Dubai: The UAE is consolidating its position as a leading hub for sustainable finance, according to Raºl Ghosh, Managing Director and Global Head of Sustainable Finance, Moody’s Ratings. He praised the country’s expansion of green innovation beyond traditional energy sources to advanced industries and technologies.
According to Emirates News Agency, Ghosh, speaking on the sidelines of the World Green Economy Summit, highlighted that data centers are major energy consumers, with demand in the sector potentially rising fivefold due to accelerating investments. He noted that artificial intelligence could play a crucial role in cutting emissions, with the International Energy Agency estimating rapid adoption could reduce global emissions by 5% or more over the next decade.
Ghosh stated that innovation in the UAE now extends to low-carbon steel, low-emission cement, and energy- and water-efficient data centers. He highlighted Masdar’s success in green bonds and DP World’s issuance of the region’s first blue sukuk to support port infrastructure and combat marine pollution, underlining that the financial sector is driving innovation in sustainable financing tools.
He emphasized that a sustainable economic transition requires large-scale investment in mining new resources, power transmission and distribution, battery storage, and electrification technologies such as electric vehicles and heat pumps. He estimated that the Middle East and North Africa region needs investments equivalent to around 4% of GDP, calling for governments, investors, the private sector, and banks to work together to accelerate progress.
Ghosh added that investors are increasingly seeking projects that combine profitability with sustainability, noting that aligning financial returns with environmental impact makes such ventures attractive both locally and globally.
