Today's Edition
SARA ALZAABI (ABU DHABI)
Reflecting the UAE’s leadership in green finance, investors in the country allocate an average of 27% of their portfolios to sustainable investments — the highest among eight global markets surveyed in a new report. This share is expected to rise to 36%, underscoring a growing shift toward impact-driven finance.
These figures were based on Standard Chartered’s latest Sustainable Banking Report 2025, drawn on the insights of 1,600 high-net-worth investors across eight markets, including the UAE, Hong Kong, Mainland China, India, South Korea, Taiwan, Malaysia, and Singapore.
UAE investors’ heightened interest in sustainability "can also be seen through our conversations, especially with our ultra-high-net worth clients," said Bongiwe Gangeni, Head of Wealth and Retail Banking for Europe, Middle East and Africa at Standard Chartered.
“We are seeing this momentum translating into actions, with many investors shifting capital to sustainable investments — a trend that is likely to continue,” Gangeni said in the report.
The majority of high-net-worth investors in the country (85%) have expressed interest in sustainable investing, and 86% in transition investments, according to the survey. Across the globe, results show that interest in transition investing (87%) now surpasses that in sustainable investing (83%).
The report defines transition investing as putting capital into companies — especially those in high-emission or hard-to-abate sectors such as shipping, agriculture, and steel — that are actively working to reduce their carbon footprint. This strategy not only facilitates the shift toward a low-carbon economy but also presents opportunities for sustainable long-term growth and returns.
“Investors are primarily drawn to transition investments due to the potential for positive social and environmental impact (55%), followed by the prospect of improved financial returns (53%), and reflecting personal values (53%),” the report said, citing UAE data.
Among the eco-themes that have captured the interest of UAE investors are green hydrogen (51%), carbon markets (48%), and carbon capture and storage (47%), it added.
The sharper focus on green investments reflects the country’s broader leadership in sustainable finance.
The UAE has emerged among the leading countries in the global energy transition — targeting Net Zero by 2050 and aiming to reduce emissions by 47% from 2019 levels by 2035. Its financial sector has committed to mobilising $272 billion in sustainable finance by 2030.
Ongoing initiatives like the UAE Sustainable Finance Working Group — tasked with developing a unified taxonomy of sustainable activities — are set to provide greater clarity and structure for companies, banks, and investors alike.
“These developments are expected to further drive awareness and interest in the transition journey,” Gangeni said.
