The Dubai Financial Services Authority (DFSA) and the Hong Kong Monetary Authority (HKMA) have published a new research report on labelled debt (including green, blue, social, and sustainability-linked bonds) for facilitating sustainable development in emerging markets.
“Scaling Sustainable Debt in Emerging Markets” presents key research findings, exploring the potential of labelled debts, and reveals that labelled sustainable debt issued across the Middle East and North Africa (MENA) and emerging Asia Pacific (APAC) markets has tripled since 2020 to US$94 billion, growing at a faster rate than advanced APAC economies.
More importantly, the report said that the labelled sustainable debt markets across the two regions have significant room to grow, with many issuers and borrowers financing sustainable projects with unlabelled instruments.
It said that avenues for growth include government support to provide guidance that can ease the challenges faced by issuers when they go to market, encouraging greater corporate issuance, and expanding past the green label and typical structures.
Among other highlights of the report are…
- 52 per cent of these comes from the green debt market, mainly driven by major energy infrastructure financing.
- The UAE and the Kingdom of Saudi Arabia account for 74 per cent of MENA’s issuance since 2023.
- 36 per cent of labelled sustainable bonds have financed renewable energy projects, representing the greatest share.
- Momentum may ease in 2025 amid shifting economic and geopolitical priorities.
The report features three case studies – two from the UAE (a blue bond from DP World and a sustainability-linked loan bond from Emirates NDB) and one from Hong Kong (long-tenor green bond and loan from MTR Corporation) which showcase innovation in sustainable finance beyond conventional labels, tenors, and structures.
Mark Steward, Chief Executive of the DFSA, commented: “This research provides valuable insight into how sustainable debt is evolving across the MENA and emerging APAC regions. The US$94 billion issuance record in 2024 reflects growing investor confidence and the resilience of our markets.
“Our focus remains on supporting all forms of sustainable and transition finance to ensure that the market within the DIFC, United Arab Emirates, and across the region remains robust and credible for the long term.”
Eddie Yue, Chief Executive of the HKMA, added: “Sustainable debt is a promising tool for bridging the multi-trillion-dollar climate financing gap in emerging markets. Through this joint research, we aim to explore solutions to remove the barriers faced by issuers and identify growth opportunities.
“As Asia’s leading sustainable finance hub that arranges 45 per cent of the region’s international green bond issuances in 2024, Hong Kong is committed to leveraging our infrastructure and know-how to support emerging markets in reaching their sustainable development goals.”
The insights from the report will be discussed during the DFSA–HKMA Joint Climate Finance Conference on 26 November 2025 in Dubai. Called ‘Transforming Tomorrow: Harnessing Green Finance for Sustainability’, the event will gather policymakers, industry leaders, and investors from across Asia and the Middle East to explore how innovation, resilience, and cross-border collaboration can strengthen sustainable finance.
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