Labelled sustainable debt in the Middle East, North Africa (MENA), and emerging Asia Pacific (APAC) markets has surged to US$94 billion since 2020, tripling in value. The research highlights that this growth outpaces advanced APAC economies, reflecting robust investor confidence and expanding opportunities for sustainable finance. Notably, 52 per cent of issuance comes from green bonds, driven largely by major energy infrastructure projects. Meanwhile, renewable energy projects account for 36 per cent of total labelled bonds, representing the largest share of financed activity.
The UAE and the Kingdom of Saudi Arabia lead MENA’s issuance, contributing 74 per cent of the region’s total since 2023. Despite this growth, many issuers still rely on unlabelled instruments for sustainable projects, suggesting significant untapped potential. Government support, clear guidance, and expanded bond structures could encourage greater corporate participation and further market development.
Case Studies Highlight Innovation
The report features three illustrative case studies. Two originate from the UAE: a blue bond from DP World and a sustainability-linked loan bond from Emirates NBD. A third, from Hong Kong, examines a long-tenor green bond and loan issued by MTR Corporation. These examples demonstrate innovative approaches in sustainable finance, including variations in labels, structures, and tenors, offering models for emerging markets seeking to scale sustainable capital.
Insights and Forward-Looking Perspectives
Mark Steward, Chief Executive of the DFSA, said: “This research provides valuable insight into how sustainable debt is evolving across the MENA and emerging APAC regions. The US$94 billion issuance record in 2024 reflects growing investor confidence and the resilience of our markets. Our focus remains on supporting all forms of sustainable and transition finance to ensure that the market within the DIFC, United Arab Emirates, and across the region remains robust and credible for the long term.”
Eddie Yue, Chief Executive of the HKMA, added: “Sustainable debt is a promising tool for bridging the multi-trillion-dollar climate financing gap in emerging markets. Through this joint research, we aim to explore solutions to remove the barriers faced by issuers and identify growth opportunities. As Asia’s leading sustainable finance hub that arranges 45 per cent of the region’s international green bond issuances in 2024, Hong Kong is committed to leveraging our infrastructure and know-how to support emerging markets in reaching their sustainable development goals.”
The report’s findings will be discussed at the DFSA–HKMA Joint Climate Finance Conference on 26 November 2025 in Dubai. The event, titled Transforming Tomorrow: Harnessing Green Finance for Sustainability, will convene policymakers, industry leaders, and investors to explore cross-border collaboration, innovation, and strategies to strengthen sustainable finance in emerging markets.
