First Abu Dhabi Bank Boosts Sustainable Finance Ambitions With AED 500 Billion Commitment By 2030

First Abu Dhabi Bank (FAB), the UAE’s largest and globally recognized financial institution, has unveiled an ambitious plan to lend, invest, and facilitate over AED 500 billion (USD 135 billion) in sustainable and transition financing by 2030. This commitment marks an 80% increase from FAB’s 2021 target of AED 275.4 billion (USD 75 billion) and stands as the most substantial sustainable finance pledge made by any MENA bank to date.

The announcement, made during the UN Climate Change Conference (COP28), aligns with FAB’s dedication to supporting the UAE’s climate change and net-zero goals. The bank’s commitment represents more than half of the AED 1 trillion (USD 270 billion) combined pledge by UAE banks towards sustainable finance, as declared by the UAE Banks Federation on Finance Day at COP28.

Key Highlights:

1. FAB’s new target encompasses an 80% increase in resources for transition finance, reflecting the bank’s commitment to sustainable finance and climate action.
2. The expanded target includes transition financing projects and early-stage innovative climate solutions, demonstrating FAB’s responsiveness to evolving customer and community priorities.
3. Hana Al Rostamani, Group Chief Executive Officer of FAB, emphasized the bank’s intent to deliver meaningful impact, supporting more sustainable projects and advancing the UAE’s development as a green finance hub.
4. FAB’s sustainable finance initiatives since 2021 have facilitated over AED 100 billion (USD 27 billion) in projects related to renewable energy, clean transportation, green buildings, and social projects.
5. The expanded portfolio will include transition financing for hard-to-abate industries and early-stage innovative solutions like hydrogen.
6. FAB’s sustainable finance projects are diversified across geographies, with a significant percentage disbursed through conventional financing and Islamic financing.

FAB’s enhanced commitment reflects its position as a regional leader in climate action and sustainable finance. The bank, having joined the Net Zero Banking Alliance in 2021, continues to set milestones in promoting green finance, with a robust track record in green bonds and sukuk issuances.

As FAB charts an ambitious path towards a sustainable future, the bank’s commitment underscores its pivotal role in supporting the UAE’s vision for a green and resilient economy.