Financing supports continued investment in sustainable steel manufacturing and operational growth
Arabian Gulf Steel Industries (AGSI), the UAE’s largest private steel manufacturer and recycler, has secured a green financing facility from Emirates NBD to support the expansion of its low-carbon steel production capacity and ongoing operational development.
The facility will support AGSI’s continued investment in sustainable steel manufacturing in response to rising demand from the construction and infrastructure sectors for lower-carbon materials. AGSI operates with one of the lowest carbon footprints among steel producers in the Middle East, enabled by its fully electrified production processes powered by clean energy and the use of 100% locally sourced recycled raw materials.
The financing forms part of AGSI’s broader sustainable financing strategy and reflects growing confidence in the company’s operating model and its role in advancing industrial decarbonisation. AGSI has achieved several industry milestones, including being recognised as the first net-zero steel manufacturing plant in the MENA region and the first steel producer globally to achieve verified carbon neutrality under the PAS 2060 standard.
The transaction is classified as ‘green’ under Emirates NBD’s Sustainable Finance Framework and is aligned with the Green Loan Principles of the Loan Market Association (LMA), with defined requirements on use of proceeds, environmental monitoring, and annual impact reporting. These mechanisms support transparency and accountability while demonstrating how financial institutions and industrial companies can work together to enable responsible growth.
Steel production accounts for approximately 8% of global CO₂ emissions, making decarbonisation of the sector critical to achieving global climate objectives. Initiatives of this nature contribute to the UAE’s Net Zero by 2050 agenda by supporting lower-emission industrial production across hard-to-abate sectors
Asam Hussain, CEO and Founder of Arabian Gulf Steel Industries, said:
“This facility reflects growing confidence in the role industrial companies must play in delivering measured decarbonisation. Continued access to green financing supports our ability to scale low-carbon steel production responsibly, while remaining deliberate in how we invest, operate, and grow. Partnering with Emirates NBD reinforces the importance of aligning shared industrial priorities with credible financial frameworks.”
Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, said:
“By structuring this green facility, we are setting a clear precedent for sustainable industrial finance. AGSI’s verified status as one of the lowest carbon footprint steel producers in the region highlights its leadership in sustainable production.”
Vijay Bains, Chief Sustainability Officer and Group Head of ESG, Emirates NBD, added:
“Our Sustainable Finance Framework aligns each green financing facility with international standards, supported by rigorous monitoring and reporting requirements. This provides stakeholders assurance that financing delivers genuine climate benefits.”
