Standard Chartered: UAE leads key markets in HNW allocation to sustainable investments

Zawya

5 days ago

Dubai, United Arab Emirates: Standard Chartered announced today the launch of its latest Sustainable Banking Report 2025 titled 'Transition investing: the next wealth frontier?'.
The report, which explores investor sentiment around transition investing [1], reveals that high-net-worth investors surveyed in the UAE allocate 27 per cent of their portfolios to sustainable investments, the highest among all eight markets surveyed. In addition, 87 per cent of UAE investors are interested in transition investing, broadly in line with the global average, according to the survey.
The findings are based on a survey of high-net-worth individuals across the United Arab Emirates, Hong Kong, Mainland China, India, South Korea, Taiwan, Malaysia, and Singapore. It explores how investors are approaching the shift to a low-carbon economy and identifies the opportunities and challenges associated with transition investing.
Commenting on the report, Rola Abu Manneh, Chief Executive Officer, UAE, Middle East and Pakistan, Standard Chartered, said: 'The findings reaffirm the UAE's leadership in sustainable finance, with UAE high-net-worth investors allocating the highest share of their portfolios to transition investments across all surveyed markets. This growing momentum supports the country's Net Zero 2050 vision and reflects a broader shift towards low-carbon, future-focused investment strategies. At Standard Chartered, we are committed to enabling this transition by providing the insights and solutions that help investors capitalise on emerging opportunities and contribute meaningfully to a more sustainable economy.'
The UAE's strong allocation is mirrored in the specific investment themes gaining prominence across the country. UAE investors are particularly focused on high-impact investment themes that align with the UAE's energy diversification goals and broader climate commitments. Green hydrogen (51%), carbon markets (48%), and carbon capture and storage (47%) emerged as the most compelling areas of interest, reflecting a growing focus on real economy solutions that support the transition to a low-carbon future.
While investor appetite is strong, the research identifies key barriers slowing broader capital deployment into transition strategies including higher risks (45%) and limited access to credible products (36%). These findings suggest that unlocking further capital will depend on building trust, enhancing product transparency, and improving access to well-structured solutions.
Although interest in the UAE and other surveyed markets is high, the research also reveals a broader knowledge gap. Only a small proportion of global investors (15%) were able to clearly define the concept of transition investing [2] before being presented with a formal definition and examples. This highlights the ongoing need for investor education and clearer market guidance. To help bridge this gap, Standard Chartered has launched a Transition Investing Guide designed to support clients in assessing credible opportunities and contributing meaningfully to the global transition.
-Ends-
Khaled Abdulla, CFA®
Director, Head of Communications
Corporate Affairs, Brand & Marketing
United Arab Emirates
About the Sustainable Banking Report 2025
The Sustainable Banking Report 2025 surveyed high-net-worth individuals with assets under management of USD1 million or more across eight key markets – Hong Kong, India, Mainland China, Malaysia, Singapore, South Korea, Taiwan and the United Arab Emirates. A total of 1,600 respondents, aged 25 to 66 years old, participated in the survey in Q4 2024.
Transition Finance at Standard Chartered
We align ourselves to our Transition Finance Framework, which sets out the assets and activities that qualify under a 'transition' label when we undertake Transition Finance. Our Transition Finance Framework defines Transition Finance as any financial service provided to clients to support them aligning their business and / or operations with a 1.5-degree trajectory and is informed by the 2023 International Energy Agency Net Zero Emissions 2050 scenario.
Standard Chartered
We are a leading international banking group, with a presence in 53 of the world's most dynamic markets. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.
Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges.
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[1] Transition Investing is a sub-set of Sustainable Investing. It refers specifically to investing with the ambition of supporting and enabling the transition to a low carbon economy. This expands impactful investments to those outside of traditional climate solutions (e.g. renewable energy), to include companies in high-carbon sectors which have credible plans to align or maintain alignment of their business with a net zero trajectory. This can include organisations in sectors such as steel, and cement, but also companies which enable the transition of these sectors (e.g. scrap steel producers).
[2] Survey respondents were first asked an open-ended question on what they think transition investing is about before they were presented with a definition and examples.