Emirates Islamic Announces AED 250 Million ESG-Linked Financing Facility for Brands For Less Group

Environment

Emirates Islamic Announces AED 250 Million ESG-Linked Financing Facility for Brands For Less Group

Emirates Islamic has announced the successful structuring of an AED 250 million sustainability-linked financing facility for Brands For Less Group, reinforcing a strategic banking partnership that has spanned more than a decade.

The ESG-linked financing arrangement is tied to specific Environmental, Social and Governance (ESG) key performance indicators and reflects both companies’ commitment to sustainable growth and responsible business practices.

ESG-Linked Islamic Finance Structure

According to Emirates Islamic, the facility has been designed to integrate ESG principles into Shariah-compliant financing solutions while also supporting the continued operational growth of Brands For Less Group.

The agreement also includes additional revolving working capital lines aimed at supporting the retailer’s day-to-day operations and expanding trading volumes across its regional and international markets.

Long-Term Strategic Partnership

Mohammed Kamran Wajid said the partnership reflects a long-term shared vision focused on sustainable expansion.

“Spanning over a decade, our journey with BFL Group is a testimony to a vision for sustainable growth,” he said.

Wajid added that the new financing facility demonstrates Emirates Islamic’s commitment to delivering innovative Shariah-compliant financial products that combine commercial growth with broader societal impact.

Supporting Regional and Global Expansion

Toufic Kreidieh said Emirates Islamic has played a major role in supporting the company’s growth trajectory over the years.

“This new sustainability-linked facility is a natural progression of our shared commitment to responsible business practices and further solidifies our partnership as we pursue our next phase of growth,” Kreidieh said.

Brands For Less Group has expanded significantly across the GCC and Southeast Asia, becoming one of the region’s largest off-price retail platforms.

UAE Positioned as Hub for Scalable Retail Businesses

The announcement also highlights the UAE’s growing position as a hub for globally investable retail and consumer businesses supported by sophisticated Islamic finance solutions.

In 2024, The TJX Companies acquired a 35 percent stake in Brands For Less Group at a reported valuation of USD 1.2 billion, providing international validation for the UAE-born retail platform.

Officials said the latest transaction demonstrates how Islamic banking institutions are increasingly playing a strategic role in enabling scalable, internationally competitive businesses from the region.

Focus on Sustainability and Innovation

The financing facility further strengthens Emirates Islamic’s position within the sustainability-linked Islamic finance sector, where demand for ESG-focused financial solutions continues to rise across the GCC.

The bank stated that it remains focused on developing innovative Shariah-compliant products aligned with evolving market expectations and the UAE’s broader economic development goals.