TLDR:
UAE leads bond issuances in MENA
Partnership with LSE bolsters UAE growth
Sustainable investments drive UAE’s capital market
DUBAI (The Thursday Times) — The United Arab Emirates (UAE) has emerged as a driving force in the Middle East and North Africa (MENA) region’s financial landscape, thanks to its significant contributions to bond issuances. According to Charlie Walker, Deputy CEO of the London Stock Exchange (LSE), the UAE continues to push economic growth forward, both regionally and globally. Through strategic collaborations and advanced infrastructure, the UAE is solidifying its position as a global economic powerhouse.
Walker’s remarks were made during his visit to Abu Dhabi, where he emphasized the strong relationship between the UAE and the LSEG. The UAE’s economic success in the bond market reflects its ability to attract substantial capital to fund its ambitious projects. Bond issuances, particularly in renewable energy, infrastructure, and technology, have played a key role in this upward trajectory.
Strong government policies drive UAE’s financial growth
The UAE’s ability to lead in the bond market is not a coincidence. According to Walker, the country’s robust governmental policies and strategic alliances with entities like the LSEG have laid the foundation for this growth. By creating a business environment that encourages investment and innovation, the UAE has become a hub for bond issuances and capital market activities.
The strategic partnership between the London Stock Exchange Group and the Abu Dhabi Securities Exchange (ADX) further enhances the UAE’s financial infrastructure. This partnership allows Emirati companies and government entities to access global capital markets efficiently, providing them with the resources they need to finance key projects.
ADX and LSE collaboration strengthens financial infrastructure
Walker highlighted that the collaboration between the ADX and LSE has resulted in the launch of the FTSE ADX index series. This index offers a reliable benchmark for investors to track the performance of Abu Dhabi’s key sectors. With tools like the FTSE ADX ESG Index, investors can now align their portfolios with global environmental and social governance objectives, reflecting the UAE’s dedication to responsible investment practices.
This collaboration between ADX and LSE not only strengthens the UAE’s financial infrastructure but also makes it a competitive player in global financial markets. The introduction of these indices provides the transparency and accountability that investors demand, ensuring they make informed decisions in line with global trends.
Sukuk and green bonds highlight UAE’s commitment to sustainability
Walker pointed to the UAE’s growing influence in sustainable finance, particularly in the issuance of green bonds and Sukuk. The LSE has become a key platform for Emirati companies looking to finance sustainable and renewable energy projects. For instance, Masdar, the UAE’s renewable energy leader, raised substantial funding through green bonds in recent years, underscoring the nation’s dedication to achieving sustainability goals.
This growth in sustainable finance is particularly visible in the increasing demand for Sukuk, Islamic-compliant bonds, which are becoming more prominent across the region. According to Walker, the Middle East has seen significant growth in these financial instruments, with Sukuk issuances contributing billions to the market.
The UAE’s financial leadership in sustainability has set a precedent for other nations in the region, proving that economic growth and environmental responsibility can go hand in hand.
UAE attracts global capital with advanced infrastructure
The LSE’s partnership with the UAE is not just about facilitating bond issuances; it is about creating a broader ecosystem that attracts global investors. The UAE’s modern infrastructure, strategic geographic location, and innovative business environment make it an attractive destination for international investment.
Walker highlighted that this success is due to the UAE’s ability to position itself as a leader in the MENA region. By working closely with the LSEG, the UAE is able to access global capital markets efficiently, funding key sectors such as infrastructure, technology, and renewable energy.
