UAE banks provide $52 billion in green funding

The UAE Banks Federation (UBF) has announced a collective commitment from banks within the country's financial sector to mobilize over $270 billion (AED1 trillion) in sustainable finance by the year 2030. This announcement was made by Abdulaziz Al Ghurair, Chairman of the UBF, during an event co-hosted by the Central Bank of the UAE (CBUAE) in collaboration with the COP28 Presidency. The event aimed to promote and facilitate global climate finance solutions, emphasizing progress toward a sustainable future.

In alignment with the principles of sustainability, the UBF has been actively collaborating with its partners to drive initiatives supporting accelerated progress in sustainable development goals. Under the direct supervision of the CBUAE, the banking federation is actively engaged in fortifying the principles and frameworks of green finance. The CBUAE has embraced sustainability principles within the banking and financial sector.

“The pledge to mobilise over AED 1 trillion in sustainable finance, represents the collective efforts of our leading national member banks and is a true testament to our financial sector’s commitment to and support of building a better future,” said Jamal Saleh, Director-General of UBF. “Six of our UBF member banks have already taken significant strides in this regard, with over $52 billion (AED 190 billion) having been already targeted towards green projects, renewable energy, waste-to-energy, and green technologies,” Saleh added. “We are confident that our UAE banking sector can make significant contributions to the UAE’s National Climate Change Plan. UBF’s significance lies not only in its commitment to supporting sustainability but also in its role as the platform for cooperation among all its UBF member banks,”.

At the forefront of these efforts is the UBF's high-level ESG committee, comprising specialized experts from member banks. This committee has played a pivotal role in spearheading the initiative, focusing on environmental, social, and governance considerations. The UBF's overarching objective is to cultivate a business environment that fosters competitive, active, and sustainable finance. The UAE has been steadfast in adopting sustainability standards and principles within its banking and financial sector. Noteworthy milestones include the Declarations for Sustainable Finance in Abu Dhabi and Dubai in 2016 and 2019, respectively, along with the Guiding Principles for Sustainable Finance introduced in 2020. Furthermore, in 2021, the National Framework for Sustainable Finance was established to promote the development of a robust green financial market in the UAE.