In this interview with Gulf Business, Lina Abou Diab, EMEA Sustainable Fixed Income & Middle East Securities Lead at Bloomberg LP, breaks down the latest trends in sustainable finance.

From the resilience of green and social bond markets amid macroeconomic uncertainty to the growing prominence of Gulf issuers like Saudi Arabia and UAE’s Omniyat, Diab highlights how policy, investor appetite, and long-term sustainability goals are shaping the region’s fixed income strategies in 2025.

How would you summarise the state of the global and EMEA sustainable fixed income market as of Q1 2025? What are the most notable shifts compared to previous quarters?

The year’s first quarter marked a steady start for global sustainable fixed income markets, with issuance volumes holding near the $300bn mark. While there was a slight decline compared to the previous quarter, mainly due to macroeconomic volatility, activity has generally remained solid and broadly aligned with recent trends.

In EMEA, green bonds continue to anchor the region’s sustainable finance landscape. Climate remains and will continue to be a central focus, particularly as the energy transition faces increasing pressure from the rising power demands of AI.

The market is holding firm, but we are seeing a gradual shift in strategies as issuers and investors respond to this evolving dynamic.

In Q1 2025, we saw nearly $300bn in sustainable bond and loan issuances globally, despite a slight dip in volume. What key factors are driving investor resilience in this space, particularly in EMEA?

Investor resilience in EMEA stems from structural factors rather than short-term sentiment.

Regulatory support, long-term policy commitments, and market familiarity with green and social instruments continue to underpin demand. Green bonds lead overall market supply, but social bonds also gained traction, with $20.9bn issued in Q1. This suggests a broadening investor appetite for sustainability themes.

Green bonds continued to dominate GSS (green, social, and sustainability) issuances this quarter, with social bonds also seeing significant traction in EMEA. What does this shift in balance signal about the region’s sustainability priorities?

In Q1 2025, both France and the Netherlands made significant contributions to the social bond market reflecting their commitment to addressing social challenges through sustainable finance instruments. Their issuances accounted for 45 per cent of social issuance in Q1 in EMEA. France’s Caisse d’Amortissement (CADES) issued EUR2.6bn of social bonds focused on healthcare and social inclusion and UNIDEC issuing 2.18 bn focused on access to education and employment generation. This underscores France’s approach to financing social initiatives.

In Netherlands, BNG Bank continued its support for social housing through its bond programs focusing on affordable housing with a similar size issuance of more than $2.5bn.

These bonds underscore the EMEA region’s dedication to addressing social challenges through sustainable finance. These actions signal a strategic shift towards a more inclusive and comprehensive approach to sustainability, balancing environmental goals with social imperative.

The continued dominance of green bonds, which accounted for more than half of global GSS issuance in Q1, highlights that climate and environmental goals remain at the core of sustainability strategies in EMEA.

Countries and corporates in the region are prioritising decarbonization, renewable energy, energy efficiency, and green infrastructure, supported by government policy and market expectations.

Saudi Arabia topped the list of debut GSS bond issuers in Q1 2025 with $1.6bn in green bonds. How do you interpret the growing participation of Gulf economies in sustainable finance markets?

The surge in GSS activity from Gulf economies, led by Saudi Arabia in Q1 2025, reflects a deliberate strategy to diversify funding sources and signal greater alignment to global markets. The kingdom’s inaugural sovereign green bond, part of a $1.5bn euro-denominated issuance, anchors its Green Financing Framework in high-profile environmental targets.

This move is not symbolic. It aligns with broader national development goals under Vision 2030 and demonstrates a growing readiness among Gulf issuers to compete in international capital markets on sustainability credentials.

The use of euro-denominated instruments also suggests an intent to broaden the investor base.

Your report highlights SDG 11 (‘Sustainable Cities and Communities) as the most commonly referenced goal in GSS frameworks. Why do you think this SDG is leading, and what does this say about issuer strategy in 2025?

We see that issuers are prioritising SDG 11, with a particular focus on energy-efficiency infrastructure, in response to growing concerns over climate-related risks such as extreme heat and flooding, especially in urban areas. As cities continue to bear the brunt of climate disruptions, resilience and sustainability have become a top priority.

Rather than simply meeting disclosure requirements, issuers are using SDG 11 as a framework to future-proof assets and mitigate long-term operational risks. For example, UAE-based Omniyat’s debut green bond targets environmentally sustainable real estate, a move that reflects both regulatory momentum and growing investor scrutiny on the real-world impact of GSS-labelled instruments.

Read: Masdar issues $1bn green bond, brings total programme to $2.75bn

Dubai’s Roads and Transport Authority (RTA) has reduced its total number of vehicle licensing services from 54 to 14, marking a 74 per cent reduction in services as part of a major effort to enhance operational efficiency and deliver a seamless digital experience to customers.

Ahmed Mahboob, CEO of the Licensing Agency at RTA, said the consolidation is part of the authority’s ‘360 Comprehensive Services’ plan, an integrated approach designed to align with Dubai’s strategic objectives of delivering streamlined and personalised government services.

“This step is part of the ‘360 Comprehensive Services’ plan – a new, integrated vision built on a holistic methodology that targets key areas and efficiently supports Dubai’s strategic goals of delivering seamless, proactive, and personalised services that meet rising expectations and evolving needs,” said Mahboob.

“The initiative also aligns with the rollout of multiple services via the unified ‘Dubai Now’ app, enhancing operational efficiency and ensuring greater integration with other government platforms,” he added.

Mahboob added that the RTA remains committed to establishing Dubai as a global benchmark for smart and sustainable transport systems, and to improving its standing in government service excellence.

“This also aligns with efforts to elevate Dubai’s standing in government service excellence and advance its ambition to become the world’s most digitally advanced city,” he said.

Read: RTA makes vehicle inspection appointments mandatory from June 2

Simplified customer journeys with cut in vehicle licensing services

The reengineering of vehicle licensing procedures has simplified customer journeys, reduced the number of steps and physical visits required, and cut processing times, according to the RTA.

The reforms aim to raise service standards for both individuals and corporate clients, aligning with top international benchmarks.

The initiative is supported by advanced technologies and deeper integration of data between local and federal entities.

A key feature includes the introduction of electronic signatures via UAE Pass, enabling full digital access to RTA services through a unified platform.

Among the services streamlined is the Request for Vehicle Registration Certificate, which previously required 13 separate service requests but has now been consolidated into a single digital transaction.

Additionally, six services related to vehicle export and transfer have been merged under a new unified service named ‘Vehicle Registration Cancellation’, and several service titles have been revised for clarity and simplicity.

Riyadh Air, Saudi Arabia’s new national carrier, announced an order for 50 Airbus A350-1000 aircraft during the 55th annual Paris Air Show, marking a major step forward in the kingdom’s ambitious aviation expansion.

The agreement includes 25 firm orders with options for an additional 25 aircraft.

The signing ceremony took place at Le Bourget Airport and was attended by senior officials including PIF governor and Riyadh Air chairman Yasir Al-Rumayyan, Riyadh Air CEO Tony Douglas, Riyadh Air CFO Adam Boukadida, Airbus EVP for Sales Benoît de Saint-Exupéry, and Airbus CEO of Commercial Aircraft Christian Scherer.

“Our new national carrier is set to launch in the near future and represents a key component of the kingdom’s infrastructure,” said Al-Rumayyan. “It will connect Riyadh to over 100 destinations worldwide by 2030.” He added that the A350-1000 acquisition reinforces Saudi Arabia’s position as a global aviation hub.

Riyadh Air aims to enhance international connectivity with top in class fleet

Riyadh Air is expected to redefine the passenger experience with advanced digital features, cutting-edge cabin design, and next-generation onboard entertainment and connectivity.

The airline’s vision is to offer best-in-class service while playing a strategic role in economic diversification, in line with PIF’s strategy to unlock high-growth sectors.

The launch of Riyadh Air is a key enabler of the National Aviation Strategy and the National Tourism Strategy, which aim to enhance international connectivity, boost Riyadh’s standing as a global business destination, expand air cargo capacity, and support the kingdom’s growing tourism sector by increasing access to cultural and natural attractions.

The A350-1000s, Airbus’ largest and most modern wide-body aircraft, will support Riyadh Air’s long-haul network and global ambitions.

In other news, earlier this month, Riyadh Air and Air France-KLM signed a MoU, marking a significant step forward in global connectivity for guests traveling between Riyadh, Paris, Amsterdam, and destinations far beyond.

Subject to regulatory approvals, the collaboration aims to gradually introduce a wide range of benefits for guests and to unlock new opportunities across Western Europe, North and South America, the Middle East, Asia, and Saudi Arabia.