UAE leads GCC sustainable debt issuance

The United Arab Emirates has established a dominant position in the Gulf Cooperation Council (GCC) sustainable debt market, driven by regulatory clarity and strategic national commitments. According to Sayed Adnan of Graystone Capital, the Securities and Commodities Authority’s 2023 rules for green and sustainability-linked bonds and sukuk align with international ICMA principles, fostering investor confidence.

UAE issuance grew by 12% during the first nine months of the year, despite broader challenges in global capital markets. A significant driver of this growth is the use of sukuk, which now accounts for 43% of the $72.9 billion in outstanding GCC ESG debt. This instrument allows issuers to access both Islamic banking assets and global ESG funds.

Major financial institutions are also playing a critical role in financing the industrial transition. First Abu Dhabi Bank has mobilized approximately AED 381 billion since 2022 toward its 2030 targets, while Emirates NBD recently launched the country’s first Transition Finance Framework to support hard-to-abate sectors.