ABU DHABI — The UAE financial markets are experiencing a remarkable transformation, driven by global and regional sustainability trends, said Nadim Najjar, Managing Director of Central Eastern Europe, Middle East Africa (CEEMA) for the London Stock Exchange Group (LSEG).
Najjar highlighted the UAE’s commitment to achieving net-zero emissions, praising its leadership in this crucial area. He emphasized the UAE’s success in establishing a fully regulated carbon market, integrating carbon regulation to manage and trade emissions effectively, providing companies with tools to reduce their carbon footprint.
“This initiative not only promotes responsible corporate practices,” Najjar stated, “but also provides investors with essential information for sustainable investment decisions.”
He noted that the UAE’s focus on sustainability, innovation, technology, and its status as an entrepreneurial hub uniquely positions it to lead in sustainable solutions. Najjar applauded the UAE’s inclusive approach during its COP28 Presidency, engaging various stakeholders to exchange ideas, vital for Sustainable Development Goals (SDGs) progress.
Najjar also highlighted the collaborative project with the Abu Dhabi Securities Exchange (ADX), launching the ESG (Environmental, Social, and Governance) benchmark index last November. He described this partnership as a strategic alliance that is revolutionizing the financial landscape.
He mentioned that the partnership with ADX, which began in 2021, aims to develop indices meeting and exceeding evolving investor needs, both locally and internationally.
At the heart of our work is the commitment to provide market participants with reliable, accurate, and, most importantly, transparent indices. This transparency is crucial to fostering investor confidence and nurturing a healthier, more sustainable financial ecosystem.”
Najjar emphasized that the launch of the first ESG index with ADX marks a significant milestone. More than just a benchmark, it represents a collective commitment to sustainability and meets the increasing demand for investments that align with ESG values, reflecting the global trend towards responsible investing.
“This index addresses the critical need for more sustainable financial markets, where sustainability is paramount for both investors and companies. Our partnership with ADX is a key step in building a platform that empowers investors to make responsible choices, contributing to a more sustainable future for everyone.”
Najjar also noted that this index is a powerful tool for investors, offering a reliable standard to assess company performance in the Abu Dhabi market, focusing on environmental, social, and corporate governance criteria. It helps align investment objectives with values by enabling investments in companies committed to environmental sustainability, social responsibility, and robust corporate governance.
“This empowers investors to direct their capital towards companies actively shaping a sustainable future, thereby driving positive change within financial markets,” he said.
Najjar further highlighted the index’s role in encouraging institutions to disclose environmental, social, and corporate governance information. This enhances accountability and helps identify potential risks and opportunities.
“Our partnership with ADX goes beyond mere collaboration; it’s a strategic alliance based on a shared commitment to sustainability. This is further exemplified by the market’s active participation in the United Nations-led Sustainable Stock Exchanges initiative,” he concluded.