UAE banking sector prioritises sustainable financing to support economic and social development

UAE banking sector prioritises sustainable financing to support economic and social development

Abu Dhabi, United Arab Emirates:

UAE Banks Federation (UBF), the sole representative and unified voice of banks in the UAE, revealed the remarkable success of the UAE banking and financial sector in developing sustainable banking solutions in line with the UAE's strategy to reduce emissions and achieve climate neutrality by 2050 and with United Nations Sustainable Development Goals.

The Federation highlighted the proactive role of the banking sector in combating climate change through green financing commitments and climate initiatives and said that providing green finance and issuing green-oriented funds has emerged as a powerful mechanism to meet sustainability commitments of various organisations in the UAE in particular, and the region, in general. An active partner in UAE's sustainable pursuits, UBF works in close collaboration with Central Bank of the UAE and all UBF members to support establishing the groundwork for the transformation to a sustainable economy.

According to publicly available data from UBF members, six major banks (FAB, ADCB, ENBD, DIB, Mashreq, and ADIB) have collectively dedicated over AED 190 billion (US$51.8 billion) in green financing for various projects in renewable energy, waste-to-energy, and green technology by the end of 2022. Other UBF members undoubtedly follow.

The tremendous growth in green funding by UBF