RIYADH, SAUDI ARABIA -- The Capital Market Authority (CMA) of Saudi Arabia has issued the Guidelines for Issuing Green, Social, Sustainability, and Sustainability-Linked Debt Instruments, marking a strategic milestone in the Kingdom’s journey to build a diversified and globally integrated capital market under Vision 2030.

Effective from May 27, 2025, the Guidelines provide issuers with a framework aligned with international standards. This initiative is part of CMA’s 2024-2026 Strategic Plan and reflects the Kingdom’s ongoing commitment to advancing ESG-aligned capital formation, enhancing transparency, and expanding financing channels across the public and private sectors.

Abdullah Al-Moqbel, Director of the Sustainability Department at the CMA, said: “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 center for sustainable finance, in line with its broader development objectives.”

The Guidelines define four categories of qualifying debt instruments: green, social, sustainable, and sustainability-linked. Issuers are required to disclose any areas of non-alignment with the guidelines in their framework or offering documents. This model allows a wide range of issuers, from corporates to banks, to access the sustainable finance market.

The Guidelines further require external reviews, ongoing reporting, and performance metrics aligned with key ESG indicators to ensure the integrity and comparability of disclosed information.

Bader Alissa, Director of Sukuk and Debt Instruments Department at the CMA, said: “These Guidelines have been published to clarify the core principles and frameworks for green, social, sustainability, and sustainability-linked debt instruments, enabling issuers to allocate funds to support their sustainability and transformation efforts effectively. In addition, these Guidelines aim to support local debt issuances while enhancing transparency and aligning disclosure levels, promoting investor confidence in such instruments.”

Global sustainable investment assets reached USD 3.52 trillion in 2024, nearly doubling since 2020, while green debt issuance exceeded USD 580 billion in 2023. In Saudi Arabia, 94 listed companies issued sustainability reports in 2024 (up from 81 in 2023), with the top 65% of TASI companies by revenue disclosing sustainability metrics.

The Guidelines aim to diversify financing for high-impact environmental and social projects, from clean energy and water management to affordable housing and inclusive infrastructure, supporting SGI, net-zero, and climate commitments.