Image: Getty Images/ For illustrative purposes
Saudi Arabia’s Capital Market Authority (CMA) has issued a set of guidelines for issuing green, social, sustainability and sustainability‑linked debt instruments, effective from May 27, marking a key step in aligning the kingdom’s capital‑markets framework with global standards under Vision 2030.
The guidelines, part of the CMA’s 2024‑2026 Strategic Plan, provide a framework for issuers that includes mandatory external reviews, ongoing reporting and disclosure of any non‑alignment in issuance frameworks or offering documents.
They define four categories of qualifying instruments — green, social, sustainable and sustainability‑linked.
Guidelines to support Saudi Arabia’s sustainable finance market
“ This framework supports the growth of Saudi Arabia’s sustainable finance market. It enables issuers to meet global investors’ expectations, enhance investor confidence and support the kingdom’s position as a regional centre for sustainable finance,” said Abdullah Al‑Moqbel, director of the Sustainability Department at the CMA.
Under the rules, issuers of Saudi riyal‑denominated instruments must disclose any instances of non‑compliance with the framework in their documents, though the guidelines do not alter existing regulatory rules and procedures.
According to CMA data, 94 listed companies issued sustainability reports in 2024 (up from 81 in 2023) and disclosure among the top companies reached 65 per cent (from 58 per cent in 2023).
Globally, sustainable‑investment assets reached $3.52tn in 2024 and green‑bond issuance exceeded $580bn in 2023.
By clarifying core principles and frameworks, the guidelines are intended to widen the debt‑instruments channel for financing high‑impact environmental and social projects — from clean‑energy and water management to affordable housing and inclusive infrastructure — thereby supporting the kingdom’s net‑zero and climate commitments.
Read: MENA IPO activity rises as 11 listings raise $700m in Q3
