Saudi Arabia, UAE Leads $9.47bn MENA Sustainable Bond Market In H1 2025

The total marked a slight decline from the same period in 2024, when issuances stood at $9.91 billion.

Higher global interest rates and a pause in deals from Egypt and Qatar contributed to the lower volume, despite continued activity in Saudi Arabia and the UAE. The first half of 2025 saw all regional issuances originate from the two Gulf countries, with Saudi Arabia leading.

Saudi Arabia, UAE drive all MENA GSSS bond issuances

Saudi Arabia accounted for 66 per cent of total issuances, or $6.25 billion, in the first six months of 2025.

This represented a 25 per cent increase compared with the same period in 2024, supported by infrastructure spending under Vision 2030. The largest single issuance came from the Saudi government, at $1.58 billion.

Al Rajhi Bank issued two sustainable sukuks, worth $1.5 billion and $200 million, respectively.

Other Saudi-based issuers included Saudi Electricity ($1.25 billion), Alinma Bank with a debut sustainable sukuk of $500 million, and Saudi Awwal Bank (SAB) with an Additional Tier 1 (AT1) issuance of $650 million.

The UAE made up the remaining 34 per cent of MENA issuances, totalling $3.22 billion. Key transactions included debut issuances from National Central Cooling Company ($700 million) and property developer Omniyat ($500 million).

Islamic instruments dominated GSSS debt issuance during the period, with $6.8 billion in total, representing a 17 per cent increase compared to the first half of 2024. This reflected the growing role of Saudi Arabia and the UAE in global Islamic finance.

The period also saw an increase in AT1 issuances, which reached $3.15 billion—the highest level recorded in the past five years.

These instruments are used by banks to meet Basel 3 requirements ahead of the 2026 deadlines. The UAE saw strong investor demand for these issuances from both regional and international investors.

“The sustainable bond market in Saudi Arabia and the UAE continues to mature and evolve. As reporting improves, with Bloomberg data suggesting nearly 68 per cent of issuances over the past three years have either an impact or allocation report, we look forward to seeing more transparency through innovations such as green digital bonds,” Venty Mulani, Data Specialist – Sustainable Fixed Income, Bloomberg LP said.

Bloomberg’s league tables provide access to data on capital markets representation and are available via the Bloomberg Terminal under LEAG.

ESG data is available under BI ESG. Allocation and impact data on MENA GSSS bond issuances can also be accessed through the Terminal.