The UAE continues to reinforce its position as a global leader in sustainable real estate, thanks to progressive policies that are driving the adoption of green building practices. With ambitious sustainability goals and a commitment to Net Zero, the country is setting new benchmarks in environmentally responsible development.

A Clear Roadmap for Sustainability

Peter Templeton, President and CEO of the US Green Building Council (USGBC) and Green Business Certification Inc. (GBCI), praised the UAE’s initiatives, noting that its policies provide a clear framework for developers to align with global sustainability trends.

“The UAE has set a remarkable example with policies that support sustainable development,” Templeton said. “The country’s 2030 sustainability goals and 2050 Net Zero commitments offer a structured pathway for developers, but achieving Net Zero will require a shift beyond individual building certifications to broader, community-driven initiatives.”

With over 2,500 LEED professionals in the UAE, the nation has the expertise to drive large-scale sustainable transformation. The rapid urbanization in the Middle East and North Africa (MENA) region has further cemented sustainability as a top priority for real estate development.

Leading the Way with LEED Certification

Founded in 1993, USGBC is a non-profit organization dedicated to promoting sustainable building practices. It developed LEED, the world’s most widely used green building certification system, which sets rigorous standards for energy efficiency and environmental responsibility.

In 2024, the UAE ranked fifth globally for LEED-certified projects outside the US, with over 130 developments covering three million square meters. The latest version, LEED v5, introduces stricter accountability measures, requiring developers to assess greenhouse gas emissions, climate risks, and human health impacts.

“For more than 25 years, LEED-certified buildings have set the benchmark for reducing inefficiencies, waste, and emissions,” Templeton explained. “LEED v5 provides a structured approach to ultra-low carbon buildings, addressing both operational emissions and embodied carbon in materials.”

The enhanced framework strengthens decarbonization efforts, ecosystem restoration, and resilience strategies while ensuring long-term asset value. “It’s a game-changer for developers aligning with ESG goals while maintaining commercial viability,” he added.

Private Sector’s Role in Green Building

While the UAE government has been instrumental in advancing green building adoption, Templeton emphasized the need for greater private sector participation.

“Globally, private investment has been a key driver of sustainable construction, yet in the UAE, the public sector has taken the lead,” he said. “The challenge now is ensuring developers and investors fully integrate sustainability into their business models.”

Cost concerns remain a major factor in green building adoption. However, Templeton reassured industry players that “sustainable buildings can be developed at the same or even lower cost than traditional structures while delivering long-term financial benefits. The industry must rethink how efficiency is factored into project budgets.”

New Tools for Measuring Sustainability

Beyond individual projects, USGBC has introduced PERFORM, a program designed to track and enhance sustainability across entire real estate portfolios. Unlike traditional certification models, PERFORM provides continuous assessment and goal-setting to help developers achieve measurable sustainability outcomes.

“It bridges the gap between corporate sustainability targets and real-world results,” Templeton said. “With increasing ESG demands, organizations in the region now have a way to measure and improve sustainability at scale.”

Green Financing on the Rise

The financial sector is also playing a significant role in accelerating sustainable real estate through green bonds and sustainability-linked loans (SLLs), which incentivize LEED-certified developments. In 2023, the MENA region issued $24 billion in green and sustainability-linked bonds—a 155% increase from 2022, with the UAE and Saudi Arabia leading the market.

“As sustainable finance expands, developers are leveraging these financial tools to implement high-performance sustainability measures,” Templeton noted. “Banks are offering incentives such as reduced interest rates and higher loan proceeds for LEED-certified projects.”

Conclusion

The UAE’s unwavering commitment to green building and sustainability is reshaping the real estate sector. With supportive government policies, cutting-edge certification standards, and growing financial incentives, the nation is well-positioned to achieve its Net Zero ambitions. As the private sector steps up its role, the UAE’s real estate landscape is set to become a global model for sustainable development.