UAE’s Financial Sector: Charting the Course Towards Sustainability
CEO of Société Générale, Frédéric Oudéa once said that crisis and disruptions also represent formidable opportunities to accelerate transformations. The way one handles the crises makes them stronger and sets the organisation up to take on bigger challenges.
The growing need to mitigate the adverse effects of climate change has presented the world with an opportunity to transform the global economy to a greener and more sustainable economy. One such region that has been paving the path towards sustainable development is the Middle East and North Africa region.
Through the adoption of sustainable innovations and green financing instruments, the region’s innovation ecosystem is undergoing a seismic shift. Countries such as the UAE, Saudi Arabia and Egypt are witnessing an impressive response since its adoption of sustainable financial instruments.
As per leading media reports, the region has generated a remarkable US $24.55 billion in green financing in 2021. The surge can be attributed to the adoption of Environment, Social, and Governance (ESG) policies by businesses and organisations in the region. By funneling funds into sustainable projects, the region is bringing synergies together to foster economic growth.
The United Arab Emirates has been making significant strides to help build on the well-set foundation towards a sustainable future. With key strategic initiatives like UAE Net-Zero by 2050, UAE Green Agenda 2015-2030 and National Climate Change Plan of the UAE 2017-2050 in place, the country has laid solid ground for a greener and more sustainable future.
The Green Dream for Financial Institutions
The UAE’s financial sector is playing a crucial role in the country’s green transformation by embracing sustainability linked financial instruments. With the issuance of green bonds, ESG-linked finances and loans, blended financing, the instrument is furthering the country’s ability to achieve its net-zero ambition.
As per leading media report, the Commercial Bank of Dubai raised over US $500 million through the issuance of its green bonds. This demonstrates the growing confidence and demand in the market for green financing in the region.
With several financial institutions implementing sustainable financing framework, the focus is not only on ensuring economic growth but also promoting sustainable business practices. The Abu Dhabi Global Market’s implementation of the new sustainable finance framework will further accelerate the growth of sustainable innovations. This move will further promote financial institutions to adopt such frameworks while ensuring necessary funding to key sustainable infrastructure projects.
Partners in Innovation
As the UAE begins to harness the advantages of sustainable technologies and innovations, the financial sector's ability to fund key sustainability projects depicts the faith that they have in the country’s green transition journey. Clean energy technology has been a major driver in the country’s ambition to diversify its energy sources, the financial institution’s support has been a major driver in accelerating this vision.
In 2022, the First Abu Dhabi Bank had proved a green credit line to a leading wind turbine manufacturer. This shows the alignment the financial sector has with the Sustainable Development Goals (SDGs). Abu Dhabi’s Sovereign Wealth Fund has also emerged as leading partner in this vision.
According to Global Sovereign Wealth Fund’s Governance, Sustainability and Resilience (GSR) scorecard, Abu Dhabi’s ADQ, the sovereign fund, has improved its performance in the sustainability ranking. This reflects the focus the investment fund has in fostering a culture of sustainable innovation and determination to drive the entrepreneurial spirit a step further.
The UAE’s commitment towards a greener and cleaner future can be seen with the adoption of key strategies such as ‘We The UAE 2031’ vision, the Circular Economy Policy 2031, the UAE Net-Zero by 2050 initiative and the UAE’s Energy Strategy 2050.
To help the country discuss the opportunities and challenges the industry faces in the fight against climate change, the DIFC is hosting the Future Sustainability Forum at the Ritz Carlton in Dubai on 4-5 October 2023. The outcome-driven forum will serve a stage for key policymakers and financial institutions to address key issues and solutions that can help chart a path for the country towards sustainability.
BOOK YOUR EARLY BIRD TICKETS NOW: https://www.futuresustainabilityforum.com/book-tickets/
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THEME OF THE WEEK
Welcome to a Glimpse into the future of Sustainability! In today's rapidly evolving business landscape, family businesses are stepping up to drive sustainable growth and positive change. Let's explore how they are aligning with global goals and making a real impact:
?? Aligning family business with the SDG’s: Family businesses are embracing the United Nations Sustainable Development Goals (SDGs) as a compass for their growth journey.
?? Power of private finance for Sustainability: Family businesses hold the key to unlocking substantial private finance for sustainability initiatives.
?? Socially responsible investing for family businesses: Family businesses are pioneers in socially responsible investing. By making conscious choices that align with their values, they are proving that financial success and ethical considerations can go hand in hand.
?? Climate action by family businesses: Climate change demands urgent action, and family businesses are rising to the challenge. From adopting eco-friendly practices to embracing renewable energy solutions, they are demonstrating that addressing climate issues is not only responsible but also profitable.
SPEAKER OF THE WEEK
The Future Sustainability Forum - Dubai on October 4-5, 2023, proudly presents Ghiwa Nakat, Executive Director of Greenpeace ???????, as our visionary speaker.
Ghiwa Nakat has driven Greenpeace MENA's expansion, advancing sustainability across the Middle East and North Africa. Her unwavering commitment to a just energy transition and addressing the climate emergency is truly inspiring.
Join #FSFDubai to gain insights from Ghiwa Nakat and be part of the journey towards a more sustainable future.
Get Involved NOW: https://hubs.li/Q01_9cxF0
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