The UAE and Saudi Arabia will continue to lead the way in sustainable bond issuance in the Middle East, with bond issuance expected to reach around $20 billion to $25 billion this year, according to S&P Global.
Both countries already account for a total of 80% of sustainable bond issuance by value in 2025, driven by banks and the Sovereign Green Framework in Saudi Arabia, and large corporations and the ‘Blue Bonds’ initiative in the United Arab Emirates.
Aggressive economic diversification efforts in these two markets and strong government support for net-zero targets and large-scale renewable projects have fueled this robust activity.
Overall, the region has shown resilience despite volatile global markets, with issuance increasing by 3% in 2025, while global issuance declined by 21%.
A key driver for growth this year will be increased interest in sustainable sukuk, transition bonds and so-called “blue bonds” that emphasize water and ocean health.
Green projects such as renewable energy, green buildings, and clean transportation could also drive growth. AI data centers and; new taxonomies and laws.
(Written by Cleofe Maceda; Edited by Brinda Darasha)
