UAE Mega Projects Boost Sukuk and Bond Issuance for Sustainable Growth

The UAE is experiencing rapid growth in mega projects, prioritizing sustainability and diversifying funding sources. This trend supports increased sukuk and bond issuance in the coming years. Analysts predict a surge in sustainable investments, particularly in infrastructure, real estate, and renewable energy projects across the country.

The UAE is in the midst of a transformative phase, witnessing a surge in mega projects across key sectors such as infrastructure, renewable energy, and real estate development. These initiatives are in line with the nation's vision of embedding sustainability into its economic policies and have become pivotal in driving sukuk and bond issuances.

Reports from leading credit rating agencies, including Standard & Poor's and Fitch, suggest a growing dependence on these financial instruments, emphasizing the importance of diversifying funding sources. Bashar Al Natoor, leading Fitch Ratings' Islamic Finance Group, mentioned that while conventional financing dominates, sukuk and bonds are gaining traction as demand for innovative solutions increases.

The Emirates News Agency highlighted Al Natoor's forecast on the rising reliance on bonds and sukuk for financing future projects. This trend comes as both private and government sectors in the UAE aim to adopt alternatives to traditional funding methods, supporting ambitious projects like Dubai's infrastructure developments and green initiatives for net-zero emissions by 2050.

(With inputs from agencies.)