GCC’s green bond market reaches record high

The total value of green and sustainable bond and sukuk issuance in the GCC exceeded US$8.5 billion in 2022.

This represents a massive increase in the $605 million issued in 2021. It also bucks a global trend, given that global issuance of green bonds and sukuk declined by 14% during 2022.

There was also a near doubling of the number of deals – 15 in 2022 compared to eight the previous year, according to data from Bloomberg’s capital markets league tables.

Saudi Arabia was the most active issuer, accounting for more than 50% of the volume, with the UAE responsible for the remainder.

Notable issuances included the $3 billion green bond from Saudi Arabia’s state-backed Public Investment Fund, while three separate issuances from First Abu Dhabi bank raised a total of $1.49 billion in 2022.

“2022 proved to be a record year for green and sustainable bonds and sukuk in the Gulf, whereby the debut of several notable government-related entities and banks suggests sustainable finance is continuing to enter the mainstream in the region,” said Venty Mulani, data specialist, sustainable fixed income, Bloomberg.

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