Sustainable finance in Qatar reaches new heights in 2024

Doha, Qatar: The momentum around environmental, social and governance (ESG) is growing in Qatar driven by various government initiatives, efforts to d...

Doha, Qatar: The momentum around environmental, social and governance (ESG) is growing in Qatar driven by various government initiatives, efforts to diversify the economy, and increasing requirements for sustainable activity disclosures and reporting.

Sustainable finance in Qatar holds significant potential on both the supply and demand sides. In 2024, Qatar’s sustainable finance reached new heights with the issuance of green bonds totaling $2.5bn, the first of its kind in the region to fund environmentally friendly projects , noted Invest Qatar in a report entitled ‘Sustainable Growth in Qatar – Road to ESG investing.’

The Qatar Central Bank (QCB) unveiled in 2024 its ESG and sustainable strategy, with the goal of establishing Qatar as a primary hub for sustainable finance. Sustainable finance is an emerging area that is rapidly gaining traction around the world. It is most succinctly defined as the process of taking environmental, social and governance (ESG) considerations into account when making financial investment decisions.

This initiative allows investors to engage in Qatar’s efforts to combat climate change while advancing the sustainable finance sector, following the successful launch of a $600m green bond by Qatar National Bank (QNB) in 2020.

The Qatar Financial Centre (QFC) also became the first in the Gulf Cooperation Council (GCC) to introduce a sustainable framework for Sukuk and bonds in 2022. Sustainable FDI is vital for achieving ESG goals, as it directs capital toward projects that support renewable energy, environmental conservation and social equity. By attracting sustainable FDI, countries can drive economic growth while integrating social and environmental considerations into business practices.