Saudi Arabia topped the Middle East and North Africa (MENA) for sustainable bond issuances in the first six months of 2025, driven by Vision 2030 infrastructure spending, according to Bloomberg’s Capital Markets League Tables.

Issuances from the kingdom reached $6.25 billion in H1 2025, a 25% increase year-on-year (YoY) and accounting for 66% of total green, social, sustainable, and sustainability-linked (GSSS) bond activity in the region.

The Saudi government led with a $1.58 billion issuance, while Al Rajhi Bank issued two sustainable sukuks totaling $1.7 billion. Additional issuers included Saudi Electricity Company ($1.25 billion), Alinma Bank ($500 million), and Saudi Awwal Bank with a $650 million additional tier 1 (AT1) sukuk.

Annual regional GSSS issuances fell 4.4% to $9.47 billion in the first six months of 2025 from $9.91 billion a year earlier, impacted by higher global interest rates and a pause in deals from Egypt and Qatar.

The UAE contributed the remaining 34% of the total, with $3.22 billion in GSSS issuances. Notable issuances were from National Central Cooling Company (Tabreed) at $700 million and real estate developer Omniyat, which raised $500 million, according to Bloomberg.

Islamic instruments dominated the regional sustainable debt issuances, totaling $6.8 billion — a 17% YoY increase. AT1 issuance reached $3.15 billion — the highest first-half total in the past five years.

AT1 issuances help banks comply with the Basel 3 framework ahead of the initial phase implementation in 2026.    

“The sustainable bond market in Saudi Arabia and the UAE continues to mature and evolve,” Venty Mulani, Data Specialist - Sustainable Fixed Income, Bloomberg, said.

(Editing by Seban Scaria seban.scaria@lseg.com )