In a significant move to bolster its sustainable finance ecosystem, the Capital Market Authority (CMA) of Saudi Arabia has issued new Guidelines for Issuing Green, Social, Sustainability, and Sustainability-Linked Debt Instruments. This strategic milestone is designed to align the King
om’s capital market with international ESG standards and support the economic diversification goals of Vision 2030.
Effective from May 27, 2025, the guidelines provide a clear framework for issuers, aiming to enhance transparency, expand financing channels, and attract global capital towards impactful projects. The initiative is a core component of the CMA’s 2024–2026 Strategic Plan.
A Framework For Global Alignment
The new guidelines are structured to help a wide range of issuers, from large corporations to financial institutions, access the sustainable finance market. By defining four distinct categories of qualifying debt instruments—green, social, sustainable, and sustainability-linked—the CMA is providing a versatile toolkit for capital formation.
Abdullah Al-Moqbel, Director of the Sustainability Department at the CMA, commented on the launch, stating, “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.”
Enhancing Transparency and Investor Confidence
A key feature of the guidelines is the requirement for issuers to disclose any areas of non-alignment with the framework in their offering documents. To ensure integrity and comparability, the regulations also mandate external reviews, ongoing reporting, and the use of performance metrics tied to key ESG indicators.
Bader Alissa, Director of the Sukuk and Debt Instruments Department at the CMA, added, “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.”
Tapping Into a Surging Market
The timing of the new framework is critical, as the global appetite for sustainable investments continues to grow. Global sustainable investment assets reached an estimated USD 3.52 trillion in 2024, nearly doubling since 2020, while green debt issuance surpassed USD 580 billion in 2023 alone.
Within Saudi Arabia, the momentum is also building. In 2024, 94 listed companies issued sustainability reports, up from 81 the previous year, with a majority of top TASI-listed companies now disclosing sustainability metrics. The guidelines are expected to further accelerate this trend by diversifying financing for high-impact projects in clean energy, water management, affordable housing, and inclusive infrastructure.
About The Capital Market Authority (CMA)
The Capital Market Authority (CMA) is the financial regulatory authority for the capital market in Saudi Arabia. It is responsible for regulating and developing the Saudi Arabian Capital Market by issuing the required rules and regulations for the implementation of the provisions of the Capital Market Law to protect investors and ensure fairness and efficiency in the market.
Source: Zawya
