Successful green bond issuances help Qatar emerge as sustainable finance leader

Qatar is emerging as a leader in sustainable finance with successful green bond issuances, and poised to expand its market and attract diverse investors in the Mena region, a new report has shown.Focusing on sustainable finance in Qatar will open doors to new markets and attract responsible investors who prioritise ESG factors, enhancing the industry’s reputation and competitiveness, KPMG said in its ‘Qatar Banking Perspectives – 2023’.As Qatar continues to diversify its economy, the financial services industry has a unique opportunity to drive sustainable development, it said.By integrating sustainable finance principles, developing innovative products, and fostering collaboration among stakeholders, the industry can shape a resilient and prosperous future.Embracing sustainable finance practices not only addresses global challenges but also enhances the industry’s reputation, attracts new investors, and positions Qatar as a leader in sustainable finance within the region.Qatar’s financial services industry’s commitment to sustainable finance will be pivotal in achieving both national and global sustainability goals, KPMG said.Sustainable finance offers a transformative approach to traditional financial practices, recognising the interplay between economic, social, and environmental factors.According to KPMG, for Qatar’s financial services industry, embracing sustainable finance is paramount for several reasons.Firstly, it aligns with Qatar’s commitment to United Nations Sustainable Development Goals (UN SDGs), contributing to a more resilient and inclusive economy.Secondly, it mitigates risks associated with climate change, resource scarcity, and social inequalities, safeguarding long-term financial stability.Qatar’s commitment to the Paris Agreement and the Qatar National Vision 2030 further emphasise the importance of focusing on sustainable finance.Embracing sustainable finance aligns with these ambitious national goals and underscores Qatar’s dedication to creating a more sustainable and prosperous future for its citizens and the planet.Green bonds and sustainable debt instruments have gained significant traction globally, KPMG noted. These financial products raise capital specifically for environmentally friendly projects, such as renewable energy infrastructure, energy-efficient buildings, and sustainable agriculture.Qatar has already made noteworthy contributions to this space, with recent successful green bond issuances from financial institutions in the country.These issuances mark important milestones, including the first green bond issued from Qatar and the largest green issuance by a financial institution in the Mena region.The successful subscriptions to these green bonds underscore the confidence of global investors in the solid financial fundamentals and strong performance of Qatar’s financial institutions.The use of proceeds from these green bond issuances for verified Eligible Green Projects further reinforces Qatar’s commitment to financing, as well as refinancing sustainable initiatives.As the momentum of green bonds in Qatar continues to build, the country has the opportunity to expand its green bond market and explore new avenues for sustainable financing.By encouraging the participation of various stakeholders and developing a favourable regulatory environment, Qatar can attract a broader range of issues and investors, according to KPMG.