According to a new report from Fitch Ratings, Gulf nations were the biggest players in the global ESG sukuk market during the first half of 2025. Countries like Saudi Arabia and the UAE were particularly active, responsible for over half of all issuances.
Worldwide, the total value of outstanding ESG sukuk grew by more than 12% to reach a value of $50 billion. A key listing center for these sukuk was Nasdaq Dubai, which is becoming as important as exchanges in Frankfurt, London, and Stuttgart.
The market saw new participants in the second quarter of 2025, including the first green sukuk from UAE-based Omniyat Holdings. During this time, Saudi Arabia also introduced new guidelines for green, social, and sustainability-linked debt.
Looking ahead, Fitch Ratings predicts that while issuance will slow down slightly in the third quarter due to summer trends, it will bounce back in the final quarter of the year. The total value of ESG sukuk is expected to exceed $60 billion by the end of 2026. However, potential risks like geopolitical tensions, changes in Sharia law, fluctuating oil prices, and worries about greenwashing could slow this growth.
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