Cairo, Egypt, January 25, 2011—IFC,
a member of the World Bank Group, today published the first report measuring
the amount of sustainable investment in the Middle East and North Africa,
The report found that while current volumes are small, there is scope for
much greater sustainable investment in the region.
The report, Sustainable Investment in the Middle East and North Africa,
assesses current levels of sustainable investment awareness, practices
and demand in the MENA region and identifies opportunities to increase
the flow of sustainable investment funds to MENA and develop this increasingly
important market segment.
Sustainable investment factors environmental sustainability, social responsibility,
and corporate governance (ESG) into investment decisions and processes.
Selcuk Tanatar, Manager of the IFC’s Sustainable Business Advisory in
MENA, said, “This report is part of IFC's increasing efforts to promote
sustainable investment, and while the research indicates that sustainable
investment remains nascent in the MENA region, fairly strong interest expressed
by regional investors means considerable opportunity for the sector to
grow in the near future.”
Some additional findings from the report, which can be found online at
· About $54
billion, or a little over two percent of total assets under management
in the region, is believed to be managed according to sustainable investment
investments make up the majority of these assets, with under 0.7 percent
of assets under management taking into account other ESG factors.
As part of its strategy to promote sustainable investment, IFC is supporting
the launch of the first ESG index in the Middle East and North Africa on
February 1, 2011. The index was developed by Hawkamah Institute for Corporate
Governance, and global indices and ratings provider Standard & Poor’s,
with support from IFC.
IFC promotes the development of capital and financial markets through greater
availability and adoption of sustainability-related financial products.
IFC supports sustainable development by working to optimize energy
efficiency to reduce carbon emissions and promoting the uptake of renewable
energy technologies to provide the poorest members of society with access
to energy. Additionally, IFC works to facilitate the adoption of water
efficient processes and technologies across industries.
IFC, a member of the World Bank Group, is the largest development institution
focused on the private sector in developing countries. We create opportunity
for people to escape poverty and improve their lives—by providing financing
to help businesses employ more people and provide essential services, mobilizing
capital from others, and delivering advisory and risk-management services
to ensure sustainable development. In a time of global economic uncertainty,
our new investments climbed to a record $18 billion in fiscal 2010. For
more information, visit www.ifc.org.