The Persian Gulf states’ transition to a low-carbon future is driven by their governments’ efforts at diversification and collaboration. All are reducing oil dependence through economic diversification and investments in renewable energy. Saudi Arabia’s Vision 2030 and initiatives by the United Arab Emirates (UAE) such as the Dubai Clean Energy Strategy 2050 and UAE Net Zero 2050 highlight these goals.
At the 2023 COP28 UN Climate Change Conference in Dubai, the UAE launched the $30 billion ALTÉRRA climate investment fund. Qatar aims for 20% of its energy from renewables by 2030, while Saudi Arabia’s Green Initiative focuses on long-term climate action. Sovereign wealth funds play a key role, investing in green technologies.
Banks are aligning with government policies to support sustainable finance, working with agencies to mobilize capital and promote innovation in the energy transition.
“Collaboration is essential to achieve sustainability goals, as no single entity can address the scale and complexity of the transition alone,” explains Leo Chi Wai Tong, head of Sustainability, QNB. “Partnerships between governments, financial institutions, and the private sector are key to creating a sustainable financing ecosystem to support eligible green and sustainable opportunities. Such collaboration enables the mobilization of capital at scale and ensures alignment with international standards, fostering transparency and credibility in the market. By working together, we can drive meaningful progress toward a more sustainable and low-carbon future.”
First Abu Dhabi Bank (FAB)
Best Bank for Sustainable Finance
In December 2023, First Abu Dhabi Bank (FAB) announced an ambitious plan to lend, invest, and facilitate over 500 billion Emirati dirhams (about $136 billion) in sustainable and transition financing by 2030. Notable sustainable deals in 2024 include $1.14 billion syndicated senior debt facilities for the world’s first off-grid, multiple-utilities project serving a regenerative tourism project in Amaala, where FAB acted as bookrunner, mandated lead arranger, sole green loan coordinator, global and commercial facility agent, and onshore and offshore security agent. FAB also structured and led the Gems Education $3.25 billion, sustainability-linked, multicurrency term loan murabaha facility. FAB was one of the banks that successfully structured sustainable infrastructure provider Acciona’s green and sustainability-linked multicurrency $300 million facility. FAB also tops the green loan leadership boards in Europe, the Middle East, and Africa.
QNB Group
Sustainable Finance Deal of the Year
Best Bank for Sustainable Infrastructure/Project Finance
Best Bank for Sustainable Financing in Emerging Markets
Best Bank for Green Bonds
Best Bank for Sustainable Bonds
Best Bank for ESG-Related Loans
Best Bank for Sustainability Transparency
Best Bank for Transition/Sustainability-Linked Loans
Multiple regional award winner QNB Group integrates sustainability into its financing activities through both mitigating ESG-related risk and capturing eligible opportunities. “We aim to reduce and mitigate ESG-related risks through our Environmental and Social Risk Management framework, which defines comprehensive exclusions, high-risk sectors, and prohibited activities for the group. We also see the need to evaluate the long-term viability and risk profiles of projects, thereby incorporating environmental and climate-related scenarios into risk models,” states QNB’s Leo.
“The most significant impact we can make is through our financing,” Leo continues. “By directing capital flows toward sustainable projects, we enable growth in key sectors and support our clients in the transition to a low-carbon ecosystem. This is enabled by QNB Group’s market-leading Sustainable Finance and Product framework, developed in line with the industry’s best practices, principles, and taxonomies. It allows us to transparently identify eligible green, social, sustainability-linked, and/or transition activities to deliver positive impact and support global sustainability goals.”
Emirates NBD Capital
Best Impact Investing Solution
Emirates NBD Capital (EmCap) supported clients in mobilizing $34.3 billion of sustainable finance in 2024 across 21 deals, ranging from green to sustainability bonds; and EmCap is on track to meet its pledge of facilitating 100 billion Emirati dirhams of sustainable finance, as part of the UAE Central Bank initiative, by 2030. Emirates NBD Islamic’s Sustainability Sukuk supports clients across all asset classes by calibrating key performance indicators and sustainability performance targets for labeled loans. EmCap facilitated milestone deals as ESG adviser for the Dubai Taxi IPO, promoting a 100% eco-friendly fleet by 2027; the recent debut green bond by Istanbul Metropolitan Municipality; and the first green sukuk by DP World.
Arab Bank
Best Bank for Social Bonds
In October 2023, Arab Bank issued $250 million in additional tier 1 (AT1) capital securities. This was the first sustainable perpetual AT1 bond issue in Jordan. Since the bond was issued, Arab Bank has set up a sustainable finance register and identified bond-eligible projects that include 12 environmental projects across multiple countries in the region. The bank has also funded multiple loans for small and midsize enterprises. Arab Bank takes its corporate social responsibility (CSR) seriously and has adopted a strategic, measurable approach that delivers meaningful impact. CSR efforts are delivered via the Abdul Hameed Shoman Foundation and the Arab Bank’s CSR program Together. In 2023, Arab Bank’s total community investments reached over $25 million. The bank supports projects in areas including health, poverty, education, women-owned businesses, and climate.
Boursa Kuwait
Best for Sustaining Communities
Boursa Kuwait supports initiatives in the field of education and financial literacy through a diverse range of in-person and virtual training and knowledge-development programs and initiatives. The Boursa Kuwait Cares program is one of several initiatives that give back to the community through strategic partnerships, promotion of employee volunteerism, and application of resources in support of worthy causes. Boursa Kuwait was the first stock exchange in the Gulf region and the second in the Middle East to join the global initiative that is ringing the bell for women’s empowerment. Boursa Kuwait supports a children’s hospital, a hospice, and the Kuwait Red Crescent Society’s Basic Education program for low-income families and those facing financial hardship in Kuwait. Boursa Kuwait also provides essential aid—ranging from shelter and health care to clean water—to over 1,600 vulnerable families across the Middle East.
| Regional Winners: Middle East | |
|---|---|
| Best Bank for Sustainable Finance | First Abu Dhabi Bank (FAB) |
| Sustainable Finance Deal of the Year | QNB Group (Sovereign USD 2.5B Green Bond) |
| Best Impact Investing Solution | Emirates NBD Capital |
| Best Bank for Sustainable Infrastructure/Project Finance |
QNB Group |
| Best Bank for Sustainable Financing in Emerging Markets |
QNB Group |
| Best Bank for Green Bonds | QNB Group |
| Best Bank for Social Bonds | Arab Bank |
| Best Bank for Sustainable Bonds | QNB Group |
| Best for Sustaining Communities | Boursa Kuwait |
| Best Bank for ESG-Related Loans | QNB Group |
| Best Bank for Sustainability Transparency | QNB Group |
| Best Bank for Transition/Sustainability Linked Loans | QNB Group |
