A report by Standard & Poor's Global Ratings shows that increased exposure to climate change, as well as government initiatives and corporate pledges, are boosting sustainable, mostly green bond issuances in the Middle East. Given the concentration of oil and gas in the Middle East economy and the challenges of issuing sustainable sukuk, S&P Global Ratings is considering the potential role of sustainable bond instruments, including Islamic financing instruments, in financing the region's energy transition.
Sustainable bond issuances in the Middle East are expected to continue to increase in the coming years, supported by government initiatives and the relative modernity of some markets. The UAE and Saudi Arabia are likely to remain leaders in the region's sustainable bond market, particularly through green bonds, which the report expects to continue to drive regional issuances over the next three to five years.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
