6 UAE Banks Allocated US$52 Billion for Investment in Green Initiatives
According to the UAE Banks Federation (UBF), six significant UAE banks jointly committed over 190 billion dirhams (US$51.8 billion) in green financing for several projects in the areas of renewable energy, waste-to-energy, and green technologies last year.
As per publicly accessible statistics, UBF has identified six financial institutions as organizations that have been actively addressing climate change, including First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Emirates NBD, Dubai Islamic Bank, Mashreq Bank, and Abu Dhabi Islamic Bank.
The statistics also showed that issuance of green-oriented funds and green financing pledges have become common methods used by the banking industry in the UAE to fulfill sustainability objectives.
According to UBF, the country's banks and financial institutions have started issuing green sukuk and bonds, whose total market in the UAE has been around AED 62.4 billion in recent years, with the intention of gaining access to institutional sources of financing that contribute to reducing the adverse effects on the climate while also offering investors enticing returns.
In order to encourage the green finance industry to follow the Central Bank of the UAE's policy and implement sustainability principles in reserve management and monetary operation, the UBF has also established an ESG steering group.