UAE firms step up sustainability investment, outpace global peers: HSBC

Dubai: UAE businesses are prioritising sustainability investment at a faster pace than their global peers, with most viewing the climate transition as both a commercial opportunity and a strategic imperative, according to a new survey by HSBC released during Abu Dhabi Sustainability Week.

The UAE findings form part of HSBC’s Global Sustainability Pulse Survey, which gathered responses from senior business decision-makers across 12 international markets. The results point to stronger momentum in the UAE on climate transition planning, technology adoption and investment in resilient infrastructure.

HSBC said 94% of UAE businesses believe the climate transition represents a commercial opportunity, either as a growing focus or a core strategic priority. The bank added that 90% plan to accelerate their climate transition approach over the next three years, more than 12 percentage points above the global average.

More than half of UAE companies surveyed, 55%, said they intend to invest in climate-resilient infrastructure and technology to mitigate climate-related risks, over 11 points higher than the global rate. HSBC said this signals a shift from ambition toward execution as climate considerations increasingly shape capital allocation and corporate strategy.

New technologies

Technology uptake is already advanced, with 56% of UAE businesses identifying as advanced adopters of climate-related technologies. At the same time, 53% said greater availability of affordable financing is needed to help scale and deploy climate technologies, underscoring the role of banks and capital markets in enabling decarbonisation.

“The survey underscores the extent to which sustainability is embedded in the UAE’s economic agenda, shaping how businesses compete, innovate, and grow,” said Mohamed Al Marzooqi, chief executive of HSBC Bank Middle East in the UAE. He said the pace of investment in new technologies and resilient infrastructure is “well ahead of global peers.”

The survey also found that 89% of UAE businesses see the impact of climate transition on brand and reputation as highly important, compared with a global rate of 72% citing long-term resilience and reputation as very important. About 44% of UAE firms said reduced market competitiveness is a key risk if climate goals are not met, versus a global rate of 34% citing loss of investor confidence or financing challenges.

Climate risks

Jennifer Chammas, regional head of sustainable finance and transition for the Middle East at HSBC, said the findings highlight the need for practical enablers such as access to financing and scalable technologies. “Turning transition plans into action will require collaboration across the ecosystem, from policymakers and corporates to financial institutions,” she said.

HSBC said the survey’s conclusions were reinforced by two reports released during Abu Dhabi Sustainability Week. One, by the UAE Alliance for Climate Action, assesses how more than 80 non-state actors are navigating decarbonisation. Another, by the Mohammed Bin Rashid School of Government, examines physical climate risks across the GCC and the role of policy and finance in strengthening regional resilience.

The bank said combining global survey data with local research is intended to support businesses as they adapt to climate-related risks and opportunities and convert sustainability targets into operational strategies.