In 2015, world leaders adopted the Unitaed Nations 2030 sustainable development agenda that embraces an integrated approach to development through three dimensions of sustainability- economic, social and environmental to be achieved through 17 sustainable development goals (SDGs). These goals include ending poverty, fighting inequality, improving access to education and health services and addressing climate change, while protecting the environment and securing sustainable economic development worldwide.

The Arab region is highly vulnerable to climate change. There are pressing mitigation and adaptation needs related to issues, such as water scarcity rising sea levels, drought, land degradation and desertification.

The global financing gap for achieving the SDGs is estimated at USD 5-7 trillion annually, while in Arab countries, the financing gap for achieving the SDGs is estimated to be at least 230 billion annually. That is why it is important to enhance the role of the financial system in the region to support their transition towards sustainable development by green financing gap, mobilizing resources and redirecting financial flows towards more sustainable and responsible investment.

This report analyses the climate change related risks countries in the Arab region are facing such as water scarcity, rising sea levels, drought, land degradation and desertification. It sheds light on the existing strategies and policies on climate adaptation and mitigation in the region, and emphasizes the importance of sustainable finance resources in transitioning to a more resilient, inclusive and green economy. This research also provides an important reference on the status of sustainable finance and climate finance in the Arab region investigating investigates the most prevalent sustainable finance practices in six countries: Egypt, Jordan, Morocco, Bahrain, the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA).