Environment

In a major milestone for sustainable finance in the UAE’s automotive sector, Gargash Group has signed a Sustainability-Linked Facility (SLF) agreement with Mashreq, one of the region’s leading financial institutions. The agreement is one of the largest SLFs ever signed in the UAE’s automotive industry, bringing the total sustainable finance transactions by Mashreq in the sector to AED 2.8 billion in 2025.

This strategic partnership aligns closely with the UAE Green Agenda 2030 and the Net Zero Strategy 2050, emphasizing Gargash Group’s commitment to integrating Environmental, Social, and Governance (ESG) principles across its operations.

Financing Linked to ESG Performance

The SLF links financing terms directly to measurable ESG Key Performance Indicators (KPIs), including:

• Carbon emissions reduction

• Employee development investments

• Sustainable supply chain practices

By incorporating accountability and performance metrics into the agreement, Gargash Group and Mashreq aim to demonstrate how sustainable finance can drive tangible environmental and social outcomes while supporting long-term business goals.

The agreement builds on a Memorandum of Understanding (MoU) signed between the two organizations in September 2024, and was formalized at a signing ceremony held at the Mercedes-Benz Brand Center in Dubai Design District.

ESG at the Core of Strategy

Walid Hizaoui, Group Chief Strategy Officer at Gargash Group, commented:

“This Sustainability Linked Facility represents a crucial step in translating our ESG commitments into actions. Our partnership with Mashreq reinforces our ability to track and measure our progress against clearly defined KPIs. We are dedicated to creating lasting value for our stakeholders while contributing positively to the environment and society.”

Thomas Schulz, General Manager of Mercedes-Benz Passenger Cars at Gargash Enterprises, added:

“Sustainability is not just a responsibility, it’s a core element of how we shape the future of mobility. This Sustainability Linked Loan reinforces our commitment to embedding sustainability principles into every level of our operations.”

Mashreq’s Commitment to Green Finance

Marwan Galadari, Executive Vice President and Head of Trading Division at Mashreq, stated:

“We are honored to deepen our partnership with Gargash Group. This agreement exemplifies our shared vision for a sustainable and responsible future and sets a benchmark for the automotive sector and the wider business community in the region.”

Karim Amer, Senior Vice President and Head of Automotive, Heavy Equipment and Trading Multinational Groups at Mashreq, noted:

“This facility is a strong example of ESG principles becoming a core part of financial structuring. It also builds on Mashreq’s ambition to facilitate USD 30 billion in sustainable finance by 2030.”

Driving Long-Term Impact

The Sustainability-Linked Facility will serve as a financial foundation for Gargash Group’s energy transformation roadmap, which includes:

• Solar energy initiatives

• Energy efficiency upgrades

• Supply chain sustainability programs

The agreement also aligns with several UN Sustainable Development Goals (SDGs), including:

• SDG 13 – Climate Action

• SDG 7 – Affordable and Clean Energy

• SDG 8 – Decent Work and Economic Growth

• SDG 12 – Responsible Consumption and Production

As Gargash Group continues to embed ESG principles into its strategic framework, the SLF represents a model for how sustainable finance can support environmental and societal progress. It also sets a new benchmark for responsible leadership in the automotive industry—both within the UAE and across the wider MENA region.

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