As part of its efforts to support the national sustainability agenda and to bring the UAE-based financial markets on par with international markets, the Securities and Commodities Authority (SCA) released a publication, titled: “An Introduction to Sustainable Investing” on its website. This is part of a new move that sets the stage for the implementation of SCA’s plan for sustainable capital markets launched early this year. The plan followed SCA’s last year’s announcement of an initiative to form a platform for carbon emissions trading.
The publication covers a number of key areas, including the meaning of sustainable investing, its importance in making long-term returns, its positive implications for the environment and the economy, its objectives, and the main differences between sustainable investing and the other types of investments.
This electronic publication examines the incentives that motivate the community to shift to sustainable investing, such as values and beliefs. It addresses the approaches used in sustainable investing and the financial instruments available to investors.
The publication sheds light on the challenges facing investors in terms of the lack of information available about corporate sustainability practices; difficulties associated with regulatory, technical, and commercial risk; the lack of investment opportunities that are consistent with sustainable investment criteria; and the lack of experience in this field.
SCA seeks to fully complete the implementation of its plan for sustainable capital markets by mid-2020. The detailed strategy included in this plan represents the corner stone in the move towards a national capital market that supports sustainability. Completion of this plan requires the combined efforts of all related actors to help it reach its full potential and put the UAE-based capital markets at the forefront in this field.