UAE releases first set of guiding principles on sustainable finance that ‘take into consideration Shariah law’

The United Arab Emirates on Wednesday (Jan 15) released the first set of Guiding Principles on Sustainable Finance it says will serve as a catalyst in the implementation of the country’s sustainability priorities, and that take into consideration Shariah law requirements, principles and guidelines.

The guidelines were published by UAE bodies including Abu Dhabi Global Market, Ministry of Climate Change and Environment, Central Bank of the UAE, Insurance Authority of the UAE, Securities and Commodities Authority, Dubai Financial Services Authority, Dubai Islamic Economy Development Centre, Abu Dhabi Securities Exchange, Dubai Financial Market, and Nasdaq Dubai.

#UAE’s first set of Guiding Principles on #SustainableFinance was signed by representatives of leading UAE entities including @AlawarAbdulla, CEO of #IEDCDubai, at #ADSFF in Abu Dhabi. pic.twitter.com/lN6eYUhZFQ

— IEDCDubai (@IEDCDubai) January 16, 2020

“The contributing authorities will implement appropriate measures to encourage UAE financial firms to develop strategies to incorporate sustainable practice considerations in their business activities, decision making, risk management and in the context of exploring new businesses,” Abu Dhabi Global Market said in a statement on Wednesday.

The guidelines are based on the United Nations Agenda for Sustainable Development.

The three broad guiding principles include integration of ESG factors into governance, strategy and risk management; lays out minimum eligibility requirements; and explains the promotion of appropriate ESG-related reporting and disclosures.

The voluntary principles represent the first stage of the UAE authorities’ joint work, says the 11-page guidelines document.

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