 229.1 bn by 2026 compared to USD 82.6 bn in 2020, while the global mobility service market is forecast to soar to USD 40.1 bn by 2030 from a mere USD 3.3 bn in 2021.

The growing need for various forms of green technology creates a lot of possibilities for companies, such as solar installers, battery manufacturers, artificial intelligence platforms that optimize energy usage, as well as businesses that can find innovative ways to reuse water.

In Egypt, the government plans to build 15 new sustainable cities in the coming years to provide residents with high-quality amenities and services, create investment and job opportunities, and reduce pressure on existing cities.

These ‘fourth generation’ cities are urban developments that integrate advanced infrastructure and information and communication technologies, helping to keep pace with climate change challenges.

The new smart city capital near Cairo will house 6.5 mnpeople, integrating infrastructure to monitor traffic and buildings that automatically identify the most effective ways to save resources.

As urbanization and consumption continue to grow and environmental pressures multiply, savvy investors are quickly realizing that smart technologies will be a vital tool for the cities of the future to help combat global warming and make increasingly crowded urban areas more liveable.

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