SUSTAINABILITY

We are also seeing an increased awareness among companies around the competitive advantages and opportunities present in the region . For instance , the region has some of the lowest cost for renewable energy in the world , which is driving opportunities in green hydrogen , synthetic fuels , green manufacturing as well as climate technologies . Investors globally are pouring capital into projects with a strong ESG angle , precisely the area in which the GCC countries have an advantage due to their abundant and low-cost renewable energy sources .

Moreover , we have seen strong regional progress in the S and G of ESG , with the establishment of data protection laws , targets being set and achieved around nationalisation and worker welfare and an increase in organisations reporting on their ESG progress , to name a few .

Is the G in ESG the most important factor ? In some ways , yes . A lack of regulations that mandate the reporting on ESG means that governance is only now really coming to the fore as an area of focus and priority for both the public and private sector . Our survey revealed a shift in what regional companies consider as a priority across ESG areas .

When we asked respondents to rank the reasons why they were adopting or progressing an ESG strategy within their organisations , 63 % chose ' compliance with regulation and policies ', compared to 40 % last year .

In addition , more companies are appointing a dedicated resource to handle ESG and corporate sustainability agendas at the executive level , with almost onethird of regional companies having a Chief Sustainability Officer – while more than onethird of companies hope COP28 will lead to tighter ESG legislation and incentives for green growth in the region . This is a positive sign , indicating the demand for higher accountability on ESG matters and an increased focus on corporate governance .

Which countries are leading the way when it comes to ESG in the region ? The region is undoubtedly going through a massive transformation in terms of ESG efforts and is quickly catching up to global peers . The UAE and Saudi Arabia have taken the lead in sustainable development , establishing national commitments to transition to a net-zero economy , adopting sustainable governance standards , supporting the private sector and accelerating sustainability skills .

Based on our recent report , Qatar ’ s progressive ESG Journey , Qatar has also committed to environmental , social and corporate governance and this is evident in its recent accomplishments and future plans – and businesses in Qatar now have an opportunity to contribute by leveraging

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