Recent discourse may suggest a waning enthusiasm for ESG criteria in investment circles, but for the global real estate sector, sustainability remains a cornerstone of strategy. A recent survey by the Global Real Estate Sustainability Benchmark and MIPIM (also known as the International Market for Real Estate Professionals) reveals that despite any backlash against the ESG label, two thirds of real estate investors and managers consider sustainability central to their investment or operational strategies. While nearly half of respondents cite investor or lender requirements as the primary driver for their sustainability focus, a more pragmatic and powerful incentive is quietly shaping the market: the shifting demands of occupiers.
The research highlights that 40% of property investors identify changing occupier demand as the most significant risk to asset value. This is a crucial, market driven factor. Businesses and individuals are increasingly seeking out buildings that are not only sustainable but also energy efficient. This is not merely an ethical preference; it translates into lower operating costs, enhanced employee well-being and a corporate image aligned with modern values. For property owners, this means that buildings with strong green credentials are more likely to attract and retain tenants, command higher rents and hold their value over the long-term. This practical reality provides a compelling commercial argument for focusing on sustainable properties, moving beyond simply fulfilling an investor mandate, and is captured in our own 90 North’s brand promise: “Doing great business. With a good conscience.”
From an Islamic perspective, this commercial logic finds a profound resonance with core faith principles. The concept of stewardship establishes a religious responsibility to act as guardians of the Earth, protecting it for future generations. This duty extends beyond mere preservation to include the responsible and just management of resources. Investing in sustainable real estate is a direct expression of this stewardship, ensuring that the built environment is not a source of harm but a source of well-being for its inhabitants and the wider community.
This alignment of practical and principled motivations is increasingly evident in the investment strategies of major players from the Middle East. Sovereign wealth funds and prominent real estate firms from the Gulf are channelling significant capital into properties that exemplify the highest standards of sustainability. These are not peripheral considerations but are often central to the investment thesis.
For example, the Abu Dhabi Investment Authority was a founding member of the One Planet Sovereign Wealth Fund Working Group and has made significant investments in sustainable assets including the majority ownership of One Museum Place in Shanghai a 60-storey office building certified to the highest Leadership in Energy and Environmental Design (LEED) Platinum standard. Similarly, the Qatar Investment Authority, in partnership with Brookfield, has invested GBP400 million (US$539 million) in Canary Wharf Group, which owns a portfolio of 33 properties all certified under sustainability schemes like the Building Research Establishment Environmental Assessment Method.
More recently, Abu Dhabi’s Aldar Properties made its first acquisition outside the MENA region by acquiring the UK developer London Square for AED1.07 billion (US$291.35 million). While a strategic move for market expansion, it is noteworthy that London Square has publicly committed to aligning its sustainability targets with Aldar’s, aiming to deliver net zero carbon homes by 2030. This acquisition demonstrates a clear intent to export and integrate sustainability best practices across international portfolios.
These transactions illustrate a sophisticated investment approach that recognizes the intrinsic link between sustainability and long-term value. The demand for sustainable buildings, driven by practical occupier needs, aligns perfectly with the faith based imperative of environmental stewardship. As Islamic investors continue to expand their global real estate portfolios, the emphasis on green, energy efficient and sustainable properties is not just good business; it is a modern manifestation of a timeless religious duty.
Written by Philip Churchill, first published in Islamic Finance News Volume 23, Issue 11 dated 18th March 2026.