Saudi Arabia has emerged as the leader in sustainable bond issuances in the Middle East and North Africa (MENA) region during the first half of 2025. This surge, largely fueled by its Vision 2030 infrastructure initiatives, saw the Kingdom issue $6.25 billion in green, social, sustainable, and sustainability-linked (GSSS) bonds, marking a 25% year-on-year increase. This impressive figure accounts for 66% of all GSSS bond activity in MENA, as reported by Bloomberg’s Capital Markets League Tables.
Key players in Saudi Arabia’s sustainable bond market included the Saudi government ($1.58 billion), Al Rajhi Bank (with two sustainable sukuks totaling $1.7 billion), Saudi Electricity Company ($1.25 billion), Alinma Bank ($500 million), and Saudi Awwal Bank ($650 million in additional tier 1, or AT1, sukuk).
Despite Saudi Arabia’s strong performance, overall GSSS issuances in the MENA region saw a slight dip, falling 4.4% to $9.47 billion in H1 2025 compared to $9.91 billion in the same period last year. This decline was primarily due to higher global interest rates and a halt in deals from Egypt and Qatar.
The UAE contributed the remaining 34% of the regional total, with $3.22 billion in GSSS issuances. Notable contributions came from National Central Cooling Company (Tabreed) ($700 million) and real estate developer Omniyat ($500 million).
A significant trend in the region was the dominance of Islamic instruments, which made up $6.8 billion of sustainable debt issuances—a 17% increase year-on-year. Additionally, AT1 issuances reached a five-year high for a first half at $3.15 billion, as banks prepare to comply with the initial phase of the Basel 3 framework in 2026.
According to Venty Mulani, a Data Specialist at Bloomberg, the sustainable bond markets in both Saudi Arabia and the UAE are clearly “maturing and evolving.”
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