First Abu Dhabi Bank (FAB) Announces Record AED500 bn Commitment in Sustainable Finance

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First Abu Dhabi Bank (FAB), the UAE’s largest financial institution, has declared a monumental pledge to lend, invest, and facilitate over AED500 billion (USD135 billion) in sustainable and transition financing by 2030.

This target represents an 80 percent surge from its 2021 commitment, establishing it as the most substantial sustainable finance commitment by any MENA bank to date.

The bank’s far-reaching commitment, representing more than half of the combined AED1 trillion (USD270 billion) commitment made by UAE banks towards sustainable finance on Finance Day at COP28, underscores its commitment to be a critical driver of the regional sustainable finance agenda.

Tahnoon bin Zayed Al Nahyan, Chairman of FAB, emphasized the bank’s integration into the UAE’s climate ambitions and net-zero aspirations, placing sustainability at the core of societal and economic advancement. He underscored FAB’s determination to escalate investments and financing as the bedrock of climate action.

Hana Al Rostamani, Group Chief Executive Officer of FAB, echoed the UAE’s dedication to pioneering and collaborative climate change leadership. She highlighted the bank’s resolve to amplify resources for transition finance by 80 percent, aiming not just to meet but to exceed its new target through impactful finance, advisory services, and innovation.

FAB’s sustainable finance endeavors since 2021 have already fostered positive outcomes, facilitating over AED100 billion (USD27 billion) in sustainable projects across renewable energy, clean transportation, green buildings, and social initiatives.

The bank’s extended portfolio will encompass transition financing, pivotal for heavy and extractive industries alongside traditional green financing. It will also embrace nascent innovative climate solutions, including hydrogen.

Diversifying its sustainable finance projects geographically, FAB’s initiatives have been notably distributed in the UAE (57 percent), Saudi Arabia (21 percent), Singapore (11 percent), Bahrain (5 percent), and other parts of Europe, the Americas, and South Asia. The disbursement split consists of 86 percent via conventional financing and 14 percent through Islamic financing.

This recent commitment marks the latest milestone in FAB’s sustainability journey. The bank joined the Net Zero Banking Alliance in 2021, committing to net zero by 2050. Moreover, it holds a pioneering position in the Green Bond and Sukuk market, with over AED11.75 billion (USD 3.2 billion) in Green Bonds and Sukuk across 15 issuances and multiple currencies.