UAE & DIFC Engagement

UAE & DIFC Engagement

Building on the UAE’s climate action over the recent years, the UAE Government has more recently raised the level of ambition in responding to climate change, and delivering the UAE Net Zero 2050, ahead of COP28. The adoption of the National Climate Change Plan of the UAE 2017-2050 in November 2017 remains at the core of this. The DFSA has joined in efforts to support the UAE’s preparation for COP28.

Since the publication of the report on the 2016 State of Green Finance in the UAE, sustainable finance has featured highly on the regulatory agendas of the UAE financial regulators. The DFSA actively supports the UAE Sustainable Finance Framework and has regard for these commitments in its sustainable finance-focused supervisory action. In addition, our approach is anchored on close coordination and cooperation between government ministries, financial regulators and the private financial sector.

UAE Sustainable Finance Working Group

We are a founding member of the UAE Sustainable Finance Working Group (SFWG), comprising federal and financial free zone regulators, relevant government bodies and ministries, as well as securities exchanges within the UAE. Some of the SFWG publications are listed below, but more may be expected in 2023. 

• In early 2020, the SFWG adopted its Guiding Principles on Sustainable Finance in the UAE, committing its members to prioritising and implementing the sustainability agenda and to encouraging their regulated entities to integrate ESG factors in their risk management and governance.
• In November 2021, the SFWG issued a High-Level Statement on Sustainable Finance with a view to furthering the work of the regulators within three interlinked workstreams: climate-related risk management and corporate governance; disclosures and reporting; and taxonomy. The SFWG is, where relevant, partnering with the financial industry and various international stakeholders.
• In November 2022, the SFWG issued a second Public Statement on Collaboration on Sustainable Finance in the UAE, providing a progress report on their ongoing efforts to develop sustainable finance frameworks within the UAE.
• In November 2023, the SFWG issued the Principles for the Effective Management of the Climate-Related Financial Risks which set joint expectations of UAE regulators for the safe and prudent governance and risk management of climate-related financial risks by financial sector entities operating in the country.
• In December 2023, the SFWG issued a third Public Statement on Sustainable Finance in the UAE, summarising the achievements of the three SFWG workstreams: climate-related risk management and corporate governance; disclosures and reporting; and taxonomy.

Dubai Sustainable Finance Working Group

The DFSA is a member of the Dubai Sustainable Finance Working Group (DSFWG), established in 2019 by the Dubai International Financial Centre (DIFC) and the Dubai Financial Market (DFM).

The DSFWG comprises over 20 members from government bodies, financial institutions, and other companies working together to accelerate the journey to sustainability through the promotion of sustainable practices and investments in Dubai and the DIFC. The DSFWG advances its work via key initiatives and working groups, capacity-building events and publications

DIFC’s Path to COP28

The DIFC launched the “Path to COP28” programme in partnership with the Global Ethical Finance Initiative to bring the global finance community together to advance ESG-focused thinking and action in the run-up to COP28. We are contributing to some of these initiatives in the course of 2023 and beyond.