UAE’s SCA reports surging figures in green bonds and sukuk registration

Chairman Al Shorafa says the UAE government’s judgment to exempt registration costs for issuing these sukuk and bonds has led to the surge.

Key Highlights:

• The Securities and Commodities Authority (SCA) witnessed a remarkable surge in the total value of green and sustainability-linked bonds and sukuk registered, reaching an impressive AED15.45 billion ($4.21 billion) over the initial 11 months of this year.

• Mohamed Ali Al Shorafa, Chairman of the SCA Board, commended the UAE’s unwavering commitment to sustainability during the COP28 summit. He emphasized the authority’s initiative to regulate the issuance of green and sustainability-linked bonds and sukuk, marking a significant step toward transforming the UAE into a global economic hub over the next decade.

• Companies aiming to list their green or sustainability-linked bonds or sukuk in the local market this year received a waiver on registration fees by SCA. Al Shorafa hailed this move as a pivotal beginning, triggering a substantial surge in the demand for these types of sukuk and bonds.

This surge in green and sustainability-linked financial instruments reflects a growing trend in aligning financial markets with sustainable initiatives, underscoring the UAE’s proactive stance in fostering an environmentally conscious and responsible financial landscape.