In recent years, the UAE has emerged as a regional leader in sustainable real estate and construction. From government initiatives to bold developer commitments, the country is rewriting the rulebook on how buildings are designed, built and operated.

Regulations driving real change

Abu Dhabi set the tone back in 2010 with the launch of Estidama, a framework that makes sustainability a core part of building design and operation. Every new building must achieve at least a one pearl rating, and government buildings must meet two pearls.

Dubai followed suit in 2016 with the Al Sa’fat rating system. It raises the bar on energy efficiency, water conservation, materials and waste management. Developers must achieve at least a silver rating, with higher Gold or Platinum levels for those who go further.

This year, 2025, sustainability took another leap forward with Federal Decree Law No. 11 of 2024, which came into effect on 30 May 2025. It requires every sector – including real estate and construction – to develop climate action plans and reduce emissions annually.  Penalties for non-compliance are up to AED 2 million.

Even free zones and financial hubs are setting ambitious goals. At the Future Sustainability Forum 2024, DIFC unveiled its Decarbonisation Strategy, aiming to reach Net Zero by 2045. It is driving change not only in its operations but also across supply chains.

Developments leading the way

Sustainability is no longer just a concept – it’s visible in iconic projects across the UAE.

• Masdar City in Abu Dhabi is a living lab for green urban planning, powered by renewables and designed to minimise environmental impact.
• The Sustainable City in Dubai is built around net zero energy, with rooftop solar panels, EV charging stations, and clever systems for water conservation and recycling.
• Expo City Dubai now stands as a model for future cities, with 123 LEED-certified buildings and a roadmap to cut its operational carbon footprint by 45% by 2030.
• Sharjah Sustainable City combines smart design, EV infrastructure and urban farming into a scalable net-zero community.
• Ajman Sustainable District incorporates solar-powered buildings and district cooling into master-planned communities.
• Ras Al Khaimah’s Barjeel Green Building Regulations are actively shaping sustainable construction, including in tourism zones and residential districts.
• Umm Al Quwain’s Eco-Housing pilot promotes efficient water and energy use in low-income housing models.
• Fujairah’s clean energy industrial zones are integrating green design and renewable supply into heavy infrastructure.

ESG trends shaping the sector

The landscape is evolving fast. Developers are racing to adopt green building certifications like LEED and Estidama. Dubai alone is expected to boast over 550 LEED-certified projects by 2030.
Smart building technologies are now standard, with IoT systems managing lighting, cooling and water use. Recycled and locally sourced materials, such as concrete and steel, are reducing the environmental impact while supporting local suppliers.

Decarbonisation in action

The sector is also making serious progress towards carbon neutrality.

• Expo City Dubai aims for carbon neutrality by 2050, with interim goals to cut operational emissions by 45% by 2030 and 80% by 2040.
• Masdar City uses solar farms and passive design strategies to keep emissions close to zero.
• Beeah Group’s headquarters in Sharjah is a net zero building, generating its power through solar panels and using recycled materials.
• Sharjah Sustainable City integrates urban farming, electric vehicle infrastructure and 100% wastewater recycling for irrigation.
• Ras Al Khaimah Energy Efficiency Strategy aims to reduce energy use by 30% and water use by 20% in buildings by 2040.
• Ajman Municipality is piloting solar public buildings and retrofitting aged housing stock with energy-efficient features.
• Fujairah’s Port Green Program is incorporating solar and energy-saving retrofits in marine infrastructure.

All this aligns with the UAE Green Agenda 2015–2030, which sets out a clear roadmap for greener urban spaces and a stronger green economy.

Developers setting benchmarks

Major developers are now embedding ESG into their core strategies:

• Emaar Properties has installed 3.16 MW of renewable energy, segregates 34% of its waste, and invests heavily in employee development and CSR.
• ALEC is scaling up modular construction, installing solar diesel hybrids on sites, and aligning its operations with the UAE’s Net Zero 2050 strategy.
• Majid Al Futtaim is targeting net positive operations by 2040, with over 3,000 certified assets and a proven track record in emissions reduction.
• Bloom Holding has improved energy efficiency by 50% in some areas and reduced water use by 28%.
• Aldar Properties powers some of its assets with clean energy, retrofits communities, and has secured sustainability-linked financing.
• Nakheel is rolling out solar power across communities and integrating green design into projects like Palm Beach Residences.
• DAMAC Properties integrates PV systems, solar lighting and energy recovery ventilation across its developments.
• Dubai Properties is also investing in solar PV across major destinations like JBR and Business Bay.
• Arada (Sharjah-based) is embedding ESG principles in master planning and aims for full LEED Neighborhood certification for new projects.
• RAK Properties is focusing on eco-friendly waterfront developments using low-emission materials.
• Eagle Hills and Al Hamra Group are expanding smart, green projects in the northern emirates aligned with local regulations.

A clear path ahead

The UAE’s real estate and construction sector is no longer just about building structures – it’s building a sustainable future. With strong regulatory frameworks, innovative developments and ambitious decarbonisation targets, the industry is proving that growth and responsibility can go hand in hand.

As these efforts gain momentum, one thing is clear: sustainability is no longer optional. It’s becoming the foundation of every successful project – and the UAE is showing the world how it’s done.