Business

Green Finance Surges in Middle East in First Half of 2021

Samar

Green financing linked to sustainability projects in the Middle East and North Africa region increased by 38 percent; and reached $6.4bn in the first half of 2021, according to a report published by Bloomberg.

The report attributed the increase to the Red Sea Development Company (TRSDC)'s receiving a green loan; of a value of $3.8bn.

The First Abu Dhabi Bank took the lead by issuing Yuan-pegged green bonds; with a value of CNY150mn in June 2021.

In March 2021, the TRSDC secured a green loan of 14.12bn Saudi riyals ($3.76bn).

"As the global ESG [environment social and governance] market may represent a third of global AUMs [assets under management] by 2025, ESG debt issuance has surpassed $3tn with record speed in May 2021," said Adeline Diab, Bloomberg's head of ESG and Thematic Investing for Emea and Apac regions.

Global green and sustainability-linked debt issuance volumes stood at approximately $541bn in the first six months of 2021.