In this comment piece, REM Times Senior Editor Megha S Anthony highlights the impact ESG has on the Middle East real estate sector
ESG, or Environmental, Social, and Governance, has become an increasingly important consideration for investors in the Middle East real estate sector. This is due to a growing awareness of the impact that real estate development and management can have on the environment and local communities.
One of the key areas where ESG is playing a role in the Middle East real estate sector is in the development of sustainable buildings. This includes the use of energy-efficient building materials and systems, as well as the incorporation of renewable energy sources such as solar and wind power. By reducing the environmental impact of buildings, developers and investors can not only help to protect the planet but also attract tenants and buyers who are looking for more sustainable living and working spaces.
Another area where ESG is having an impact in the Middle East real estate sector is in the area of social responsibility. This includes the consideration of the impact of development on local communities, as well as the provision of affordable housing and other social services. By taking these factors into account, developers and investors can help to create more livable and equitable communities, which can in turn attract more residents and businesses.
Finally, ESG is also playing a role in the governance of the Middle East real estate sector. This includes the adoption of best practices in terms of corporate governance, transparency, and accountability. By doing so, developers and investors can help to ensure that the sector is being managed responsibly and sustainably, which can help to attract more investment and support from both local and international investors.
Overall, the role of ESG in the Middle East real estate sector is becoming increasingly important as the region continues to grow and develop. By taking a more holistic approach to real estate development and management that takes into account environmental, social, and governance factors, developers and investors can help to create more sustainable and equitable communities, while also attracting more investment and support.
