Dubai: The Dubai Sustainable Finance Working Group has published two comprehensive guides as part of Dubai’s efforts to accelerate its leading position and expansion of Environmental, Social and Governance (ESG) and sustainable finance in the UAE and wider region.
The guides inform issuers and investors about best practices in the rapidly expanding ESG sector and the commercial opportunities it offers.
Launched at the Dubai Sustainable Finance Webinar, the ‘Sustainable Issuance Guide’ details the steps involved in issuing ESG bonds, sukuk, equities and other financial products, as well as outlining the need for companies to develop a sustainability strategy.
Leading the way in the region
“DIFC and its clients lead the way on sustainable finance in the region and ESG principles are considered in over 60 per cent of their financing and business decisions. Our enabling platform sees bankers, advisors and professional services firms collaborating on preparing regional and global deals, as well as issuances that have sustainable principles at their core,” said Arif Amiri, CEO of DIFC Authority.
As a major development towards creating a benchmark, DFM and DIFC-owned Hawkamah corporate governance institute have helped to develop the S&P Hawkamah UAE ESG Index of 20 sustainable UAE-listed companies.
“The DFM is steadfastly moving towards becoming the region’s leading sustainable financial market by 2025. We are collaborating with leading institutions and Dubai’s broader finance sector to promote best practices of ESG and sustainability. The various initiatives of the Working Group as well as the individual measures from the founding members are aligned with Dubai’s sustainability drive,” said Hassan Al Serkal, CEO of DFM
Favourd ESG venue
Dubai is the region’s most favored venue for ESG issuance and listing. Speakers at the conference included Emirates NBD and HSBC, who led the preparation of the Sustainable Investing Guide. Standard Chartered, Dubai Financial Market (DFM) and Nasdaq Dubai developed the ‘Sustainable Issuance Guide’. The United Nations Global Compact, DP World, Franklin Templeton and Majid Al Futtaim Holding also participated in the event.
“As the international exchange in the region, Nasdaq Dubai is the most prominent exchange for green, sustainability and ESG issuances and listings in this part of the world, totalling $7.75 billion from nine Sukuk and conventional bonds. We are striving to further advance our regulations and infrastructure to accommodate the growing demand from issuers and investors for ESG and sustainability-related issuances,” said Hamed Ali, CEO of Nasdaq Dubai and Deputy CEO of DFM.
The Dubai Sustainable Finance Working Group comprises Aramex, Dubai Electricity and Water Authority, Dubai Islamic Economy Development Centre, DIFC, Dubai Islamic Bank, DFM, DP World, Emirates NBD, Emirates National Oil Company, Hawkamah, HSBC, Majid Al Futtaim, Nasdaq Dubai, Societe Generale, Standard Chartered and Zurich.