UAE set to be the first to offer green-energy sukuk

The UAE is expected to issue the world’s first Sharia-compliant bond aimed at financing green energy projects this year, possibly as early as next month. Green bond issuance reached US$36.6 billion globally last year, more than triple the previous year’s total. $100bn of green bond issuance is expected this year. The London-based Climate Bonds Initiative (CBI) has helped to create international standards for this type of ethically responsible financial security, from which capital raised is used for projects such as solar and wind schemes as well as developing energy efficiency initiatives such as LED lighting.