The Mashreq Bank has announced the provision of sustainable financing amounting to AED 126 million to Gulf Arab Iron & Steel Industries, which stands as the largest privately-owned producer and recycler of iron and steel in the UAE, and a leading entity in the production of low-emission steel. This agreement aims to bolster the company’s sustainability agenda and accelerate its transition towards environmentally friendly manufacturing practices, in alignment with the UAE Vision 2030.
Gulf Arab Iron & Steel Industries is among the first iron producers in the UAE to secure green financing linked to emission reduction goals, thereby offering a pioneering example of how to integrate environmental performance into financial strategies. The company has achieved carbon neutrality through verification from DNVI, a global leader in verification and certification services, which confirmed that the company’s emissions stand at 0.13 tons of CO2 per ton of raw steel. It aims to produce 5 million tons of green steel by 2030 and seeks to reduce its emissions by 90% compared to conventional steel production methods.
Joael Van Dussen, Head of Corporate and Investment Banking at Mashreq, stated, “Gulf Arab Iron & Steel Industries exemplifies a benchmark in low-emission steel production, and we are proud to offer a financing solution that empowers them to expand their initiatives in this area. Responsible financing is a cornerstone of Mashreq’s strategy, where we focus on designing financial structures that support our clients in leading this transition with efficiency and confidence.”
Faizal Al Shamri, Head of Environmental, Social, and Governance at Mashreq, remarked, “This agreement reflects a comprehensive transformation in the industrial sector of the region, where companies are increasingly relying on financing as a strategic tool to achieve sustainability goals. The steel industry is one of the most resource-intensive industries globally, and Gulf Arab Iron & Steel Industries is among the first in the country to obtain sustainable financing that directly contributes to its decarbonization efforts in this sector. This collaboration highlights Mashreq’s leading role in promoting sustainable industrial growth in the UAE and the region by directing financing towards impactful projects that yield tangible environmental benefits.”
Asim Hussein, Founder and CEO of Gulf Arab Iron & Steel Industries, stated, “Securing this financing is a tangible testament to the strength of our business model and the increasing confidence in industrial sustainability as a viable option for the future. Our collaboration with Mashreq Bank is a pivotal step in our growth journey and the realization of our shared vision for a low-emission future, providing us with additional momentum to continue advancing responsibly and adding real value to the green economy in the UAE.”
It is important to note that the steel manufacturing sector currently accounts for 7% of global carbon emissions. This agreement marks a significant milestone in the realm of green financing in the Middle East by directing support towards a sector that faces substantial challenges in reducing carbon emissions.