Total Issuance of Green Bonds, Sukuk by Arab Countries Hits 5.5 Bln in 2022

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Total Issuance of Green Bonds, Sukuk by Arab Countries Hits 5.5 Bln in 2022

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The Arab Monetary Fund announced that green bond and sukuk issuance by Arab countries related to sustainable activities, whether publicly or privately offered, amounted to approximately $5.5 billion in 2022.

The Fund said it pays close attention to the priority issues of financial sector development, particularly with regard to the consequences of climate change and green and sustainable financing, with the aim of contributing to support efforts to implement comprehensive and sustainable development and financial stability in the Arab countries.

In a report issued by the Secretariat of the Council of Governors of the Arab Central Banks and Monetary Agencies to mark the Arab Financial Inclusion Day, themed “Improving Financial Inclusion to Support Efforts to Address the Impacts of Climate Change,” the Fund pointed out that improving access to finance and to financial services in Arab countries is receiving significant attention from the governing board of central banks and Arab monetary institutions.

This is done in recognition of the potential and great opportunities that can be achieved by improving financial inclusion, and to achieve comprehensive and sustained support to economic development, addressing the challenges of unemployment and achieving social justice.

Enhancing financial inclusion plays an important role in supporting efforts to address the impacts of climate change. This is achieved by enabling financial sector customers to manage the risks associated with climate change and enhancing their capacity to recover from its effects, thereby contributing to comprehensive and sustainable development and the resilience of the financial sector.

The report, in line with the United Nations Sustainable Development Goals for 2030 and the guidance of the Paris Agreement, called for the adoption of climate change-related policies.

Abdul Rahman Al Humaidi, Chairman and Director General at Arab Monetary Fund, emphasized the importance and role of financial inclusion in confronting economic challenges that impact economic growth.

This is achieved by mobilizing resources to increase savings and investment rates, creating new job opportunities, and commending the increased attention paid by policymakers in Arab countries to issues related to enhancing financial inclusion.

Such efforts can help address challenges of poverty and unemployment and promote social justice.



Turkish Stocks Jump as PKK Disbandment Adds to Trade Relief

 People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)
People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)
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Turkish Stocks Jump as PKK Disbandment Adds to Trade Relief

 People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)
People walk on a small street leads that to the historical Galata Tower in Istanbul, Türkiye, April 25, 2025. (Reuters)

Turkish stocks jumped on Monday, bonds climbed and the lira rallied against the euro as news the Kurdistan Workers Party (PKK) militant group was ending its four decade-long insurgency in the country added to US-China trade cheer.

Global share markets were enjoying a strong surge after the US and China agreed to slash tariffs, but Turkish equities outstripped most other bourses as they jumped more than 3%.

A PKK member said it was ceasing all military operations "immediately" following the group's decision to disband, a move that could boost NATO member Türkiye's political and economic stability.

The lira was up 1.3% against the euro and steady against the dollar, while its international market bonds, which have been losing ground for the last six months, were up nearly 0.7 cents.

The PKK decision followed an appeal from its jailed leader Abdullah Ocalan in February to disband. It is set to have far-reaching political and security consequences for the region, including in neighboring Iraq and also in Syria, where Kurdish forces are allied with US forces.

Omer Celik, spokesperson for President Recep Tayyip Erdogan's ruling AK Party, said the PKK's decision to dissolve was "an important step toward a terror-free Türkiye".

There have been intermittent peace efforts over the years, most notably a ceasefire between 2013 and 2015 that ultimately collapsed.

The PKK's move should now give Erdogan the opportunity to boost spending in the mainly Kurdish southeast of Türkiye, where the insurgency has handicapped the regional economy for decades.

Analysts welcomed the PKK move but added a note of caution.

"It can only be good news," said Christopher Granville, managing director of EMEA & Global Political Research at investment advisory firm TS Lombard. "But is it decisive for the difficult Turkish investment case?"

He said the PKK issue was ultimately "secondary" to questions about Türkiye's recent arrest of Erdogan's main political rival, Istanbul Mayor Ekrem Imamoglu, and the broader direction of its macroeconomic policy.

Those concerns have weighed on Turkish markets this year.

MSCI's Türkiye equities index is down more than 13% compared to a near 8% rise in its pan-emerging market index., while lira-denominated government bonds have cost investors more than 8% on a total returns basis.

The cost of insuring Ankara's government debt using Credit Default Swaps (CDS) has also shot up, although Monday's rally saw that ease back.

"A continuation of the pullback (in CDS levels) ... may support banking stocks, which have been the negatively differentiated sector in BIST (Turkish stocks index) in the last 2 months," Garanti BBVA Yatirim's Director Ozgur Yurtdasseven said.

Turkish banking stocks were up 3.8% on the day, but remain more than 16% down on the year in lira terms and more than 20% in dollar terms.