Exclusive survey by Lombard Odier shows high-net-worth Middle East investors’ strong shift to sustainable investment and Islamic Finance

Exclusive survey by Lombard Odier shows high-net-worth Middle East investors’ strong shift to sustainable investment and Islamic Finance

Respondents expressed a need for more clarity and advice from specialists on how to invest sustainably, stating a desire to receive regular research on sustainable investment ideas (78%) and portfolio sustainability benchmarking (77%). The results are a clear indication that financial institutions in the region need to provide more guidance to help investors express their ESG-related values. Just 29% of respondents said they were very satisfied with the service that they currently receive from their banking partner and around half (58%) are quite satisfied.

The survey also highlighted the significant overlap between Islamic and sustainable finance, since both involve acting ethically and responsibly. Indeed, the overwhelming majority of HNW investors, regardless of age, want to reflect traditional Middle Eastern values in their investments. They have already taken significant strides to integrate their Islamic beliefs via Shariah-compliant strategies and plan to increase those allocations. According to the survey, 67% of Middle Eastern HNW investors state that observing Islamic investment principles is important to them. There is strong appetite for this type of investment, with Sukuks and Islamic loans being the two most favoured Shariah-compliant asset classes in the region.

Private equity follows close behind the above classes, with almost a third (30%) of