Green Finance Surges in Middle East in First Half of 2021

Green Finance Surges in Middle East in First Half of 2021

Green financing linked to sustainability projects in the Middle East and North Africa region increased by 38 percent and reached $6.4 billion in the first half of 2021, according to a report published by Bloomberg.

The report attributed the increase to the Red Sea Development Company (TRSDC)'s receiving a green loan of a value of $3.8 billion.

The First Abu Dhabi Bank took the lead by issuing Yuan-pegged green bonds with a value of CNY150 million in June 2021.

In March 2021, the TRSDC secured a green loan of 14.12 billion Saudi riyals ($3.76 billion).

"As the global ESG [environment social and governance] market may represent a third of global AUMs [assets under management] by 2025, ESG debt issuance has surpassed $3 trillion with record speed in May 2021," said Adeline Diab, Bloomberg's head of ESG and Thematic Investing for Emea and Apac regions.

Global green and sustainability-linked debt issuance volumes stood at approximately $541 billion in the first six months of 2021.