Labelled sustainable debt in the Middle East, North Africa, and emerging Asia-Pacific has tripled since 2020 to reach US$94 billion, marking one of the fastest growth trajectories among developing markets.
The finding comes from a new report released on Tuesday by the Dubai Financial Services Authority, the Hong Kong Monetary Authority, and BloombergNEF.
The research shows that green instruments account for more than half of the total issuance, largely driven by major energy infrastructure projects. The UAE and Saudi Arabia continue to lead activity in the region, together making up nearly three quarters of MENA’s labelled debt since 2023. Renewable energy remains the most-funded sector, drawing 36 percent of all labelled bond financing.
Despite the strong momentum, the report notes significant untapped potential. Many issuers still rely on unlabelled financing for sustainable projects, suggesting room for growth as governments enhance guidance and corporates expand beyond conventional green structures.
The publication also highlights innovative case studies, including a blue bond from DP World, a sustainability-linked loan bond from Emirates NBD, and a long-tenor green issuance from Hong Kong’s MTR Corporation. Regulators across MENA and emerging APAC are increasingly backing new frameworks to support transition and social finance, along with stronger disclosure standards.
The UAE’s national strategies, including the Energy Strategy 2050 and Dubai Clean Energy Strategy 2050, continue to position the country as a regional hub for sustainable finance. Recent draft principles for climate transition planning by the UAE Sustainable Finance Working Group aim to guide institutions toward more credible and transparent pathways.
The findings will be explored at the DFSA–HKMA Joint Climate Finance Conference in Dubai on 26 November 2025, where policymakers, investors, and industry leaders will discuss how cross-border collaboration can accelerate the region’s shift toward low-carbon growth.
News Source: Emirates News Agency
