- FAB expands its target to include transition financing and early stage innovation
- Group has facilitated over AED100 billion (USD27 billion) in financing renewable energy, wastewater, green buildings and other areas since 2021
- Commitment represents more than half of the combined AED1 trillion (USD270 billion) sustainable finance pledge made by UAE banks at COP28
- FAB promises new target will be a floor, not a ceiling
DUBAI, UAE, Dec. 5, 2023 /PRNewswire/ -- First Abu Dhabi Bank (FAB), the UAE's largest bank and one of the world's largest and strongest financial institutions, today announced that it will lend, invest and facilitate over AED500 billion (USD135 billion) in sustainable and transition financing by 2030.
The new target, an 80 per cent increase over FAB's 2021 commitment of AED275.4 billion, (USD75 billion) represents the largest sustainable finance commitment made by any MENA bank to date.
The commitment by the UAE's largest bank represents over half of the combined pledge of AED1 trillion (USD270 billion) made by UAE banks towards sustainable finance announced by the UAE Banks Federation on Finance Day at COP28.
As part of FAB's announcement at the UN Climate Change Conference (COP28), the bank will expand its target to include transition financing projects and early-stage innovative climate solutions.
The expansion underscores FAB's commitment to be a key enabler of the regional sustainable finance agenda and its responsiveness to shifting customer and community priorities.
HH Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of FAB, said "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. In setting even more ambitious sustainable finance targets by 2030, we are expanding our commitment. Our objectives will accelerate the decarbonisation journey, while supporting the UAE vision and regional, and global net zero agenda."
Hana Al Rostamani, Group Chief Executive Officer of FAB, said: "The UAE has shown us this week what it means to be ambitious, bold and collaborative in its leadership of climate change action for our region and our world. We mirror its desire to accomplish the unprecedented and unlock 80% more resources for transition finance. Our new target is a floor and not a ceiling.
"From now until the end of this decade, we will deliver meaningful impact by deploying finance, advisory, and innovation at scale to ensure we meet climate ambitions across the region, where we will support more sustainable projects, engage more clients in their transition journeys, and advance the UAE's development as a green finance hub."
As a regional pacesetter bank in climate action, FAB's sustainable finance has created positive impact in the UAE, the broader MENA region and internationally. Since 2021, it has facilitated over AED100 billion (USD27 billion) as of September-end 2023 in sustainable projects towards renewable energy, clean transportation, green buildings and social projects.
FAB's expanded portfolio will include transition financing – a vital component for heavy, extractive, and other hard-to-abate industries – in addition to purely green financing. The bank will also include early-stage innovative solutions to climate change such as hydrogen.
FAB's sustainable finance projects since 2021 are diversified across geographies, with 57% in the UAE, 21% in Saudi Arabia, 11% in Singapore, 5% in Bahrain, and the remainder in Europe, the Americas and South Asia. Over 86% has been disbursed through conventional financing; and 14% via Islamic financing.
The enhanced target is the latest in FAB's numerous sustainability milestones. In October 2021, FAB joined the industry-led and UN-convened Net Zero Banking Alliance (NZBA), becoming the first Gulf Cooperation Council (GCC) bank to commit to net zero by 2050.
FAB was the first MENA bank to issue a green bond in 2017 and is a regional and global leader in the Green Bond and Sukuk market – with Green Bonds and Sukuk outstanding of over AED11.75 billion (USD 3.2 billion) equivalent across 15 issuances and 6 different currencies.
For further information, visit: www.bankfab.com
