HSBC is seeing growth in the demand for sustainable finance in the Middle East North Africa and Turkey (Menat) markets with the British banking giant executing about $1 billion (Dh3.67bn) in green financing deals since 2017, a senior HSBC executive said.
HSBC, which two years ago committed to provide and facilitate $100bn of sustainable financing and investments by 2025, has so far achieved a total of $28.5bn in green funding. The lender reached $11bn in transactions in 2017 and added another $17.5bn last year, a 159 per cent year-on-year growth, said Zoë Knight, managing director and group head of the HSBC’s Centre of Sustainable Finance.
The deals in MENAT accounted for about 3 per cent of the bank’s total global sustainable finance transactions by the end of 2018.
“This shows us that there is significant untapped potential to work with our clients in the region as they begin to transition to a low-carbon economy,” said Ms Knight. “We have a growing number of sustainable finance deals in the Menat region, including both executed deals and in our pipeline … we are seeing the opportunities grow as the issue of sustainability rises in importance across the region.
HSBC defines sustainable finance as any form of financial service which integrates environmental, social and governance criteria into a business or investment decision. It covers both the financing and the investment activities needed to support the UN Sustainable Development Goals, with particular focus on combating climate change.
Sustainable finance, which includes instruments such as green bonds, SDG bonds and social bonds accounted for about 1 per cent of the total global bond market last year, according to data provided by HSBC. Overall bond issuance in 2018, including sovereigns and sub-sovereign issuances in all currencies, reached about $19.4 trillion. Green bonds reached a total of $167bn during the period, a 3 per cent year-on-year growth, while social bonds came in at $35bn at the end of last year, data showed.
Sustainability is very high on the agenda of the oil-fuelled economies of Middle East, especially, the six-member economic bloc of GCC which accounts for about a third of the world’s proven oil reserves.
There are opportunities for local and international lenders in the green finance space with the rise in renewables energy capacity deployment, especially in the region’s two biggest economies - Saudi Arabia and the UAE. The kingdom, the world’s largest oil exporter, has in particular tapped its sovereign investment fund, the Public Investment Fund (PIF), to develop around 70 per cent of all renewable projects in the country. Around 9.5 Gigawatts of solar and wind capacities have been earmarked for development by 2023 alone, as Saudi Arabia looks to move away from fossil fuel based-sources of power generation.
The UAE is leading the charge in Menat to enforce the low-carbon economic agenda. At emirate level, Dubai’s Clean Energy Strategy 2050 calls for lowest carbon footprint in the world with clean energy accounting for 75 per cent of its total needs by 2050. Dubai Electricity and Water Authority also launched in 2016 a Dh100bn Green Fund, with capital contributions from founding investors from Dubai, and investment from the private sector, international banks and large investment companies. First Abu Dhabi Bank, the biggest lender in the UAE by assets, was the first among the regional lenders to launch a $587 million green bond in 2017.
“Given the ambitions and policy developments on renewable energy and sustainability by the UAE government at both federal and emirate-levels, it makes sense that sustainable bonds [FAB green bond] and funds [Dubai Green Fund] were first developed in the UAE,” Ms Knight said. “As other countries in the region advance on their own green agendas, we expect to see an uptick in demand for similar financing instruments.”
Central banks are now worried about capital adequacy in the face of extreme climate-related risks, physical risks and transition risks and are asking more questions about how risk teams at the banks are approaching the subject, she noted.
“There’s an initiative of network for Greening Financial System which is central banks led. It started out with European players, some 7 central banks, and now has 34. Asia is quite actively engaged in these discussions,” she said.
Investments in green assets by the region’s sovereign wealth funds such as Saudi Arabia’s PIF, Kuwait Investment Authority and Abu Dhabi Investment Authority, which hold assets worth hundreds of billions in dollars, will also prove to be a big boost for green investments and financing in the region.
Green investments of about 5 per cent of the "total assets held by the sovereign wealth funds would be a big driver in the region for development of green finance," she said.
“We are already seeing some signs of this. I think the sovereign wealth funds are already looking at how they should be doing it.”
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
The Lost Letters of William Woolf
Helen Cullen, Graydon House
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
COMPANY%20PROFILE
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Stree
Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5
War
Director: Siddharth Anand
Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor
Rating: Two out of five stars
Defending champions
World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
Gulf Men’s Social: Mediclinic Barrelhouse Warriors
Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
Gulf Under 19: British School Al Khubairat
Gulf Under 19 Girls: Dubai Exiles
UAE National Schools: Al Safa School
International Invitational: Speranza 22
International Vets: Joining Jack
UAE currency: the story behind the money in your pockets
Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
Lewis Hamilton in 2018
Australia 2nd; Bahrain 3rd; China 4th; Azerbaijan 1st; Spain 1st; Monaco 3rd; Canada 5th; France 1st; Austria DNF; Britain 2nd; Germany 1st; Hungary 1st; Belgium 2nd; Italy 1st; Singapore 1st; Russia 1st; Japan 1st; United States 3rd; Mexico 4th
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
AGUERO'S PREMIER LEAGUE RECORD
Apps: 186
Goals: 127
Assists: 31
Wins: 117
Losses: 33
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Abu Dhabi GP schedule
Friday: First practice - 1pm; Second practice - 5pm
Saturday: Final practice - 2pm; Qualifying - 5pm
Sunday: Etihad Airways Abu Dhabi Grand Prix (55 laps) - 5.10pm
Brief scores:
Manchester City 3
Bernardo Silva 16', Sterling 57', Gundogan 79'
Bournemouth 1
Wilson 44'
Man of the match: Leroy Sane (Manchester City)
Brief scores:
Newcastle United 1
Perez 23'
Wolverhampton Rovers 2
Jota 17', Doherty 90' 4
Red cards: Yedlin 57'
Man of the Match: Diogo Jota (Wolves)
The biog
Favourite book: Homegoing by Yaa Gyasi
Favourite holiday destination: Spain
Favourite film: Bohemian Rhapsody
Favourite place to visit in the UAE: The beach or Satwa
Children: Stepdaughter Tyler 27, daughter Quito 22 and son Dali 19
UAE currency: the story behind the money in your pockets
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
Super Bowl LIII schedule
What Super Bowl LIII
Who is playing New England Patriots v Los Angeles Rams
Where Mercedes-Benz Stadium in Atlanta, United States
When Sunday (start time is 3.30am on Monday UAE time)
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
If you go
The flights
There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.
The trip
Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.
The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
