Middle East’s best Islamic bank for ESG 2026: ADIB
Abu Dhabi Islamic Bank (ADIB) has built a comprehensive environmental, social and governance (ESG) framework in Middle Eastern Islamic banking: a Shariah-compliant sustainable finance programme that is publicly committed, formally governed and increasingly embedded across its business lines.
The headline commitment is AED60 billion in sustainable finance by 2030. By the end of 2025, ADIB reported it had mobilised more than AED20 billion towards that target – meaningful progress for a bank that must align every product structure with Shariah principles, adding a layer of complexity to an already demanding ESG agenda.
The bank’s Sustainable Finance Framework defines eligible categories, evaluation and selection criteria, exclusions and reporting requirements. ESG specialists work alongside corporate banking, treasury, risk and capital markets teams, embedding green and social finance considerations directly into credit assessment, product structuring and execution. On transition planning, ADIB has established interim 2030 financed-emissions reduction targets across six high-impact sectors, supported by scenario-aligned target-setting disclosed through its net-zero reporting.
A $500 million green sukuk – one of the earlier Shariah-compliant green issuances from the UAE – allocated proceeds to renewable energy, energy efficiency and sustainable water infrastructure, with disclosed avoided-emissions estimates. In 2025, the bank completed four sustainable sukuk transactions and three syndications spanning project finance, letters of credit and financial institution lending.
In 2025, the bank completed four sustainable sukuk transactions and three syndications
The product range spans green and social corporate financing, sustainability-linked loans, green project finance, affordable housing, small and medium-sized enterprise (SME) lending and green car-financing for electric vehicles. Relationship managers and product specialists have been trained on eligibility criteria, key performance indicator (KPI) calibration and climate risk, broadening origination capacity across the bank. Cross-border delivery is supported by ADIB’s presence in five markets – the UAE, Egypt, the UK, Qatar and Iraq.
Operational progress is evident in its Egypt operations, where electricity consumption per square metre fell 13% between 2023 and 2025, and water consumption dropped 32% during the same period. Fourteen of 83 facilities achieved an A+ rating for energy efficiency. ADIB Egypt issued its fourth carbon-footprint report in June 2025 and joined Chapter Zero Egypt, the country’s first climate governance forum for board members and senior leaders.
On inclusion, ADIB Egypt has issued account-opening documents and product contracts in Braille, equipped more than 10% of branches with accessibility infrastructure and trained staff in sign language – reflecting a social pillar that extends well beyond financing activity.
