DFSA-HKMA Report reveals:
- Labelled sustainable debt issued across MENA and emerging APAC markets has tripled since 2020 to US$94 billion - a faster growth rate than compared to advanced APAC economies.
- 52% comes from the green debt market, mainly driven by major energy infrastructure financing.
- The United Arab Emirates (UAE) and the Kingdom of Saudi Arabia account for 74% of MENA’s issuance since 2023.
- 36% of labelled sustainable bonds, have financed renewable energy projects, representing the greatest share.
- Momentum may ease in 2025 amid shifting economic and geopolitical priorities.
The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), and the Hong Kong Monetary Authority (HKMA), Hong Kong’s central banking institution, published today a new research report, Scaling Sustainable Debt in Emerging Markets, with BloombergNEF as a knowledge partner. The report presents key research findings, exploring the potential of labelled debt (including green, blue, social, and sustainability-linked bonds) for facilitating sustainable development in emerging markets.
Research from the report found that the labelled sustainable debt markets across the Middle East and North Africa (MENA) and emerging Asia Pacific (APAC) have significant room to grow, with many issuers and borrowers financing sustainable projects with unlabelled instruments. Avenues for growth include government support to provide guidance that can ease the challenges faced by issuers when they go to market, encouraging greater corporate issuance, and expanding past the green label and typical structures.
The report also features three case studies showcasing innovation in sustainable finance beyond conventional labels, tenors, and structures: a blue bond from DP World, a sustainability-linked loan bond from Emirates NDB, and long-tenor green bond and loan from MTR Corporation Limited.
Regulators in both MENA and emerging APAC are increasingly encouraging the development of transition and social finance frameworks, stronger disclosure standards, and innovation in sustainable instruments.
In the UAE, the government has sought to diversify the energy mix, reduce carbon emissions, and position the nation as a regional hub for green and transition finance through policies such as the UAE Energy Strategy 2050 and the Dubai Clean Energy Strategy 2050. These initiatives have provided significant opportunities to invest in sustainable infrastructure and low-carbon projects.
In line with these efforts, the UAE Sustainable Finance Working Group, of which the DFSA is a founding member, has recently issued draft principles for climate transition planning, designed to help financial institutions develop credible, transparent, and effective transition plans.
Mark Steward, Chief Executive of the DFSA, said: “This research provides valuable insight into how sustainable debt is evolving across the MENA and emerging APAC regions. The US$94 billion issuance record in 2024 reflects growing investor confidence and the resilience of our markets. Our focus remains on supporting all forms of sustainable and transition finance to ensure that the market within the DIFC, United Arab Emirates, and across the region remains robust and credible for the long term.”
Eddie Yue, Chief Executive of the HKMA, said: “Sustainable debt is a promising tool for bridging the multi-trillion-dollar climate financing gap in emerging markets. Through this joint research, we aim to explore solutions to remove the barriers faced by issuers and identify opportunities for growth. As Asia’s leading sustainable finance hub that arranges 45% of the region’s international green bond issuances in 2024, Hong Kong is committed to leveraging our infrastructure and know-how to support emerging markets in reaching their sustainable development goals.”
Jon Moore, Chief Executive of BloombergNEF, said: “Sustainable debt helps build trust and transparency in the financial market. The effort by HKMA and DFSA to drive the development of sustainable debt markets provides valuable support to scale up finance and investment for the energy transition. We hope this report and our industry-leading insights can help regulators and market participants navigate this transition and capture opportunities that advance global sustainability objectives.”
The insights from the report will be discussed during the DFSA–HKMA Joint Climate Finance Conference on 26 November 2025 in Dubai, themed “Transforming Tomorrow: Harnessing Green Finance for Sustainability”. The event will gather policymakers, industry leaders, and investors from across Asia and the Middle East to explore how innovation, resilience, and cross-border collaboration can strengthen sustainable finance.
The full research report, Scaling Sustainable Debt in Emerging Markets, is available here.
More information on the DFSA–HKMA Joint Climate Finance Conference is available here.
