ESG Strategy Development UAE

ESG Strategy Consulting in the UAE and KSA (2026)

Practical ESG frameworks for companies facing real regulatory, investor, and execution pressure: Why ESG strategy suddenly feels harder than it used to be.

Over the past year, we have noticed something interesting in conversations with founders, CFOs, and board members across Dubai and Riyadh. Almost everyone agrees that ESG is “important.” Very few feel confident that what they currently have would stand up to serious scrutiny.

Some have sustainability reports. Others have policies drafted years ago. A few have ambitious net-zero statements published on their websites. Yet when the conversation turns practical — regulation, financing, capital markets, or investor due diligence — uncertainty appears quickly.

This article was written to address that gap. This is why ESG strategy consulting in the UAE and KSA has become a board-level priority in 2026.

Not to explain what ESG is — most decision-makers no longer need that — but to clarify what ESG strategy consulting in the UAE and KSA actually looks like today, what has changed since 2024, and why many companies now need a far more structured approach than they expected.

If you are responsible for governance, finance, growth, or investment readiness, this article is for you.

ESG Strategy in the UAE and Saudi Arabia: What Changed in 2025

For years, ESG in the Gulf region lived in an ambiguous space. It was encouraged, discussed, and occasionally showcased, but rarely enforced in a way that directly affected day-to-day decisions.

That is no longer the case.

Since 2024, ESG has started to intersect much more clearly with regulation, capital allocation, lending decisions, procurement requirements, and transaction due diligence. The shift has not been loud, but it has been consistent.

Five shifts show up in 2025 and 2026:

First, climate regulation and emissions accountability are becoming more structured. Second, exchanges and regulators are raising expectations around disclosure quality. Third, sustainable and sustainability-linked financing is becoming more common — and more demanding in terms of volume and quality. Fourth, ESG requirements are moving down in companies and organisations – getting to supply chains and operations. Fifth, ESG is now routinely examined during M&A, joint ventures, and different partnerships.

The result is simple: ESG strategies are no longer evaluated in isolation and not just a formal requirement. They are read next to financial models, risk registers, and governance frameworks. And when they don’t align, the ESG strategy is usually the first thing questioned.

This is why ESG strategy consulting has moved from a “supporting service” to a core advisory role in both the UAE and Saudi Arabia. We see the same questions coming from leadership teams in Dubai and Riyadh, often just months before a financing, IPO, or partnership decision.

UAE ESG Regulations Affecting ESG Strategy (2025–2026)

Climate legislation and emissions accountability

In 2024, the UAE introduced federal climate legislation that materially changes how emissions-heavy businesses are expected to operate. Recent Cabinet-level resolutions introduced clear expectations around monitoring, reporting, and verification of greenhouse gas emissions for entities above defined thresholds.

For many companies, this was the moment ESG stopped being theoretical. For companies under UAE regulatory exposure, ESG strategy consulting in the UAE increasingly starts with emissions accountability and governance readiness.

Emissions data can no longer live in spreadsheets owned by one department. ESG strategies must now account for structured data collection, internal controls, and management oversight. Climate-related topics have moved from sustainability teams to executive and board-level agendas.

For industrial players, infrastructure operators, logistics groups, real estate developers, and energy-intensive businesses, ESG strategy is now closely tied to operational compliance.

Capital markets and disclosure reality in the UAE

Alongside climate regulation, capital-market expectations have also matured. ESG disclosure guidance in the UAE increasingly focuses on materiality, governance oversight, and quantitative indicators rather than broad narrative statements.

This matters even for companies that are not yet listed.

In practice, these frameworks define what investors, lenders, and advisors consider acceptable. ESG strategies that rely heavily on aspirational language but lack data, targets, or governance structures struggle to survive scrutiny during IPO preparation, refinancing, or due diligence.

What this means for ESG strategy in the UAE

Today, an ESG strategy in the UAE must do three things well.

It must be grounded in data, aligned with climate and emissions obligations, and realistic about how the organization actually operates. Generic sustainability templates rarely meet these requirements.

This is where structured ESG strategy consulting becomes valuable — not to make ESG more complex, but to make it defensible.

ESG Strategy Development UAE Service Company

Saudi Arabia ESG Expectations Affecting ESG Strategy (2025–2026)

Capital Market Authority and sustainable finance

In Saudi Arabia, ESG expectations are being shaped strongly by capital markets. In 2025, the Capital Market Authority issued updated guidelines governing green, social, sustainability, and sustainability-linked instruments. In practice, ESG strategy consulting in Saudi Arabia is most tested during financing discussions and investor due diligence.

These guidelines are practical, not symbolic. They clarify how sustainability-linked KPIs should be structured, how use-of-proceeds must be tracked, and how reporting and verification are expected to work over time.

For companies accessing Saudi capital — or planning to — ESG strategy is now directly linked to financing credibility. Weakly defined frameworks are increasingly challenged by lenders, arrangers, and investors.

ESG within the Vision 2030 execution mindset

Vision 2030 has also changed how ESG is viewed in Saudi Arabia. Sustainability is no longer treated as a communications or marketing need; it is increasingly evaluated through the lens of governance, accountability, and measured results.

State-linked investors and large counterparties expect clarity. Who is responsible? How is progress measured? How do ESG commitments connect to risk management and strategy?

Standalone ESG documents without operational depth are being questioned more frequently during due diligence.

What ESG strategy requires in Saudi Arabia today

In KSA, ESG strategy must be capital-aware, governance-led, and operationally credible. ESG reporting alone is not enough. Companies increasingly require consulting support to design strategies that align ESG commitments with financing, growth, and regulatory expectations.

What ESG strategy development actually involves (beyond reporting)

One of the most common misconceptions we encounter is that ESG strategy and ESG reporting are the same thing. They are definitely not. Reporting communicates outcomes and achieved results. Strategy reflects the business vision and goals, defines what matters, who owns it, how it is measured, and what happens next in ESG and business.

A real ESG strategy answers uncomfortable questions:

• Which ESG issues genuinely affect this business in this geography?
• Where does the company stand today — in data, controls, and governance?
• What level of ESG performance will investors and regulators expect in two years, not today?
• What actions are realistically achievable given budget, systems, and people?
• How will progress be monitored and measured internally?

Without clear answers, ESG initiatives tend to become fragmented and not complete. Good intentions turn into disconnected projects and ideas. Under scrutiny, those gaps become visible and weak very quickly.

The table below shows a typical ESG strategy development structure used in the UAE and Saudi Arabia, including timing and practical outputs.

Typical ESG Strategy Development Scope: Components, Timing, and Effort

Strategy Component	What Actually Happens at This Stage / Main Outputs	Typical Timeframe*
Initial ESG diagnostic	We review how ESG topics are currently handled in practice, not how they are described on paper. This usually surfaces gaps between management assumptions and reality, especially around data ownership and decision-making.	1 week
Materiality and priority setting	ESG topics are filtered based on regulatory exposure, investor expectations, and operational relevance. The objective is focus — deciding what not to prioritise is as important as deciding what to address.	1–2 weeks
Governance and accountability design	ESG responsibilities are mapped to real roles, committees, and management processes. This step often requires adjusting existing governance structures rather than creating new ones.	1 week
KPI selection and target logic	A limited number of meaningful KPIs is defined, with clear ownership and measurement logic. Targets are set conservatively enough to be achievable, but credible under external review.	1 week
Strategy roadmap and sequencing	Actions are sequenced over 12–36 months, aligned with budgets, operational plans, and regulatory milestones. This is where ESG strategy becomes executable rather than aspirational.	1 week
Management and board alignment	The draft strategy is tested internally, challenged, and refined. This stage often leads to small but important adjustments that improve long-term ownership.	1 week

*Timeframes are indicative and depend on company size, structure, and data readiness.

Examples from ESG strategy consulting in the UAE and Saudi Arabia

Example 1: UAE-based industrial group preparing for financing and regulatory exposure

A UAE-based industrial group approached us while preparing for a refinancing discussion with regional banks. On paper, the company already had an ESG section in its annual report and several internal policies covering health, safety, and environmental management.

During the initial ESG baseline assessment, it became clear that while intentions were strong, the structure was weak. Emissions data was fragmented across sites, ownership of ESG KPIs was unclear, and there was no formal governance mechanism linking sustainability topics to executive decision-making.

Our ESG strategy consulting engagement focused on three priorities. First, we helped the client establish a clear emissions baseline and internal MRV logic aligned with emerging UAE climate requirements. Second, we redesigned ESG governance so that accountability sat at executive level rather than within a single department. Third, we developed a phased ESG roadmap that aligned sustainability targets with operational investments already planned by the business.

The result was not a longer ESG document, but a clear, defensible strategy that could be explained confidently to lenders and regulators — and integrated into ongoing management discussions.

Example 2: Saudi Arabia–linked company structuring ESG for investor and capital-market expectations

A regional services company with significant operations in Saudi Arabia engaged us while exploring growth funding options. The management team understood that ESG would be reviewed by potential investors, but there was uncertainty about how detailed or formal the strategy needed to be.

Our work began with a focused materiality assessment tailored to the Saudi regulatory and capital-market context. Several ESG topics that were previously highlighted internally turned out to be low priority for investors, while others — particularly governance and workforce-related issues — required more structure and clarity.

We supported the client in developing an ESG strategy that aligned with Saudi capital-market expectations without overengineering the framework. This included defining a small number of meaningful KPIs, clarifying board oversight responsibilities, and linking ESG priorities to operational risk management rather than standalone initiatives.

By the end of the engagement, the company had an ESG strategy that could be clearly articulated to investors — one that demonstrated seriousness and readiness, without unnecessary complexity.

ESG strategy consulting at Accurate Middle East: how we approach it

At Accurate Middle East, ESG strategy consulting is not treated as a reporting exercise or a branding project. It is structured as a board-ready strategic engagement, designed for UAE and KSA regulatory and market realities.

ESG baseline and data gap assessment

Every engagement starts with understanding the current state. We assess environmental exposure, governance structures, social practices, and — critically — data availability and ownership. This step often reveals the biggest risk: not lack of ambition, but lack of reliable data. Identifying these gaps early prevents unrealistic strategies later.

Materiality assessment grounded in reality

We conduct materiality assessments based on regulatory exposure, investor expectations, sector dynamics, and stakeholder influence. The outcome is not a decorative matrix, but a prioritization tool that guides decisions and resource allocation.

Governance and accountability design

ESG strategies fail most often at this stage. We design governance structures that fit how the organization actually works — board oversight, management accountability, policy architecture, and internal review mechanisms. When governance is clear, execution becomes easily achievable.

KPI architecture and target-setting

We define ESG KPIs that are measurable, defensible, and aligned with regulatory, capital-market expectations and business strategy. Targets are set carefully, ambitious are enough to matter, but realistic enough to deliver.

Implementation roadmap

Each strategy concludes with a phased roadmap covering immediate priorities, 12-month execution, and medium-term initiatives linked to reporting, financing, or expansion.

This is the point where ESG stops being conceptual and becomes operational.

Which companies need ESG strategy consulting in the UAE and KSA

In our regional work, ESG strategy consulting is most relevant for companies facing external scrutiny or growth pressure.

This includes listed and pre-IPO companies, investor-backed SMEs, industrial and infrastructure players, real estate groups, companies seeking sustainable or linked financing, and regional businesses operating across multiple jurisdictions.

For these organizations, ESG is no longer optional. It directly affects access to capital, partnerships, and long-term resilience.

Why companies choose Accurate Middle East

Accurate Middle East is a Dubai-based consulting firm working across the UAE, Saudi Arabia, and the wider GCC. Our ESG strategy work is shaped by regional regulatory knowledge, investor-grade methodology, and a strong focus on execution reality.

We do not produce ESG narratives for their own sake. We help companies build strategies that withstand regulator review, investor questions, and internal scrutiny.

What you receive if you order ESG strategy from Accurate ME?

Clients typically receive a board-ready ESG strategy deck, a KPI set with owners and measurement logic, and a phased roadmap (12–36 months). The content is designed to be usable internally — and defensible externally — especially during investor, lender, or regulator review.

Talk to us about ESG strategy consulting

If you are considering ESG strategy consulting in the UAE or Saudi Arabia — whether driven by regulation, investment readiness, financing, or governance — we are ready to support you.

You can speak with our team directly via WhatsApp, call us in the UAE at +971 50 599 5603, or request a callback at your convenience. If you prefer, you may complete our ESG briefing form and receive a tailored proposal within 24 hours.

We support ESG strategy development across the UAE, Saudi Arabia, and the GCC — with clarity, discipline, and practical execution.

Last Update: 12 January 2026

Author:
Dr. Elena Zhukovskaya Senior Consultant, Partner
20+ years of experience in market research, business management, investor relations, and brand communications across the UAE, KSA, and GCC. Author of 50+ publications and a regular speaker at leading business events in the region. Linkedin profile