Arab News, Thu, Mar 07, 2024 | Shaban 26, 1445
Saudi Arabia and UAE responsible for 90% of region’s green bond market: AMF chairman
Saudi Arabia, Emirates:
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.