UAE’s retail investors present $100bn prospect for ESG

Retail investors in the UAE could provide more than $100 billion in capital for ESG investment by 2030, according to research from Standard Chartered.

Its Sustainable Banking Report, titled ‘Mobilising retail investor capital’, identifies retail investors as an untapped source of funding for the climate transition to net zero.

It could also aid the UAE’s other ESG priorities, including food and water security, pollution and waste management, according to the report.

More than 40% of investors surveyed in the report want to put their money towards addressing climate issues.

However, there are a number of barriers at present inhibiting sustainable investment. The three most commonly cited obstacles were lack of comparability between different ESG funds (47%), perceived low returns (45%) and comprehensibility (44%).

Consequently, the report recommends that ESG funds should be more accessible via digital platforms, with clear and transparent information and an alignment with individual investors’ ESG priorities.

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