Annual issuances of green social, sustainable, and sustainability-linked bonds (GSSS) in the Middle East and North Africa (Mena) reached $9.47 billion in the first six months of 2025, down slightly from the same period of last year ($ 9.91 billion), according to data from Bloomberg’s Capital Markets League Tables.

 

Higher global interest rates and a pause in deals from Egypt and Qatar offset strong Saudi and UAE supply, keeping regional volumes broadly unchanged from H1 2024.

 

Investors digested the heaviest pipeline in 2023, when issuances surged to their highest levels due to COP28 taking place in the region.

 

Saudi Arabia and the UAE accounted for all issuances in H1 2025. Saudi Arabia surged to the top of regional league tables, accounting for 66% of total issuances ($6.25 billion) in the first six months of 2025.

 

The 25% increase on the same period of 2024 was driven by Vision 2030 infrastructure spending. The largest issuance came from the Saudi government ($1.58 billion), while Al Rajhi issued two sustainable sukuks ($1.5 billion and $200 million respectively).

 

Other green and sustainable sukuk issuers include Saudi Electricity (1.25 billion), and debut issuances from Alinma ($500 million) and SAB’s AT1 issuance ($650 million).

 

The UAE accounted for the remaining 34% of issuances ($3.22 billion). Key transactions included debut issuances from National Central Cooling ($700 million) and Omniyat ($500 million).

 

The majority of Mena sustainable debt issuances during the period were Islamic instruments ($6.8 billion), with the 17% year-on-year increase reflecting the emergence of Saudi Arabia and the UAE as global Islamic finance centers.

 

The period was also notable for the significant growth in AT1 issuances, which accounted for $3.15 billion of sales, the highest level seen in the last five years. AT1 issuances are a key way for banks to comply with the Basel 3 framework ahead of the initial phase in dates of 2026. They witnessed strong investor demand in the UAE from regional and international investors.

 

Venty Mulani, Data Specialist - Sustainable Fixed Income, Bloomberg LP, said: “The sustainable bond market in Saudi Arabia and the UAE continues to mature and evolve. As reporting improves, with Bloomberg data suggesting nearly 68% of issuances over the past three years have either an impact or allocation report, we look forward to seeing more transparency through innovations such as green digital bonds.” -TradeArabia News Service