ESG Reporting in the UAE: From Compliance to Strategic Growth
Key insights on regulations, trends, and opportunities
The UAE is positioning itself as a leader in ESG in the Middle East, driven by national vision and progressive regulations. ESG is no longer a box-ticking exercise — it is becoming a driver of long-term business value.
The ESG Shift in the UAE
Backed by the country’s strategic ambitions, sustainability regulations are being strengthened to encourage corporate transparency, attract investment, and align with global best practices.
Regulatory Foundations
The UAE Sustainable Finance Working Group was launched in 2019 to guide sustainable finance policy. In 2024, the Principles for Sustainability-Related Disclosures were introduced, aligning with TCFD, GRI, and other international frameworks.
Mandatory Reporting
The Securities & Commodities Authority now requires public joint stock companies to submit annual sustainability reports within 90 days of fiscal year-end. Reports must outline environmental and social impacts alongside long-term business strategies.
Capital Market Accelerators
Both ADGM and DFM are playing a key role in advancing ESG integration. ADGM has set disclosure rules for funds, bonds, and sukuks, while DFM provides ESG guidance aligned with UN SDGs and SSE principles.
Banking Sector Leaders
Several UAE banks are setting strong precedents. The Commercial Bank of Dubai earned the ESG Label from Dubai Chamber. Bank of Sharjah’s 2024 ESG report follows global standards, while RAKBANK and ADIB demonstrate transparency in ESG performance reporting.
Why It Matters
Strong ESG practices build investor trust, enhance resilience, position UAE companies competitively in global markets, and prepare them for future regulations such as the EU’s CSRD and ESRS requirements by 2028.
Strategic Priorities
Companies should embed ESG into governance and strategy, adopt recognized global reporting frameworks, improve data quality, and develop in-house ESG expertise to meet evolving expectations.
The Outlook
The UAE’s ESG reporting landscape is advancing quickly through regulatory initiatives, capital market guidance, and corporate momentum. Early adopters will be best placed to attract capital, strengthen reputation, and secure a competitive edge. esg sustainability
