Sustainable Investing Review 2021 reveals increased interest from UAE investors

Business Banking

Mita Srinivasan
Business Banking
Published:

Sustainable Investing Review 2021 reveals increased interest from UAE investors

The allocation of sustainable investments in investor portfolios is on the rise globally: 13 per cent of investors already have more than 25 per cent of total investments channelled into sustainable solutions, compared to just 2 per cent of investors in 2020.

Standard Chartered’s latest survey, the Sustainable Investing Review 2021, shows that the UAE is on an upward trajectory when it comes to sustainable investing but its adoption rate of 57 per cent is slightly lower than the global average of 61 per cent. However, given 74 per cent expressed a desire to leave a positive legacy, compared to the global average of 65 per cent, the UAE could overtake other markets in terms of adoption going forward.

The majority of UAE investors prefer investments that have a strong, credible story, with this being a pivotal factor for 70 per cent of UAE respondents compared to 58 per cent overall. The key to reaching the tipping point for sustainable investments in the UAE could lie in financial institutions sharing compelling stories that highlight the positive social and environmental outcomes for the next generation.

At the same time, the survey finds that 56 per cent of investors in the UAE are apprehensive about sustainable investments compared to 51 per cent overall, with 78 per cent believing it is possible to do good and make money at the same time, compared to 75 per cent overall.

Dr. Owen Young, Managing Director, Regional Head of Wealth Management for Africa, Middle East & Europe at Standard Chartered Bank, said: “Our findings show that interest for sustainable investments in the UAE, and across international markets, is at an all-time high, signalling a valuable opportunity to address global climate change and environmental concerns through financial means. Alongside Standard Chartered’s deep commitment to provide sustainable financing solutions, we also look to playing a driving role in advocating for greater capital formation and channelling towards sustainable corporates and projects.”

The Sustainable Investing Review 2021 revealed an upward trend in sustainable investing among more than 2,000 investors, representing USD11 billion in AUM, surveyed in Mainland China, Hong Kong, Taiwan, Singapore, India, the UAE and UK. Overall, the allocation of sustainable investments in investor portfolios is on the rise: 13 per cent of investors already have more than 25 per cent of total investments channelled into sustainable solutions, compared to just 2 per cent of investors in 2020.