Assessing the role of green finance in addressing climate change challenges and achieving the SDGs in the UAE

Abstract

This study investigates the status of green finance in the United Arab Emirates (UAE) and its role in addressing climate change and advancing the Sustainable Development Goals (SDGs). It aims to assess strengths, weaknesses, opportunities, and threats that shape the country’s sustainable finance landscape. A qualitative research approach was applied, using policy documents, financial reports, and semi-structured interviews with professionals. Thematic analysis was employed to identify key drivers, barriers, and opportunities for green finance adoption. The results show that the UAE has made significant progress in renewable energy investments and sustainable financing initiatives, supported by national strategies such as the Green Agenda 2021–2031 and Climate Change Plan 2050. However, barriers including regulatory ambiguity, high financial risks, and low public awareness persist. The absence of a unified green taxonomy, limited risk management tools, and insufficient community involvement remain major challenges. Despite these constraints, the UAE is well positioned to lead sustainable investment in the Middle East if governance and financial mechanisms are strengthened. The study recommends introducing a national green taxonomy, offering financial incentives, and expanding public-private partnerships to boost investor confidence and accelerate green finance.