RIYADH: S&P worldwide reports that the Middle East’s market appetite for sustainable bonds defied worldwide trends in 2025 and that issuances are expected to reach $20 billion to $25 billion in 2026. According to the financial services company’s most recent report, despite a 21% global fall, sustainable bond issuance in the Middle East grew by almost 3% in 2025.
The report went on to say that the Gulf Cooperation Council nations, such as Saudi Arabia and the United Arab Emirates, were the main drivers of the region’s rise in sustainable bond issuance. This helped to counteract the slowdown in Turkiye, where issuance and value fell by 50% and 23%, respectively.
The revenues of a sustainable bond, a particular kind of fixed-income instrument, are solely utilised to fund or refinance qualified social or environmental projects. These investments assist socially or environmentally beneficial projects while giving investors a fixed income.
“The region’s bond market will remain dominated by green projects. In the lending market, sustainability and sustainability-related products ought to continue to be more appealing. According to Rawan Oueidat, a Dubai-based analyst for S&P Global Ratings, “sustainable sukuks, transition finance, and to a lesser extent blue bonds are likely growth areas.
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