Core Insights - The joint research report by the Dubai Financial Services Authority (DFSA) and the Hong Kong Monetary Authority (HKMA) highlights the growth potential of labelled debt in supporting sustainable development in emerging markets [2][11] - The report indicates that sustainable debt markets in the Middle East and North Africa (MENA) and emerging Asia Pacific (APAC) regions are poised for significant expansion [2][5] Group 1: Market Potential - The research identifies that many issuers and borrowers are currently financing sustainable projects using unlabelled instruments, indicating a gap in the market for labelled debt [2][5] - Opportunities for market expansion include government guidance to facilitate market entry, increased corporate issuance, and broader applications of sustainable debt beyond traditional labels [3][5] Group 2: Regulatory Support - Regulators in MENA and emerging APAC are increasingly backing the development of transition and social finance frameworks, along with stronger disclosure standards and innovative sustainable financial instruments [5][6] - The UAE's initiatives, such as the UAE Energy Strategy 2050 and the Dubai Clean Energy Strategy 2050, aim to diversify the energy mix and establish the UAE as a regional hub for green finance [6] Group 3: Case Studies and Insights - The report includes case studies on innovative sustainable finance, featuring a blue bond from DP World, a sustainability-linked loan bond from Emirates NDB, and a long-tenor green bond and loan from MTR Corporation Limited [5] - Mark Steward, Chief Executive of the DFSA, noted a record issuance of US$94 billion in 2024, reflecting growing investor confidence in sustainable debt markets [10]