First Set of Guiding Principles on Sustainable Finance Published by Leading Financial Authorities in the UAE
First-of-its-kind initiative aimed at furthering the UAE’s sustainability agenda
UAE Financial authorities forge commitment to ensure sustainability of UAE economy
January 15, 2020: Leading financial authorities in the UAE have published the UAE’s first set of Guiding Principles on Sustainable Finance, which serves as a catalyst in the implementation of the UAE’s sustainability priorities. The launch of the initiative was unveiled during the second edition of the Abu Dhabi Sustainable Finance Forum (ADSFF), organized by Abu Dhabi Global Market (ADGM) and held during Abu Dhabi Sustainability Week.
Premised on the United Nations Agenda for Sustainable Development, the initiative was implemented as a result of collaborative efforts among a number of financial services authorities in the UAE, including: Abu Dhabi Global Market; the Ministry of Climate Change and Environment; the Central Bank of the UAE; the Insurance Authority of the UAE; the Securities and Commodities Authority; the Dubai Financial Services Authority; the Dubai Islamic Economy Development Centre; the Abu Dhabi Securities Exchange, the Dubai Financial Market and Nasdaq Dubai.
These Guiding Principles will serve as a gateway to the increased implementation and integration of sustainable practices among the UAE’s financial entities and will secure the health and longevity of the nation’s economy. The voluntary principles represent the first stage of collaboration among participating entities to ensure a strong and frictionless transition to a sustainable framework. The contributing authorities will implement appropriate measures to encourage UAE financial firms to develop strategies to incorporate sustainable practice considerations in their business activities, decision making, risk management and in the context of exploring new businesses.
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “We are committed to encouraging all issuers and market participants to adopt and strengthen sustainable finance strategies, including their environmental, social and governance policies. Best practice in these areas will lead to greater flows of investment into the region and support the long-term growth and development of companies and the wider economy.”
Mr. Ali signed the Guiding Principles on behalf of Nasdaq Dubai at the ADSFF.
Green listings on Nasdaq Dubai include two Sukuk of 750 million US dollars and 1.25 billion US dollars listed by the Indonesian government in February 2019, earmarked for sustainable development projects. Majid Al Futtaim carried out the world’s first listing of a green benchmark corporate Sukuk on Nasdaq Dubai in May 2019 at 600 million US dollars and listed another Sukuk of the same value in October.
Nasdaq Dubai is also part of the Dubai Sustainable Finance Working Group made up of leading Dubai entities.