regional

MENA Sustainable Bonds Face Regional Turbulence

Lately a hotspot for sustainable finance, MENA states could face lower demand in the wake of the Gulf conflict.

This article appears in the September 2026 issue of Global Finance Magazine.

Investors abhor uncertainty but are not afraid of risks. That dictum is being tested in the Middle East and North Africa (MENA), which has emerged as a hotspot for sustainable finance in recent years, driven by economies transitioning toward renewable energy, low-carbon infrastructure, and water efficiency, among other goals. 

Sustainable bond issuance in the region has expanded sevenfold since 2020 and reached $35.1 billion in 2025, according to Bloomberg Intelligence.

Last year, MENA issuance rose despite global markets recording a 21% decline. 

But the buzz is cooling. The Gulf conflict that has dragged on since the U.S. and Israel attacked Iran in February, accompanied by higher energy prices, rising bond yields, weaker growth, and tighter financial conditions, saw sustainable bond offerings decline by 24% in the first half of this year, according to S&P Global.

Sustainable issues started the year on a high, with deals worth $5 billion in the first quarter and $4 billion logged in January alone. The effect of the U.S.-Iran war has been flat growth in volumes, however, while values plunged to $7 billion in the first half of 2026 compared to $10 billion in the same period last year.

That reality has prompted S&P Global to cut its 2026 forecast, projecting issuances of $15 billion to $20 billion, down from its earlier projection of $20 billion to $25 billion. Also cooling is sustainable sukuk issuance, which totaled $2.1 billion in the first half, down from $5.1 billion in the same period last year.

Critically, a large chunk of MENA sustainable bond issuance is denominated in local currencies, an indication of both the competitiveness of the region’s capital markets and its rising status as a haven for value-driven dealmaking.

Patrice Cochelin, S&P Global
Patrice Cochelin,
S&P Global

Despite the decline, investor confidence has not been dampened, said Patrice Cochelin, managing director, Sustainability Methodology and Research at S&P Global: “Medium-term demand-drivers remain positive and are fueled by energy-transition strategies and a significant pipeline of upcoming maturities.”

That investors are hanging on is evident. Early last month, the International Finance Corp. said it was among the principal investors in Jordan Kuwait Bank’s (JKB) second green bond issuance with a $100 million investment.

Notably, banks are spearheading the expansion of sustainable finance in the Middle East. In 2025, they were involved in some of the largest regional issuances and accounted for 80% of total value; in the first half of this year, they accounted for 87% by volume. Saudi Arabia and the United Arab Emirates remain the epicenter, accounting for 98% by value and 73% by volume.  

John Njiraini is a contributing writer based in Kenya.

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Arab News | Saudi foreign minister, Pakistani counterpart discuss bilateral ties and regional developments

RIYADH: Saudi foreign minister Prince Faisal bin Farhan bin Abdullah received a phone call from Muhammad Ishaq Dar, Deputy Prime Minister and Foreign Minister of Pakistan, official ministry statements said Sunday.

Officials from both countries reviewed the state of bilateral relations and discussed recent regional developments, including the ongoing crisis in the region.

The ministries stated that the conversation addressed efforts to contain the crisis and promote peaceful solutions through dialogue and negotiation, with the aim of reducing tensions and preserving security and stability in the region.



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Nordics weigh merging their stock exchanges into one regional market

The idea of one bourse for the whole Nordic region has resurfaced.


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Reports on Wednesday, citing people familiar with the discussions, said industry alliance Nordic Compass is studying options including the consolidation of Sweden, Denmark, Norway and Finland’s national exchanges, as well as the harmonisation of their regulatory frameworks.

Nordic Compass told Euronews it is analysing a range of possibilities but that the work remains preliminary.

“Nordic Compass’ Capital Markets Track is working to improve opportunities to raise capital to support competitiveness across all stages, from start-up, venture, growth and scale-up to IPOs, as well as the ecosystem for Nordic listings,” said Christian Clausen, chair of the alliance’s Capital Markets Track and chairman for the Nordics at BlackRock.

“This includes analyses of a range of potential initiatives, including issues related to liquidity. The work is still at an exploratory stage, and no agreement has yet been reached on specific initiatives or conclusions,” Clausen explained to Euronews.

Nordic Compass was launched in May as a pan-Nordic industry alliance gathering more than 25 companies, foundations and organisations, among them Wallenberg Investments, EQT, Nordea, SEB, Nasdaq Nordic, Ericsson, Nokia, Saab, Ørsted and the Novo Nordisk Foundation.

Chaired by former Finnish prime minister Jyrki Katainen, it works across four tracks covering capital markets, deep tech, defence and energy.

The alliance’s first initiatives are due at a summit in Gothenburg on 4 and 5 November, where the capital markets proposal is rumoured to be presented.

The prize is considerable.

Nordic pension funds and sovereign investors manage close to $4 trillion (€3.43tn) and take in more than $175 billion (€3.43tn) a year, but that capital is spread across four separate markets rather than being pooled into one.

Who owns the exchanges?

Any merger would need the cooperation of three parties that do not answer to the alliance directly.

Nasdaq operates most of the region’s national bourses, Euronext owns Oslo’s stock exchange, and Euroclear plays a central role in settling Nordic securities trades.

Nasdaq did not respond to a request for comment.

Euronext signalled openness telling Euronews that through Oslo Børs, its securities depositories in Norway and Denmark, Nord Pool and Admincontrol, it has an established Nordic franchise and is “in dialogue with Nordic Compass about potentially contributing to practical measures.”

“Euronext welcomes initiatives aimed at making the Nordic capital markets even more competitive globally,” the exchange operator added.

“The region already benefits from strong market traditions, sophisticated investors and successful local ecosystems. The opportunity is to build on these strengths by making it easier for capital to flow across borders,” a spokesperson for the group told Euronews.

Euronext also pointed to its own multi-country structure as a template.

“Our experience demonstrates how deeper liquidity, shared technology and harmonised rules can benefit issuers and investors, while our federal model keeps local exchanges close to the markets they serve,” the exchange operator concluded.

What potentially emerges in Gothenburg in November will show whether the exploratory work has produced anything firmer than analysis.

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Israel, Turkiye and the new regional reordering | Opinions

On Tuesday, Israeli fighter jets attacked Abu al-Duhur airbase in northwestern Syria, drawing condemnations from the United States, the United Kingdom, the United Nations, as well as regional countries. The Israeli government claimed that it had intelligence of Turkish military movement to the site.

In a subsequent interview, US Ambassador to Turkiye and Special Envoy for Syria Tom Barrack said the US had received this intelligence from the Israelis six days before the attack. However, US intelligence conducted its own due diligence and found no basis for the claim.

The incident not only reflects a shift in the dynamics between Turkiye and Israel, but also signals a regional reordering that the latter is no longer at the centre of.

The Turkish response

Seeing the Israeli attack on the Syrian base as a provocation, Ankara refrained from escalating and instead provided an off-ramp out of the crisis. It framed the issue not in bilateral terms but as one between Israel and the US, and between Israel and the regional and international consensus.

Normally, there is a deconfliction mechanism between Turkiye and Israel. However, as Barrack indicated in the interview, Israel did not warn Turkiye about the attack, which could have triggered a military response.

The US envoy called for a deconfliction mechanism, but such an initiative can be effective only if the sides involved want it to be. In this case, there is no evidence that Israel sought de-escalation. In fact, it appears escalation was the intended outcome, as Israel notified neither Turkiye nor the US about the attack and acted on a pretext that the US intelligence found no basis for – a ploy to boost Prime Minister Benjamin Netanyahu’s electoral campaign.

After the US-imposed lull on the Iran front, Netanyahu is likely seeking escalation on other fronts, be it Syria, Lebanon or Gaza, in the run-up to the Israeli election. The challenge for Turkiye would be to avoid taking Netanyahu’s bait while also preventing the normalisation of such aggression.

That would require direct intervention by US President Donald Trump to rein in Netanyahu. Indeed, a trilateral deconfliction mechanism can work and be credible only if the US throws real weight behind it.

But even if a mechanism is in place, it would not change the fact that Syria has altered the lens through which Turkiye and Israel view each other. For a long time, the core of Turkiye’s discontent with Israel was the Palestinian issue. Hence, it was more humanitarian-, identity- and solidarity-based in nature.

Today, Ankara views Israeli attempts to undermine the Syrian transition as having direct repercussions for its national security. Therefore, Turkiye is no longer seeing Israel solely through the prism of the Palestinian question. Rather, it increasingly sees it as a national security challenge, with Israeli regional revisionism threatening its interests.

The international consensus on Syria

From the Eastern Mediterranean to the Horn of Africa and the wider Middle East, Turkiye and Israel have conflicting policies, priorities and threat perceptions. Despite this, Syria serves as a microcosm of Turkiye and Israel’s visions of the regional order.

Ankara wants its southern neighbour to be centralised, stable and capable militarily. In contrast, Israel wants a Syria that is weak, fragmented and bereft of serious military might.

Yet this is not merely a conflict between Turkish and Israeli visions. Israel is at odds with the regional and international consensus on Syria. The US, the UK, Europe and regional states have all supported a centralised and stable government in Damascus. In an ironic way, the only other regional state that probably wants a weak or failed Syria is Iran.

Like any other sovereign state, Syria will have an army. If Israel believes that the only way to ensure its own security is by keeping its neighbouring or regional states weak, fragmented and bereft of military capability, this is a recipe for perpetual wars and for regional and international isolation.

The undermining of the Syrian state and the failure of its transition would pave the way for non-state actors and radicalism, which would bode ill for the entire region, including Israel. Indeed, neighbouring Lebanon should serve as a cautionary tale. The Israeli occupation and the weakness of the Lebanese state gave birth to and empowered Hezbollah.

Post-Abrahamic Middle East

Israel and Turkiye’s ideas of regional order are also at odds. The recent Mecca Pact, which brought together Turkiye, Saudi Arabia and Pakistan, is not inherently anti-Israel. However, it represents a regional shift that signals the failure of the order envisioned by the Abraham Accords, or similar initiatives such as India-Middle East-Europe Economic Corridor (IMEC) or the strategic partnership between India, Israel, the United Arab Emirates, and the US known as I2U2.

The Abrahamic vision of the regional order was premised on Arab-Israeli normalisation and cooperation under the US security umbrella. Hard containment of Iran, soft containment of Turkiye, and de-emphasising the Palestinian issue were also part of the same vision.

Inherently, this Abrahamic vision had more to do with Israel and its regional normalisation than the Arab states and their needs and priorities.

However, with its aggressive and revisionist policies, Israel has deepened the prospect of its regional isolation, increased the cost of any normalisation, and doomed this Abrahamic – or Israeli-centric – vision of regional order.

Israeli revisionism is not only driving a wedge between Israel and other major regional states, but it is also revealing the gap between Israel and the US on the question of regional reordering.

While Israel opposes the Mecca Pact, Trump has hailed it, likely seeing it as aligned with his strategy of burden-sharing and burden-shifting with regional allies, and as enjoying more regional legitimacy and acceptance. The US position might also reflect a recalibration of Washington’s regional vision.

Over the last decade, the US invested heavily in creating a regional order premised on Israel and the Arab-Gulf states. But this was essentially an Israeli-centric project for the regional order.

This vision is no longer tenable, and no one is more responsible for its demise than Israel itself.

The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.

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Jared Kushner meets with Hamas, regional leaders to push peace plan

Aug. 16 (UPI) — U.S. President Donald Trump‘s Middle East envoy Jared Kushner on Sunday met with Hamas to discuss the U.S.-backed peace plan for Gaza.

Kusher, Trump’s son-in-law, met with a delegation that included new leader Khalil al-Hawayy in Egypt, the BBC reported.

Trump’s Board of Peace last month said it reached a deal for the “complete disarmament” of Hamas and other armed groups in Gaza. However, Israel last week rejected the 15-point plan that also calls for Israel to withdraw its troops from the enclave and for its reconstruction under a new civilian Palestinian government.

Eight Muslim countries on Sunday issued a statement blasting Israel’s rejection of the plan.

According to the BBC, the meeting was said to be the first at this level since a ceasefire agreement for Gaza was reached last year.

Board of Peace envoys Nickolay Mladenov and former British Prime Minister Tony Blair reportedly took part in the meeting, along with representatives of Egypt, Qatar, and Turkey.

Kushner also met with Egyptian President Abdel Fattah al-Sisi. Kusher, Mladenov, and Blair were to meet with Prime Minister Benjamin Netanyahu on Monday, according to Israeli media reports.

Netanyahu has said he wants Hamas fully disarmed to implement the plan.”Israel rejects the Board of Peace’s 15-point document on Gaza,” he said. “The IDF will not carry out any withdrawal until Hamas is genuinely disarmed.”

Egypt, the United Arab Emirates, Qatar, Saudi Arabia, Jordan, Turkey, Pakistan, and Indonesia said in a joint statement that Israel’s rejection of the plan threatened Trump’s peace efforts.

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North Korea Targets Japan as Regional Military Tensions Rise

North Korea has intensified its criticism of Japan’s military expansion and its growing security cooperation with the United States and South Korea, portraying the developments as a threat to regional stability.

More than a dozen North Korean state media attacks since early July have focused on Japan’s defence buildup, including its acquisition of long range weapons, rising military spending and closer security ties with Washington and Seoul.

The campaign has also coincided with unusual silence from Pyongyang over its own recent missile launches, raising questions about what North Korea is trying to achieve with its latest messaging.

Why Is North Korea Targeting Japan?

North Korean statements have focused heavily on Japan’s acquisition of counter strike capabilities, its testing of U.S. made Tomahawk cruise missiles, increased defence spending and its annual defence white paper.

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Kim Yo Jong, the influential sister of North Korean leader Kim Jong Un, warned last week of “additional military options” in response to what she described as Japan’s transformation into a military power.

North Korea’s KCNA later described Japan’s 2026 defence white paper as a document aimed at justifying military expansion and preparing for what it called a “re invasion.”

Pyongyang has also criticised the annual U.S. South Korean Ulchi Freedom Shield military exercises, accusing Washington, Seoul and Tokyo of developing what it called a “nuclear alliance.”

The United States and South Korea maintain that the exercises are defensive.

How Has Japan Changed Its Defence Policy?

Japan announced in 2022 that it planned to double defence spending to 2% of gross domestic product in response to growing security concerns involving China, Russia and North Korea.

A major part of that expansion has involved acquiring long range missile capabilities, including U.S. made Tomahawk cruise missiles capable of striking targets more than 1,000 km away.

Prime Minister Sanae Takaichi’s government is expected to revise Japan’s national security strategy this year, potentially leading to further increases in defence spending and investment in drones and domestic weapons production.

For Pyongyang, these developments represent a significant change in Japan’s traditional defence posture and provide another basis for portraying the regional security environment as increasingly hostile.

Is North Korea’s Campaign Really About Japan?

Analysts say Japan is only one part of a broader strategic message.

Park Won-gon of Ewha Womans University said North Korea is attempting to frame Northeast Asia as a confrontation between two opposing camps.

The objective, he said, is to create a U.S. South Korea Japan versus North Korea China Russia framework.

Such a narrative could serve several purposes for Pyongyang. It can strengthen North Korea’s argument that its nuclear weapons are necessary for self defence, while also encouraging closer political and military support from China and Russia.

South Korea’s Unification Ministry has expressed a similar assessment, saying North Korea appears to view Japan’s changing security posture, South Korea’s plans for nuclear powered submarines and trilateral military cooperation as part of a broader shift in the regional balance of power.

Why Is North Korea Silent About Its Missile Tests?

One of the more unusual aspects of the latest campaign is that North Korean state media has remained silent about recent missile launches.

North Korea conducted ballistic missile tests last week and again this week, but state media has not reported them, despite the launches being condemned by South Korea, Japan and the United States.

That differs from Pyongyang’s usual practice of publicising missile tests shortly after they take place.

Analysts believe the launches may have involved improvements to existing missile systems rather than entirely new weapons, making them less valuable as domestic propaganda.

Shin Jong-woo of the Korea Defense and Security Forum suggested that some tests could involve upgraded short range ballistic missiles developed with Russian technical assistance and potentially intended for Russia.

Another possibility is that North Korea does not want to publicise launches that could be connected to prospective military exports.

What Role Does Russia Play?

North Korea’s expanding military relationship with Russia is increasingly important to understanding its weapons development.

Ukrainian President Volodymyr Zelenskiy has repeatedly accused Russia of using North Korean missiles in Ukraine and Pyongyang of supplying Moscow with missiles, ammunition and troops.

Analysts say cooperation with Russia may also be helping North Korea improve the performance and accuracy of its missile systems through battlefield experience and technical assistance.

Recent launches could therefore represent tests of upgraded variants before they are deployed by North Korea or potentially supplied to Russia.

Analysis: What Is Pyongyang Trying to Achieve?

North Korea’s intensified criticism of Japan appears to be part of a broader attempt to reshape the strategic narrative around the Korean Peninsula.

By portraying the United States, South Korea and Japan as an increasingly integrated military and nuclear bloc, Pyongyang can present its own weapons development as a defensive response rather than an independent escalation.

The strategy also fits North Korea’s growing alignment with China and Russia. As security cooperation between Washington, Seoul and Tokyo deepens, Pyongyang has an incentive to emphasise the emergence of rival blocs and strengthen its position within the opposing camp.

Japan’s military expansion therefore provides North Korea with a useful political target. The immediate issue may be Japanese defence policy, but the larger objective is regional positioning.

If Japan continues expanding its military capabilities while U.S. South Korean and Japanese security cooperation deepens, Pyongyang is likely to use those developments to justify further weapons development and closer cooperation with Beijing and Moscow. The result could be a reinforcing cycle in which each side’s security measures become evidence for the other side that greater military preparedness is necessary.

With information from Reuters.

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