- The MoU will support the development of high-integrity carbon markets and commodity trading platform
Abu Dhabi, United Arab Emirates: Emirates Steel Arkan (the “Group”; ADX: EMSTEEL), one of the largest publicly traded steel and building materials manufacturers in the region, has signed a Memorandum of Understanding (MoU) with First Abu Dhabi Bank (FAB) to collaborate on activities related to commodity trading, carbon credits and sustainable investments and deposits.
The signing took place on the sidelines of COP28 between Stephen John Pope, Group CFO, Emirates Steel Arkan, and Sameh Al Qubaisi, Group Head of Global Markets, FAB.
As part of the MoU, the parties will collaborate on existing and future Emirates Steel Arkan projects to identify effective strategies for hedging and trading carbon credits generated by the Group’s projects. Emirates Steel Arkan and FAB will also look to strengthen and expand their respective capabilities in the areas of sustainability-linked and green financing as well as carbon markets. This move comes in line with the Group’s commitment to supporting decarbonising in hard-to-abate sectors at COP28, through working with all stakeholders to achieve tangible emission reductions, reflecting the vision of the UAE and the COP28 Presidency.
Saeed Alghafri, CEO of Emirates Steel, an Emirates Steel Arkan company, said: “As we join forces with FAB today, we reflect on our commitment to make a lasting impact on hard-to-abate sectors and contributing to the transformative journey towards sustainable practices and carbon neutrality. This collaboration will enable us to optimise our carbon credit trading strategy and will also contribute to the development of a regional carbon market, which is key for the successful implementation of the Nationally Determined Contributions (NDC) under the framework of the Paris Agreement. At Emirates Steel Arkan, we aim to further strengthen our resolve to reduce emissions, promote industry-wide sustainable practices, and minimise the climate and environmental impact of the steel and building materials sectors – in line with the UAE’s strategic initiative to achieve climate neutrality by 2050 and realise the objectives of COP28.”
Sameh AlQubaisi, Group Head of Global Markets at FAB, said: “FAB launched its carbon trading desk with the vision to drive effective collaboration across the global economy and advance the UAE’s carbon capabilities and decarbonisation ambitions. Our partnership with Emirates Steel Arkan reflects that collaboration, as it enables the UAE’s steel sector with more possibilities to minimise its environmental impact through carbon credits, commodity trading, and sustainable financing and investments. As a catalyst of the UAE’s climate future, FAB will continue to provide credible solutions for the UAE’s priority industries and support national, regional, and global net-zero carbon goals.”
FAB launched its dedicated carbon trading desk, part of its Global Markets offering, in May 2023 in line with the bank’s mission to expand its carbon capabilities. Introduced during the UAE Year of Sustainability to support national, regional and global net-zero carbon goals, the FAB Carbon Desk provides carbon trading and financing options, facilitates strategic carbon-related transactions, and promotes the development of high-quality carbon credits and offsets for its corporate and investment banking clients.
Emirates Steel Arkan recognises that collaboration is paramount to realising its ambitious sustainability goals and will be making several announcements throughout COP28. Through partnerships, the Group aims to accelerate its decarbonisation roadmap and enable a forward-thinking industry where shared expertise and collective efforts contribute to achieving a greener tomorrow.
About Emirates Steel Arkan (ESA)
Emirates Steel Arkan (the Group) is a public joint stock company (ADX: EMSTEEL) and the UAE’s largest steel and building materials manufacturer. The Group leverages cutting-edge technologies to supply both the local market and more than 70 international markets with high-quality finished products, creating a one-stop shop for the manufacturing and construction sectors.
Emirates Steel Arkan is committed to contributing to the UAE’s industrial strategy ‘Operation 300 billion’ by delivering market-leading products to support local industries, creating job opportunities for UAE Nationals, and enhancing its sustainable practices. The Group is also among the leading decarbonised steel manufacturers in the world and is recognised for its world-class safety performance.
The Group’s steel and building materials have been used in some of the UAE’s most iconic construction projects, including the Burj Khalifa, Emirates Palace, Etihad Towers, Yas Island, and more.
Emirates Steel Arkan is majority owned by ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.
For more information, please visit our website: www.emiratessteelarkan.com
About First Abu Dhabi Bank (FAB):
Headquartered in Abu Dhabi with a strategic global footprint across 20 markets, FAB is the finance and trade gateway to the Middle East and North Africa region (MENA). With total assets of AED 1.2 trillion (USD 323 billion) as of September-end 2023, FAB is among the top 50 banks globally by market capitalisation and one of the world’s largest banking groups. The bank provides financial expertise to its wholesale and retail client franchise across four business units: Investment Banking, Corporate and Commercial Banking, Consumer Banking, and Global Private Banking. FAB is listed on the Abu Dhabi Securities Exchange (ADX) and rated Aa3/AA-/AA- by Moody’s, S&P and Fitch, respectively, with a stable outlook. On sustainability, FAB holds an MSCI rating of ‘A’, also ranked among the top 10% of banks globally by Refinitiv’s ESG Scores and the best performer in the MENA region. FAB is a strategic pathway partner of the 28th UN Climate Change Conference of Parties (COP28), which is being held in the UAE from November 30 to December 12, 2023.
For further information, visit: www.bankfab.com