Nasdaq Dubai’s Role in Sustainable Finance: A Case Study of FIVE Holdings

In embracing the Dubai Declaration, Hamed Ali, Chief Executive of Nasdaq Dubai noted that the exchange was and is completely committed to “encouraging all issuers and market participants to adopt and strengthen sustainable financial strategies…” It is his belief, and the belief of the organisation he represents, that such strategies will lead to a greater flow of investment and enhance the development of the regional economy.

Embracing the Dubai Declaration also means embracing its call for sustainable and just environmental, social and corporate governance policies as there can be no sustainable future without acknowledging the effect businesses have on the world we live in and the people who inhabit it. By adjusting attitudes, recalibrating goals and bringing all facets of society into the business fold through the principles of sustainable finance a better world awaits.

FIVE Debuts with $350 Million Green Bond on NASDAQ Dubai

On October 4, 2023 visionary entrepreneur and founder of FIVE Holdings Kabir Mulchandani stood on the stage of the NASDAQ Dubai trading floor along with Nasdaq CEO Hamed Ali and rang the ceremonial opening bell. The company had just enjoyed their debut listing of a $350 million Green Bond, which aligned them perfectly with the principles of the Dubai Declaration and NASDAQ Dubai’s stated belief in the power of sustainable financial strategies.

Far from being a hindrance FIVE’s embrace of sustainable financial strategies, manifest in the company’s ethos of “sustainable indulgence”, has produced industry-leading EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) while simultaneously earning FIVE Holdings an “A” ESG rating from world-renowned corporate advisory firm ISS.

FIVE have proven time and again that they understand, like few others, the latent financial potential of sustainable development. Their $350 million Green Bond only serves to reiterate, (as if it were necessary) their steadfast belief that focusing on environmental sustainability, social responsibility and a forward-leaning corporate governance approach is the way forward both for the region and the world in general.

The company’s $350 million Green Bond listing has the added effect of adding to the ever-growing total of ESG classified bonds and sukuk listings on the NASDAQ Dubai, which now stand at an astonishing $85.11 billion. As a result, there can be little doubt NASDAQ Dubai must now be considered one of the world’s most important centres for sukuk issuances and a strategically important player in the Islamic financial market.

Into the Future

FIVE Holdings’ first listing on the NASDAQ Dubai exchange is part of a wider movement toward sustainable practices and dovetails seamlessly with the exchange’s mission to foster investment opportunities that will deliver a more prosperous and equitable future for the entire region. As FIVE expand their footprint in Dubai and take their commitment to sustainable and just environmental, social and corporate governance policies into the wider world with developments like FIVE Zurich they reinforce the wisdom of a more holistic approach to business.