RIYADH: The market appetite for sustainable bonds in the Middle East region bucked global trends in 2025, and issuances are on track to reach between $20 billion and $25 billion in 2026, according to S&P Global.
In its latest report, the financial services company said that sustainable bond issuance in the Middle East increased by about 3 percent in 2025, despite a global decline of 21 percent.
The analysis added that the growth in sustainable bond issuance in the region was driven by the Gulf Cooperation Council countries, including Saudi Arabia and the UAE, which largely offset the slowdown in Turkiye, where issuance and value declined by 50 percent and 23 percent, respectively.
A sustainable bond is a type of fixed-income instrument where the proceeds are exclusively used to finance or refinance eligible green or social projects.
These instruments provide investors with a fixed income while supporting environmentally or socially beneficial initiatives.
