The Dubai International Financial Centre is playing the role of a catalyst to boost sustainable finance globally as demand for green funding picks up in the region and beyond, the DIFC governor has said.
Dubai has emerged as a green funding centre as the market for sustainable financing continues to expand rapidly, with sovereigns, corporations and lenders in the region pushing to meet their climate goals by 2050, Essa Kazim told the inaugural Future Sustainability Forum on Wednesday.
“The ESG [environment, social and governance] bonds and sukuk currently outstanding on Nasdaq Dubai represent an aggregate outstanding listing value of $24 billion reinforcing Dubai’s position and growing status as a global hub for sustainable finance,” Mr Kazim said.
As of September 2023, DIFC’s Nasdaq Dubai was the largest ESG sukuk market in the world, accounting for about 64 per cent of the world’s dollar-denominated sustainable sukuk and 46 per cent of the world’s sustainable sukuk issued in all currencies.
Dubai, the commercial and financial centre of the Middle East, is also serving as a regional leader, “influencing neighbouring countries in the Measa [Middle East, Africa and South Asia] region to adopt sustainable finance practices”, Mr Kazim said.
The global sustainable finance market, which was valued at $3.65 trillion in 2021, is projected to hit $22.48 trillion by 2031, growing at a compound annual rate of more than 20 per cent between 2022 and 2031, according to Allied Market Research.
The market for green and sustainable bonds and sukuk is booming in GCC economies in particular, as governments in the oil-rich bloc push to meet their net-zero commitments.
Total GCC green and sustainable bond and sukuk issuances last year reached a record $8.5 billion from 15 deals, compared with $605 million from six deals in 2021, amid increased participation from banks and government-related entities, data from Bloomberg’s Capital Markets League Tables showed.
Green and sustainable finance issuance to fund environmentally friendly projects grew by 32 per cent in the UAE alone last year, compared with 2021, said consultancy Arthur D Little.
Abu Dhabi Commercial Bank, the UAE’s third-largest lender, in September priced its $650 million green bond as part of its commitment to provide Dh35 billion ($9.53 billion) in green finance by 2030.
In August, Abu Dhabi clean energy company Masdar listed its first $750 million green bond on the London Stock Exchange to fund its new clean energy projects.
In June, Commercial Bank of Dubai raised $500 million from its debut green bond to fund climate relate projects under its sustainable finance framework.
The Abu Dhabi National Energy Company, better known as Taqa, raised $1 billion from its debut green bond in April, proceeds of which will be used for financing, refinance and investment in green projects.
In May, Majid Al Futtaim Holding, one of Dubai's biggest private sector companies and the Middle East's largest mall operator, raised $500 million through a green sukuk, its fourth in about four years.
The same month, Aldar Investment Properties, the real estate management unit of the emirate’s largest listed developer, Aldar Properties, also raised $500 million through its debut green sukuk to fund acquisitions and meet its sustainability goals.
State initiatives such as the Dubai Clean Energy Strategy 2050 and the UAE Net Zero 2050 and the UAE Vision 2070 blueprints underpin the clear emphasis on “renewable energy adoption, water conservation, waste management and sustainable urban development”, which all require sustainable financing, Mr Kazim said.
As the fastest-growing financial centre in the Measa region, the DIFC is “driving progress in alignment with Cop28’s four-pillar plan on fast-tracking the transition, fixing climate finance, adaptation to protect lives and livelihoods, and making Cop28 fully inclusive”, he said.
On Wednesday, the DIFC also announced its Sustainable Finance Framework with “a positive second-party opinion” review by S&P Global Ratings.
The framework sets out fundraising principles for investments in environmental and social projects that enable sustainable business operations.
“The framework will help raise capital for impact-driven and sustainable projects in and within the centre,” Mr Kazim said.
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
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SPECS
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The%20Sandman
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STAY%2C%20DAUGHTER
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'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
Destroyer
Director: Karyn Kusama
Cast: Nicole Kidman, Toby Kebbell, Sebastian Stan
Rating: 3/5
UAE release: January 31
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
SPECS
Nissan 370z Nismo
Engine: 3.7-litre V6
Transmission: seven-speed automatic
Power: 363hp
Torque: 560Nm
Price: Dh184,500
More coverage from the Future Forum
ASSASSIN'S%20CREED%20MIRAGE
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Killing of Qassem Suleimani
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
UAE currency: the story behind the money in your pockets
World Series
Game 1: Red Sox 8, Dodgers 4
Game 2: Red Sox 4, Dodgers 2
Game 3: Saturday (UAE)
* if needed
Game 4: Sunday
Game 5: Monday
Game 6: Wednesday
Game 7: Thursday
COMPANY%20PROFILE
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How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
What is graphene?
Graphene is extracted from graphite and is made up of pure carbon.
It is 200 times more resistant than steel and five times lighter than aluminum.
It conducts electricity better than any other material at room temperature.
It is thought that graphene could boost the useful life of batteries by 10 per cent.
Graphene can also detect cancer cells in the early stages of the disease.
The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.
Company%20profile
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MATCH INFO
Who: France v Italy
When: Friday, 11pm (UAE)
TV: BeIN Sports
