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Gargash Group and Mashreq sign strategic partnership on sustainable finance

Gargash Group leverages sustainable financing to bolster comprehensive sustainability efforts

In a strategic step towards achieving its sustainability goals, Gargash Group, a leading business enterprise in the UAE, has partnered with Mashreq, one of the leading financial institutions in the Mena region. This collaboration, officially inaugurated with an MoU signing ceremony at the Mercedes-Benz Brand Centre in Dubai Design District, was crystalised with their debut Green Loan that was extended earlier for a number of projects across Gargash Group. The two institutions are also in discussion on future ESG integration initiatives for the Group, including but not limited to other Sustainability-Linked facilities.

By obtaining its first Green Loan, Gargash Group aligns itself with a prestigious and select group of UAE enterprises that have leveraged impactful and sustainable financing solutions. The partnership aims to promote and advance robust sustainability agendas for both Gargash Group and Mashreq by setting and achieving ambitious sustainability targets.

Walid Hizaoui, group chief strategy officer at Gargash Group shared his insights at the event, stating, "This partnership marks a critical milestone in our sustainability journey. With a reliable and trusted banking partner supporting us, we are wholeheartedly committed to integrating sustainability practices into every aspect of our operations for a greener future. We have meticulously scoped our businesses and implemented the necessary infrastructure to monitor our progress towards decarbonisation—our ultimate long-term goal. This initiative not only underscores our unwavering commitment to reducing the nation’s carbon footprint but also aligns with the UAE Green Agenda 2030 and UAE Net Zero Strategy 2050, promoting sustainable practices across the board."

Karim Amer, head of automotive sector at Mashreq commented, "Mashreq is proud to support Gargash Group's transition towards a sustainable future through their inaugural Green Loan and other potential Sustainability-Linked facilities. This financing is designed to enable remarkable reductions in emissions and accelerate decarbonisation initiatives which we have been actively driving across the automotive sector, through proactive engagement with our clients on both formalisation as well as execution of their sustainability strategies. By aligning financial incentives with sustainability objectives, we aim to enhance operational efficiencies for our partners and set a benchmark that encourages other organisations to integrate energy efficiency and sustainability into their core strategies."

The partnership between Gargash Group and Mashreq is a significant step forward in the collective effort to achieve a sustainable future and it also demonstrates their commitment to a more responsible and environmentally conscious business landscape.