The State of Green Finance in the UAE - The first national survey on contributions of financial institutions to Green Economy
Following a recent survey undertaken by UNEP FI and the UAE Ministry of Environment and Water, there is clear evidence not only that many of the UAE’s financial institutions are already investing in green products, but that that investment is on the rise.
Nearly half of the respondent institutions already provide a green finance product or service, while 41% are planning to introduce new products/services in the near future. Nearly a quarter of the respondent institutions from the banking and investment sectors have invested in green projects – including 75 domestic projects – from their assets. Furthermore, at least 0.27% of GDP was invested in domestic green projects.
Some institutions are already realizing substantial benefits from green finance through cost savings, additional revenues and increased share values. The most profitable cases reach as much as USD 20 million and 2% of total profits. If the entire UAE banking sector gained 2% of total profits from green finance, the total benefits would amount to USD 210 million a year.