UAE and Saudi Arabia cement Gulf's dominance in Global ESG sukuk market in H1
Globally, outstanding ESG sukuk rose more than 12% year-on-year to reach the equivalent of $50 billion in the first six months of 2025, the rating agency said.
Nasdaq Dubai emerged as a key hub for US dollar-denominated ESG sukuk listings, alongside European exchanges such as Frankfurt, London, and Stuttgart.
The issuer base increased in the second quarter of 2025, with UAE-headquartered Omniyat Holdings issuing the first green sukuk, rated 'BB-'. The period also saw Saudi Arabia issuing new guidelines for green, social, and sustainability-linked debt instruments.
Fitch expects ESG sukuk issuance to moderate in the third quarter of 2025 due to seasonal summer trends in key markets, before rebounding in the last quarter of the year. The global ESG sukuk is likely to surpass $60 billion outstanding by the end of 2026.
However, geopolitical risks, evolving Sharia requirements, oil price volatility, and greenwashing concerns are likely to slow ESG sukuk issuance, the report said.
Fitch rates about three quarters of the global dollar ESG sukuk market, almost all of which is senior unsecured, and about 1% subordinated.
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