Emirates NBD, one of the leading banking groups across the Middle East, North Africa and Türkiye, has announced the successful structuring and completion of a green financing facility for Arabian Gulf Steel Industries (AGSI).
The funding will enable AGSI to expand its low-carbon steel production capabilities. Recognised as a prominent private-sector steel manufacturer and recycler in the UAE, AGSI is distinguished by its advanced low-emission production technologies, according to a statement issued by Emirates NBD.
Operating with one of the lowest carbon footprints in the regional steel sector, AGSI intends to deploy the facility to scale up its low-carbon steel output, addressing growing demand for sustainable materials within the real estate and construction industries.
As a dedicated green steel producer, AGSI has reached notable milestones, including recognition as the first net-zero steel manufacturing facility in the MENA region and the first globally to achieve carbon neutrality.
Designated as a ‘green’ transaction under Emirates NBD’s Sustainable Finance Framework, the deal reinforces the bank’s standing as a regional sustainable finance leader and underscores its ongoing support for the UAE’s transition towards a low-carbon economy.
Given that steel manufacturing contributes approximately 8 per cent of global CO₂ emissions, decarbonising the sector remains critical to achieving net-zero targets.
As the industry advances towards lower-emission iron production, the transaction highlights Emirates NBD’s role in supporting the UAE’s Net Zero by 2050 strategy through diversified green financing initiatives.
Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, commented: “Through the structuring of this green facility, we are establishing a strong benchmark for sustainable industrial financing.
AGSI’s verified position among the region’s lowest carbon footprint steel producers demonstrates its leadership in environmentally responsible manufacturing.
Our collaboration sets a standard for sustainable industrial practices aligned with the UAE’s national green manufacturing ambitions.
The financing adheres to the Green Loan Principles set by the Loan Market Association (LMA), incorporating stringent criteria on the allocation of proceeds, continuous environmental performance monitoring, and annual impact reporting.
This framework enhances transparency and accountability, illustrating how financial institutions and corporates can jointly deliver value through responsible and sustainable funding structures.
