Fitch Ratings at the World Green Economy Summit in Dubai released fresh data: UAE issuers accounted for about 61% of Gulf sustainable debt in the first nine months of 2026 — across all currencies. The Gulf region as a whole delivered around 40% of emerging-market USD sustainable debt excluding China. Most sustainability sukuk carry investment-grade ratings with Stable Outlook.
What Fitch told WAM
The data was shared by Bashar Al Natoor, Managing Director and Global Head of Islamic Finance at Fitch Ratings, in an interview with Emirates News Agency (WAM) on the sidelines of the World Green Economy Summit in Dubai. On his count the UAE share of Gulf sustainable debt issuance for January-September 2026 is around 61% in all currencies. For context, the entire Gulf region delivered about 40% of emerging-market USD sustainable debt ex China — a striking number in a market usually dominated by Latin America and Eastern Europe.
Al Natoor also flagged quality: the majority of the sustainability-related sukuk in question carry investment-grade credit ratings, with a significant proportion assigned Stable Outlooks. In other words, the market has moved past the «new instrument» phase into institutional portfolios.
Why the UAE
UAE leadership in sustainable finance rests on three overlapping layers. State agenda — Net Zero 2050 target, post-COP28 climate finance infrastructure, mandatory ESG reporting for listed companies. Banking depth — Emirates NBD, First Abu Dhabi Bank and Dubai Islamic Bank consistently price green tranches, including for projects abroad. Regulatory environment — reforms covered in detail in our analysis «UAE Business Regulation 2026», including the country's exit from the FATF and EU grey lists and the launch of VARA v2.0, have compressed the risk premium for international investors.
Add recurring large deals this very October: Masdar prices a $600 million blue bond with more than 2x oversubscription, DP World taps green sukuk for logistics infrastructure, and sovereign issuers and free zones layer impact metrics onto standard borrowing programmes.
What this means for UAE business
For international investors, a 61% regional share means the UAE has effectively become the gateway to Middle East sustainable finance: a fund seeking MENA diversification routes through DFM, ADX and Nasdaq Dubai rather than hunting single-name issues in neighbouring markets. For local corporates this translates into a practical lever. Large firms with environmental or social projects access longer tenors at lower coupons than classical corporate debt — ESG mandate demand is outrunning supply.
Mid-market businesses access the trend through green credit lines at domestic banks: preferential rates on energy-efficient equipment, EV fleets, emission-reduction systems. This is one dimension of the broader 2026 macro picture we unpacked in «UAE Economy in 2026: Diversification Under Stress Test» — funding rotates towards the sectors of the future, not the past.
Outlook: growth and instrument diversification
Fitch notes aggregate sustainable finance volumes in the region softened in 9M 2026 on macro conditions, but the medium- to long-term outlook is upward, with product diversification: alongside classical green bonds and sustainability sukuk the market is seeing transition bonds, blue bonds (ocean), social sukuk and sustainability-linked loans. The 2026-2028 window is when UAE businesses can build ESG infrastructure while regulation is still forming and coupons still carry a «first-issue» premium.
