Mashreq has announced a sustainable financing facility of Dh126 million to Arabian Gulf Steel Industries (AGSI), one of the UAE’s foremost steel producers.
This initiative aims to bolster AGSI’s low-carbon steel production and aligns with the UAE’s Vision 2030 for cleaner industrial practices.
AGSI stands out as one of the UAE’s first steel producers to secure a green facility linked to emissions targets. Verified by DNV, a global assurance firm, AGSI’s carbon emissions are at 0.13 tonnes of CO₂ per tonne of crude steel.
The company plans to produce 5 million tonnes of green steel by 2030, cutting emissions by 95% compared to traditional methods. This financing will support environmentally friendly projects that enhance production efficiency, adoption of green technologies, and cost reduction through better energy utilisation.
Joel Van Dusen, Head of the Mashreq Corporate and Investment Banking Group, said: “AGSI is setting a benchmark for low-emission steel production, and we are pleased to provide a financing solution that enables them to scale their efforts. Responsible finance is a business imperative for Mashreq, and we are focused on delivering structures that help our clients lead that transition with confidence.”
Faisal AlShimmari, Head of ESG at Mashreq, added: “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. Steelmaking remains one of the most resource-intensive industries globally, and AGSI is among the first in the UAE to secure a green facility that directly supports its decarbonisation efforts.”
AGSI, the UAE’s largest private steel maker and recycler, uses local recycled materials and mainly renewable energy. The company aims for net-zero carbon emissions per tonne of steel by 2035, having already cut over 7.28 million tons of CO₂.
Asam Hussain, founder and CEO at AGSI said: “Securing this facility reflects both the strength of our business model and the growing confidence in industrial sustainability as a viable path forward. Our partnership with Mashreq marks an important step forward in our growth journey and our shared commitment to a low-carbon future.”
This transaction aligns with Mashreq’s goal to facilitate $30 billion in sustainable finance by 2030, contributing to its Climb2Change initiative that focuses on sustainable finance and social impact.
