A record amount of green debt has been raised this year by issuers in the United Arab Emirates and Saudi Arabia ahead of a major global climate conference starting next week in Dubai.
Issuance in the Gulf States has reached $14.6 billion year-to-date, according to data compiled by Bloomberg, with the majority coming from borrowers in the UAE. Another big chunk of the amount is a $5.5 billion multi-tranche bond by Saudi Arabia’s Public Investment Fund in February.
The jump in sales comes as the largely oil-dependent nations in the Gulf Cooperation Council burnish their green credentials ahead of the COP28 climate summit, starting at the end of November. While the amount raised pales in comparison to issuance in Europe, it’s more than double what was sold in the region in 2022.
“With COP28 happening in the UAE this year a lot of issuers have accelerated or initiated ESG financing frameworks, given the increased focus in the region on energy transition agenda,” said Khaled Darwish, HSBC Bank Middle East Limited’s head of debt capital markets for Central Eastern Europe, the Middle East and Africa.
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