Emirates NBD Provides Green Facility to Arabian Gulf Steel Industries to Expand Low-Carbon Steel Production
Emirates NBD has successfully structured and completed a green financing facility for Arabian Gulf Steel Industries (AGSI), supporting the expansion of low-carbon steel production in the UAE.
The transaction, classified as ‘green’ under Emirates NBD’s Sustainable Finance Framework, reinforces the bank’s position as a regional leader in sustainable industrial finance and aligns with the UAE’s broader transition toward a low-carbon economy.
Supporting green steel expansion
AGSI, a leading private sector steel manufacturer and recycler in the UAE, operates with one of the lowest carbon footprints in the Middle East. Recognised as the first net-zero steel manufacturing plant in the MENA region and the first globally to achieve carbon neutrality, the company will use the facility to scale production capacity in response to rising demand for green steel from the real estate and construction sectors.
Steel production accounts for approximately 8% of global CO₂ emissions, placing decarbonisation efforts at the centre of international climate targets. As industries shift toward lower-emission iron and recycled inputs, the financing highlights growing collaboration between financial institutions and manufacturers to accelerate measurable climate impact.
Alignment with international standards
The facility is aligned with the Green Loan Principles of the Loan Market Association (LMA), incorporating strict requirements related to:
-
Use-of-proceeds transparency
-
Ongoing environmental monitoring
-
Annual impact reporting
This structure ensures accountability and provides stakeholders with assurance that funds are directed toward verified environmental outcomes.
Leadership comments
Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, said the transaction sets a precedent for sustainable industrial financing in the region, adding that AGSI’s verified low-emission status demonstrates leadership in green manufacturing aligned with the UAE’s national ambitions.
Asam Hussain, CEO and Founder of Arabian Gulf Steel Industries, noted that access to green financing enables the company to scale responsibly while maintaining disciplined investment and operational standards. He emphasized the importance of aligning industrial priorities with credible financial frameworks.
Vijay Bains, Chief Sustainability Officer and Group Head of ESG at Emirates NBD, stated that the bank’s Sustainable Finance Framework ensures each facility is supported by rigorous monitoring and reporting, reinforcing the delivery of tangible climate benefits.
Advancing the UAE’s Net-Zero agenda
The transaction reflects Emirates NBD’s contribution to the UAE Net-Zero by 2050 agenda, demonstrating how sector-diverse green financing can accelerate decarbonisation across heavy industry.
As demand for sustainable construction materials increases, the collaboration between Emirates NBD and AGSI underscores a broader shift toward environmentally responsible manufacturing and finance, supporting the development of a more resilient and low-carbon industrial ecosystem in the UAE.
