As countries across the Arab region seek to balance economic resilience with long-term development ambitions, financing has become an increasingly important part of the development conversation.
The United Nations Development Programme (UNDP) and the International Monetary Fund (IMF) Middle East Center for Economics and Finance (CEF) convened government officials from countries across the Arab region for a virtual programme on Sovereign Thematic Bonds and Sukuk: Linking Macroeconomic Context, Fiscal Strategy, and Sustainable Financing.
This initiative reflects the growing collaboration between UNDP and the IMF in supporting governments to address complex economic and development challenges. By combining expertise and strengthening coordination at the country level, we can help governments better connect macroeconomic and fiscal considerations with sustainable financing solutions that support national development priorities and long-term resilience.
The programme explored how sovereign thematic bonds and sukuk can support governments in mobilizing financing for priority investments while strengthening transparency, accountability, and investor confidence. Discussions focused on the links between fiscal policy, public financing needs, and sustainable development objectives, as well as practical approaches for designing and implementing thematic financing instruments.
The growing interest in thematic bonds and sukuk reflects a broader shift in how countries are approaching development finance. Beyond mobilizing resources, these instruments can help governments strengthen the connection between public finance and measurable economic, social, and environmental outcomes.
Through its sustainable finance portfolio, UNDP has supported more than 40 countries worldwide in designing and issuing SDG-aligned sovereign thematic bonds and sukuk, helping mobilize nearly USD 30 billion for environmental and social priorities. The programme forms part of UNDP’s broader efforts to support governments in identifying innovative financing solutions that advance sustainable development while responding to evolving economic realities.