UAE .. major projects and sustainability pillars enhance the releases of bonds and sukuk

Abu Dhabi on February 1/ WAM/ The UAE is witnessing an accelerated development in its major projects, which extend across vital sectors such as infrastructure, renewable energy and real estate development, within the framework of a strategic vision that places sustainability at the heart of its economic policies.
These major projects and the process of focusing on sustainable projects that support climate plans in the country are highlighted as basic pillars of sukuk and bond versions in the coming years.
The two global credit rating agencies “Standard and Poor’s” and “Fitch” expected the increasing relying on publications in the coming years, driven to move towards diversifying financing sources and promoting sustainable investments.
Bashar Al -Natour, Executive Director and Global President of Islamic Finance at the Global Credit Codex Agency, said that although the largest part of major project financing still depends on traditional financing methods, these projects contributed to strengthening the issuance market by creating a request on Innovative and sustainable financing sources during the past years, stressing that the sukuk and bonds have contributed to partial financing for some previous projects.
In statements to the Emirates News Agency, “WAM”, the growth of reliance on bonds and sukuk expected to finance projects during the coming years in light of the pursuit of public and private institutions in the Emirates and other markets of the region to develop other tools away from traditional tools.
He said that several projects have been announced, both on both special or governmental levels, which will be established during the coming years, including a number of real estate projects, infrastructure projects, renewable and sustainable energy projects.
He added that in Dubai – for example – the infrastructure sector and its construction projects acquired 46% of the total expenditures of the government in the 2025-2027 budget, which are projects that are concerned with roads, tunnels, bridges, transportation means, sewage stations, gardens, parks, renewable power stations, and the rainwater drainage network development plan In addition to the project of developing Al Maktoum Airport, which was announced earlier last year, and other projects aimed at supporting the quality of life and smart and sustainable transport in Dubai.
Al -Natour pointed out that the UAE, through its strategic vision of climate neutrality by 2050, is working to launch a series of green projects that aim to achieve economic and environmental sustainability, which constitutes a pivotal factor in supporting the market and bonds market in this sector.
He stressed that this strategy will lead to an increase in publications in both sukuk and bonds from various institutions and sectors, to finance sustainable projects that are in line with the environmental goals of the state, which we saw before during the previous period.
Al -Natour considered that the green projects planned by the UAE represent a strategic direction that attracts global investors interested in investing in the financial instruments related to sustainability.
For its part, Gobta Gold, director of the sovereign classifications at Standard & Poor’s Global Credit Code Dollar and the project to build a rainwater drainage network, which will be completed in stages by 2033 in Dubai, with a value of $ 8.2 billion.
She explained that low interest rates will contribute to the growth growth of companies and individuals, including mortgage.
She said that at the Federal level of the UAE, the government began in foreign currency publications in 2021 and Treasury bonds in local currency in May 2022, followed by Local currency bonds in April 2023 that would support the development of capital markets in the United Arab Emirates and help build the return curve For non -sovereign exporters.

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