Stock - DIB \ Dubai Islamic Bank
Dubai Islamic Bank already has green financing options through auto lending for electric or hybrid vehicles. Image Credit: Bloomberg

Dubai: The UAE’s ESG framework is getting into shape with Dubai Islamic Bank being the latest to come up with a ‘Sustainable Finance Framework’ for the financing of green and social initiatives and projects. DIB thus becomes the first Islamic bank in the UAE to publish such a Framework.

DIB will finance projects with environmental benefits in eligible project categories such as renewable energy, energy efficiency, clean transportation, green buildings, pollution prevention and control and sustainable water and wastewater management, as well as support social initiatives that promote employment generation, affordable housing and access to essential services.

“The Framework illustrates DIB’s strong commitment to achieving its own sustainable aspirations and driving the UAE’s Net Zero agenda and the Dubai Clean Energy Strategy,” said Dr. Adnan Chilwan, Group CEO. “We are excited about the potential that the framework offers in accelerating our efforts to become a more sustainable bank as well as access sustainable funding in the capital markets to support our sustainable lending portfolio.”

It will mean financing companies and projects ‘at the forefront of the energy transition in the UAE’. The Bank has already introduced sustainable finance offerings, such as a green auto finance offered specifically for electric and hybrid vehicles and housing financing solutions to provide affordable housing in the UAE.

“The Framework will allow DIB to accelerate these efforts by permitting the Bank to raise sustainable financing across multiple formats in the future,” the bank said.

Built to green principles
The DIB Sustainable Finance Framework was assessed by ISS ESG, which concluded that It is aligned to the International Capital Market Association’s Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines, as well as the Loan Market Association’s Green Loan Principles and Social Loan Principles.