Aldar, a leading real estate developer and asset manager in the UAE, has been upgraded to an ‘A’ rating in the latest MSCI ESG assessment, placing the company firmly in the top quartile of global real estate companies tracked by the ratings agency. The recognition highlights Aldar’s rapid progress in aligning its operations with international environmental, social, and governance (ESG) standards.
The MSCI ESG Ratings assess how well companies manage ESG risks relative to peers, offering key insights for investors into long-term sustainability and risk resilience. The upgrade signals Aldar’s growing strength in embedding ESG principles across its corporate strategy.
Significant Governance Improvements
According to Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, the milestone “reflects the significant strides we’ve made in embedding ESG as a core principle of how we do business.” He added that the company remains committed to “responsible value creation and transparency,” and sees the MSCI upgrade as both a “strong endorsement” and “a motivating step to advance our position globally.”
A key driver behind the improved rating was Aldar’s governance performance. The company’s corporate behaviour score, which assesses business ethics and transparency, rose by 2.1 points to 8.3 out of 10 — among the highest scores for real estate firms in emerging EMEA markets. Combined with environmental improvements, this performance helped propel the overall rating upgrade.
Broader ESG Recognition
The MSCI rating adds to an already strong track record for Aldar across multiple ESG benchmarks. In 2024, the company topped the S&P Dow Jones Sustainability Index for the regional real estate sector and received a ‘low risk’ ESG Risk Score of 15.75 from Sustainalytics — outperforming its industry peers.
Aldar has also been recognised for sustainable construction. In 2024, 80% of its new developments achieved a 3 Pearl Estidama rating or higher, under the Abu Dhabi Urban Planning Council’s system. Furthermore, 23% of all retrofitted assets were certified LEED Gold or Platinum — the highest rankings from the US Green Building Council.
Net Zero and Community Impact
Aldar continues to lead the industry with its Net Zero by 2050 strategy. In 2024 alone, its low-carbon designs resulted in a 34% reduction in average energy use intensity, alongside a 24% reduction in Scope 1 and 19% reduction in Scope 2 emissions.
On the social front, Aldar invested AED 18 million in community programmes, while employees delivered over 3,300 volunteering hours. As part of its commitment to national economic development, Aldar also reinvested AED 10 billion into the local economy through the UAE’s In-Country Value (ICV) programme.
These efforts underscore Aldar’s status as a sustainability leader, balancing innovation and growth with ethical governance and long-term environmental responsibility.
