Dubai Islamic Economy Development Centre announces agreement with the Dubai International Financial Centre, the Dubai Financial Market and Climate Bonds Initiative
Dubai Islamic Economy Development Centre (DIEDC) on Monday signed a memorandum of understanding (MoU) to collaborate on growing the green sukuk sector.
The agreement was signed with the Dubai International Financial Centre (DIFC), the Dubai Financial Market (DFM), and Climate Bonds Initiative (CBI), a statement said.
It aims to promote the issuance of green sukuk in the UAE and across the world, in addition to developing the standards of certification for green sukuk along the lines of the Climate Bonds Standard and Certification Scheme, the statement added.
According to rating agency Moody’s, green bond issuance rose by 40 percent to $47.2 billion globally in the first quarter of 2019, backed by strong corporate issuers.
CBI developed the Climate Bonds Standard, a set of eligibility criteria to determine whether a relevant bond can be categorised as ‘green’, thereby enabling investors to make informed decisions about the bond’s environmental credentials.
Earlier this year, DFM and DIFC launched the Dubai Sustainable Finance Working Group, which is mandated to work towards achieving the UAE’s nationally determined contributions to the UN’s Sustainable Development Goals and the strategic objectives of Dubai Plan 2021.
Abdulla Mohammed Al Awar, CEO of DIEDC, said: “Through the MoU, DIEDC and its partners aspire to maximise the potential of the Islamic economy sectors, particularly Islamic finance, and contribute to increasing the number of businesses from the Far East that tap into these sectors.
“This agreement builds on the centre’s vision and lays down the foundation for promoting green sukuk locally and internationally. The demand for green sukuk is steadily growing and requires an appropriate certification scheme that allows the segment to flourish.
“We are confident in our choice of partners for this important project. Our collective expertise will no doubt accelerate the growth of this market, and we invite all relevant stakeholders to come forward and contribute to this worthwhile endeavour.”
Arif Amiri, CEO of DIFC Authority, said: “Sustainable finance is fundamental to driving the future of finance in the region and across the globe. DIFC shares a common goal with DFM and DIEDC to build a strong and sustainable financial services sector in Dubai, the UAE and across the wider region.”
Sean Kidney, CEO of Climate Bonds Initiative, added: “Scaling up green sukuk is absolutely vital to meeting the climate finance challenge we all face. This agreement provides a new platform for cooperation around growing regional and global green sukuk, compatible with international standards. It signals a new phase of stakeholder cooperation to build investor confidence and market opportunities for green investment.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.