UAE’s green, sustainable finance issuance grew by 32 per cent in 2022

UAE’s green, sustainable finance issuance grew by 32 per cent in 2022

The UAE registered a 32 per cent year-on-year growth in green and sustainable finance issuance in 2022, as environmental, social and corporate governance (ESG) reporting has increased across major public and private institutions in the region. The issuance of sustainable-linked bonds and loans in the Middle East also increased by 532 per cent to $24.6bn in 2021 from $3.8bn a year earlier. Consultancy company Arthur D. Little in its report said the Middle East has witnessed a rise in ESG awareness through specific reporting requirements and frameworks for banks, which are increasingly moving from voluntary to mandatory reporting. The report said Qatar has enacted a series of initiatives to make at least $75bn available for sustainable investments. In the UAE, Majid Al Futtaim raised $1.25bn in a revolving credit facility linked to the retail conglomerate’s ESG goals in December 2022. The National Bank of Bahrain has also been actively working to embed ESG principles into its business practices. “Green issuances from countries in the Middle East and North Africa are not standing still but are outpacing global growth. With new reporting requirements taking effect, banks are facing an urgent need to kick-start their strategies and execute concepts throughout their organisations,”