Dalal Alhouti, Megan Gray and Robin Hayden examine the UAE's focus on ESG for The Oath Middle East Law Journal

The UAE is rapidly intensifying its focus on environmental, social and governance (ESG) standards, with new requirements emerging at federal, emirate and regulator level. 

The regulatory landscape is evolving quickly, particularly across the country’s key financial freezones, the DIFC and the ADGM. ESG is shifting from a largely environmental conversation to a broader framework incorporating social impact and governance expectations.

A series of national initiatives, including COP28, the so-called “double Year of Sustainability” (2023–2024) and the newly designated Year of Community 2025, have pushed ESG further up the strategic agenda for UAE‑based businesses. As a result, organisations are increasingly expected to track their environmental footprint, demonstrate meaningful social responsibility and maintain robust governance structures that withstand growing scrutiny.

The UAE is now tending towards mandatory ESG provisions, including structured reporting requirements for listed companies and heightened expectations for private businesses. As compliance becomes more resource‑intensive, companies must prepare for the prospect of enforcement, while recognising that stronger ESG oversight ultimately supports a more responsible and resilient business environment. 

Dalal Alhouti, Knowledge Counsel in our Dispute Resolution team, Robin Hayden, Associate in our Commercial Dispute Resolution team, and Megan Gray, ESG Knowledge Development Lawyer, write for The Oath Middle East Law Journal, examining the UAE's focus on ESG.

The UAE is tending towards mandatory provisions in ESG, with a clear drive towards higher standards. The scope of ESG regulation looks set to both broaden and deepen, making it even more important for businesses to review their internal processes.

As well as the potential consequences from contractual ESG disputes, rising enforcement action could lead to substantial fines and publicity risks.

Read the full article in The Oath Middle East Law Journal here.