Published: 2026-08-18
Emirates NBD has launched the UAE’s first dedicated transition finance framework, announced on 2026-08-17. The framework gives corporate and institutional clients in high-emitting sectors, from manufacturing and mining to power, real estate and transport, a single methodology for raising finance while they move to lower-carbon business models. It is built on international standards including the ICMA Climate Transition Finance Handbook, and DNV Assurance has been commissioned to provide an independent second-party opinion. The launch supports Emirates NBD’s target of USD 30 billion in sustainable and transition finance by 2030 and feeds into the UAE Banking Federation’s ambition of AED 1 trillion in sustainable finance by the same year. For companies operating in the UAE, it opens a new funding route for decarbonisation projects that do not yet qualify as fully “green”.
What Emirates NBD announced
On 2026-08-17 Emirates NBD, one of the largest banking groups in the Middle East, presented a dedicated Transition Finance Framework, the first of its kind in the UAE, as reported by Gulf News and Khaleej Times. The framework is aimed at a category of borrowers that mainstream green finance has struggled to serve: companies whose core activities are not yet classified as green but which are taking measurable, credible steps to cut emissions, improve energy efficiency or adopt cleaner technologies.
Until now, such companies have sat in a financing gap. Green loans and green bonds require assets or projects that already meet strict environmental criteria, while conventional lending offers no recognition for decarbonisation effort at all. Transition finance fills that space: it funds the journey rather than the destination, with clear conditions attached to measurable progress.
Vijay Bains, Chief Sustainability Officer and Group Head of ESG at Emirates NBD, said the bank’s goal is to “empower our clients with robust, transparent, and innovative transition finance solutions”.
How the framework works: sectors, standards, verification
The framework sets out a methodology for identifying and assessing transition finance activities across the sectors that account for most industrial emissions. The list confirmed by the bank covers:
- manufacturing;
- mining;
- power and energy;
- real estate;
- transportation and storage;
- agriculture;
- information technology.
Credibility is the central problem of transition finance globally: without hard criteria, “transition” can become a label for business as usual. Emirates NBD has addressed this in two ways. First, the framework references established international guidance, namely the ICMA Climate Transition Finance Handbook, the ICMA Climate Transition Bond Guidelines 2025 and the Loan Market Association’s Guide to Transition Loan Finance 2025. Second, the bank commissioned DNV Assurance, an independent global verification body, to issue a second-party opinion confirming that the framework is aligned with market standards. In practice this means that a transition-labelled loan from Emirates NBD carries external validation, which matters both to regulators and to international investors scrutinising ESG claims.
The bigger picture: the UAE’s green finance push
The launch is not an isolated product release. Emirates NBD has publicly committed to mobilising USD 30 billion in sustainable and transition finance by 2030, and the new framework is the operating manual for the transition part of that pledge. At the industry level, the UAE Banking Federation has set an ambition of AED 1 trillion in sustainable finance by 2030, a target announced in connection with the UAE’s hosting of COP28 and its Net Zero 2050 strategy.
For the UAE economy the logic is straightforward. The country’s industrial base, energy sector, logistics and real estate all carry significant carbon footprints, and the national decarbonisation agenda depends on those sectors being financed through the transition rather than penalised out of it. A bank-level framework that defines what qualifies, in language international capital markets recognise, strengthens Dubai’s claim to be the regional hub for green and sustainable finance. It also follows a series of sustainability-linked moves by UAE banks that we have covered, including the Emirates NBD partnership with the Dubai Future District Fund on fintech innovation.
What it means for businesses in the UAE
A new funding route for industrial and logistics companies. If your UAE company operates in manufacturing, transport, energy services or any other high-emitting sector, decarbonisation projects such as equipment upgrades, energy-efficient facilities, fleet electrification or cleaner production lines can now be structured as transition finance. That typically means access to dedicated sustainable finance pools and a documented ESG profile that helps in tenders and supply chain audits.
ESG credentials are becoming a banking asset. UAE banks are under pressure to fill large sustainable finance targets, which makes clients with credible transition plans more attractive borrowers. Companies that can show measurable emissions baselines and reduction plans will find conversations about credit lines and corporate bank accounts in the UAE noticeably easier than those that cannot.
A signal for foreign investors. For international groups choosing where to place regional manufacturing or trading operations, the availability of transition finance is part of the location calculus. The UAE now offers what few markets in the region can: a first-mover bank framework verified to international standards, inside an economy actively courting industrial investment. Setting up the corporate presence to access it is a standard process, and our guide to company registration in the UAE covers the practical steps.
Checklist: how to prepare if transition finance is relevant to you
- Map your emissions baseline: banks will ask for measurable starting data;
- Identify capital projects that reduce emissions or energy intensity, from equipment to buildings;
- Check whether your sector is on the framework list: manufacturing, mining, power and energy, real estate, transport and storage, agriculture, IT;
- Prepare a transition plan with quantified targets and timelines, aligned with ICMA and LMA guidance;
- Ensure your UAE corporate structure and banking relationships are in order before approaching lenders;
- Follow further framework announcements: other UAE banks are likely to respond with their own programmes.
How Atlant Capital can help
Atlant Capital sets up and supports companies in the UAE across mainland and free zones, including industrial, trading and logistics businesses for which transition finance is now a live option. We handle company registration, licensing, corporate bank account opening and residency visas, and we help structure the corporate side so that financing conversations with UAE banks start from a solid foundation. We track UAE regulatory and banking developments daily and brief clients before changes reach their sector.
The bottom line: Emirates NBD has given the UAE market its first rulebook for financing the low-carbon transition of heavy industry. With USD 30 billion committed by one bank and AED 1 trillion targeted by the sector, the money is moving; the companies that prepare credible transition plans will be the ones who capture it.
FAQ
What is the Emirates NBD Transition Finance Framework?
It is the UAE’s first dedicated methodology for financing companies in high-emitting sectors as they move to lower-carbon business models, launched by Emirates NBD on 2026-08-17. It defines which activities qualify as transition finance and applies to corporate and institutional clients whose operations are not yet green but are making measurable progress on emissions.
Which sectors does the framework cover?
The framework covers manufacturing, mining, power and energy, real estate, transportation and storage, agriculture and information technology. These are the sectors where most industrial emissions sit and where decarbonisation requires the largest capital investment.
How is the framework verified?
The framework was developed with reference to the ICMA Climate Transition Finance Handbook, the ICMA Climate Transition Bond Guidelines 2025 and the LMA Guide to Transition Loan Finance 2025. Emirates NBD commissioned DNV Assurance to provide an independent second-party opinion confirming alignment with international market standards.
What does transition finance mean for businesses in the UAE?
Companies in high-emitting sectors gain a funding route for decarbonisation projects such as energy-efficient facilities, cleaner production and fleet upgrades. Emirates NBD targets USD 30 billion in sustainable and transition finance by 2030, and the UAE Banking Federation targets AED 1 trillion in sustainable finance by 2030, so banks are actively looking for credible transition borrowers.
