MENA startups get fresh funding to drive expansion

MENA startups get fresh funding to drive expansion
The latest funding rounds highlight investor confidence in emerging technologies and innovative business models reshaping markets in the region. (Shutterstock)
Short Url
Updated 15 March 2025
Follow

MENA startups get fresh funding to drive expansion

MENA startups get fresh funding to drive expansion
  • Latest funding rounds highlight investor confidence in emerging technologies

RIYADH: A wave of new investments is fueling the growth of startups across various sectors, from fintech and e-commerce to healthcare and sustainability.

The latest funding rounds highlight investor confidence in emerging technologies and innovative business models reshaping markets in the region and beyond.

Aya, a Saudi e-commerce platform specializing in modest fashion, has closed a SR6 million ($1.5 million) seed funding round.

The investment was led by Khwarizmi Ventures, with participation from Raed Ventures, Joa Capital, and FENA Holdings, as well as Turki Alrajhi and a group of angel investors.

Founded by Munira Al-Kadi and Abdulrahman Al-Ammar, Aya aims to unify the modest fashion market through a trend-driven discovery platform.

The company leverages real-time customer insights to predict trends, enabling local manufacturers to deliver on-demand fashion efficiently.

“This investment is more than capital — it’s validation of our bold vision to disrupt a massive, fast-growing traditional market,” said Al-Kadi.

“We’re entirely changing the game, and we’re looking for fearless, entrepreneurial talents to join our mission,” she added.

Homam Meaddawi, partner at Khwarizmi Ventures, highlighted Aya’s potential in an industry that is seeing rapid growth. 




Founded by Munira Al-Kadi and Abdulrahman Al-Ammar, Aya aims to unify the modest fashion market through a trend-driven discovery platform. (Supplied)

“We are proud to support talented founders who formerly worked together in e-commerce. Aya aims to disrupt the modest fashion industry, beginning with the multi-billion dollar, fragmented abaya market,” he said.

With this investment, Aya plans to enhance its platform, refine its product offerings, and expand its reach within the region.

Ajras secures $1.5m pre-series A round for proptech expansion

Saudi property tech startup Ajras has raised $1.5 million in a pre-series A funding round led by Veda Holding.Founded in 2022 by Muath Al-Jubailan, Ajras provides innovative financing solutions to simplify rent payments for the commercial and industrial sectors.

The company is licensed by the General Authority for Real Estate and recently introduced a rent now, pay later solution.

The latest investment follows Ajras’ SR105.05 million seed funding round closed in November 2023, which was led by Madarek International. 




 Founded in 2022 by Muath Al-Jubailan, Ajras provides innovative financing solutions. (Supplied)

The company’s financing model aligns with Saudi Arabia’s broader efforts to modernize the real estate sector and enhance financial accessibility for businesses.

Veda Holding, headquartered in Riyadh, serves as a business incubator supporting both early-stage startups and established companies with strategic funding.

PayTabs Group acquires 51 percent stake in PayTabs Egypt

Saudi Arabia-based PayTabs Group has acquired a 51 percent stake in PayTabs Egypt from EFG Finance, an EFG Holding company, in a move aimed at strengthening its footprint in the Egyptian digital payments market.

The acquisition aligns with PayTabs’ long-term strategy to enhance digital transformation and financial inclusion across the North African country.

“We remain deeply committed to Egypt’s digital payments future, and our focus on innovation and customer-centricity will only grow stronger,” said Abdulaziz Al-Jouf, CEO and founder of PayTabs Group.

Aladdin El-Afifi, CEO of EFG Finance, emphasized that the decision to sell part of its stake was part of a broader strategic shift.

“By reallocating resources from non-core assets, we enhance our ability to drive sustainable growth and innovation in key areas. This decision aligns with our long-term strategic objectives and commitment to delivering value to our stakeholders,” he said.

Through this acquisition, PayTabs aims to provide merchants with more seamless digital payment solutions while expanding its services across the region.

Klaim raises $10m series A and $16 million financing fund

Klaim, a healthcare fintech startup, has raised $10 million in series A funding, along with an additional $16 million financing fund to accelerate its expansion.

Since its founding in 2019, Klaim has been focused on transforming medical insurance claims processing through AI-powered solutions that help healthcare providers improve cash flow.

By leveraging artificial intelligence and vast data analytics, Klaim predicts insurance payment patterns and streamlines claim settlements.

The newly raised funds will support its expansion in the UAE, Saudi Arabia, and Oman while refining its technology to enhance efficiency in healthcare payments.

Klaim has also strengthened its presence in Saudi Arabia through a strategic partnership with Tharawat Tuwaiq Financial Co.

Under this collaboration, Tharawat Tuwaiq secured regulatory approval for a SR60 million healthcare financing fund, with the first transaction set for March 2025.

Additional funds are expected in the second half of 2025 to further support the sector.

Motery completes seed round at $8m valuation

Motery, a Kuwait-based fintech startup, has completed its seed funding round, valuing the company at $8 million.

The startup aims to streamline the automotive purchasing experience by offering an all-in-one platform for online car buying and financing.

Motery’s platform allows consumers to browse vehicles, compare financing options, and complete purchases entirely online.

The company plans to use the fresh capital to enhance its technology, expand its service offerings, and increase market penetration in Kuwait’s automotive sector.

Longevity Wellness Hub secures $4m to expand across the GCC

Longevity Wellness Hub has raised $4 million to expand its presence across the Gulf Cooperation Council and further develop its wellness solutions.

The company integrates quantum diagnostics, precision-designed infusions, and advanced recovery therapies to optimize health outcomes.

A major component of Longevity’s expansion is its investment in quantum scanning technology, which analyzes biometrics and voice frequencies to provide personalized health insights.

The company also incorporates alternative therapies such as hyperbaric oxygen therapy and red light therapy, blending ancient healing practices with modern biohacking innovations.

Institutional investors, family offices among investors in Phoenix Venture Partners’ innovation fund

Phoenix Venture Partners has successfully completed the second closing of its innovation fund.

The round saw participation from investors in France, Luxembourg, Mauritius, Kuwait, and Saudi Arabia, including institutional investors, family offices, and high-net-worth individuals.

Phoenix Venture Partners Innovation Fund aims to support innovations and technologies, particularly in sectors such as deep tech, AI, and sustainable solutions.

The fund’s growing investor base reflects global confidence in its strategic vision.

ORA Technologies raises $1.9m

Moroccan startup ORA Technologies has secured $1.9 million in a pre-series A funding round led by Witamax and Azur Innovation Fund, bringing its total funding to $4.4 million.

This marks the first time the company has received investment from venture capital firms.

ORA Technologies focuses on driving financial and digital inclusion in Morocco.

The funds will be used to scale Kooul, its food delivery platform, which has expanded to six cities in just five months, and to accelerate the rollout of ORA Cash, its digital payment and money transfer solution.

Aramco Ventures backs German startup Ucaneo’s direct air capture facility

Aramco Ventures, the investment arm of Saudi Aramco, has invested in German climate tech startup Ucaneo, which is developing the country’s largest direct air capture facility.

Ucaneo previously raised €6.75 million ($7.36 million) in a seed funding round in September, but did not disclose the specific amount invested by Aramco Ventures.

The Berlin-based company focuses on advancing DAC technology to remove carbon dioxide from the atmosphere efficiently.

DAC is gaining traction globally as industries and governments seek scalable solutions to meet carbon reduction targets.

Aramco’s investment signals its interest in innovative climate technologies and aligns with broader efforts to support sustainability initiatives.

OIA backs US biotech firm Tidal Vision

Oman Investment Authority, the sultanate’s sovereign wealth fund, has invested in American biotech company Tidal Vision as part of its strategy to support sustainable innovations.

OIA participated in Tidal Vision’s $140 million series B financing round, which was oversubscribed, though the exact amount of its investment was not disclosed.

Tidal Vision specializes in biopolymers, offering biomolecular solutions for industries such as water treatment, agriculture, and material science.

The company’s core innovation is the use of chitosan, a natural polymer derived from crustacean shells, as an alternative to traditional chemicals.

The investment aligns with OIA’s broader objectives of fostering sustainability and supporting the localization of advanced technologies.

OIA, which managed assets exceeding $49 billion in 2023, has been actively investing in companies that drive environmental and industrial advancements.

With the new funding, Tidal Vision is expanding its global presence by developing new infrastructure in Europe, Texas, and Ohio, furthering its mission to scale sustainable material solutions worldwide.


Public firms listed on Muscat bourse report 52.6% surge in profits

Public firms listed on Muscat bourse report 52.6% surge in profits
Updated 23 March 2025
Follow

Public firms listed on Muscat bourse report 52.6% surge in profits

Public firms listed on Muscat bourse report 52.6% surge in profits

RIYADH: The net profits of public joint companies listed on the Muscat Stock Exchange surged 52.6 percent year on year to reach 1.339 billion Omani rials ($3.48 billion) in 2024.

This increase coincided with the listing of OQ Exploration and Production and OQ Base Industries in 2024, while energy companies recorded improved performance, with some moving from losses to profits, the Oman News Agency reported.

This falls in line with strong growth in Arab stock exchanges in 2024, where trading values surged 58.1 percent to surpass $1.03 trillion.

It also aligns with a 21.3 percent increase in regional trading volumes and a 35.9 percent rise in the number of trades during the year, reflecting a dynamic financial landscape with varied market performances.

Statistics from the Oman News Agency, based on preliminary financial results for around 90 public joint-stock firms with fiscal years ending in December, revealed improved performance across most companies in the banking, industrial, investment, service, and telecommunications sectors.

The data further showed that the total number of companies that reported profits last year was 69, compared to 68 entities that reported profits in 2023, excluding the financial results of funds and firms that were not listed on the stock exchange during 2023.

The figures also indicated that OQ Exploration and Production topped the list of companies with the highest net profits, totaling 326.5 million rials.

Bank Muscat came in second with 225.5 million rials, followed by Sohar International Bank, which came in third with 100.2 million rials.

Omantel ranked fourth after recording net profits at the local level of 69.4 million rials. The National Bank of Oman placed fifth with net profits of approximately 63.1 million rials, followed by OQ Gas Networks, which came in sixth with 47.8 million rials.

The data further showed that Bank Dhofar placed seventh with 43.6 million rials, while Ahli Bank ranked eighth with 41.6 million rials.

Ominvest placed ninth with net profits of an estimated 35.9 million rials, while Oman Arab Bank ranked tenth with net profits of 30.4 million rials.

Preliminary data showed that the losses recorded by public joint-stock companies decreased last year to around 38.1 million rials, compared to losses of 50.6 million rials in 2023. However, the number of firms recording losses last year jumped to 21, compared to 20 companies that recorded setbacks in 2023.

Last year, five companies flipped from losses to profits, including SMN Power Holding, which reported group net profits of 4.5 million rials in 2024, up from 6.4 million rials in 2023. Sohar Power Co. also posted net profits of about 22 million rials, compared to 5.1 million rials the previous year.

Conversely, six companies turned from profits to losses, most notably Leva Group, which recorded losses of 5 million rials in 2024, compared to net profits of 6.3 million rials in 2023, and Oman Refreshments, which recorded group losses of 2.7 million rials last year, compared to a net profit of 6.3 million rials in 2023.

Galfar Engineering and Contracting also recorded a group loss of 3.9 million rials in 2024, compared to a profit of 574,000 rials in 2023.


Riyadh municipality unveils new investment opportunities across key sectors 

Riyadh municipality unveils new investment opportunities across key sectors 
Updated 23 March 2025
Follow

Riyadh municipality unveils new investment opportunities across key sectors 

Riyadh municipality unveils new investment opportunities across key sectors 

JEDDAH: Riyadh has unveiled new investment opportunities for 2025, covering commercial, residential, retail, industrial, and leisure projects to boost the city’s economy and development. 

The Riyadh municipality introduced 20 new investment prospects, covering more than 175,000 sq. meters across over 20 sites. These include mixed-use developments, existing retail spaces, mobile sports clubs, and areas allocated for concrete and construction material factories — along with a cafe and ATM setup. 

Investors can access the projects through the Furas online platform, designed as the municipality’s primary hub for real estate and municipal investment opportunities, the Saudi Press Agency reported. 

The initiative is part of a broader strategy to accelerate private sector participation in urban development, aligning with Saudi Arabia’s Vision 2030. 

“This step comes as an extension of the Riyadh municipality’s strategy to enhance the role of the private sector in urban development, by enabling it to participate effectively in developing facilities and services, and achieving integration between government and investment efforts to meet the needs of society,” the SPA report stated.  

“It also contributes to raising the quality of urban life and achieving the goals of the Kingdom's Vision 2030,” it added.  

Contracts for the investment sites range from five to 25 years, covering multiple districts across Riyadh. Key locations include Jarir, Al-Deerah, and Al-Rawdah, alongside Al-Basateen, Al-Qadisiyah, and Al-Jazirah. 

Additional areas feature Al-Hamra, Al-Morouj, and Al-Yamamah, as well as Eastern Suwaidi, Al-Masha’il, Al-Manakh, Badr, and Taybah. 

Investors are invited to review competition requirements and the application process via a dedicated link, with the envelope opening set for May 2025. 

In a parallel push to enhance the capital’s livability, 87 new parks were inaugurated over the last three years — raising the city’s total to over 700, up from 615. The parks cover more than 745,000 sq. meters, featuring nearly 25,000 shrubs and 7,000 trees planted across different districts to ensure equitable access to green spaces. 

The parks now serve as dynamic community hubs, hosting cultural, social, entertainment, and sporting activities. The move underscores Riyadh Municipality’s commitment to improving quality of life, fostering social cohesion, and advancing Vision 2030’s urban sustainability goals. 

With these investments and infrastructure developments, Riyadh is positioning itself as a leading model for vibrant, sustainable urban growth in the region. 


Global economic growth to average at 3.1% in next 5 years: IMF official 

Global economic growth to average at 3.1% in next 5 years: IMF official 
Updated 23 March 2025
Follow

Global economic growth to average at 3.1% in next 5 years: IMF official 

Global economic growth to average at 3.1% in next 5 years: IMF official 

RIYADH: Global economic growth is expected to average around 3.1 percent in the next five years, below the pre-pandemic level of 3.7 percent, according to an International Monetary Fund official.

Speaking at the China Development Forum in Beijing on March 23, Nigel Clarke, deputy managing director of the IMF, said that total factor productivity internationally, which measures the ability to create more outputs with the same inputs, has been growing at a slower pace since the 2008-09 global financial crisis.

The worldwide growth projections of the IMF indicate that countries in the Middle East are expected to show future financial resilience. 

In January, the UN financial agency said Saudi Arabia’s economy is projected to grow by 3.3 percent in 2025 and 4.1 percent in 2026. 

“Global growth is steady but underwhelming. Our five-year ahead growth forecast remains at 3.1 percent— well below the pre-pandemic average of 3.7 percent,” said Clarke. 

He added: “Patterns of trade and capital flows are shifting. AI (artificial intelligence) is rapidly advancing. Trade is no longer the engine of global growth it used to be. Divergences across countries are widening. And governments worldwide are shifting their policy priorities.” 

Clarke argues that countries should pursue structural reforms to boost productivity and ensure medium-term growth.

He further said that in aging societies— where the share of the working-age population is shrinking— productivity growth plays a vital role in maintaining living standards. 

“It also applies to emerging markets and developing economies trying to close the gap with richer countries. To provide better jobs and a higher standard of living, they too need to ignite productivity growth,” added the deputy managing director.

He added that this productivity growth could be achieved only by innovation, technological advancements, and ample investments in research and development. 

Citing IMF research, Clarke highlighted that productivity growth in advanced economies could increase by 0.2 percentage points a year with a hybrid policy that boosts public research expenditure by a third and doubles subsidies to private research. 

He noted that AI could boost global gross domestic product growth between 0.1 and 0.8 percentage points per year in the medium term, depending on how it is adopted.

Clarke also underscored the necessity of better resource allocation in the future to maintain a healthy global productivity level. 

“The movement of labor and capital toward more productive firms and industries has long been an important source of overall productivity growth. As workers move from farms to factories, for example, their productivity increases dramatically. So too do their income and living standards, with spillovers to the whole economy,” he said. 

According to Clarke, effective measures should be taken to strengthen the private sector, as well as create an environment that could help them thrive. 

“Through our policy advice, lending and capacity development, the IMF has consistently supported countries in establishing macroeconomic and financial stability as a foundation for growth,” said Clarke. 

He added that a new IMF Advisory Council on Entrepreneurship and Growth has been created to help countries develop ideas on easing regulatory barriers, adapting tax systems, and incentivizing long-term savings to boost innovation.


Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030

Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030
Updated 40 min 41 sec ago
Follow

Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030

Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030

RIYADH: Saudi Arabia’s sovereign wealth fund and five of its regional counterparts are on track to control $18 trillion in assets by 2030, marking a 50 percent surge from the end of 2024, according to an analysis.  

In its latest report, Deloitte Middle East noted that the region, home to six of the world’s 10 largest sovereign funds, now holds approximately 40 percent of global SWF assets — solidifying its position as a dominant force in the market.  

The study aligns with the latest report from the Sovereign Wealth Fund Institute, which ranks Saudi Arabia’s Public Investment Fund sixth globally, managing $925 billion. The Abu Dhabi Investment Authority leads the Gulf with $1.05 trillion, followed by the Kuwait Investment Authority at $1.02 trillion and the Qatar Investment Authority with $526 billion. 

Julie Kassab, sovereign wealth fund leader at Deloitte Middle East, said: “The Gulf region continues to be the epicenter of sovereign wealth fund activity, with its major players driving innovation in investment strategies and operational excellence.” 

She added: “We are witnessing these funds not only expand their geographical footprint but also significantly enhance their internal capabilities, setting new standards for the industry in terms of performance and governance.” 

The report also highlighted that Gulf SWFs maintained an “aggressive investment pace,” deploying $82 billion in 2023 and an additional $55 billion in the first nine months of 2024. 

Deloitte listed five major players shaping the region’s investment landscape: Saudi Arabia’s PIF, ADIA, Abu Dhabi’s Mubadala, Abu Dhabi Developmental Holding Co., and QIA. 

Globally, the total number of sovereign wealth funds has nearly tripled since 2000, reaching approximately 160-170 funds, with 13 new ones established between 2020 and 2023. 

Asia takes center stage 

Deloitte’s analysis highlights key trends reshaping the regional SWF landscape, with funds increasingly focusing on fast-growing countries outside traditional Western markets. 

The report revealed that Gulf SWFs strategically prioritize Asia, with many establishing new offices throughout the Asia-Pacific region and significantly increasing allocations to high-growth economies, including China and India. 

Wealth funds in the Gulf region were particularly active in China, investing approximately $9.5 billion in the Asian giant during the first nine months of 2024. 

Abu Dhabi Investment Authority and Kuwait Investment Authority ranked among the top 10 shareholders in Chinese A-share listed firms. 

“This represents a strategic opportunity as Western investors reduce their exposure, allowing Middle Eastern funds to leverage their strong political and trade relationships with Beijing,” Deloitte noted. 

The report added that Gulf wealth funds are also eyeing Africa, particularly the mining industry, for new opportunities. 

This year, the UAE and Saudi Arabia have shown a willingness to invest in high-risk extractive ventures in Africa, both directly and through stakes in multinational mining companies. 

This shift coincides with the rise of new investment vehicles, particularly “Royal Private Offices,” which now control an estimated $500 billion in assets. 

Combating challenges 

Wealth funds in the Gulf region are under increasing pressure to sharpen their competitive edge, focusing on internal performance, risk oversight, and investment management to deliver stronger returns, the analysis stated. 

The report noted that many regional wealth funds are becoming more proactive — showing greater openness to divestment, demanding better reporting from portfolio companies, and exerting more influence at the board level.  

The study added that this drive for excellence has intensified competition for human capital among these funds, with soaring demand for experienced national talent. 

“Gulf SWFs now employ an estimated 9,000 professionals across their operations. Gulf funds are offering increasingly attractive packages to senior professionals, particularly those with experience at established funds like Singapore’s Temasek or Canada’s Maple Eight,” Deloitte stated. 

The consulting firm added that Gulf governments are also reassessing their approach to strategic assets. This has led to the creation of new, domestically focused funds designed to co-invest alongside international partners rather than compete directly with established regional players. 

It concluded: “Looking ahead, while geopolitical uncertainties and potential commodity price fluctuations may create headwinds, these pressures could drive greater efficiency and innovation in fund management practices.” 


Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 

Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 
Updated 23 March 2025
Follow

Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 

Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 

RIYADH: Global borrowing hit a record $25 trillion in 2024, a $10 trillion surge from pre-pandemic levels, sparking concerns over sustainability, a new report showed.

The Organization for Economic Co-operation and Development said in its latest study, “Financing Growth in a Challenging Debt Market Environment,” that the figure is nearly triple the amount raised in 2007, driven by rising sovereign and corporate debt amid higher borrowing costs and economic volatility. 

The surge in borrowing reflects a fragile global economy grappling with slower growth, persistent inflation, and geopolitical uncertainty, which have forced governments and companies to seek more debt to fund operations and maintain public services. 

OECD Secretary-General Mathias Cormann said: “Sovereign and corporate debt levels continue to grow across the world, at a time of increasing borrowing costs and market volatility.” He urged governments to improve public spending efficiency, prioritize productive investments, and incentivize businesses to expand capacity. 

Rising debt levels

The analysis warned that debt levels are projected to continue rising into 2025, with the aggregate central government marketable debt-to-gross domestic product ratio in OECD countries expected to reach 85 percent. This represents an increase of more than 10 percentage points since 2019, nearly double the 2007 level.

“The increase in 2024 was the first since 2020, reflecting slower projected GDP (gross domestic product) growth of around 2 percent annually during this period, compared to over 4 percent in 2022-23, when the economy was recovering from the pandemic,” the report said. 

Bond yields in several major markets surged despite declining policy rates, exacerbating the challenges posed by higher sovereign and corporate indebtedness. This scenario increases borrowing costs and limits the fiscal space available for future investment at a time when substantial capital is needed to drive economic growth, respond to demographic changes, and meet defense and infrastructure needs. 

Record bond issuance

Sovereign bond issuance in OECD countries is projected to reach a historic high of $17 trillion in 2025, up from $14 trillion in 2023. The total outstanding debt is expected to grow from $54 trillion in 2023 to nearly $59 trillion in 2025.

Emerging markets and developing economies also witnessed a sharp increase in sovereign borrowing, with total debt issuance rising from approximately $1 trillion in 2007 to over $3 trillion in 2024. China accounted for 45 percent of the total issuance in 2024, a rise from the 17 percent recorded between 2007 and 2014.

By the end of 2024, global corporate bond debt is set to reach $35 trillion, continuing a decades-long borrowing trend, mainly driven by non-financial companies whose debt has nearly doubled since 2008.

Higher borrowing costs

Governments and corporations are beginning to feel the weight of higher borrowing costs. In 2024, interest payments as a share of GDP increased in about two-thirds of OECD countries, reaching an average of 3.3 percent — a growth of 0.3 percentage points from the previous year. 

“This means spending on interest payments is greater than government expenditure on defense in the OECD on aggregate,” the report explained. 

Additionally, refinancing risks have grown significantly, with nearly 45 percent of sovereign debt in OECD countries set to mature by 2027. Corporate bond markets face similar pressures, with approximately one-third of all outstanding corporate bond debt scheduled to mature in the next three years. 

Refinancing this debt at higher interest rates could further strain public and corporate finances.   

Debt ownership shifts 

The withdrawal of central banks from sovereign debt markets continued in 2024, with their holdings of domestic government bonds in OECD economies shrinking from 29 percent of total outstanding debt in 2021 to 19 percent in 2024.

Simultaneously, domestic households increased their share from 5 percent to 11 percent, while foreign investors expanded their holdings from 29 percent to 34 percent. This transition to a more price-sensitive investor base could amplify market volatility, particularly if new investors demand higher yields.

Climate financing challenges

A key theme of the OECD’s report is the financing required to meet global climate change objectives.

“If growth rates for public and private investment in the climate transition continue in line with recent trends, advanced economies will not be aligned with the Paris Agreement goals until 2041,” the study said. 

The situation is even more difficult for emerging markets other than China, which would face a cumulative investment shortfall of $10 trillion to meet the Paris Agreement goals by 2050.

The report suggested that increasing public sector financing for climate initiatives could substantially raise public debt-to-GDP ratios. Alternatively, greater reliance on private capital would necessitate rapid development of capital markets, particularly in emerging economies.

“Financial regulation reforms will be essential, particularly to enhance capital market development in emerging markets,” the study noted.