The ability to achieve climate transition and the SDG’s depends on the ability to finance the changes needed.
How to reorient capital towards sustainable finance ?
Our MENA region faces significant climate and sustainability challenges. MENA region is the world’s most water-scarce region, is at risk from compromised food security and productive and arable land sustainability due to climate change, given the high dependency on climate-sensitive agriculture . it also sits on 1/3 of world’s oil and gas producers who must find the right balance between moving their economies away from fossil fuels and continuing to supply the world’s energy all while continuing to grow their economies.
Like all countries, the biggest challenge for MENA, like all other countries is being able to finance the transition.
It is estimated that the Arab region requires a minimum of USD 230 billion annually to support the achievement of the SDGs. The financing gap in Arab countries has been estimated at a cumulative total of over USD 1.5 trillion through 2030.
No matter what funding source it is, in order to be able to channel funds towards a low-carbon and sustainable economy, there are many structural issues that are needed. From governments issuing regulations, taxonomies and guidance; markets and exchanges facilitating frameworks and regulations; companies designing climate and sustainability strategies and transition plans to understand their finance needs, banks assessing their climate risks and creating strategies and products to manage them .. … and the list of requirements goes on. Indeed, a full responsible ecosystem is needed for the efficient reorientation of capital towards financing climate and sustainable projects.
Our role at Ajyal Sustainability is to service the creation of a sustainable finance ecosystem that enables the growth and support of a climate resilient and sustainable MENA by working with regulators, exchanges, financial institutions and corporates.
Join the conversation
As COP28 winds down in Dubai, our CEO Luma Saqqaf recorded a three-part video series with Vanessa Havard-Williams from Linkaters to discuss some of the key topics surrounding the Gulf Region’s sustainability journey:
Energy transition in MENA and the Gulf Region
Regulatory Landscape in the Gulf Region
Sustainable Finance in the Gulf Region
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