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Home»Business»Saudi Arabia, UAE leads $9.47bn MENA sustainable bond market in H1 2025
Business

Saudi Arabia, UAE leads $9.47bn MENA sustainable bond market in H1 2025

VernoNewsBy VernoNewsJuly 14, 2025No Comments3 Mins Read
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Saudi Arabia, UAE leads .47bn MENA sustainable bond market in H1 2025
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Issuances of inexperienced, social, sustainable, and sustainability-linked (GSSS) bonds within the Center East and North Africa (MENA) reached $9.47 billion within the first half of 2025, in line with Bloomberg’s Capital Markets League Tables.

The overall marked a slight decline from the identical interval in 2024, when issuances stood at $9.91 billion.

Increased international rates of interest and a pause in offers from Egypt and Qatar contributed to the decrease quantity, regardless of continued exercise in Saudi Arabia and the UAE. The primary half of 2025 noticed all regional issuances originate from the 2 Gulf nations, with Saudi Arabia main.

Saudi Arabia, UAE drive all MENA GSSS bond issuances

Saudi Arabia accounted for 66 per cent of complete issuances, or $6.25 billion, within the first six months of 2025.

This represented a 25 per cent enhance in contrast with the identical interval in 2024, supported by infrastructure spending underneath Imaginative and prescient 2030. The most important single issuance got here from the Saudi authorities, at $1.58 billion.

Al Rajhi Financial institution issued two sustainable sukuks, value $1.5 billion and $200 million, respectively.

Different Saudi-based issuers included Saudi Electrical energy ($1.25 billion), Alinma Financial institution with a debut sustainable sukuk of $500 million, and Saudi Awwal Financial institution (SAB) with an Further Tier 1 (AT1) issuance of $650 million.

The UAE made up the remaining 34 per cent of MENA issuances, totalling $3.22 billion. Key transactions included debut issuances from Nationwide Central Cooling Firm ($700 million) and property developer Omniyat ($500 million).

Islamic devices dominated GSSS debt issuance throughout the interval, with $6.8 billion in complete, representing a 17 per cent enhance in comparison with the primary half of 2024. This mirrored the rising position of Saudi Arabia and the UAE in international Islamic finance.

The interval additionally noticed a rise in AT1 issuances, which reached $3.15 billion—the best degree recorded up to now 5 years.

These devices are utilized by banks to satisfy Basel 3 necessities forward of the 2026 deadlines. The UAE noticed robust investor demand for these issuances from each regional and worldwide buyers.

“The sustainable bond market in Saudi Arabia and the UAE continues to mature and evolve. As reporting improves, with Bloomberg information suggesting practically 68 per cent of issuances over the previous three years have both an influence or allocation report, we sit up for seeing extra transparency by way of improvements akin to inexperienced digital bonds,” Venty Mulani, Information Specialist – Sustainable Fastened Earnings, Bloomberg LP mentioned.

Bloomberg’s league tables present entry to information on capital markets illustration and can be found through the Bloomberg Terminal underneath LEAG.

ESG information is on the market underneath BI ESG. Allocation and influence information on MENA GSSS bond issuances may also be accessed by way of the Terminal.

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