Emirates Steel Arkan (EMSTEEL) , one of the largest publicly listed steel and building materials manufacturers in the Middle East, has officially launched its first Green Finance Framework, underscoring its commitment to decarbonisation and sustainable growth.
The newly introduced framework enables EMSTEEL and its subsidiaries to raise capital through a range of green financial instruments—including green bonds, loans, commercial papers, and medium-term notes (MTNs)—denominated in multiple currencies. All proceeds will be allocated exclusively to finance or refinance environmentally sustainable projects that comply with rigorous green criteria.
Qualifying projects under the framework include:
- Low-carbon steel and cement production
- Solar photovoltaic (PV) energy installations
- Energy efficiency upgrades
- Technological innovations focused on reducing carbon emissions
Engineer Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, said the framework serves as more than just a financial mechanism.
“Our Green Finance Framework is a strategic lever to accelerate our transition towards a low-carbon future. This initiative aligns our fundraising efforts with globally recognised green financing standards and directs capital toward projects that support environmental stewardship.”
Mark Tonkens, Group CFO, emphasized the initiative’s role in positioning EMSTEEL as a regional sustainability leader:
“By aligning our financial strategy with international green finance benchmarks, we are securing vital funding for high-impact sustainability projects and advancing the region’s transition to a low-carbon economy.”
The Green Finance Framework was developed in line with internationally recognised best practices, ensuring transparency and accountability in the issuance, management, and reporting of green financial instruments. Moody’s Ratings issued a Second Party Opinion (SPO) on the framework, awarding it a Sustainability Quality Score of SQS2 (Very Good)—a rating that strengthens investor confidence in the company’s climate-conscious capital deployment strategy.
The framework was structured in collaboration with major financial institutions. ING served as the Lead Sustainability Structuring Bank, while First Abu Dhabi Bank (FAB) acted as the Sustainability Structuring Bank, demonstrating a strong regional commitment to advancing sustainable finance.
EMSTEEL’s Green Finance Framework forms a foundational part of its broader Environmental, Social, and Governance (ESG) strategy. The Group aims to reduce greenhouse gas emissions by 40% in steel production and 30% in cement production by 2030, in line with global decarbonisation targets.
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