UAE requires $671bln investments to achieve net-zero targets

The UAE will require 2.5 trillion dirhams ($671.1 billion) in investments to transition to net zero, according to a report by Standard Chartered. The emerging markets region as a whole also needs an additional 350 trillion dirhams to be able to meet global warming targets. The amount is higher than the annual global gross domestic product (GDP) and requires participation from private investors. While private investors can help address the huge finance gap, the report noted that encouraging investments in emerging markets can be a difficult task. “The world’s top 300 investment firms with total assets under management of more than $50 trillion have just 2 percent, 3 percent and 5 percent of their investments in the Middle East, Africa and South America, respectively,” the report said. To meet the global warming targets, the report said “greater collaboration” is required in strategy, policy and financing. “More importantly, banks need to live up to the pledges made during COP26 if ordinary households are to avoid bearing the costs of their market’s transition to net-zero,” the report said. Impact However, there are scenarios to keep in mind when sourcing investments to achieve net-zero targets. If the required funding comes from developed markets, the report noted that household spending could increase. In the UAE, the increase could be around 2 trillion dirhams. If countries in the emerging markets opt for self-financing, without the contribution of developed markets, household consumption in these markets could fall by five percent on average each year. Well positioned According to Rola Abu Manneh, CEO of Standard Chartered UAE, the public and financial sectors in the country should come together to help facilitate the flow of investment into net zero. “The UAE is well positioned to capitalise on the major economic opportunities offered by the path to net zero. Reaching this objective would require a strong focus on ensuring economic prosperity throughout the transition process in addition to a great deal of investment,” Abu Manneh said. (Writing by Cleofe Maceda; editing by Seban Scaria) Cleofe.maceda@lseg.com

UAE requires $671bln investments to achieve net-zero targets

DISCOVER MORE

Dubai: Sheikh Hamdan launches initiative to attract 1,000 Emirati professionals

'The march continues': Sheikh Mohammed congratulates new UAE Vice-President, Abu Dhabi Crown Prince

Ruler of Abu Dhabi issues decree restructuring Abu Dhabi Executive Council

UAE President appoints Abu Dhabi Crown Prince, deputy rulers

Mideast Stocks: Gulf stocks end mixed as investors remain cautious

New Saudi law to set off region’s next freehold boom

Proposed CEPA will bring economic, social benefits: Costa Rican Minister

UAE: Artificial intelligence market to reach $1.9bln by 2026

Five African cities hold more than 50% of continent's private wealth

AI may affect 300mln full-time jobs: Goldman Sachs

Maldives airport temporarily shut down after Flydubai aircraft suffers tire burst on landing

Real GDP growth in the GCC region will slow to 3.5% in 2023

UAE approves 24 national initiatives to double re-export industry

UAE President, Sheikh Mohammed review COP28 preparations

Dubai Free Zones Council commits to D33 goals; green economy

Dubai Free Zones Council sets green economy as a key priority on its agenda

Schneider Electric seeks disruptive ideas for greener cities

UAE: Major landmarks switch off lights for Earth Hour

LATEST VIDEO

VIDEO: Why is China's Belt and Road Initiative facing setbacks?

ZAWYA COVERAGE

Saudi Al Rajhi Bank raises $1bln in Islamic bonds

Dubai’s Empower approves $115mln dividend

Aldar and Mubadala to launch JV to develop ADGM office tower

Abu Dhabi's ADNOC Gas posts 2022 net profit of $4.9bln on higher prices

Spain inflation falls more than expected to 3.3% in March

Hiring spree by China's debt-laden local governments fuel fiscal fears

US bank supervision needs more speed, transparency in wake of SVB debacle, critics say

Rate rises pile pain on SME firms in U.S. and Europe

Several feared dead after two US army helicopters crash during training in Kentucky

THE BRI REPORT

China is reshaping the Belt and Road Initiative ahead of a post-pandemic era

DISCOVER MORE

LATEST VIDEO

ZAWYA NEWSLETTERS

ZAWYA COVERAGE