The Abu Dhabi Global Market (ADGM) has announced the implementation of its sustainable finance regulatory framework.
The rulebook covers sustainability-themed investment funds, management accounts and bonds, as well as ESG disclosures for any companies based in the free trade zone.
The ADGM will issue a ‘designation mark’ for asset managers and companies that meet the framework’s requirements – a mark that can be used in marketing materials and client communications.
The implementation follows in the footsteps of other jurisdictions. Notably, the EU implemented its Sustainable Finance Disclosure Regime in 2021, and the UK is set to implement its own Sustainability Disclosure Requirements.
Abu Dhabi is also competing with other financial centres in the Mena region to be the sustainable finance hub of choice.
Ahmed Jasim Al Zaabi, ADGM chairman, said: “We believe our regulatory framework for sustainable finance is the most comprehensive in the Middle East and South Asia region and comparable in scope and content with the most comprehensive regulatory frameworks globally.”
The announcement has also been timed to coincide with the UAE’s upcoming hosting of COP28, the UN climate change conference that is due to be held in November, with Sultan Al Jaber, chief executive of Abu Dhabi National Oil Company (Adnoc), serving as conference president.
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