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RIYADH: ������Ƶ’s Madinah region is advancing more than 224 development projects valued at over SR200 billion ($53 billion), underscoring the Kingdom’s accelerating investment drive, according to a new report. 

Data released by the Al-Madinah Al-Munawara Chamber showed that the region’s real estate market recorded transactions exceeding SR2.7 billion in the first quarter of 2025, reflecting an annual growth of about 8 percent. 

Madinah has emerged as one of ������Ƶ’s fastest-growing regional economies, driven by major investments in construction, trade, and tourism. In 2025, the region recorded strong first-quarter growth, with construction accounting for 24 percent of the workforce and trade for 20 percent, reflecting ongoing diversification efforts. 

“These investments are diversified across various economic sectors such as trade, tourism, construction, transportation, health, education, and others,” the report said. 

It added: “The projects are expected to contribute to providing more than 125,000 direct job opportunities, a major development the region is witnessing.” 

The chamber also highlighted promising investment opportunities in the Investors’ Zone, reflecting optimism about Madinah’s long-term growth prospects across trade, logistics, technology, and real estate. 

The report reaffirmed the chamber’s commitment to providing detailed analytical insights to help businesses make informed strategic decisions. These insights, backed by comprehensive data, aim to foster regional economic growth and align with the objectives of Vision 2030. 

In February, the Madinah Region Development Authority reported improvements in quality of life, economic growth, and cultural initiatives. The region ranked 88th globally in Euromonitor International’s 2024 Top 100 City Destinations Index and seventh in the Tourism Performance Index, with 3,200 sites listed in the National Urban Heritage Register. 

������Ƶ has also eased restrictions on foreign ownership in real estate, allowing international investors to purchase shares in listed firms that hold property in Makkah and Madinah — a move expected to attract additional capital inflows into the region. 

In August, a Knight Frank report noted that Madinah led the Kingdom in growth, with residential transactions in the holy city surging 49 percent year on year to SR3.4 billion, while volumes climbed 38 percent. 

Large-scale, government-backed projects are also reshaping the urban landscapes of Makkah and Madinah, enhancing their livability and appeal to residents and pilgrims alike, while advancing ������Ƶ’s broader tourism and economic development objectives. 

RIYADH: The global market for environmental, social and governance sukuk reached a record $6.5 billion in the third quarter, bringing total issuance this year to $13.5 billion, Fitch Ratings said. 

The surge has already set a new full-year record for 2025, underscoring the growing investor appetite for sustainable Islamic finance instruments, according to the US-based agency.

ESG sukuk accounted for more than 40 percent of all emerging market US-dollar ESG bond issuance excluding China in the first nine months of 2025, up sharply from 18 percent during the same period last year, the report showed. 

This rise comes amid a broader push by governments and financial regulators in the Gulf, Southeast Asia, and other emerging markets to develop sustainable finance frameworks. 

The global sukuk market topped $1 trillion in 2024, with ESG sukuk exceeding $50 billion, underscoring sustainability’s growing role in Islamic finance, according to a joint report from the London Stock Exchange Group and the Islamic Corporation for the Development of the Private Sector, a member of the Islamic Development Bank. 

Bashar Al-Natoor, Fitch’s global head of Islamic Finance, said: “We expect ESG sukuk issuance to maintain strong momentum into 2026, fueled by robust demand, regulatory support, and sustainability mandates.” 

He added: “Risks such as oil price volatility, greenwashing and evolving sharia requirements persist, but fundamentals remain solid.” 

The market’s expansion is also growing more sophisticated, marked by a rise in subordinated ESG sukuk. 

These neared $5 billion in issuance by the third quarter of 2025, all from Saudi issuers, raising their share of Fitch-rated dollar ESG sukuk to 5 percent in the third quarter from just 1 percent in the first half. 

Outstanding ESG sukuk across all currencies reached over $55 billion at the end of September, making up around 40 percent of all ESG debt in member countries of the Organization of Islamic Cooperation. 

Fitch reported that approximately 95 percent of its rated portfolio is investment grade. All issuers carry a Stable Outlook, and no rated ESG sukuk has ever defaulted, underscoring the asset class’s resilience. 

Geographically, issuance remains concentrated in key Islamic finance hubs. Gulf Cooperation Council countries hold over half of all outstanding ESG sukuk, while Malaysia and Indonesia together contribute more than 40 percent.