MENA Sustainable Finance Market Shows Structural Growth Despite Global Headwinds
A new report from Bloomberg Intelligence highlights the ongoing structural evolution of the sustainable finance market in the Middle East and North Africa (MENA), noting that issuance volumes have multiplied sevenfold since 2020, despite a decline to $35.1 billion in 2025, down 18% from the 2023 peak, amid global market headwinds.
The report reveals a shift from sovereign-dominated issuances to a more diversified ecosystem centered on financial institutions and energy-sector issuers. Financial institutions accounted for approximately 50% of MENA sustainable finance issuances in 2025, up from 32% in 2020, reflecting clearer regulatory signals and increased underwriting and lending activity as banks seek to decarbonize balance sheets and adopt sustainability-linked frameworks.
Saudi Arabia emerged as the region’s largest sustainable finance issuer in 2025, with total issuances reaching $19.7 billion, surpassing the UAE. The growth was supported by the implementation of Saudi Arabia’s Green Finance Framework 2024.
Green-labeled instruments dominated MENA sustainable finance, rising 60% to $25.8 billion in 2025, with capital primarily directed toward renewable energy, low-carbon infrastructure, and water-efficiency initiatives, aimed at enhancing climate resilience.
UAE banks, including First Abu Dhabi Bank and Emirates NBD, played a key role in the expansion of sustainable finance through underwriting and lending activities, leveraging green bonds and sustainability-linked instruments. The UAE Banks Federation continues to advance its goal of AED 1 trillion in sustainable financing by 2030, with banks well-positioned to tap into a $2 trillion opportunity across renewable energy, water, and low-carbon infrastructure.