S&P Global has projected that sustainable bond issuance across the Middle East will reach between USD 20 billion and USD 25 billion in 2026. The forecast was contained in a report published in February 2026.
Middle East sustainable bond issuance grew by about 3% in 2025, compared with a 21% decline recorded across the global sustainable bond market over the same period. Saudi Arabia and the UAE together accounted for 80% of the region's sustainable bond supply in 2025.
SUSTAINABLE SUKUK
Sustainable sukuk issuance in the Middle East reached a record USD 11.4 billion in 2025, up from USD 7.9 billion in 2024. Sustainable sukuk now accounts for more than 45% of the region's total sustainable bond activity.
OUTLOOK
S&P's projection of USD 20 billion to USD 25 billion for the full year 2026 implies issuance broadly in line with 2025 levels. S&P analyst Rawan Oueidat said green projects will continue to dominate the bond market in the region, while sustainability and sustainability-linked instruments should remain more favourable in the loans market.