Dubai Islamic Bank Publishes its First Sustainability-Linked Finance Facilities Financing Framework - Middle East Business News and Information

Mid East Info

25-02-2025

The first for any Islamic bank globally Showcases the bank's commitment to sustainability
Reinforces DIB's alignment with UAE's Net Zero agenda
Dubai – February, 2025: Following the country's ambitious climate-positive actions, Dubai Islamic Bank (DIB), the largest Islamic bank in the United Arab Emirates, has announced its inaugural Sustainability-Linked Finance Facilities Financing Framework. This Framework, which is in line with ICMA's SLLBG is the first of its kind to be published by an Islamic bank globally.
The Framework provides clear definitions for what qualifies as eligible Sustainability-Linked Finance Facilities (SLF) and will enable DIB to issue instruments with proceeds allocated to finance and/or refinance such SLF Facilities, which contribute to Climate Change Mitigation.
To ensure end-to-end credibility and impact in Climate Change Mitigation, the Framework includes predefined Key Performance Indicators and Sustainability Performance Targets aligned with ICMA's SLLBG. Eligible SLF Facilities under the Framework follow LMA's SLLP.
Dr. Adnan Chilwan, Group Chief Executive Officer at Dubai Islamic Bank, said: 'Having published our debut Sustainable Finance Framework in 2022, the development of this new Framework is an important step in our ESG journey. The Framework underpins a key pillar in our Sustainability Strategy – 'Finance a Sustainable Future' – and will contribute to the bank's commitment to achieving 15% of our portfolio in Sustainable Finance by 2030.'
Dr. Chilwan added: 'Additionally, the Framework will support existing and new customers within and outside the region who are embarking on transforming their current business model into a more sustainable and future-proof one, with clear commitments to environmental and climate-positive impacts over the journey'
An allocation and impact report will be published at least annually throughout the lifetime of the Sustainability-Linked Finance instruments. SLF Facilities included in the report will be subject to a Second Party Opinion (SPO) and the report will also receive limited assurance by an independent party.
DIB has obtained an SPO from ISS-Corporate (ISS) which assessed the Framework as aligned with ICMA's SLLBG. Standard Chartered Bank supported the development of the Framework as the sole service provider.
In addition to this milestone, DIB has also renewed its Asset-Based Sustainable Finance Framework in 2024, which also received a Second Party Opinion from ISS.
About Dubai Islamic Bank:
Established in 1975, Dubai Islamic Bank is the largest Islamic bank in the UAE by assets and a public joint stock company listed on the Dubai Financial Market. Spearheading the evolution of the global Islamic finance industry, DIB is also the world's first full service Islamic bank and amongst the largest Islamic banks in the world. With Group assets more than reaching USD90 billion and market capitalization of more than USD 14bln, the group operates with a workforce of more than 10,000 employees and around 500 branches in its vast global network across the Middle East, Asia and Africa. Serving over 5 million customers across the Group, DIB offers an increasing range of innovative Shariah compliant products and services to retail, corporate and institutional clients.
In addition to being the first and largest Islamic bank in the UAE, DIB has a significant international presence as a torchbearer in promoting Shariah-compliant financial services across a number of markets worldwide. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which is the first Islamic bank in Pakistan to offer Priority & Platinum Banking, as well as the most extensive and innovative portfolio of Alternate Distribution Channels. The launch of Panin Dubai Syariah Bank in Indonesia early in 2017 marks DIB's first foray in the Far East, the bank owns a nearly 25% stake in the Indonesian bank. Additionally, in May 2017, Dubai Islamic Bank PJSC was given the license by the Central Bank of Kenya (CBK) to operate its subsidiary, DIB Kenya Ltd. DIB has been designated as D-SIB (Domestic Systemically Important Bank) in 2018 in UAE. In early 2020, DIB completed the acquisition of Noor Bank, which solidifies its position as a leading bank in the global Islamic finance industry. In 2023, DIB entered Turkey through a 20% acquisition of T.O.M. Group which provides digital banking services.
DIB is committed to leading the way in sustainable Islamic financing, with a total sustainable sukuk issuances of USD 2.75 billion to date and strategic involvement in green and sustainable capital markets, reflecting the bank's ongoing dedication to ESG principles and a sustainable future.
The bank's ultimate goal is to make Islamic finance the norm, rather than an alternative to conventional banking worldwide. DIB has won a range of accolades that are testament to these efforts across diversified areas, including retail, corporate and investment banking, as well as CSR and consultancy services. DIB has been named the Best Islamic Bank in various prestigious ceremonies and recognized for its outstanding performance amongst the world's Islamic Banks, marking it a clear indication of the bank's leadership position in the Islamic finance sector.