The GCC is strategically tapping into the global surge in demand for sustainable finance to drive green innovation and advance its net-zero goals.

Titled The Sustainable Finance Imperative, the report delves into the transformative impact of climate-smart investments—estimated at $23 trillion across emerging markets—and other financial instruments on the region’s economy. Released during Abu Dhabi Sustainability Week, it emphasizes the critical role of sustainable finance in meeting global climate goals and fostering long-term resilience in the GCC.

The report highlights that the GCC’s emphasis on green investments could add as much as $2 trillion to regional GDP by 2030, with renewable energy and sustainable infrastructure playing pivotal roles. FAB, the UAE’s largest bank, has already channeled $58.32 billion into sustainable and transition financing, reaching 43% of its 2030 target of $135 billion. This growth in ESG-driven financing reflects strong client demand.

Green investments are expected to create over one million jobs by 2030, with the UAE alone allocating $16.8 billion to renewable energy projects. A rising number of regional CEOs acknowledge the value of ESG strategies, with 56% predicting substantial returns from sustainability investments within five years.

The report highlights how financial instruments are advancing the integration of ESG principles in the GCC’s transition. Landmark projects like the Mohammed bin Rashid Al Maktoum Solar Park in the UAE and Saudi Arabia’s NEOM Green Hydrogen initiative illustrate the transformative impact of sustainable finance. These initiatives showcase the dual potential of green finance to drive environmental progress while achieving economic objectives, solidifying the GCC’s role as a global leader in the energy transition.