UAE: Fitch Ratings has reported a surge in demand for ESG Sukuk in the UAE ahead of COP28 [2023 United Nations Climate Change Conference], according to a dashboard report. The total value of outstanding ESG Sukuk in the UAE rose by 41% quarter-on-quarter to reach US$6.4 billion by the end of Q3 2023.
This growth was mainly driven by banks and corporates. During the same period, UAE ESG Sukuk issuance accounted for 80.6% of the global total. The UAE holds 19.2% of the global outstanding ESG Sukuk market, and the largest share of ESG Sukuk in the GCC (Q3 2023: 52%), followed by Saudi Arabia (40.6%), the report stated further.