Green bond issuance will gradually grow in the Gulf

Significance

Meanwhile, in the United Arab Emirates (UAE), a surge in green issuance from Emirati banks highlights the growth in a debt market that can help fund efforts to mitigate and adapt to climate change. The UAE currently leads the way in green bond issuances in the Middle East, but the green financing gap is still large.

Impacts

• Critics will monitor closely whether the UAE and its banking sector build on the momentum created by hosting COP28 in 2023.
• Foreign investment across the Gulf economies will trigger more ESG-related scrutiny.
• The impact of climate change will drive GCC policies for further growth in green finance.