UAE Commands 61% Share of Gulf Sustainable Debt Issuance in First Nine Months of 2026
The Emirates has established itself as the preponderant force in sustainable finance across the Gulf region, according to analysis from Fitch Ratings, with a commanding proportion of regional debt issuance dedicated to environmental, social and governance objectives.
The United Arab Emirates has demonstrated remarkable leadership in sustainable debt issuance across the Gulf region, commanding approximately 61% of all sustainable debt issuance in the first nine months of 2026, according to Fitch Ratings.
Bashar Al Natoor, Managing Director and Global Head of Islamic Finance at Fitch Ratings, revealed these significant findings whilst addressing delegates at the World Green Economy Summit in Dubai. He noted that the Gulf region itself occupies a distinguished position within the broader emerging markets landscape, accounting for approximately 40% of US dollar denominated sustainable debt issuance in emerging markets, excluding China, during the corresponding period.
The proliferation of sustainable finance instruments reflects the region’s resolute commitment to advancing environmental and social objectives through innovative capital market solutions. Mr Al Natoor emphasised the multifaceted nature of sustainable finance, which encompasses government and bank financing, direct investment, and an increasingly sophisticated array of debt capital market instruments, including ESG sukuk and bonds structured specifically to finance projects aligned with sustainability imperatives.
The market for sustainability-linked sukuk and bonds has witnessed considerable expansion in recent years, establishing these instruments as essential mechanisms for supporting the transition towards a more economically and environmentally conscious regional economy. The preponderance of sustainability-related sukuk observed in the market carries investment-grade credit ratings, with a substantial proportion assigned Stable Outlooks, demonstrating the sector’s inherent credit quality and institutional confidence.
Whilst sustainable finance issuance experienced a modest contraction during the first nine months of 2026 amid prevailing market conditions, Fitch Ratings anticipates continued growth and diversification of financing instruments over the medium to long term. This optimistic outlook reflects expectations that additional governments and corporate entities will embrace sustainability objectives and leverage the expanding array of available financing mechanisms to achieve their environmental and social aspirations.
Source: WAM News Agency