GCC Positioned to Unlock $2 Trillion GDP Through Green Investments by 2030

UAE, 12 July, 2024 : Investing in green projects and sustainable finance could potentially unlock up to $2 trillion in GDP contribution for GCC countries by 2030, according to a recent Strategy& report. The report highlights significant opportunities across key sectors, including agriculture, construction, power, transport, water, and waste management.

The report urges GCC governments to enhance their capital markets to accelerate investment in sustainable projects. Currently, only about 10 percent of plastic and metal waste in the GCC is recycled, presenting a substantial opportunity to increase recycling rates to 40 percent, potentially creating 50,000 new jobs and a $6 billion market.

At a conference organized by the Dubai Stockbrokers and Investment Services Group (DSIG), experts emphasized the economic viability and profitability of investing in sustainability. They underscored the transformative potential of such investments for GCC economies, moving them away from reliance on hydrocarbons towards sustainability.

Sameera Fernandes, Chairwoman of DSIG, highlighted the role of green finance instruments like Green Bonds and Green Sukuk in driving economic growth and resilience. She urged stakeholders to collaborate in increasing investments in sustainable projects to build a pollution-free and carbon-neutral future.

The UAE, a pioneer in sustainable finance in the region, has set ambitious goals under its Green Economy for Sustainable Development initiative. Projects like solar power parks and sustainable cities exemplify the country's commitment to environmental stewardship and economic diversification.

The financial sector in the GCC plays a crucial role in supporting sustainable finance practices, including guidelines for green bonds and sustainability reporting requirements. The region has seen a surge in green finance activities, with substantial growth in green and sustainable bonds issuance.

Globally, sustainable investments are gaining momentum, with over $7 trillion invested in sustainable assets by 2023. The growth reflects increasing investor interest in environmental, social, and governance (ESG) criteria, driving capital towards sustainable development goals.

The DSIG, part of Dubai Chamber of Commerce, facilitates sector-specific business groups and councils to advance Dubai’s business community's interests, promoting economic opportunities locally and globally.

This concerted focus on green investment and sustainable finance positions the GCC to harness economic opportunities while fostering environmental sustainability and resilience in the years ahead.

Source : www.zawya.com