UAE has committed to Net Zero by 2050 — one of the most ambitious sustainability targets in the region. This commitment is backed by significant policy, regulatory, and financial market action, including the development of a green finance ecosystem that provides UAE businesses with access to preferential financing for sustainable investments.
What Is Green Finance?
Green finance refers to financial products and structures that incentivise environmentally sustainable activity — investments that reduce carbon emissions, improve energy efficiency, promote renewable energy, enhance water efficiency, or support the circular economy.
In UAE, green finance is a growing priority for regulators, banks, and major corporations. The UAE Sustainable Finance Framework, developed by the Central Bank of UAE and aligned with international standards, provides guidance for financial institutions.
Green Loans for UAE Businesses
A green loan is a loan the proceeds of which are exclusively used to finance or refinance eligible green projects — solar installations, energy-efficient building retrofits, electric vehicle fleet purchases, water-saving technologies, or renewable energy equipment.
UAE banks that offer green loans include Emirates NBD (which has a significant green and sustainable finance programme), First Abu Dhabi Bank, and several others. Eligibility criteria for green loans require demonstrated use-of-proceeds reporting.
Sustainability-Linked Loans (SLL)
A sustainability-linked loan allows proceeds to be used for any purpose, but the interest rate is linked to the borrower's performance against pre-agreed sustainability key performance indicators (KPIs) — such as energy consumption reduction or carbon emission targets.
SLLs are particularly attractive for UAE businesses that have broad sustainability commitments but need working capital or general-purpose financing rather than specific project finance.
Accessing Green Finance for Your UAE Business
To access green finance, UAE businesses need to: identify eligible investments or projects that meet green criteria; prepare a green finance framework or use-of-proceeds reporting commitment; and approach banks with green lending programmes.
Gulf Oasis Commercial Brokers identifies green financing opportunities for UAE businesses — connecting businesses with UAE banks' green lending programmes and advising on the documentation required to qualify.