UAE Wealthy Allocate 27% to Sustainable Portfolios, Favoring Green Finance

Rola Abu Manneh (CEO, UAE, Middle East and Pakistan, Standard Chartered)

Wealthy investors in the UAE have a strong preference to allocate their capital towards sustainable investments, aligning with the national government’s climate goals and aspirations for a sustainable economy, according to Standard Chartered.

UAE’s high-net-worth individuals (HNWIs) with assets under management of $1 million set aside nearly a third (27%) of their portfolios to sustainable investments, the highest percentage among eight markets surveyed globally by the bank.

Nearly nine out of ten (87%) of the investors also said they are interested in transition investing, in line with the global average. The insights are based on the bank’s survey of HNWIs across the UAE, Hong Kong, Mainland China, India, South Korea, Taiwan, Malaysia and Singapore.

The current allocation trends indicate that investors in the UAE seek to align with the local government’s objectives, particularly the Net Zero 2050 vision. It also indicates a shift towards low-carbon, future-focused investment strategies.

What Investors Prefer

Standard Chartered highlighted that investors in the country are attracted to certain investment themes that align with the UAE’s energy diversification goals and climate commitments.

They are particularly interested in green hydrogen, carbon markets, carbon capture and storage, indicating their preference for “real economy solutions” to achieve a low-carbon future.

“The findings reaffirm the UAE’s leadership in sustainable finance, with UAE high-net-worth investors allocating the highest share of their portfolios to transition investments across all surveyed markets,” said Rola Abu Manneh, CEO, UAE, Middle East and Pakistan, Standard Chartered.

“This growing momentum supports the country’s Net Zero 2050 vision and reflects a broader shift towards low-carbon, future-focused investment strategies.”

Source: Zawya