Green bonds are becoming key investment options for environmentally conscious investors and vital tools for raising capital for sustainable development. These bonds finance environmental projects, offering investors financial returns, improved ESG scores, and tax benefits. For example, Saudi Arabia's Public Investment Fund issued a USD 5.5 billion green bond in February 2023.

In 2023, global green bond sales reached USD 492.3 billion, with Europe leading the market. The Middle East, led by Saudi Arabia and the UAE, is seeing significant growth, highlighted by USD 7.95 billion in sustainable debt issuances at the COP28 Climate Change Conference in Dubai. Emerging markets, particularly in the Middle East, Africa and Latin America, are expected to play a major role in ESG bond issuance. Regulatory frameworks are evolving to enhance transparency, with the Middle East moving towards mandatory ESG disclosure.