The UAE accounted for about 61 percent of sustainable debt issuance across the Gulf region in all currencies during the first nine months of 2026, according to a senior Fitch Ratings official.
Bashar Al Natoor, Managing Director and Global Head of Islamic Finance at Fitch Ratings, shared the figure with the Emirates News Agency (WAM) on the sidelines of the World Green Economy Summit in Dubai. He said the Gulf region represented roughly 40 percent of US dollar-denominated sustainable debt issuance in emerging markets, excluding China, over the same period.
Al Natoor highlighted the growing role of sustainable finance in supporting the region’s sustainability goals, particularly through debt capital markets. He said it draws on several funding sources, including government and bank financing, direct investment, and sukuk and bonds linked to sustainability objectives.
The market for environmental, social and governance (ESG) sukuk and bonds has expanded in recent years, he noted. These instruments are playing a larger part in the shift toward a more sustainable economy and in helping institutions finance projects that account for environmental and social considerations.
Most of the sustainability-related sukuk he referred to carry investment-grade ratings, and a significant share have Stable Outlooks. Al Natoor said this points to a high level of credit quality in the sector.
He acknowledged that sustainable finance issuance declined during the first nine months of 2026 amid prevailing conditions. However, he expects the market to keep growing and its instruments to diversify over the medium to long term as more governments and companies adopt sustainability targets and use the financing tools available to meet them.
News Source: Emirates News Agency
