Green real estate finance in Dubai

According to a renowned real estate financier, while environmental, social, and governance (ESG) factors are a priority for many investors today, real estate developers in Dubai are unable to effectively tap into ‘green’ funds to finance their projects. “Green lending remains fledgling in Dubai, even as the globe prioritizes environmentally conscious enterprises,” said Cyril Lincoln, executive vice president and global head of real estate finance and advisory at Mashreq Bank.

“Part of the reason for that is the lack of practical incentives for an investor or a lender to identify their loans as green,” Lincoln remarked at the closed-door MEED Mashreq Dubai Real Estate Forum on March 22. There is no pricing benefit structurally.” While financial institutions are eager to support green lending efforts, the banker informed senior individuals in Dubai’s real estate sector that there is a lack of incentives and clarity on green rules. “Green finance is a topic that will only gain in importance,” Lincoln added. “However, it has yet to be properly defined in Dubai and other regional markets.”