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Bloomberg Intelligence reported that sustainable finance issuance in the Middle East and North Africa totalled $35.1 billion in 2025 marking a sevenfold increase since 2020 even as the figure fell 18 percent short of the 2023 peak amid worldwide market pressures. Saudi Arabia claimed the largest share with $19.7 billion in deals displacing the UAE from its previous leading position. The Kingdom’s performance drew support from its 2024 Green Financing Framework which provided fresh regulatory clarity for capital raising in renewable energy and low-carbon infrastructure projects.
Green-labelled instruments dominated the mix reaching $25.8 billion and posting 60 percent year-on-year growth while overall activity shifted toward bank-led issuance. Financial institutions accounted for nearly half of all MENA volume in 2025 up from 32 percent in 2020 reflecting stronger regulatory signals across the region. Bloomberg Intelligence noted that this evolution has produced a more resilient market structure less reliant on sovereign transactions than in earlier years.
Grace Osborne an ESG analyst at Bloomberg Intelligence stated “MENA’s sustainable finance market has matured rapidly over the past five years driven by government initiatives supportive regulations and increased investor demand.” She added that while issuance eased in 2025 in line with global trends the shift toward bank-led and green-labelled financing reflects a more durable market structure well positioned for further growth. The report highlighted continued focus on renewables water efficiency and climate resilience initiatives tied to expanding data centre demand.
The Institute of International Finance placed global sustainable debt issuance at $1.1 trillion for the first nine months of 2025 representing a nearly 15 percent decline from the prior year and underscoring the headwinds that also affected MENA activity. Regional issuance had peaked at roughly $43 billion in 2023 according to separate Bloomberg assessments before moderating as higher interest rates and economic uncertainty weighed on deal flow. UAE banks including First Abu Dhabi Bank and Emirates NBD remained active participants even after ceding the top country spot.
Saudi Arabia’s framework and parallel UAE sustainable banking targets have helped embed environmental considerations into mainstream finance without a unified regional taxonomy. Bloomberg Intelligence observed that project pipelines now emphasise low-carbon infrastructure alongside water-related efficiencies as governments align issuance with national climate commitments. Market participants expect further maturation through improved data disclosure and standardised reporting practices in the years ahead.
