MENA sustainable finance market hits $35.1bn in 2025, shows report

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🗞️ Driving the news: The Middle East and North Africa’s sustainable finance market reached $35.1bn in 2025, highlighting the region’s growing role in funding climate-aligned projects
• Issuance expanded sevenfold since 2020, despite falling 18% from its 2023 peak amid global market headwinds
• Financial institutions now dominate nearly half of all issuance as banks adopt sustainability frameworks and decarbonise their balance sheets

🔭 The context: Sustainable finance in MENA is increasingly shaped by regulation, banking activity, and infrastructure needs
• Saudi Arabia became the region’s largest issuer in 2025 as green-labelled instruments surged to fund renewables, low-carbon infrastructure, and water-efficiency projects
• Rising investment in AI-driven data centres is intensifying focus on energy efficiency, water security, and climate-resilient assets

🌍 Why it matters for the planet: The growth of green-labelled financing channels capital toward projects that cut emissions, improve water efficiency, and strengthen climate resilience
• Funding renewables and low-carbon infrastructure helps reduce fossil-fuel dependence in a high-emissions region
• Increased attention to water security and energy efficiency is critical for adapting to climate stress in arid and heat-vulnerable environments

⏭️ What’s next: The market is expected to deepen as disclosure standards and climate risk assessments become key differentiators
• Adoption of ISSB-aligned reporting and transition planning could unlock larger flows of sustainable capital
• AI data centre expansion is likely to further accelerate investment in climate-resilient and resource-efficient infrastructure

💬 One quote: “The shift toward bank-led and green-labelled financing reflects a more durable market structure well positioned for further growth,” said Grace Osborne, ESG analyst at Bloomberg Intelligence

📈 One stat: $35.1bn in sustainable finance issuance across MENA in 2025

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