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Sustainable Sukuk and Bonds Framework Launched in Qatar to Create Harmonised Financial Ecosystem

Qatar Financial Centre (QFC), an onshore financial and business centre in the region, has developed a Sustainable Sukuk and Bonds Framework, which is based on the latest International Capital Markets Association (ICMA)’s Green Bond Principles (GBP), Social Bond Principles (SBP), and Sustainable Bond Guidelines (SBG).

QFC’s Sustainable Sukuk and Bonds Framework integrates local requirements and features with ICMA’s globally accepted principles to create a harmonised financial market ecosystem locally, based on international standards. It will promote appropriate disclosures, the flow of relevant information, reporting, and transparency and ensure that these instruments meet their objectives and minimise risks of greenwashing.

Commenting on the announcement Yousuf Mohamed Al-Jaida, CEO, QFC, said: “In keeping with the country’s efforts towards the fulfilment of Qatar’s National Vision 2030 and Qatar Central Bank’s strategic goal of ‘Developing financial markets and fostering financial innovation’, this framework offers best in class practices and is a step in the right direction; thereby creating a sustainable economy through streamlined labelled capital market instruments.”

Al-Jaida added: “We aim for this framework to encourage the further development of the local debt capital market by diversifying options for borrowers and investors and by laying a strong foundation for building trust between these stakeholders.”

Abdul-Hakeem Mostafawi, CEO of HSBC Qatar, said: “HSBC is committed to helping lead the transition to a global net-zero economy and our collaboration with QFC on this initiative supports the development of the financial services sector in Qatar and the country’s transition to a carbon net-zero future starting with a reduction in greenhouse gas emissions by 25 per cent by 2030.”

The launch of this framework showcases QFC’s commitment to environmental, social, and governance (ESG) while emphasising the growing significance of Islamic finance in sustainable development.

Speaking on this launch Henk Jan Hoogendoorn, chief of financial sector office, QFC, said: “Access to a unified framework highlights the requirements of an impactful issuance. This development will boost transparency and accountability in Qatar’s financial market and promote sound environmental and social practices. The establishment of this structure will introduce issuers to a new investor base and allow investors to diversify their source of funding and embed their sustainability targets with their financing options.”

Osama Ali, managing director and head of global banking HSBC Qatar added, “Investors are increasingly focused on environmental, social and governance (ESG) issues. This framework will highlight the positive developments for a sustainable future based on sound ESG principles in Qatar.”

Author

  • Francis is a journalist and our lead LatAm correspondent, with a BA in Classical Civilization, he has a specialist interest in North and South America.

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