UAE Green Sukuk Market - Ken Research Stated the Sector Valued at USD 11.8 Billion with Strong Growth Potential

Comprehensive market analysis maps issuance momentum, investment flows, and strategic imperatives for issuers, investors, and financial institutions in the UAE's rapidly expanding sustainable finance ecosystem.

Delhi, India - January 28, 2026 - Ken Research released its strategic market analysis titled "UAE Green Sukuk Market," stating that the current market size is valued at USD 11.8 billion, based on a five-year historical analysis. The detailed study outlines how the market is expanding, driven by the UAE's national sustainability agenda, increasing adoption of ESG-aligned Islamic finance instruments, rising demand for climate-linked funding, regulatory support for sustainable finance, and growing participation from government-linked and private issuers across Dubai and Abu Dhabi.

The 80+ page report provides decision-makers with critical intelligence on market dynamics, issuance trends, competitive positioning, and investment opportunities across the UAE's green finance ecosystem. With accelerating ESG issuance activity and rising international investor participation, the analysis identifies a clear inflection point for green sukuk scale-up and diversification.

"The UAE has emerged as a regional hub for sustainable Islamic finance," said Namit Goel, Research Director at Ken Research. "Green sukuk issuance is transitioning from niche renewable-focused funding to a multi-sector instrument supporting energy transition, green buildings, water sustainability, and climate resilience."

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Key Market Dynamics Reshaping the UAE Green Sukuk Landscape

The report identifies four key growth drivers defining market development:

National Sustainability and Net-Zero Alignment

The UAE's Net Zero 2050 strategy and broader climate commitments are accelerating demand for Shariah-compliant green financing. Green sukuk is increasingly being used to fund renewable energy projects, energy efficiency upgrades, sustainable real estate developments, and climate-resilient infrastructure, creating a structurally supportive long-term market environment.

Strengthening Regulatory and Governance Frameworks

The introduction of sustainable finance frameworks and clearer green eligibility guidelines has improved transparency, credibility, and investor confidence. Enhanced disclosure requirements, external reviews, and alignment with international ESG principles are reducing issuance friction and supporting repeat issuance from both sovereign-linked and corporate entities.

Issuer Base Diversification

While early issuance was driven largely by government-related entities and large banks, the market is now seeing participation from real estate developers, utilities, financial institutions, and project-level issuers. This diversification is expanding deal flow and enabling green sukuk structures across a wider set of asset classes.

Rising Global Investor Demand for ESG Sukuk

International investors seeking both ESG exposure and Shariah-compliant instruments are increasing allocations to UAE green sukuk. This growing demand is supporting competitive pricing, longer tenors, and broader currency participation, strengthening the UAE's position as a regional issuance hub.

Critical Strategic Questions Addressed

For executives and investors navigating the evolving green finance landscape, the report addresses four pivotal questions:

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Issuance Strategy and Timing

Which sectors and green asset classes offer the strongest issuance momentum, and how should issuers sequence sukuk offerings to align with project funding needs and market liquidity conditions?

Regulatory Navigation and Compliance

How can issuers structure green sukuk to meet evolving sustainability frameworks, reporting expectations, and Shariah compliance requirements while maintaining flexibility for future issuances?

Competitive Positioning

Which banks, arrangers, and financial institutions are leading green sukuk structuring and distribution, and how are competitive advantages forming around ESG credibility, distribution reach, and structuring expertise?

Investment Prioritization

Which green sectors-renewables, green buildings, water management, clean transport, or climate resilience-offer the strongest risk-adjusted returns, and where are emerging white-space opportunities developing?

Critical Infrastructure and Policy Developments

The report highlights several infrastructure and policy developments shaping market growth:

Expansion of Green Project Pipelines

Large-scale renewable energy capacity additions, green real estate projects, and water sustainability investments are expanding the pipeline of bankable green assets suitable for sukuk financing.

Integration of ESG into Capital Markets

Sustainable finance considerations are increasingly embedded into capital market planning, enabling issuers to combine environmental objectives with long-term capital efficiency.

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Evolving Reporting and Impact Measurement Standards

Improved impact reporting and post-issuance transparency are strengthening investor confidence and enabling the UAE to attract long-term global ESG capital.

Government-Led Market Signaling

Policy-backed issuance and public sector participation continue to provide credibility, market depth, and confidence for private sector green sukuk issuance.

Strategic Value for Decision-Makers

"What differentiates this analysis is its focus on practical decision support," noted Harsh Saxena, Principal at Ken Research. "Beyond market sizing, we evaluate issuance structures, regulatory readiness, sector-level opportunities, and competitive dynamics to support informed capital allocation."

The 120+ page mandate delivers essential market intelligence for executives and investors, including:

Detailed segmentation by use of proceeds, issuer type, sukuk structure, and maturity profile

Historical analysis and forward-looking issuance outlook through 2030

Competitive benchmarking of leading issuers, arrangers, and financial institutions

Opportunity mapping across renewable energy, green real estate, utilities, and climate resilience

Regulatory and sustainability framework analysis covering eligibility, governance, and reporting standards

"As the UAE continues positioning itself as a global hub for sustainable finance, green sukuk will play a central role in mobilising capital for the energy transition," added Harsh Saxena, Principal at Ken Research. "This report equips stakeholders with the insights required to participate effectively in this evolving market."

Industry executives seeking access to the complete analysis can contact Ken Research directly or visit:

https://www.kenresearch.com/uae-green-sukuk-market?utm_source=OpenPR&utm_medium=Referral&utm_campaign=PR

Related Report

https://www.kenresearch.com/gcc-green-sukuk-market?utm_source=OpenPR&utm_medium=Referral&utm_campaign=PR

Contact:
Ankur Gupta
ankur.gupta@kenresearch.com
+91 9015378249

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Ken Research delivers strategic market intelligence that drives confident decision-making for industry leaders. With specialized expertise in high-growth markets across emerging economies, the firm provides data-driven insights that translate into competitive advantage for global organizations and investors.

This release was published on openPR.