Sustainable Debt Issuance In MENA And Emerging APAC Markets Reaches USD 94 Billion In 2024

The Dubai Financial Services Authority (DFSA) and the Hong Kong Monetary Authority (HKMA), with BloombergNEF as a knowledge partner, have released a report highlighting significant growth in sustainable debt across the Middle East and North Africa (MENA) and emerging Asia-Pacific (APAC) markets. Since 2020, labelled sustainable debt in these regions has surged to US$94 billion, outpacing growth in advanced APAC economies.

In the MENA region, the United Arab Emirates and Saudi Arabia have been pivotal, accounting for 74% of the issuance since 2023. The report reveals that 52% of this debt stems from the green market, largely due to energy infrastructure financing. Additionally, renewable energy projects have benefited from 36% of labelled sustainable bonds.

The report identifies substantial potential for expansion in labelled sustainable debt markets within MENA and APAC. Many issuers are currently using unlabelled instruments for sustainable projects. Growth avenues include government support to guide issuers through market challenges, encouraging corporate issuance, and expanding beyond traditional green labels.

Three case studies in the report highlight innovation in sustainable finance: a blue bond from DP World, a sustainability-linked loan bond from Emirates NDB, and a long-tenor green bond and loan from MTR Corporation Limited. These examples showcase advancements beyond conventional labels and structures.

Regulators in both regions are promoting transition and social finance frameworks, enhancing disclosure standards, and fostering innovation in sustainable instruments. In the UAE, initiatives like the UAE Energy Strategy 2050 aim to diversify energy sources and reduce carbon emissions. These policies create investment opportunities in sustainable infrastructure.

The UAE Sustainable Finance Working Group, with DFSA as a founding member, has issued draft principles for climate transition planning. These guidelines help financial institutions develop credible transition plans. Mark Steward of DFSA stated that the research offers insights into evolving sustainable debt markets.

Insights from Industry Leaders

Eddie Yue of HKMA emphasised that sustainable debt is crucial for bridging climate financing gaps in emerging markets. He noted Hong Kong's role as a leading hub for arranging international green bond issuances. Jon Moore of BloombergNEF highlighted that sustainable debt fosters trust and transparency in financial markets.

The findings will be discussed at the DFSA–HKMA Joint Climate Finance Conference on 26th November 2025 in Dubai. The event will bring together policymakers, industry leaders, and investors to explore innovation and collaboration in strengthening sustainable finance across Asia and the Middle East.

With inputs from WAM