Dubai - Mubasher: Mashreq Bank has extended a AED 126 million sustainable financing facility to Arabian Gulf Steel Industries (AGSI), according to a press release.

The green loan will accelerate AGSI’s sustainability agenda and support its transition to cleaner manufacturing practices in line with UAE Vision 2030.

The company plans to produce 5 million tons of green steel by 2030, targeting a 95% emissions cut. This avoids 7.28 million tons of CO₂ through its recycling and renewables-based model.

Verified by DNV, AGSI currently emits just 0.13 tons of CO₂ per ton of crude steel and operates on local recycled materials and mostly renewable energy sources.

Joel Van Dusen, Head of the Mashreq Corporate and Investment Banking Group, said: "Responsible finance is a business imperative for Mashreq, and we are focused on delivering structures that help our clients lead that transition with confidence."

Building on this, Faisal AlShimmari, Head of ESG at Mashreq Bank, said: "This transaction reflects a broader shift taking place across the region’s industrial sector, where more companies are using finance as a strategic tool to meet their sustainability goals."

"This deal also reinforces Mashreq’s leading role in driving sustainable industrial growth in the UAE and the region by aligning finance with tangible environmental outcomes," he added.

The transaction marks the latest step in Mashreq Bank’s commitment to mobilize $30 billion in sustainable finance by 2030.

It is worth highlighting that the global steel industry accounts for roughly 7% of total CO₂ emissions, making decarbonization a major challenge.

AGSI, the UAE’s largest private steel maker and recycler, is one of the first in the country to secure green financing directly tied to emissions targets.

In June 2025, Mashreq Bank launched a representative office in Turkey, reinforcing its commitment to supporting Turkish financial institutions.