The latest Standard Chartered survey, the 2021 Sustainable Investing Review, shows that the UAE is on an upward trajectory in sustainable investment, but its adoption rate of 57% is slightly lower than the global average of 61%. However, given that 74 percent expressed a desire to leave a positive legacy, compared to the global average of 65 percent, the UAE could overtake other markets in terms of adoption in the future.
The majority of UAE investors prefer investments with a solid and credible history, which is a critical factor for 70% of UAE respondents, compared to 58% overall. The key to reaching the tipping point of sustainable investments in the UAE may lie in having financial institutions share compelling stories that highlight positive social and environmental outcomes for the next generation.
At the same time, the survey finds that 56% of investors in the UAE fear sustainable investments, up from 51% overall, with 78% believing that it is possible to do good and make money. at the same time, compared to 75 percent in total.
Dr Owen Young, Managing Director, Regional Head of Wealth Management for Africa, Middle East and Europe at Standard Chartered Bank, said: “Our results show that the interest in sustainable investments in the Emirates Arab and international markets is at all times high, signaling a valuable opportunity to address global climate change and environmental concerns through financial means. Along with Standard Chartered’s deep commitment to providing sustainable financing solutions, we also seek to play a leading role in advocating for greater capital formation and channeling to sustainable businesses and projects.
The Sustainable Investing Review 2021 revealed an upward trend in sustainable investing among more than 2,000 investors, representing $ 11 billion in assets under management, surveyed in Mainland China, Hong Kong, Taiwan, Singapore, in India, United Arab Emirates and United Kingdom. Globally, the allocation of sustainable investments in investor portfolios is increasing: 13% of investors already have more than 25% of total investments dedicated to sustainable solutions, compared to only 2% of investors in 2020.