UAE’s ADIB facilitated Dhs5.6bn in sustainable finance in 2023

Abu Dhabi Islamic Bank (ADIB) facilitated Dhs5.6bn (1.52bn) worth of sustainable projects in 2023, the banking group said in its ESG Report 2023 report as it seeks to achieve net-zero carbon emissions by the end of the decade.

ADIB is facilitating a wide range of activities, from financing renewable energy and clean technology projects to financing some social projects through its sustainable finance goal.

The Islamic bank recently unveiled 2030 emissions reduction targets for six key portfolio sectors: home finance, auto finance, real estate development, air transport, utilities, and petroleum manufacturing. It raised $500m through a green sukuk in November 2023, the world’s first dollar-denominated sustainability-linked Islamic bond issuance by a financial institution.

“By integrating robust ESG frameworks into our operations, we are not only enhancing our service offerings but also contributing to the global efforts towards a sustainable future,” said Mohamed Abdelbary, the bank’s acting CEO.

“We are committed to upholding Islamic finance principles, which reflect our dedication to sustainability, ethical and responsible financial practices, transparency, accountability, and risk management.”

Meanwhile, ADIB’s efforts in the sustainable finance space resonate with the UAE Banks Federation’s pledge to mobilise Dhs1tn in sustainable finance by 2030.

The bank supports the UAE’s Net Zero by 2050 Strategic Initiative and is a signatory to the UNEP FI Principles of Responsible Banking (PRB).

ADIB’s quarterly net profit jumped by 32 per cent to Dhs1.45bn in Q1 2024 compared to Dhs1.1bn for the corresponding period a year ago, while its revenues rose by 24 per cent to Dhs2.5bn, fuelled by growth across all business segments and products.

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