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ESG Accounting Dubai: Driving Compliance, Transparency, and Sustainable Growth in 2025

As business leaders, embracing ESG accounting in Dubai is no longer just about ticking the compliance box; it is about building a sustainable future anchored in transparency, accountability, and responsible governance.

By 2025, ESG accounting Dubai has become a critical priority for businesses. The transformation is driven by the UAE’s commitment to sustainability and reinforced by Federal Decree-Law No. 11 of 2024, which mandates organizations to measure, report, and manage their environmental and social impact. This legal framework aligns with the UAE’s Net-Zero Strategy 2050, making climate responsibility, social governance, and corporate transparency non-negotiable for companies seeking to attract global investors and remain competitive.

Mandatory ESG Reporting in Dubai and UAE

The ESG landscape in the UAE is shaped by strict reporting requirements across major financial hubs, including:

  • Abu Dhabi Securities Exchange (ADX)

  • Dubai Financial Market (DFM)

  • Abu Dhabi Global Market (ADGM)

These regulatory frameworks integrate globally recognized standards such as the Global Reporting Initiative (GRI) and the International Sustainability Standards Board (ISSB). Businesses are required to monitor greenhouse gas emissions, set reduction strategies, and maintain auditable records. Non-compliance may result in penalties of up to AED 2 million, highlighting the seriousness of these mandates.

Role of Auditors in ESG Accounting Dubai

The audit sector plays a vital role in strengthening ESG accounting Dubai. Auditors provide assurance and verification services, ensuring the accuracy of ESG disclosures and safeguarding compliance integrity. This enhances trust among investors, regulators, and stakeholders.

Benefits and Challenges of ESG Compliance in Dub

Advantages:

  • Builds investor confidence and strengthens brand reputation

  • Enhances risk management and operational efficiency

  • Positions Dubai as a leading regional hub for sustainable finance

Challenges:

  • High costs of ESG implementation and reporting systems

  • Complex and resource-heavy data collection

  • Lack of uniform global standards creating compliance difficulties

Practical Solutions for Businesses

To navigate these challenges, businesses in Dubai can:

  • Leverage technology-driven ESG data management systems

  • Engage professional ESG advisory and consulting services

  • Adopt phased compliance strategies to ease the financial and operational burden

ESG Accounting Dubai – A Strategic Imperative

Ultimately, ESG accounting Dubai is more than a compliance exercise—it is a strategic necessity blending sustainability, governance excellence, and investor trust. Successful adoption ensures long-term resilience, financial growth, and alignment with the UAE’s sustainable development vision.

As highlighted perfectly:

“Sustainability is no longer a choice but the foundation of future business success.”

This paradigm shift is also redefining auditing practices, embedding ESG assurance as a key audit pillar within Dubai’s financial ecosystem, and setting new benchmarks for trust and transparency for years to come.