At 16.5% CAGR, the Middle East & Africa Investor ESG Software Market is Projected to be Worth US$ 118.22 Million by 2030, says Business Market Insights

According to Business Market Insights research, the Middle East & Africa investor ESG software market was valued at US$ 40.59 million in 2023 and is expected to reach US$ 118.22 million by 2030, registering a CAGR of 16.5% from 2023 to 2030. Increasing government initiatives to promote ESG investment and benefits of the investor ESG software attributed to the Middle East & Africa investor ESG software market expansion.  

ESG investing has become popular over the last decade, with some estimations that the value of professionally managed portfolios that incorporate key elements of ESG evaluations will surpass US$ 17.5 trillion globally. Moreover, ESG-related traded investment products available to institutional and retail investors have surpassed US$ 1 trillion and rapidly increased across financial markets. Increasing government initiatives across the region are influencing ESG investing over the years, which, in turn, is promoting the adoption of ESG software. In 2020, the UAE took the initiative to encourage businesses to dedicate resources to the sustainability sector, for instance, by requiring ESG reporting from listed businesses. Also, the "Corporate Governance Code for Public Joint Stock Companies" (the "Governance Code") by the UAE Securities and Commodities Authority ("SCA") was released in 2020. Public joint stock companies listed on the Dubai Financial Market, or the Abu Dhabi Securities Exchange are required by Article 76 of the Governance Code to submit an annual sustainability report. The SCA released a clarification note on January 10, 2021, to make sure that the sustainability reports accurately address the ways in which the company's operations help, or have the potential to help, the ESG—that is, how these operations positively impact both the local economy and society. Along with this required reporting, Listed PJSCs are also required to adhere to sustainability guidelines published by the Dubai Financial Market or the Abu Dhabi Securities Exchange, respectively and the Global Reporting Initiative requirements. More recently, the Abu Dhabi Global Market (ADGM) became the first international financial center in the world to achieve carbon neutrality and recognized Sustainable Finance (SusFin) as a strategic objective. This and the fact that sustainable bonds with a total market value of US $8 billion will be issued in the Middle East and North Africa in 2021 demonstrate the progress the region has made in the development of ESG so far. Furthermore, Saudi Arabia is promoting environmental policies and a diverse energy mix in addition to taking strong action to advance ESG. Saudi Aramco, for instance, has adopted an internal governance model that incorporates sustainability concepts into company strategy to balance profitability, environmental protection, and the development and prosperity of the communities it operates in. In contrast, ESG disclosure standards have already been released by the Saudi Stock Exchange for 2021. More than 200 listed companies, as well as potential businesses wishing to go public with their ESG reporting, will benefit from the regulations, which will also raise awareness of the issue in the local market. They'll motivate businesses to openly share their ESG results.

To give Saudi businesses a means of connecting with and funding cultural and historical projects, the Saudi Stock Exchange and Saudi Arabia's Cultural Development Fund established a cooperation last year. It was a component of a larger scheme to promote strict adherence to regional and global ESG standards. Furthermore, the Muscat Stock Exchange (MSX) announced in 2023 that it plans to establish a new sector called "ESG and D&I.

On the contrary, low awareness about ESG software hamper the Middle East & Africa investor ESG software market.

Based on component, the Middle East & Africa investor ESG software market is bifurcated into software and services. The software segment held 87.0% share of Middle East & Africa investor ESG software market in 2023, amassing US$ 35.31 million. It is projected to garner US$ 103.59 million by 2030 to expand at 16.6% CAGR during 2023–2030.

In terms of enterprise size, the Middle East & Africa investor ESG software market is bifurcated into SMEs and large enterprises. The large enterprises segment held 63.0% share of Middle East & Africa investor ESG software market in 2023, amassing US$ 25.57 million. It is projected to garner US$ 69.94 million by 2030 to expand at 15.5% CAGR during 2023–2030.

By country, the Middle East & Africa investor ESG software market has been categorized into the UAE, Saudi Arabia, South Africa, and the Rest of Middle East & Africa. Our regional analysis states that the UAE captured 37.5% share of Middle East & Africa investor ESG software market in 2023. It was assessed at US$ 15.20 million in 2023 and is likely to hit US$ 43.83 million by 2030, exhibiting a CAGR of 16.3% during the 2023-2030. 

Key players operating the Middle East & Africa investor ESG software market are Refinitiv Ltd, Collibra (Own Analytics), Clarity AI, and S&P Global Inc, among others.

• In 2023, Collibra is a Snowflake Elite-tier Partner and a participant in the organization's just-launched Data Governance Accelerated Program. This is a new initiative, which highlights a select group of best-of-breed partners which have built integrated governance solutions with Snowflake to benefit customers.
• In 2023, Clarity AI Partners with BlackRock’s eFront on ESG Analytics for Private Investors, to fulfil the rising demand for ESG data and analysis from the alternative finance industry, sustainability technology provider Clarity AI has planned to offer analytics to private equity investors.
• In 2021, S&P Global announced the opening of S&P Global Sustainable1, its new ESG and sustainability Organisation. This new centralized group, which is made up of a committed staff that offers thorough perspectives on sustainability, covering important ESG and climate themes, reflects S&P Global's integrated sustainability capabilities. S&P Global's resources and the entirety of its product line, including benchmarking, analytics, assessments, and indices, are combined into Sustainable1, giving customers a 360-degree perspective to aid in the achievement of their sustainability objectives.

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