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Standard Chartered: 367 billion dirhams sustainable investments in the UAE by 2030

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Standard Chartered Bank launched the Sustainable Banking Report for 2022, and the report, which explores investment opportunities in the area of ​​environmental, social and governance priorities, revealed that retail investors in the UAE can direct 367 billion dirhams towards environmental, social and corporate governance priorities, especially in financing the climate transition to Net zero, and this capital can play an important role in filling funding gaps in other priorities, which fall within the environmental, social and governance priorities of the UAE, including food and water security, in addition to pollution and waste management.

New research by Standard Chartered also identified more than Dh30 trillion of investable retail wealth, which could be directed to sustainable investments by 2030 to fund environmental, social and governance goals in 10 developing markets. The report also highlights the investment barriers investors currently face, It recommends solutions to expand sustainable investing into a major asset class in portfolios.

According to the research, the UAE has great potential to achieve growth in sustainable investment, mainly due to the growth of local wealth, as the market could witness 367 billion dirhams in sustainable investments by 2030, and it is worth noting that more than 40% of investors in the UAE wish to invest Their money is in tackling climate issues, and the environmental, social and governance priorities of investors in the UAE include: climate change and carbon emissions (38%), energy and resource use (31%), pollution and waste management (26%).

investment barriers

The report further highlights the need to overcome investment barriers, faced by both the market and investors, that must be overcome to translate the increased investor interest into real impact.

Barriers

Investors in the UAE identified the most important barriers to increasing their sustainable investments, which include comparison to other investments (47%), lower returns/higher risks (45%) and understandability (44%). The findings illustrate how financial institutions can play a pivotal role in unlocking available capital, by breaking down barriers faced by individual investors using analyzes based on investor behavior and motivation.