UAE ESG and sustainable finance development

Businesses in the United Arab Emirates are experiencing increased pressure to disclose environmental, social, and governance (ESG) performance. This shift is driven by new regulatory requirements from entities such as the Dubai Financial Market and the Abu Dhabi Global Market, following national net zero commitments and the hosting of COP28. Companies are increasingly employing consultants to ensure compliance with global frameworks and to provide standardized disclosures for investors and regulators.

This regulatory environment has contributed to the UAE establishing a dominant position in the Gulf Cooperation Council (GCC) sustainable debt market. Driven by the Securities and Commodities Authority’s rules for green and sustainability-linked bonds and sukuk, UAE issuance grew by 12% during the first nine months of 2026. The use of sukuk has become a significant driver, accounting for 43% of the $72.9 billion in outstanding GCC ESG debt. Additionally, major financial institutions are mobilizing significant capital toward transition finance and industrial sustainability targets.