(MENAFN) Fitch Ratings anticipates a surge in sustainable issuances in the Gulf, particularly bonds, as a result of the upcoming UN climate change conference, COP28.
Bashar Al-Natoor, Fitch Ratings' global head of Islamic finance and managing director, emphasized how this international event will heighten awareness of sustainability issues in the region, influencing investment and financial strategies toward environmentally responsible practices.
With more than half of the Gulf region's sustainable issuances being in bond form, Al-Natoor expressed strong expectations for these bonds to benefit significantly from the increased awareness fostered by COP28.
Highlighting the UAE's notable growth in environmental, social, and governance (ESG) bonds, Al-Natoor pointed out a substantial increase to USD6.4 billion by the third quarter of 2023 from the previous quarter's USD4.5 billion, marking a 41 percent rise.
He emphasized the UAE's standing in the global ESG bond market, stating that sustainable bonds from the UAE now represent over 19 percent, accounting for more than 30 percent of such bonds classified by Fitch Ratings.
During the third quarter, the UAE emerged as the leading global issuer of sustainable bonds, contributing USD1.8 billion, which constituted approximately 80 percent of the worldwide total of USD2.3 billion.
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.