The UAE Sustainable Finance Working Group, coordinated by the Financial Services Regulatory Authority of Abu Dhabi Global Market, issued its fourth statement during Abu Dhabi Finance Week 2025, setting out progress across corporate governance, sustainability disclosures, development of a UAE sustainable finance taxonomy, and climate transition planning. The update includes the newly issued Climate Transition Planning Principles, which provide a structured framework for UAE financial institutions and corporates to prepare, govern and disclose credible transition strategies, with the Dubai Financial Services Authority indicating it will take practical steps to support implementation within the Dubai International Financial Centre. Across the four workstreams, the statement points to the Principles for Effective Management of Climate-Related Financial Risks issued in November 2023, Sustainability Disclosure Principles for Reporting Entities launched in 2024 to improve entity- and product-level reporting and align with International Sustainability Standards Board standards, and ongoing work to design a UAE taxonomy that is interoperable internationally, building on the 2023 Summary of General Principles using a traffic-light classification system and minimum social safeguards. The Climate Transition Planning Principles, developed from a 2025 consultation paper, emphasise governance integration, scenario analysis, risk management, accountability for boards and senior management, and the use of data and indicators, while noting the Working Group may introduce sector-specific regulatory requirements as international standards evolve. The Working Group’s next phase is to support implementation and practical application of the principles across UAE markets, guided by proportionality, international alignment and ongoing stakeholder consultation.

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