Arab Region's Green Bond Issuances Surge To $6.8 Billion By October 2023

Dr. Fahad M. Al Turki, the esteemed Director-General and Chairman of the Board of Directors of the Arab Monetary Fund (AMF), recently shed light on the burgeoning field of sustainable financing within the Arab region. During his address at the third meeting of the Arab Green and Sustainable Finance Network (AgreFin) in Abu Dhabi, Dr. Al Turki revealed that green bond issuances in the region have witnessed a remarkable 40 percent increase from 2022, reaching a total of $6.8 billion by October 2023.

The United Arab Emirates and the Kingdom of Saudi Arabia are at the forefront of this surge, accounting for over 90 percent of green bond issuances. This significant growth underscores a heightened regional focus on green and sustainable finance, aligning financial practices with environmental sustainability.

The AgreFin meeting convened delegates from Arab central banks, finance ministries, and securities market authorities, along with experts from various regional and international institutions. The network serves as a pivotal platform for exchanging knowledge and expertise on sustainable finance, aiming to promote green financial activities, services, and products.

Dr. Al Turki emphasized the critical role of transitioning to green and sustainable financing in combating climate change. He pointed out that this approach not only fosters resilient and responsible growth in societies but also supports investments that are aligned with environmental and social goals. By directing capital towards sustainable initiatives, it contributes significantly to shaping a sustainable future for the planet.

Moreover, Dr. Al Turki highlighted the AMF's dedication to green and sustainable financing and its efforts to address the impact of climate change on the financial and banking sectors. The Fund has been actively involved in organizing workshops, training courses, issuing guidelines, and conducting research in collaboration with Arab and international financial institutions to effectively tackle these challenges.

The importance of collaborative efforts for the success of the Arab Green and Sustainable Finance Network was also stressed by Dr. Al Turki. He lauded the discussions, idea exchanges, and sharing of experiences as crucial steps towards advancing green and sustainable financing across Arab nations. Additionally, he expressed gratitude towards the UAE for its sponsorship and support as the host country, enabling the network to fulfill its responsibilities effectively.

This gathering marks a significant milestone in promoting sustainable finance in the Arab region, highlighting the collective efforts towards achieving environmental sustainability through informed financial practices.

With inputs from WAM