Retail investor capital presents ‘$100bln growth avenue’

Retail investor capital presents ‘$100bln growth avenue’

UAE - Retail investors in the UAE can mobilise more than AED367 billion ($100 billion) towards top Environmental, Social and Governance (ESG) priorities, particularly the financing of climate transition to net zero, says a report.

Launching its Sustainable Banking Report 2022 titled ‘Mobilising retail investor capital’, Standard Chartered explores ESG investment opportunities. This capital could also play a critical part in bridging funding gaps in the UAE’s other ESG priorities including food and water security as well as pollution and waste management.

The new research by Standard Chartered also identified over AED30 trillion of investable retail wealth that could be channelled into sustainable investments by 2030 to finance ESG objectives in 10 growth markets. The report also highlights investment barriers currently faced by investors and recommends solutions to expand sustainable investing (SI) into a mainstream asset class.

Mobilising investor capital

According to the research, the UAE has high potential for growth in sustainable investing, largely due to its rising domestic wealth. The market could mobilise over AED367 billion in sustainable retail investment by 2030. Across the UAE, more than 40% of investors respectively want to put their money towards addressing climate issues.

The top ESG priorities for investors in the UAE include:

•Climate change and carbon