RIYADH: Saudi Arabia and the UAE now represent over 90 percent of the green bond market across the Arab region, according to a leading finance official.
Director-General and Chairman of the Arab Monetary Fund Fahad Al-Turki shed light on the remarkable growth of sustainable financing, indicating a burgeoning emphasis on eco-conscious financing initiatives.
There was a substantial surge in green bond issuances in the region in 2023, totaling $6.8 billion as of October, marking a 40 percent irise from 2022, according to the Emirates News Agency.
Speaking at the inauguration of the third meeting of the Arab Green and Sustainable Finance Network in Abu Dhabi, Al-Turki noted that the UAE and Saudi Arabia emerged as principal contributors to green bond issuance.
The conference convened delegates from Arab central banks, finance ministries, securities market authorities, as well as experts and speakers from various regional and international institutions.
Al-Turki underscored AgreFin’s role as a platform for sharing expertise and knowledge on eco-conscious finance, aiming to propel green economic activities, services, and products while fostering awareness of sustainable finance and climate change risk management.
It serves as a collaborative space for financial decision-makers in Arab nations to devise solutions, exchange best practices, and endorse investments aligned with environmental and social objectives, as reported by WAM.
Highlighting the imperative of transitioning to green and sustainable financing as a pivotal strategy in addressing climate change, Al-Turki emphasized the nexus between responsible financial practices and environmental impact, directing capital toward conscious initiatives.
He stressed its pivotal role in nurturing resilient and responsible growth in societies through informed decision-making, collaborative endeavors, and strategic planning, ultimately bolstering policies, investments, and actions that shape the planet’s future.
Al-Turki underscored AMF’s commitment to green and sustainable financing, recognizing the impact of climate change on the financial and banking sectors.
He highlighted the significance of integrating environmental, social, and governance standards in financial activities and investment policies across Arab countries to foster development and enhance energy security.
The fund has facilitated workshops and training courses, issued guidelines, and conducted research in partnership with Arab and international financial institutions to address these challenges effectively.
He stressed the importance of collective efforts for the success of the Arab Green and Sustainable Finance Network, underscoring the value of dialogues, idea exchanges, and shared experiences in advancing green and sustainable financing for a more prosperous future in Arab nations.
Additionally, Al-Turki expressed gratitude for the UAE’s sponsorship and support as the host country, acknowledging its role in enabling the network to fulfill its responsibilities.
