UAE: Global Leader in Green Finance and Sustainable Development
Increased investments and innovative policies position the UAE as a leader in the ESG sector, attracting international capital
UAE Expands Global Influence in Green Finance and Sustainable Development
Dubai [UAE], Oct 12: The UAE has increased its global footprint as a green fund and sustainable growth, increasing investment in sustainable projects, encouraging innovation in sectors and formulating innovative policies.
The Middle East is recognized as a regional model for its law-and-order structure that supports the Green Fund, enhancing its status as a global center for fixed investment and attracting international capital.
Bashar Al Natoor,, Global Head of Islamic Finance and Managing Director of Fitch Ratings, highlighted the United Arab Emirates’ progress in the Environment, Society and People (ESG) sector, a key component of the country’s green growth.
According to FIDS estimates, the value of ESG Sukuk outstanding in the United Arab Emirates will reach US$9.1 billion in Q3 2024, indicating a year-on-year (YoY) growth of 43 percent. Additionally, the total ESG band portfolio in the UAE, valued at $13.4 billion, reflects a 59 percent year-on-year increase, with ESG sukuk making up 40.6 percent of this portfolio.
ESG sukuk are now available in the UAE from 12.7 per cent to 15.6 per cent in Q3 2024. The UAE accounted for 47 percent of the Valakuda Cooperative Council countries’ ESG sukuk market. Globally, the United Arab Emirates is a close second to Malaysia, accounting for 20.5 percent of all ESG suks worldwide, reaffirming its leading role in the stable fund.
Also, 2030-AED1 trillion dirhams will be funded for reform projects. PwC’s findings are consistent, resiliency to face challenges in the future and fit with the broader reflection needed for refining economy growth.
