Abu Dhabi solidifies role as a global hub for sustainable finance and green transition

This week, Abu Dhabi really reinforced its position as a leader in channeling capital towards climate-friendly initiatives. The Abu Dhabi Sustainable Finance Forum (or ADSFF), which wrapped up Abu Dhabi Finance Week (ADFW), dedicated a full day to discussing policies, financial strategies, and innovations aimed at speeding up the region’s transition to a greener future.

The eighth edition of ADSFF was hosted by Abu Dhabi Global Market (ADGM), in collaboration with the Global Climate Finance Centre (GCFC), Hanwha, and the EU-GCC Cooperation on Green Transition project. The event brought together a diverse group of people, bankers, institutional investors, founders of climate-tech startups, regulators, and policymakers, who examined how markets, laws, and cross-border investments can unlock large-scale renewable infrastructure, nature-based solutions, and climate resilience.

Salem Mohammed Al Darei, CEO of ADGM Authority, kicked things off by positioning Abu Dhabi as a hub for “sustainable finance, pushing forward ambitious policies, fostering climate-resilient ecosystems, and channeling capital toward high-impact global solutions.” During his speech, he emphasized, “Our commitment is crystal clear, Abu Dhabi continues to be a place where capital is driven by purpose, and purpose propels progress. As the capital of green finance, we’re building bridges between regions and mobilizing funds for renewable infrastructure, green tech, and sustainable innovation in emerging and developed markets alike. This forum really highlights Abu Dhabi’s rising status as a global platform for sustainable finance, where big ambitions meet real action, and collaborations spark systemic change.”

They took this theme into the more practical part of the event. For example, a lively debate organized by GCFC featured CEOs from First Abu Dhabi Bank, Abu Dhabi Islamic Bank, and HSBC Bank Middle East. They discussed ways to position the UAE as a major global climate finance hub and how to make transition projects less risky for institutional investors. Panel discussions covered topics like blended finance models, long-term assets, and the policy tools needed to direct pension and sovereign wealth funds into low-carbon infrastructure.

Her Highness Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, who is President and CEO of Frontier25, tackled the big question of what’s already being done and what still needs to be done to help the region shift to a green economy. According to the report, her session highlighted how both government policies and private-sector innovations work hand in hand, complementary approaches, if the region is to succeed.

The forum also featured discussions on technological and sector-specific innovations. Speakers shared insights into using AI for ESG risk analysis, financing biodiversity projects, Islamic sustainable finance, and building climate-resilient digital infrastructure. Eugenia Unanyants-Jackson, who is the Global Head of ESG at PGIM, and Dr. Shamsheer Vayalil, founder and chairman of Burjeel Holdings, led a session about the rise of impact investment, funds that aim for social benefits as well as financial returns, in health, deeptech, and community development.

In addition to main sessions, targeted breakout events were held. The Women in Finance Forum brought together female leaders from finance, regulation, and investment to chat about inclusion, leadership, and innovation. There were also parallel tracks covering the 2nd EU-GCC Finance & Investment for Green Transition Forum, the Google Finance & Tech Summit, the Islamic Finance Summit, and a high-level roundtable focusing on engaging Arab youth in climate investment and wealth creation.

ADGM used this event to showcase progress in regulation and market development. Feedback from government and industry sources highlighted that the UAE Sustainable Finance Working Group recently approved new “Principles for Climate Transition Planning” under Workstream Four, seen as a major step towards building transparent, credible transition plans that align with the country’s net-zero targets. The forum also saw new signatories to the Abu Dhabi Sustainable Finance Declaration, bringing the total to 180 institutions committed to supporting Abu Dhabi and the UAE’s long-term net-zero ambitions.

The final day of ADFW saw some significant business announcements. Reports indicate that firms like J.P. Morgan, ERM, DLA Piper, Arab Bank (Switzerland), Middle East, and iCapital announced either new offices or expansions within ADGM. Arab Bank also received “In-Principle Approval” from the ADGM Financial Services Regulatory Authority to operate with an advisory license. Overall, 23 memorandums of understanding were signed during the event week, involving a range of local and international partners such as Tether, Crypto.com, Zodia, Presto, PCP, Warner Bros. Discovery, the World Gold Council, and Bain Capital.

ADGM framed the forum within a broader purpose. Industry leaders recalled ADGM’s role as the principal climate finance partner at COP28, and its prior efforts to establish a comprehensive regional framework for sustainable finance regulation. This ongoing work has bolstered Abu Dhabi’s credentials in green capital markets, carbon trading, and innovative financing.

Of course, while the overall tone was positive and forward-looking, delegates also pointed out ongoing hurdles. Speakers mentioned the need for better-quality climate data, standardized methodologies for transition, and more liquid markets for long-term green assets. They emphasized the importance of public policies, things like guaranteed offtake agreements, blended finance setups, clearer taxonomies, and disclosure rules, to reduce investor uncertainty and foster market growth.

For those involved in climate-tech in the UAE, the forum sent a few clear signals. First, Abu Dhabi is seriously expanding its regulatory and commercial infrastructure to attract larger pools of climate investments. Second, partnerships across sectors and new entrants are broadening the local ecosystem for climate tech, advisory, and legal services. And third, both industry players and government agencies are starting to focus on transition planning and disclosure as immediate priorities to unlock the flow of institutional capital.

The organizers said that the outcomes from ADSFF will feed into ADGM’s ongoing policy initiatives, as well as its collaborations with international partners to expand green finance across the broader MEASA region. All in all, as Abu Dhabi aims to turn big dreams into actual, deployable capital, the forum made it clear that the pace of the green transition will depend heavily on credible transition frameworks, bankable projects, and innovative risk mitigation tools that can attract long-term investors.

Source: Noah Wire Services