The UAE and Saudi Arabia are leading the charge for “green financing” in the Middle East and North Africa.
The UAE topped regional green bond league tables, with sales reaching $10.7bn, up nearly 170 per cent and accounting for approximately 45 per cent of regional totals.
Data from Bloomberg’s Capital Markets League Tables has revealed that in 2023, annual issuances of green social, sustainable, and sustainability-linked bonds (GSSB) in the Middle East and North Africa (MENA) hit a new record of $24bn, an increase of 155 per cent.
UAE and Saudi Arabia green bonds
This increase was driven primarily by growth in the UAE and Saudi Arabia, which accounted for 77 per cent of total regional issuances.
The year in which the UAE hosted the 28th United Nations Climate Change Conference (COP28) was notable for the large number of debut sustainable debt issuances from the country’s corporates and government entities, which amounted to $7.95bn in total.
The 11 debut green issuers included bonds or sukuk from:
- DP World sukuk ($1.5bn)
- Sharjah government ($1bn)
- TAQA ($1bn)
- Emirates NBD ($750m)
- Masdar ($750m)
- Mubadala ($750m)
- Aldar sukuk ($500m)
- Commercial Bank of Dubai ($500m)
- Five Holdings ($350m)
- Green Sukuk from Dubai Islamic Bank ($750m)
- Green Sukuk from Abu Dhabi Islamic Bank ($500m)
Meanwhile, Saudi Arabia accounted for 32 per cent of total regional volumes, up 69 per cent year-on-year.
Saudi Arabia’s Public Investment Fund was the region’s largest issuer in 2023, driven by issuances of $5.5bn in February 2023.
Other notable Saudi issuers Bloomberg highlighted were Saudi National Bank ($60.69m), Saudi Electricity Company ($1.2bn) and Al Rajhi Bank ($1bn).
2023 was dubbed a “milestone year” for green Sukuk, with Islamic issuances accounting for more than a quarter of MENA totals for the first time.
Green Sukuk totalling approximately $6.5bn were issued in the MENA region in 2023.
This represents more than half of all global green Sukuk, with notable sales by ADIB ($500m), DP World ($1.5bn), First Abu Dhabi Bank (approximately $350m), Majid Al Futtaim ($500m), and Aldar ($500m).
Follow us on
