Dubai Chambers’ Centre for Responsible Business hosted its annual Dubai Chambers Sustainability Week 2024 between October 7 and 11 with events and activities designed to highlight the intersection between technology and sustainability. The Roundtable Simulation Session on Digital Strategies for the Circular Economy, featured an award-winning AI-based Circular Economy Simulation – Fashion Forward, where sustainability practitioners from Dubai participated in an educative activity. 

The tool highlighted how digital technologies like IoT, AI, and big data analytics are revolutionising business models.  Organised by Sim Institute, the programme gave insights into how circular economy principles combined with digital strategies tackle sustainability. The participants had a first-hand trial of the AI tool that helps make key decisions to close the loop in the textile industry.  Tim Rogmans, Managing Director, Sim Institute, emphasised the use of simulation games for enhancing professional learning and fostering actionable enthusiasm, particularly in the context of sustainability. He highlighted that clothing production has doubled in 15 years, with only 1% of materials recycled and 73% ending up in landfills. “The fashion industry generates 92 million tonnes of waste annually, contributing to 10% of global greenhouse gas emissions,” he said, briefly discussing the classification of materials into biological and technical, the challenges of transitioning to a circular economy, and the complexities of balancing business goals with sustainability. 

In the simulation, participants took on the role of managing a fast fashion company’s supply chain, focusing on achieving circularity while maintaining profitability. The simulation lasts for five years, during which players make decisions related to design, manufacturing, and retail. The goal is to increase circularity using the Material Circularity Indicator (MCI) as the key performance measure. Circularity is assessed based on factors like using recycled materials, extending product lifespan, and recycling efficiency.

Participants choose a product line (e.g., trousers, shirts, dresses) and decide on initiatives such as staff training, research and development, or new business models like repairs. Each year, they can implement four initiatives across the supply chain to improve circularity and profitability. Results are displayed via dashboards, showing progress in circularity, waste reduction, emissions, and business performance.

While the MCI provides insight into circularity, the simulation highlights the challenges in measuring sustainability. Participants may explore more initiatives over time and play in teams for better outcomes. The tool encourages learning through decision-making and strategy development in a competitive but supportive environment.

Rogmans pointed out that circularity requires the adoption of fundamentally new business models and is challenging from a technical and financial point of view. “In the fashion industry, it is difficult to recycle used items into new products and new business models (such as rentals or pre-owned items) are unproven in terms of profitability and scalability.” “Although moving towards circularity is not enough to reach Net Zero or other ambitious emission reduction targets, becoming more circular can make a significant contribution towards progress,” he added. 

He also showcased how the simulation helps companies to measure their progress. “Circularity can only be achieved with the participation of multiple stakeholders, including companies, customers, suppliers, and regulatory authorities.” 

Dubai SME initiative 

Eman Al Madani, Manager, Responsible Business, Dubai Chamber of Commerce, opened the session speaking about how the Center for Responsible Business at Dubai Chambers acts as a link between businesses and government, supporting growth while prioritising sustainability. “Our initiatives focus on facilitating dialogue between the private sector and policymakers and establishing a material exchange programme to maximize waste utilisation across industries,” she said. 

She pointed out that currently, only 9.1% of businesses operate in a circular manner, according to the Circularity Gap Report. However, a significant growth in circular economy investments, projected between $1 trillion to $4.5 trillion annually starting next year, is on the horizon. 

A key point raised was the upcoming Federal Decree effective May next year, which will require companies and stakeholders to report and track emissions. This highlights the urgency for businesses to be proactive in preparing for these regulatory changes. 

The Center organises various campaigns, events, and workshops, including Sustainability Week and the Dubai Project, which combines environmental and economic goals.

The officials introduced the participants to the organisation’s various initiatives that support businesses and sustainability in the Emirate.  

Rafat Radwan Wahbeh, Director, Enterprise Development Department, Department of Economy and Tourism, threw light on the Dubai SME initiative, which was established in 2002 to promote entrepreneurship and risk-taking culture among Emirati Youth. Wahbeh explained that more than 50,000 entrepreneurs have been assisted through Business Guidance Services, more than 16,000 have been launched and more than one billion value of loans have been provided to SMEs from financing services. He also highlighted that more than 46,000 entrepreneurs have been trained through Dubai Entrepreneurship Academy and more than 760 startups have been incubated in Hamdan Innovation Incubator services. 

Dubai SME has signed with many private partners in the field of hospitality, medical, real estate, services, and has been catering to the needs of private sectors by linking them to other partners that align with their strategic objectives and goals, he briefed the audience. 

Circular Economy Incubator 

Syed Atif Ali, Sustainability Programs Manager, Dubai Chamber of Commerce, shared insights into the Circular Economy Incubator initiative launched in November 2023. The CEI is designed to foster circular economy innovation in Dubai by empowering companies to develop and present sustainable ideas for government approval.  The goal is to create a platform where the business community can help drive positive change in the circular economy space, regenerating natural resources systematically.

The CEI reviews, evaluates, and recommends proposals submitted by companies, assessing their effectiveness, relevance, and feasibility for implementation. Eligible proposals are submitted to The Executive Council of Dubai for potential inclusion in future policy-making efforts or are executed in collaboration with the private sector.