Exclusive Interview with Mr. By: Sayed Adnan,Chief Business Officer, Graystone Capital
- What structural advantages allowed the UAE to pull so far ahead?
The UAE’s leadership rests on regulatory clarity, strategic vision and a deep bench of repeat issuers. The Securities and Commodities Authority’s 2023 rules on green and sustainability-linked bonds and sukuk follow ICMA principles, so international investors recognise the framework immediately. The Net Zero 2050 commitment and the success of COP28 gave banks and GREs a clear direction.
UAE issuance grew 12% in the first nine months of the year, during a challenging period for global and regional capital markets. That resilience reflects the strength of the country’s institutions and the confidence investors place in them.
- How is the UAE using Islamic finance to attract international investors?
Sukuk gives issuers two investor pools in one instrument. It reaches Islamic banks, which hold a large share of GCC banking assets, as well as global ESG funds seeking labelled, transparent paper. Sukuk now represents 43% of the $72.9 billion of outstanding GCC ESG debt.
The UAE has built real credibility here through repeat issuance from names such as ADIB, whose green issuance was the first US dollar green sukuk from a financial institution, and Tabreed, which raised $700 million in green sukuk in 2025. The result is broader order books and a more diversified investor base, reinforcing the UAE’s position as a global centre for Islamic finance.
- How are UAE banks helping heavy industry transition?
UAE banks are moving beyond financing what is already green to supporting companies on their transition journey. First Abu Dhabi Bank has mobilised about AED 381 billion since 2022, or 76% of its AED 500 billion target for 2030. Emirates NBD launched what it describes as the UAE’s first Transition Finance Framework in August, aimed at hard-to-abate sectors and aligned with ICMA and LMA guidance, with a DNV second-party opinion.
The UAE has also led globally in aviation. Etihad’s $600 million sukuk in 2020 was billed as the world’s first transition sukuk, with terms linked to carbon targets. Steel and aluminium are natural next steps, with financing tied to measurable decarbonisation milestones.
- Is the market open to mid-sized issuers and GREs?
GREs have excellent access, supported by strong credit profiles and established frameworks. For mid-sized corporates, the market is opening steadily. Sobha Realty’s green sukuk shows that the investor base now extends well beyond traditional names.
As with any developing market, smaller issuers need to plan for benchmark sizes, ratings, frameworks, second-party opinions and ongoing reporting. Sustainability-linked loans, private placements, club deals and local-currency issuance are excellent first steps, helping these companies build a track record before entering the public market. The UAE is well placed to lead this next phase of broader participation.
- What are the main bottlenecks?
This year’s lower issuance is cyclical and reflects global and regional market conditions, not any weakening in fundamentals. Fitch recorded about $8 billion of GCC ESG issuance in the first nine months, while outstanding ESG debt grew 18% to $72.9 billion. Spreads also improved by June, which shows the market’s resilience.
The opportunities for faster growth are the same as in other maturing markets worldwide: widening the issuer base, building pipelines of eligible assets, streamlining disclosure and reporting costs, and continuing to develop transition standards. Fitch expects issuance to pick up in Q4 and into 2027, and the region’s strong fundamentals support that outlook.
- Will Saudi Arabia challenge the UAE’s 61% share?
Saudi Arabia is a tremendously important market. It accounts for 48% of the $1.2 trillion GCC debt market, and Vision 2030 represents one of the world’s most ambitious transformation programmes. Saudi issuers are also already major players in global ESG sukuk. I expect its sustainable issuance to grow strongly over the next 12 to 24 months as its pipeline comes to market.
I don’t see this as a contest. Growth in both markets benefits the whole region, bringing more scale, more liquidity and more international investors to the GCC. The UAE’s strength in frameworks and repeat issuers and Saudi Arabia’s scale are complementary, and together they will strengthen the GCC’s position in global sustainable finance.