Financial Sector Tops Mnakh Sustainability Index 2024

Kuwait’s financial sector has taken a clear lead in embedding environmental, social and governance (ESG) considerations into mainstream business decision-making. The 2024 Manakh Sustainability Index shows how quickly ESG expectations are moving in Gulf markets and why UK businesses with international exposure should be paying attention.

In simple terms, Kuwait has introduced a formal ESG league table for listed companies. Banks now sit at the top, driven by stronger reporting, emissions reduction, and governance standards. While this is a regional development, it reflects global pressures that UK SMEs already face through investors, supply chains and customers.

This article explains what the Manakh Sustainability Index is, what the 2024 results tell us, and why developments in markets like Kuwait matter commercially for UK businesses even if you never plan to operate there directly.

What’s happening

Manakh Studies and Research Company launched Kuwait’s first Sustainability Index in 2023. The index was designed to assess how listed companies on Boursa Kuwait are managing environmental, social and governance issues, using a consistent and publicly verifiable approach.

The 2024 edition assessed 26 listed companies across multiple sectors. Each business was evaluated using artificial intelligence to analyse published sustainability reports, annual reports and disclosures. Companies were scored across ESG criteria and ranked on a 12-tier scale from AAA+ to D.

The financial sector dominated the 2024 rankings. National Bank of Kuwait (NBK) placed first overall, achieving an AA+ rating with a total score of 87.75. Other banks and financial services firms also featured strongly, reflecting both regulatory pressure and investor expectations.

The index applies sector-specific weighting. Environmental performance includes areas such as emissions reduction, energy efficiency, renewable energy use and waste management. Social factors cover workforce policies, training, data protection and community engagement. Governance focuses on board composition, oversight, transparency and risk management.

The index also aligns with wider regulatory changes. Kuwait’s Capital Markets Authority has confirmed that ESG reporting will become mandatory for Premier Market companies from 2026, following a voluntary phase starting in 2025. This mirrors a broader trend across the Gulf, where governments are tightening sustainability reporting and disclosure requirements.

These developments sit alongside Kuwait Vision 2035, the country’s long-term national strategy, which includes commitments to economic diversification, responsible investment and lower-carbon growth.

Why this matters for UK businesses

At first glance, a sustainability index focused on Kuwait may feel remote for UK SMEs. In practice, it reflects changes that are already shaping how UK businesses are assessed, financed and selected as suppliers.

First, ESG expectations are converging globally. Banks in Kuwait are adopting standards such as the Task Force on Climate-related Financial Disclosures (TCFD) and portfolio emissions accounting. These are the same frameworks UK lenders, insurers and investors now expect from larger UK businesses – and, increasingly, from SMEs in their supply chains.

Second, supply chain scrutiny is expanding. UK companies that export to, source from, or partner with businesses in the Gulf are more likely to be asked for credible sustainability data. Even domestic SMEs may face questions if their customers operate internationally and must report on Scope 3 emissions, human rights risk or governance controls.

Third, access to finance is changing. The leadership shown by Kuwaiti banks is part of a wider shift toward sustainable finance. Green loans, sustainability-linked facilities and climate-aligned investment criteria are no longer niche. UK SMEs already see lenders asking more detailed questions about energy use, carbon reduction plans and governance structures.

Fourth, procurement standards are rising. Large organisations – whether in the UK or overseas – increasingly use ESG performance as a filter in tenders. What starts as voluntary reporting quickly becomes a minimum requirement. The gap highlighted by Manakh between ESG leaders and laggards is the same gap that UK SMEs risk falling into if they delay.

Finally, this is about resilience and reputation. Markets like Kuwait show that sustainability is no longer framed as a corporate social responsibility exercise. It is treated as a core business capability linked to risk management, long-term value and regulatory readiness. UK businesses are being judged in the same way, even if the language differs.

Key facts at a glance

• The Manakh Sustainability Index assesses listed companies on Boursa Kuwait using ESG criteria.
• The 2024 index covered 26 companies with a combined market value of around KWD 36.7 billion.
• Companies are scored from AAA+ to D across 12 tiers.
• The financial sector ranked highest overall in 2024.
• National Bank of Kuwait achieved first place with an AA+ rating and a score of 87.75.
• NBK reported a 28.3% reduction in carbon emissions from its 2021 baseline.
• Kuwait’s Capital Markets Authority will require mandatory ESG reporting from 2026.
• The index supports Kuwait Vision 2035 and aligns with global ESG frameworks.

SBS insight

What we see in Kuwait mirrors what we see with UK clients, just at a different speed and scale. Financial institutions often move first because regulation, investor pressure and risk management make ESG unavoidable.

The Manakh index highlights a widening performance gap. Leaders invest in data, reporting systems and governance early. Others rely on basic policies and last-minute disclosures. When reporting becomes mandatory, that gap becomes expensive to close.

For UK SMEs, the lesson is practical rather than theoretical. You do not need a complex ESG framework or glossy report, but you do need credible information on energy use, emissions, workforce practices and governance. These are the building blocks that larger customers and lenders now expect.

We also see the same pattern around sustainable finance. Kuwait’s move into green bonds and climate-aligned lending reflects a broader global market. UK businesses that can demonstrate efficiency, risk awareness and long-term planning are better placed when finance criteria tighten.

At SBS, we typically help SMEs focus on what matters most: understanding reporting requirements, reducing avoidable costs such as energy waste, and putting simple governance controls in place. The international examples reinforce that sustainability is increasingly about preparedness rather than ambition.

If markets with historically limited ESG disclosure are standardising at this pace, UK businesses should assume that expectations here will continue to rise – not level off.

Further reading

• Manakh Studies and Research Company – Sustainability Index overview
• Kuwait Capital Markets Authority – ESG reporting guidance
• Boursa Kuwait – listed company disclosures
• National Bank of Kuwait – Sustainability and climate reporting
• Task Force on Climate-related Financial Disclosures (TCFD)