UAE’s FAB to provide $135bn in green finance by 2030
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UAE’s FAB to provide $135bn in green finance by 2030

UAE’s FAB to provide $135bn in green finance by 2030

The banking group is expanding its target to include transition financing projects and early-stage innovative climate solutions such as green hydrogen

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UAE’s FAB to provide $135bn in green finance by 2030

First Abu Dhabi Bank (FAB) has pledged to facilitate $135bn (Dhs500bn) in sustainable and transition financing by 2030, a commitment that represents half of the combined Dhs1tn green finance pledge that was made by UAE banks at COP28.

The new target, an 80 per cent increase over its 2021 commitment of Dhs275.4bn, represents the largest sustainable finance commitment made by any bank in the Middle East region to date.

The banking group is expanding its target to include transition financing projects and early-stage innovative climate solutions such as green hydrogen.

The expansion of the green finance pledge underscores the bank’s commitment to be a key enabler of the regional sustainable finance agenda and its responsiveness to shifting customer and community priorities.

“FAB is deeply integrated into the UAE’s ambition on climate change and net zero, placing sustainability at the heart of social and economic progress. Across the Group, we believe in the urgency to scale investments and financing, as the foundation of climate action,” said Sheikh Tahnoon bin Zayed Al Nahyan, chairman of FAB.

Sheikh Tahnoon said the bank’s objectives will accelerate the UAE’s decarbonisation journey while supporting the country’s vision and regional, and global net zero agenda.

Earlier this year, FAB group CEO Hana Al Rostamani said the Abu Dhabi-based bank facilitated more than $9bn worth of sustainable projects last year as part of its target to disburse $75bn by 2030.

FAB said that more than half of its bond issuances in 2022 were in a ‘green’ format. The bank also increased its range of sustainable accounts, loans and finance offerings to support customers in achieving their sustainability goals.

FAB’s sustainable objectives

Meanwhile, FAB’s sustainable finance has created a positive impact in the UAE, the broader MENA region and internationally. Since 2021, the lender has facilitated over Dhs100bn ($27bn) as of September-end 2023 in sustainable projects towards renewable energy, clean transportation, green buildings and social projects.

The banking group’s sustainable finance projects since 2021 are diversified across geographies, with 57 per cent in the UAE, 21 per cent in Saudi Arabia, 11 per cent in Singapore, 5 per cent in Bahrain, and the remainder in Europe, the Americas and South Asia.

More than 86 per cent of the bank’s green finance has been disbursed through conventional financing while the remaining 14 per cent via Islamic financing.

FAB joined the industry-led and UN-convened Net Zero Banking Alliance in October 2021, becoming the first bank in the GCC region to commit to net zero by 2050.

The bank was also the first bank in the MENA region to issue a green bond in 2017 and is one of the biggest issuers of green bonds and sukuk – with green and Islamic bonds outstanding of over $3.2bn (Dhs11.75bn) equivalent across 15 issuances and six different currencies.

Read: FAB’s Q3 2023 profit surges by 48% on revenue boost

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