- Bloomberg Intelligence report shows MENA sustainable finance issuance has risen sevenfold since 2020
- Saudi Arabia emerged as the region’s largest issuer by volume in 2025, supported by its 2024 Green Financing Framework
- Financial institutions are driving a bank-led expansion of sustainable finance, with UAE lenders anchoring scale, profitability and product innovation
Dubai, January 2026 – A new report by Bloomberg Intelligence highlights the continued structural evolution of the Middle East and North Africa’s (MENA) sustainable finance market, with issuance expanding sevenfold since 2020 despite easing to $35.1 billion in 2025 (18% below its 2023 peak) amid global market headwinds.
The report finds that the market has transitioned from being predominantly sovereign-led to a more diversified ecosystem anchored by financial institutions and energy-related issuers. Financials accounted for almost 50% of MENA issuance in 2025, up from 32% in 2020, reflecting stronger regulatory signalling and higher underwriting and lending activity as banks decarbonised balance sheets and adopted taxonomies
Saudi Arabia emerged as the region’s largest sustainable finance issuer by volume in 2025, reaching $19.7 billion, overtaking the UAE, further supported by publication of the country’s 2024 Green Financing Framework.
Green-labelled instruments represented the largest share of MENA issuance, increasing by 60% to $25.8 billion in 2025. Capital was primarily directed toward renewable energy, low-carbon infrastructure and water-efficiency projects aimed at strengthening climate adaptation and resilience, with growing potential as the region expands its data-center capacity.
UAE banks including First Abu Dhabi Bank and Emirates NBD played a prominent role in the bank-led expansion of sustainable finance through underwriting and lending, reflecting strong balance-sheet deployment across green bonds, sustainability-linked instruments and lending. The UAE Banking Federation’s AED 1 trillion sustainable finance target by 2030 continues to underpin long-term growth. Banks are well positioned to capture a $2 trillion opportunity across renewables, water and low-carbon infrastructure.
Grace Osborne, ESG Analyst at Bloomberg Intelligence, said: “MENA’s sustainable finance market has matured rapidly over the past five years, driven by government initiatives, supportive regulations and increased investor demand. While issuance eased in 2025 in line with global trends, the shift toward bank-led and green-labelled financing reflects a more durable market structure well positioned for further growth. Saudi Arabia’s emergence as the largest issuer highlights how national frameworks and regulatory clarity can accelerate capital mobilization at scale.”
The report notes that regulatory progress across the region is strengthening foundations for future growth, although the absence of a harmonised regional taxonomy continues to limit the classification of transition activities. As markets move toward International Sustainability Standards Board (ISSB) aligned disclosures, forward-looking climate risk assessment and transition planning are expected to become key differentiators for issuers seeking sustainable capital. Moreover, rising investment in AI-driven data centres in the region are likely to sharpen the focus on energy efficiency, water security and climate-resilient infrastructure.
