Green Bond Market: Saudi Arabia and the UAE collectively control 90% of the market in the region, according to the AMF Chairman.

Green Bond Market: Saudi Arabia and the UAE collectively control 90% of the market in the region, according to the AMF Chairman.

In the realm of sustainable finance, Saudi Arabia and the United Arab Emirates (UAE) have emerged as dominant players, collectively representing over 90 percent of the green bond market in the Arab region. Fahad Al-Turki, the Director-General and Chairman of the Arab Monetary Fund (AMF), shed light on this significant development during the inauguration of the third meeting of the Arab Green and Sustainable Finance Network in Abu Dhabi.

Sustainable Finance on the Rise

The Arab region has witnessed a remarkable surge in sustainable financing, with green bond issuances experiencing substantial growth. In 2023, these issuances reached $6.8 billion by October, marking a 40 percent increase from the previous year. This surge reflects a growing emphasis on eco-conscious financing initiatives and a heightened commitment to addressing environmental challenges.

Green Bond Market-Saudi Arabia and UAE: Principal Contributors to Green Bonds

During the conference, Al-Turki highlighted the pivotal role played by Saudi Arabia and the UAE in driving the growth of green bonds. These two nations have emerged as principal contributors to the issuance of green bonds, signaling a shared commitment to fostering environmentally conscious financial practices.

Arab Green and Sustainable Finance Network: A Collaborative Endeavor

The conference served as a platform for delegates from Arab central banks, finance ministries, securities market authorities, and experts from various institutions to come together. The Arab Green and Sustainable Finance Network, known as AgreFin, played a central role in facilitating collaboration and knowledge-sharing on eco-conscious finance.

AgreFin’s Mission: Fostering Eco-Conscious Economic Activities

Al-Turki underscored AgreFin’s mission as a platform dedicated to sharing expertise and knowledge on eco-conscious finance. The goal is to propel green economic activities, services, and products while raising awareness of sustainable finance and climate change risk management. The network provides financial decision-makers in Arab nations with a collaborative space to devise solutions, exchange best practices, and endorse investments aligned with environmental and social objectives.

Transitioning to Green Finance: A Pivotal Strategy

Addressing climate change was a key theme of Al-Turki’s remarks. He emphasized the imperative of transitioning to green and sustainable financing as a pivotal strategy. Responsible financial practices, coupled with environmental impact considerations, are seen as essential in directing capital toward conscious initiatives that contribute to a more sustainable future.

Green Bond Market

AMF’s Commitment to Sustainable Financing

Al-Turki highlighted the AMF’s commitment to green and sustainable financing, recognizing the profound impact of climate change on the financial and banking sectors. The fund has been actively involved in conducting workshops, issuing guidelines, and partnering with both Arab and international financial institutions to effectively address the challenges posed by climate change.

Integrating ESG Standards Across Arab Countries

The Chairman stressed the significance of integrating environmental, social, and governance (ESG) standards in financial activities and investment policies across Arab countries. This integration is viewed as a means to foster development, enhance energy security, and align financial practices with broader sustainability goals.

Collective Efforts for Success

Al-Turki emphasized the importance of collective efforts for the success of the Arab Green and Sustainable Finance Network. Dialogues, idea exchanges, and shared experiences were highlighted as valuable tools in advancing green and sustainable financing for a more prosperous future in Arab nations.

Gratitude for UAE’s Support

Expressing gratitude for the UAE’s sponsorship and support as the host country, Al-Turki acknowledged its crucial role in enabling the network to fulfill its responsibilities. The collaboration between nations and institutions showcased the commitment to a shared vision of sustainable finance, paving the way for a greener and more resilient future in the Arab region.

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