News Middle East05 Feb 2026

UAE:9 in 10 businesses to accelerate climate transition over next 3 years

| 05 Feb 2026

Chart shows UAE companies' stage of current climate transition plan


Almost all (94%) of UAE businesses believe the climate transition offers a commercial opportunity for their company, saying it's a growing focus (58%) or a key strategic area (36%), according to the report, "HSBC Sustainability Pulse Survey 2025", released by the global financial services group.

Other key findings listed in the HSBC report are:

  • 90% of UAE businesses are planning on accelerating their approach to the climate transition over the next three years

  • 55% of UAE businesses plan on investing in climate-resilient infrastructure and technology to mitigate climate-related risks

Commitments and priorities

  • 29% of UAE businesses plan on allocating more than 10% of CAPEX to the climate transition over the next three years (on par with the average)

  • 89% of UAE businesses view the climate transition’s impact on their brand and reputation as highly important (+17 pt vs. global average).

Competitive positioning and value creation

Top three expected benefits from climate transition investments over the next three years:

  • 53% Increased access to capital/financing

  • 51% Long-term business resilience

  • 51% Competitive advantage

Implementation challenges and barriers

Top three challenges UAE businesses face in initiating/accelerating their climate transition:

  • 44% - high costs

  • 38% - complexities the UAE’s supply chain

  • 34% - availability of financing options

Top three risks UAE businesses face if they don’t meet their climate transition targets:

  • Reduced market competitiveness (44%)

  • Loss of investor confidence or financing challenges (42%)

  • Operational disruptions or higher costs (41%)

The online survey polled 1,651 senior business decision makers responsible for sustainability across companies in 12 global markets (100 in each Australia, France, Germany, India, Indonesia, Mexico, Singapore, UAE, USA, and 250 in Hong Kong, Mainland China, and the UK) conducted between 17 and 26 September 2025. In addition, 500 global institutional investors were polled between 22 and 26 September 2025.


 

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