ESG sukuk issuance jumps 21% to $6.8bn in H1: Moody's
ESG sukuk issuance jumps 21% to $6.8bn in H1: Moody's/node/2572613/business-economy
ESG sukuk issuance jumps 21% to $6.8bn in H1: Moody's
Green sukuk, which are Shariah-compliant investments in renewable energy and environmental assets, have gained traction as markets shift toward sustainable financing. Shutterstock
ESG sukuk issuance jumps 21% to $6.8bn in H1: Moody's
Growth attributed to ongoing decarbonization efforts in Islamic countries and guidance from the International Capital Market Association
GCC economies accounted for 82% of sustainable sukuk issuance in the first half of 2024
Updated 24 September 2024
Nirmal Narayanan
RIYADH: Global issuance of environmental, social, and governance sukuk surged 21 percent year-on-year in the first half of the year, reaching $6.8 billion, according to an analysis by Moody’s.
The growth is attributed to ongoing decarbonization efforts in Islamic countries and guidance from the International Capital Market Association.
Green sukuk, which are Shariah-compliant investments in renewable energy and environmental assets, have gained traction as markets shift toward sustainable financing.
“Sustainable sukuk issuance is rising from a low base as such we expect issuance in 2024 to top the $10.6 billion that it logged in 2023 — itself a big jump from $6.3 billion in 2022 — driven by the growing push toward decarbonization, expanding policy efforts and robust investor demand,” said Abdulla Al-Hammadi, assistant vice president and analyst at Moody’s Ratings.
Gulf Cooperation Council economies accounted for 82 percent of sustainable sukuk issuance in the first half of 2024, with Saudi Arabia and the UAE contributing 42 percent and 33 percent of the total, respectively.
The report indicates that the growth of these sustainable Islamic bonds will accelerate amid global efforts to reduce carbon emissions.
“As most countries with active sukuk markets, such as in the Middle East and Southeast Asia, have rolled out energy transition plans, with renewable energy targets, financing through sustainable sukuk will be a key lever for them to meet their decarbonization goals,” added Moody’s.
While conventional sustainable bond issuance declined by 8 percent in the same period, sustainable sukuk are appealing to Islamic and conventional investors looking to implement sustainable investment strategies.
“A key appeal is that the instrument (green sukuk) provides transparency in its use of proceeds. About 74 percent of sustainable sukuk have been issued in non-local currencies, indicating strong international demand. As such, we expect that growth in sustainable sukuk will accelerate, garnering a larger share of the sukuk market,” said Moody’s.
In July, Fitch Ratings reported that ESG sukuk issuance in key Islamic finance markets — such as the GCC, Malaysia, Indonesia, Turkiye, and Pakistan — increased by 13 percent year on year, reaching $6.3 billion in the first half of 2024.
Looking ahead, Moody’s expects the governments of Saudi Arabia and Oman to issue their first sustainable sukuk, following the introduction of sustainable finance frameworks.
Additionally, more private companies are anticipated to enter the market for green Islamic bonds in the coming months, with established sukuk issuers likely considering sustainable instruments to attract a broader investor base.
Startups attract fresh capital to scale AI, health tech, and infrastructure
Updated 06 December 2025
Nour El-Shaeri
RIYADH: Startups across the Middle East and North Africa are accelerating growth through strategic funding rounds, partnerships, and technological innovation.
From agriculture tech and AI-led cybersecurity to digital health and home renovation, this week’s developments reflect the region’s expanding startup ecosystem and investor confidence across key verticals.
Saudi agritech startup Nabt has raised $3.4 million in a seed extension round, bringing its total funding to $5 million.
The round was led by SHG Group, with participation from Merak Capital and several angel investors, signaling strong investor confidence in the company’s long-term growth strategy.
The funding announcement took place during a signing ceremony at the Sunbola program event under the Ministry of Environment, Water, and Agriculture.
Founded to build both physical and digital infrastructure for the fresh-produce sector, Nabt connects farmers directly with commercial buyers through fulfillment centers that handle sorting, cold storage, and last-mile logistics.
The company recently launched the Nabt Online Auction to support large-scale produce trading across the Kingdom, and Nabt Intel, which provides real-time pricing and market-demand data.
CEO Abdullah Al-Otaibi said: “In just two years, Nabt has proven that building transparent and efficient infrastructure for fresh produce is not only possible but essential.”
The new capital will support expansion into additional Saudi cities and further develop Nabt’s infrastructure and services to boost food security and farmer profitability across the country.
COGNNA raises $9.2m
COGNNA, a Saudi cybersecurity company founded in 2022, has closed a $9.2 million series A round led by Impact46 and co-led by BNVT Capital, with participation from Vision Ventures and Tali Ventures.
The company offers AI-driven security operations tailored for enterprises and SMEs through its Agentic SOC platform.
Combining AI automation with human oversight, COGNNA’s platform helps organizations simplify compliance and proactively defend against cyber threats.
Chief Technology Officer Ziyad Al-Sheri stated: “Through our AI-led platform, we are building an Agentic SOC that doesn’t just respond to threats — it anticipates them.”
The funding will be used to accelerate global expansion, enhance R&D in AI automation, and scale operational teams and infrastructure to meet growing demand.
The company plans to allocate capital across product development, marketing, hiring, and international operations.
Funch raises $500k
Funch, a Dubai-based AI-native lunch subscription startup, has secured $500,000 in a pre-seed round led by Angelspark, with participation from investors including Mostafa Kandil, Mahesh Murthy, and Tushar F.
Founded in 2025 by Ahmad Joehnny and Ghada Zanaty, the platform offers flexible, credit-based lunch subscriptions for 19 Emirati dirhams per day with no delivery fees.
Founded in 2025 by Ahmad Joehnny and Ghada Zanaty, Funch offers flexible, credit-based lunch subscriptions with no delivery fees. (Supplied)
Funch replaces traditional meal plans with a system where users can pause, skip, or cancel orders while using credits only when meals are delivered.
“Our model is built around pre-planned orders, enabling us to operate with higher efficiency, reduce waste, and cut emissions with fewer trips,” said co-founder and chief operating officer Ghada Zanaty.
The company leverages AI to forecast demand, optimize routes, rotate menus, and streamline logistics, and will use the funding to scale across Dubai and develop its AI systems further.
Paymob teams up with Robusta
Egyptian fintech Paymob and software development firm Robusta Technology Group have announced a strategic partnership to accelerate digital transformation across Egypt and the wider region.
The collaboration will integrate Paymob’s digital payments infrastructure with Robusta’s AI-driven product development and analytics capabilities.
The joint initiative aims to deliver intelligent digital experiences for SMEs and enterprises, supporting Egypt’s Vision 2030 goals.
Both companies plan to expand regionally and develop future offerings combining automation, analytics, and seamless payment systems to improve operational efficiency for merchants and startups.
Reno raises $4m
UAE-based renovation technology platform Reno has raised $4 million in a mix of equity and debt funding.
The round included investments from Sanabil 500, Hub71, and Plus VC, as well as Zero 100 VC, FlyerOne Ventures, and Sandstorm VC. AngelSpark and Swiss Founders Fund also invested.
Founded in 2024 by Marc Michel, Amr Hosny, and Farah Karabeg, Reno offers a tech-enabled, end-to-end solution for interior design and renovation services in both residential and commercial sectors.
Reno aims to streamline the renovation process through a unified digital platform, allowing customers to manage projects from planning through execution.
The company plans to use the new capital to expand across the GCC region, enhance its technological infrastructure, and further develop its customer experience.
Glenwood PE and Mubadala invest in Korean desalination firm NanoH2O
Glenwood Private Equity and Abu Dhabi’s Mubadala Investment Company, along with co-investors, have completed a co-investment in NanoH2O, a Seoul-based reverse osmosis membrane manufacturer previously operating as LG Water Solutions under LG Chem.
All closing conditions and regulatory approvals for the investment have been fulfilled.
NanoH2O, which became an independent entity in 2024, supplies desalination and brackish water treatment solutions to municipal and industrial clients worldwide. More than 95 percent of its revenue is generated outside South Korea.
“We have strong conviction in NanoH2O’s technology leadership and long-term growth potential,” said Mohamed Al-Badr, head of Asia at Mubadala.
The firm aims to support NanoH2O’s global expansion, particularly in the MENA region, amid growing concerns over water security and decarbonization.
