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UAE Green Sukuk Market

UAE Green Sukuk Market, valued at USD 11.8 Bn, is growing due to renewable energy focus, regulatory frameworks, and sustainability goals in Dubai and Abu Dhabi.

Region:Middle East

Author(s):Geetanshi

Product Code:KRAC1009

Pages:87

Published On:October 2025

About the Report

Base Year 2024

UAE Green Sukuk Market Overview

  • The UAE Green Sukuk Market is valued at USD 11.8 billion, based on a five-year historical analysis. This growth is primarily driven by increasing investments in sustainable projects, government initiatives promoting green financing, and a rising awareness of environmental issues among investors. The market has seen a surge in issuances as both public and private sectors seek to align with global sustainability goals, with UAE-based entities issuing around USD 3 billion in ESG sukuk in the first nine months of 2025 alone.
  • Key players in this market include the UAE, particularly Dubai and Abu Dhabi, which dominate due to their strategic initiatives in renewable energy and sustainable development. The UAE's commitment to diversifying its economy away from oil dependency and its ambitious sustainability targets have positioned it as a leader in the green finance sector within the region, with the country accounting for a significant share of global ESG sukuk issuances alongside Saudi Arabia.
  • The UAE has developed a comprehensive regulatory framework to support green sukuk, including the UAE Sustainable Finance Framework 2021, issued by the UAE Ministry of Finance. This framework establishes eligibility criteria for green and sustainable projects, mandates external review, and requires annual reporting to ensure transparency and alignment with international standards. Compliance is mandatory for sovereign issuances, and the framework is increasingly adopted by corporates and financial institutions seeking to access international capital markets.
UAE Green Sukuk Market Size

UAE Green Sukuk Market Segmentation

By Type:The market is segmented into various types, including Renewable Energy Projects, Energy Efficiency Projects, Sustainable Water Management, Waste Management Projects, Sustainable Agriculture, Green Buildings, Clean Transportation Projects, Climate Adaptation & Resilience Projects, and Others. Each of these subsegments plays a crucial role in addressing specific environmental challenges and attracting investments, with renewable energy and green buildings being particularly prominent in recent issuances.

UAE Green Sukuk Market segmentation by Type.

By End-User:The end-user segmentation includes Government Entities, Corporates, Non-Governmental Organizations, Financial Institutions, and Multilateral Development Banks. Each of these entities plays a significant role in driving demand for green Sukuk, with government entities and corporates leading through policy support, funding initiatives, and direct issuances. Financial institutions are also active, often acting as arrangers or co-issuers in the market.

UAE Green Sukuk Market segmentation by End-User.

UAE Green Sukuk Market Competitive Landscape

The UAE Green Sukuk Market is characterized by a dynamic mix of regional and international players. Leading participants such as Abu Dhabi Investment Authority (ADIA), Dubai Investments PJSC, Emirates NBD, First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Dubai Islamic Bank (DIB), Emirates Islamic, Sharjah Islamic Bank, Binghatti Holding, Abu Dhabi National Energy Company (TAQA), Dubai Electricity and Water Authority (DEWA), Masdar (Abu Dhabi Future Energy Company), National Bank of Fujairah, Ajman Bank, Noor Bank contribute to innovation, geographic expansion, and service delivery in this space.

Abu Dhabi Investment Authority (ADIA)

1976

Abu Dhabi, UAE

Dubai Investments PJSC

1995

Dubai, UAE

Emirates NBD

2007

Dubai, UAE

First Abu Dhabi Bank (FAB)

2017

Abu Dhabi, UAE

Dubai Islamic Bank (DIB)

1975

Dubai, UAE

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Total Green Sukuk Issuance (USD Millions)

Number of Green Sukuk Issued

Market Penetration Rate

Share of Green Sukuk in Total Sukuk Portfolio (%)

Average Coupon Rate (%)

UAE Green Sukuk Market Industry Analysis

Growth Drivers

  • Increasing Demand for Sustainable Financing:The UAE's commitment to sustainability is reflected in its Vision 2021, which aims for a 24% reduction in carbon emissions by 2024. This has led to a surge in demand for sustainable financing, with the green finance market projected to reach AED 150 billion in future. The global green bond market, valued at approximately $1 trillion, is also influencing local investments, driving the need for innovative financing solutions like Green Sukuk.
  • Government Initiatives and Support:The UAE government has introduced several initiatives to promote green financing, including the UAE Green Agenda 2015-2030, which aims to enhance the country's sustainability efforts. In future, the government plans to allocate AED 10 billion for renewable energy projects, further stimulating the Green Sukuk market. Additionally, the establishment of the Dubai Green Fund, with a target of AED 100 million, supports investments in sustainable projects, enhancing market growth.
  • Rising Awareness of Environmental Issues:Public awareness of environmental issues in the UAE has significantly increased, with 75% of residents expressing concern about climate change in a recent survey. This growing consciousness is driving demand for sustainable investment options. The UAE's participation in international climate agreements, such as the Paris Agreement, has also encouraged local investors to seek green financing solutions, further propelling the Green Sukuk market's growth.

Market Challenges

  • Limited Awareness Among Investors:Despite the growth potential, many investors in the UAE remain unaware of Green Sukuk and their benefits. A survey indicated that only 35% of institutional investors are familiar with green financing options. This lack of awareness hampers investment flows into sustainable projects, limiting the market's growth. Educational initiatives and outreach programs are essential to bridge this knowledge gap and encourage broader participation in the Green Sukuk market.
  • Regulatory Uncertainties:The regulatory landscape for Green Sukuk in the UAE is still evolving, leading to uncertainties that can deter potential investors. The absence of a comprehensive regulatory framework has resulted in inconsistent practices among issuers. In future, the UAE Central Bank is expected to introduce clearer guidelines, but until then, the lack of standardization may hinder the growth of the Green Sukuk market, affecting investor confidence and participation.

UAE Green Sukuk Market Future Outlook

The future of the UAE Green Sukuk market appears promising, driven by increasing government support and a growing emphasis on sustainability. As the UAE aims to diversify its economy away from oil dependency, investments in green projects are expected to rise significantly. In future, the market is likely to see enhanced collaboration between public and private sectors, fostering innovation in green financing. This shift will create a robust ecosystem for sustainable investments, attracting both local and international investors.

Market Opportunities

  • Expansion of Green Projects:The UAE's commitment to renewable energy, with plans to generate 50% of its energy from clean sources by 2050, presents significant opportunities for Green Sukuk. This expansion is expected to attract investments exceeding AED 30 billion in green infrastructure projects, enhancing the market's attractiveness to investors seeking sustainable options.
  • Collaboration with International Green Funds:The UAE's strategic location and strong financial sector position it as a hub for international green investments. Collaborating with global green funds can facilitate access to additional capital, with estimates suggesting that partnerships could unlock over AED 20 billion in funding for local green projects, further boosting the Green Sukuk market's growth potential.

Scope of the Report

SegmentSub-Segments
By Type

Renewable Energy Projects

Energy Efficiency Projects

Sustainable Water Management

Waste Management Projects

Sustainable Agriculture

Green Buildings

Clean Transportation Projects

Climate Adaptation & Resilience Projects

Others

By End-User

Government Entities

Corporates

Non-Governmental Organizations

Financial Institutions

Multilateral Development Banks

By Investment Source

Domestic Investors

Foreign Direct Investment

Public-Private Partnerships

Government Schemes

Sovereign Wealth Funds

By Application

Infrastructure Development

Urban Development

Transportation Projects

Industrial Projects

Social Infrastructure (Healthcare, Education)

By Policy Support

Subsidies

Tax Exemptions

Regulatory Credits

Green Taxonomy Alignment

By Market Maturity

Emerging Markets

Established Markets

By Risk Profile

Low Risk

Medium Risk

High Risk

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., UAE Ministry of Climate Change and Environment)

Green Project Developers

Financial Institutions (e.g., Central Bank of the UAE)

Environmental NGOs and Advocacy Groups

Real Estate and Infrastructure Developers

Islamic Financial Institutions

Corporate Sustainability Officers

Players Mentioned in the Report:

Abu Dhabi Investment Authority (ADIA)

Dubai Investments PJSC

Emirates NBD

First Abu Dhabi Bank (FAB)

Abu Dhabi Commercial Bank (ADCB)

Dubai Islamic Bank (DIB)

Emirates Islamic

Sharjah Islamic Bank

Binghatti Holding

Abu Dhabi National Energy Company (TAQA)

Dubai Electricity and Water Authority (DEWA)

Masdar (Abu Dhabi Future Energy Company)

National Bank of Fujairah

Ajman Bank

Noor Bank

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. UAE Green Sukuk Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 UAE Green Sukuk Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. UAE Green Sukuk Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Demand for Sustainable Financing
3.1.2 Government Initiatives and Support
3.1.3 Rising Awareness of Environmental Issues
3.1.4 International Investor Interest

3.2 Market Challenges

3.2.1 Limited Awareness Among Investors
3.2.2 Regulatory Uncertainties
3.2.3 Competition from Conventional Financing
3.2.4 Lack of Standardization in Green Projects

3.3 Market Opportunities

3.3.1 Expansion of Green Projects
3.3.2 Development of Green Financial Instruments
3.3.3 Collaboration with International Green Funds
3.3.4 Technological Advancements in Sustainability

3.4 Market Trends

3.4.1 Growth of ESG Investments
3.4.2 Increasing Role of Technology in Green Financing
3.4.3 Emergence of Green Bonds as a Financing Tool
3.4.4 Focus on Climate Resilience Projects

3.5 Government Regulation

3.5.1 Introduction of Green Sukuk Guidelines
3.5.2 Tax Incentives for Green Investments
3.5.3 Regulatory Framework for Sustainable Finance
3.5.4 Reporting Standards for Green Projects

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. UAE Green Sukuk Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. UAE Green Sukuk Market Segmentation

8.1 By Type

8.1.1 Renewable Energy Projects
8.1.2 Energy Efficiency Projects
8.1.3 Sustainable Water Management
8.1.4 Waste Management Projects
8.1.5 Sustainable Agriculture
8.1.6 Green Buildings
8.1.7 Clean Transportation Projects
8.1.8 Climate Adaptation & Resilience Projects
8.1.9 Others

8.2 By End-User

8.2.1 Government Entities
8.2.2 Corporates
8.2.3 Non-Governmental Organizations
8.2.4 Financial Institutions
8.2.5 Multilateral Development Banks

8.3 By Investment Source

8.3.1 Domestic Investors
8.3.2 Foreign Direct Investment
8.3.3 Public-Private Partnerships
8.3.4 Government Schemes
8.3.5 Sovereign Wealth Funds

8.4 By Application

8.4.1 Infrastructure Development
8.4.2 Urban Development
8.4.3 Transportation Projects
8.4.4 Industrial Projects
8.4.5 Social Infrastructure (Healthcare, Education)

8.5 By Policy Support

8.5.1 Subsidies
8.5.2 Tax Exemptions
8.5.3 Regulatory Credits
8.5.4 Green Taxonomy Alignment

8.6 By Market Maturity

8.6.1 Emerging Markets
8.6.2 Established Markets

8.7 By Risk Profile

8.7.1 Low Risk
8.7.2 Medium Risk
8.7.3 High Risk

9. UAE Green Sukuk Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Total Green Sukuk Issuance (USD Millions)
9.2.4 Number of Green Sukuk Issued
9.2.5 Market Penetration Rate
9.2.6 Share of Green Sukuk in Total Sukuk Portfolio (%)
9.2.7 Average Coupon Rate (%)
9.2.8 Tenor/Maturity Profile (Years)
9.2.9 ESG/Sustainability Ratings
9.2.10 Use of Proceeds Transparency Score
9.2.11 Project Completion Rate
9.2.12 Sustainability Impact Metrics (e.g., CO? Emissions Avoided, MW Renewable Capacity Financed)
9.2.13 Investor Base Diversification (Domestic vs International)
9.2.14 Reporting & Disclosure Practices

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Abu Dhabi Investment Authority (ADIA)
9.5.2 Dubai Investments PJSC
9.5.3 Emirates NBD
9.5.4 First Abu Dhabi Bank (FAB)
9.5.5 Abu Dhabi Commercial Bank (ADCB)
9.5.6 Dubai Islamic Bank (DIB)
9.5.7 Emirates Islamic
9.5.8 Sharjah Islamic Bank
9.5.9 Binghatti Holding
9.5.10 Abu Dhabi National Energy Company (TAQA)
9.5.11 Dubai Electricity and Water Authority (DEWA)
9.5.12 Masdar (Abu Dhabi Future Energy Company)
9.5.13 National Bank of Fujairah
9.5.14 Ajman Bank
9.5.15 Noor Bank

10. UAE Green Sukuk Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Climate Change and Environment
10.1.2 Ministry of Energy and Infrastructure
10.1.3 Ministry of Finance

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Renewable Energy Projects
10.2.2 Budget Allocation for Sustainable Development
10.2.3 Corporate Social Responsibility Initiatives

10.3 Pain Point Analysis by End-User Category

10.3.1 Funding Limitations
10.3.2 Regulatory Compliance Challenges
10.3.3 Project Viability Concerns

10.4 User Readiness for Adoption

10.4.1 Awareness of Green Financing Options
10.4.2 Training and Capacity Building Needs
10.4.3 Technological Readiness

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of Sustainability Outcomes
10.5.2 Expansion into New Projects
10.5.3 Long-term Financial Benefits

11. UAE Green Sukuk Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development

1.3 Value Proposition Analysis

1.4 Competitive Landscape Overview

1.5 Customer Segmentation

1.6 Revenue Streams

1.7 Cost Structure


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Market Positioning

2.4 Communication Strategies

2.5 Digital Marketing Approaches


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups

3.3 Online Distribution Channels

3.4 Partnerships with Financial Institutions


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitor Pricing Strategies

4.4 Customer Willingness to Pay


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments Analysis

5.3 Emerging Trends in Consumer Preferences


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service

6.3 Customer Feedback Mechanisms


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Competitive Advantages


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Initiatives

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix Considerations
9.1.2 Pricing Band Strategy
9.1.3 Packaging Options

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines for Implementation


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of existing literature on Green Sukuk frameworks and regulations in the UAE
  • Review of market reports from financial institutions and sustainability organizations
  • Examination of government publications and policy documents related to green financing

Primary Research

  • Interviews with financial analysts specializing in Islamic finance and green investments
  • Surveys with corporate treasurers involved in issuing Green Sukuk
  • Field interviews with representatives from regulatory bodies overseeing green financing

Validation & Triangulation

  • Cross-validation of findings through multiple data sources including market reports and expert opinions
  • Triangulation of qualitative insights from interviews with quantitative data from market analysis
  • Sanity checks through expert panel discussions to ensure data reliability

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of the total green financing market size in the UAE based on national economic indicators
  • Segmentation of the market by industry sectors actively participating in Green Sukuk issuance
  • Incorporation of government targets for renewable energy and sustainability initiatives

Bottom-up Modeling

  • Analysis of historical issuance data of Green Sukuk from major financial institutions
  • Estimation of potential future issuances based on project pipelines in renewable energy
  • Volume and pricing analysis of existing Green Sukuk to establish a baseline for projections

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating economic growth, regulatory changes, and investor sentiment
  • Scenario modeling based on varying levels of government support and market adoption rates
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Green Sukuk Issuers60Corporate Treasurers, CFOs of issuing companies
Investors in Green Sukuk50Portfolio Managers, Institutional Investors
Regulatory Bodies40Policy Makers, Financial Regulators
Financial Analysts45Investment Analysts, Research Analysts
Project Developers in Renewable Energy40Project Managers, Sustainability Officers

Frequently Asked Questions

What is the current value of the UAE Green Sukuk Market?

The UAE Green Sukuk Market is valued at approximately USD 11.8 billion, reflecting significant growth driven by investments in sustainable projects and government initiatives promoting green financing.

What factors are driving the growth of the UAE Green Sukuk Market?

Which sectors are most prominent in the UAE Green Sukuk Market?

Who are the key players in the UAE Green Sukuk Market?

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KSA Green Sukuk Market

APAC Green Sukuk Market

SEA Green Sukuk Market

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