Tackling the sustainable finance landscape during the UAE’s «COP-28»

Walid Elsherbiny ,MBA

Certified in Credit Management from the Chartered Institute of Bankers -UK.
lecturer at the AUC , seasoned banker & Certified leader from Toastmasters International-USA.

The sustainable finance has been rapidly evolving globally and in the “MENA”region due to various factors such as economic diversification, climate change concerns, international commitments, and for attracting foreign investments.

The key points about the MENA sustainable finance landscape shall include the following attributes.

Policy and Regulatory Framework ; it is worthy to note that many countries in the MENA region have developed policies and frameworks to promote sustainable finance. The UAE, for example, launched a national sustainable finance strategy in 2021, making it the first Gulf Cooperation Council country to do so.

Moreover the issuance of green bonds has gained traction in the MENA region. Governments and corporations are leveraging green bonds to raise capital for environmentally friendly projects like renewable energy and green infrastructure.

Furthermore, sustainability reporting: companies in MENA are adopting sustainability reporting practices to disclose their environmental, social, and governance (ESG) performance. This transparency helps investors and stakeholders evaluate sustainability efforts.

Notably the responsible investments such as the Institutional investors and asset managers in MENA are incorporating ESG factors into investment decisions. They allocate funds to companies that align with sustainable development goals, including Shariah-compliant investments.

Nevertheless, collaborations & partnerships are taking place left right and center; Collaboration between financial institutions, governments, and international organizations is crucial for sustainable finance development in MENA. Partnerships facilitate knowledge sharing and implementation of sustainable finance initiatives.

It is worthy to note that renewable energy investments has been fostering within the MENA countries like Saudi Arabia, the UAE, and Egypt are attracting investments in renewable energy projects. They set ambitious targets and actively seek investments in solar and wind power.

Noting that the MENA region aligns its sustainable finance efforts with the United Nations’ SDGs, focusing on poverty alleviation, climate action, and clean energy.

While progress has been made, challenges remain, such as limited awareness and understanding of sustainable finance concepts and the need for consistent regulatory frameworks. However, the commitment to sustainable finance in MENA presents opportunities for investors, businesses, and governments to contribute to a more sustainable future.

 

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