Qatar constitutes 17.4% of total Mena investments in sustainable finance: A D Little

Qatar saw increased ESG (environment, social and governance) reporting across the board with its sustainable loans reaching a record $5bn in 2022, according to Arthur D Little, an international consulting firm.
Qatar's $5bn sustainable loans constituted 17.4% of Middle East and North Africa's (Mena) total volume, it said in a report.
Qatar, home to the Mena region’s biggest bank, has enacted a series of initiatives to make at least $75bn available for sustainable investments, as explained in Invest Qatar’s ESG report, it said, highlighting that Doha is looking to make ESG reporting mandatory some time in 2023.
The report said financial institutions in the Mena have adopted ESG as a key strategic element in their commitment to going green.
An impressive $24.55bn in green and sustainable finance was generated by the Mena region in 2021, an increase from $3.8bn in 2020, achieving an "extraordinary" 532% year-over-year growth, the report said.
"Green issuances from countries in the Mena are not standing still but are in fact outpacing global growth. With new reporting requirements taking effect, banks are facing an urgent need to kick-start their strategies and execute concepts throughout their organisations," said Andreas Buelow, partner, Arthur D Little.
Nael Amin, senior manager (Financial Services Practice), Arthur D Little, said many financial institutions in the Middle East have designed comprehensive ESG strategies that open the door to new pathways to top-line growth, business opportunities, cost reductions, regulatory compliance, and employee satisfaction.
"This growing trend demonstrates the momentum that ESG is gathering in financial institutions, as the world’s banks increasingly emphasise ESG and infuse it into their business models. Banks in the Middle East have embraced the importance of a well-defined ESG strategy," he said.
During the next step of implementation, frameworks such as data governance is vitally necessary, he said, adding the shift from strategy to implementation is complex and detail oriented.
Though most reporting requirements remain voluntary, the report said "there is a clear trend toward mandating external reporting in the future. Financial institutions in the Middle East must design comprehensive strategies to cover the spectrum of ESG applications and comply with stronger reporting requirements."