Arabian Gulf Steel Industries (AGSI) has secured a green financing facility structured by Emirates NBD to support the expansion of its low-carbon steel production capacity in the UAE.
The facility, classified as green under Emirates NBD’s Sustainable Finance Framework and aligned with the Green Loan Principles of the Loan Market Association (LMA), will be used to increase output in response to rising demand for environmentally sustainable steel from the real estate and construction sectors.
AGSI operates one of the lowest carbon footprint steel plants in the Middle East and has been recognized as the first net-zero steel manufacturing plant in the MENA region and the first globally to achieve carbon neutrality. The company focuses on recycling-based production and low-emission technologies.
Emirates NBD said the transaction reinforces its position in sustainable finance and supports the UAE’s Net-Zero by 2050 strategy. Steel production accounts for around 8pct of global CO2 emissions, making decarbonization of the sector a key priority.
The financing framework includes strict use-of-proceeds criteria, environmental monitoring, and annual impact reporting to ensure transparency and accountability.
Both companies said the agreement reflects growing alignment between industrial decarbonization efforts and sustainable financial solutions in the region.
AGSI is a privately owned steel producer and the largest scrap recycler in the UAE, with annual production capacity of 720,000 tons of billet, 960,000 tons of rebar, and 240,000 tons of light and medium sections. The company has achieved net-zero emissions at its Abu Dhabi plant, becoming the first net-zero steel plant in the MENA region.
