Doha, Qatar: Qatar’s push toward a sustainable economy is gathering pace, as recent data highlights rapid growth in the country’s environmental, social, and governance (ESG) ecosystem. According to a recent report by Ken Research, Qatar’s ESG investment funds market is now valued at approximately $1.3bn, reflecting a surge in investor appetite for responsible and transparent business practices.
The report stated, “This figure reflects the rapid growth of sustainable finance in Qatar, supported by the issuance of $2.5bn in sovereign green bonds and increasing investor appetite for ESG-compliant assets.”
Amid this momentum, Midhat Salha, Partner and Audit & Assurance Leader at Deloitte Middle East, noted that the regulatory environment in Qatar is evolving rapidly to meet the country’s national sustainability goals. “Environmental development remains a key focus in Qatar, as further addressed in the Qatar National Vision,” he said. “The regulatory environment has been evolving rapidly, setting out frameworks for different industries and business segments to deliver on the national commitment to a sustainable and resilient economy.”
Qatar Central Bank (QCB) has taken a proactive stance by introducing ESG supervisory principles for banks operating in the country. The official stressed that these guidelines are designed to help financial institutions navigate the challenges of climate change while embedding responsible banking practices. “These principles establish key requirements and provide a timeline for the implementation of essential ESG pillars,” he noted.
At the corporate level, Salha pointed to the Qatar Financial Centre Regulatory Authority (QFCRA)’s newly issued sustainability reporting requirements, which take effect on January 1, 2026. The rules apply to large regulated organisations and require them to prepare annual sustainability reports in accordance with IFRS S1 and IFRS S2 standards. “Fully embracing ESG initiatives impacts a company’s value because international investors increasingly require clear ESG measures before committing capital,” Salha explained. “Moreover, sound ESG practices help companies avoid costly fines and reputational damage as requirements and market practices evolve.”
Looking beyond sustainability, Salha emphasised the growing need for transparency and accountability in artificial intelligence (AI), particularly as financial institutions adopt data-driven models for lending, investment, and compliance. “AI has the potential to revolutionise the way we do business, but it also brings challenges related to fairness, ethics, and transparency,” he said. “It is imperative for business leaders to ensure robust governance frameworks and strong oversight over the application of AI-based solutions.”
Salha mentioned that ensuring responsible AI usage requires a balance between innovation and accountability. He highlighted the importance of clear regulatory compliance policies, human oversight in algorithmic decision-making, and greater transparency moving “from a black box to a glass box approach” to help users understand how AI models reach conclusions. Salha also stated that regular validation and audits of AI systems are essential to detect bias and errors, predicting that third-party assurance of AI models will soon gain traction in the region. As Qatar accelerates its ESG agenda and strengthens governance frameworks, experts believe the country is positioning itself as a regional leader in responsible finance, sustainability reporting, and ethical innovation.
