First Abu Dhabi Bank has announced an AED 100 billion blue finance target covering the period from 2026 to 2035, positioning the FAB blue finance target as a dedicated commitment toward water-related financing and blue economy projects. Alongside this announcement, the bank confirmed it has become the first financial institution in the Middle East and North Africa region to sign the UN Sustainable Blue Economy Finance Principles, aligning its financing activities with a globally recognised framework that promotes sustainable use of water resources.
By joining the UN Blue Economy Principles, FAB said it is integrating water-related risks and opportunities into its decision-making processes. The FAB blue finance target will channel financing toward sustainable water infrastructure and blue economy initiatives, making the bank the first in the UAE and the broader MENA region to establish a dedicated water-related financing goal.
It is important to note that the AED 100 billion represents a forward-looking target and not capital already deployed. The blue finance commitment forms part of FAB’s existing AED 500 billion sustainable finance commitment to 2030, rather than functioning as an additional standalone pledge. The target also supports the bank’s longer-term sustainable finance ambitions beyond 2030.
FAB’s Track Record in Blue Finance and Sustainable Water Infrastructure
FAB’s blue finance target is anchored by an established track record in water-related financing. The bank issued the region’s first blue bond by a financial institution, with cumulative blue bond issuances totalling $70 million to date. This history of activity in the blue economy space provides the foundation upon which the newly announced target has been built.
Abdulla Balalaa, the Assistant Minister of Foreign Affairs for Energy and Sustainability at the UAE’s Ministry of Foreign Affairs, said: “FAB’s commitment to mobilise capital for blue finance is a strong example of the financial sector leadership that water now requires. Water underpins economic growth, resilience, and stability, yet it remains critically underfinanced. Ahead of the 2026 UN Water Conference, we encourage financial institutions in the UAE and globally to follow this example, putting water at the centre of investment and risk management decisions, and unlocking the capital needed for a resilient and sustainable future.”
Hana Al Rostamani, Group Chief Executive Officer of FAB, said: “Water security is a defining sustainability priority for the UAE, the region, and the global economy. By becoming the first bank in MENA to join the UN Sustainable Blue Economy Finance Principles and committing AED 100 billion to blue finance, FAB is translating that priority into action at scale. Building on our track record in water-related financing, this commitment supports the UAE’s long-term water security ambitions and reinforces FAB’s leadership in sustainable finance, contributing to a more resilient, nature-positive future for the region.”
Progress Toward AED 500 Billion Sustainable Finance Commitment
As of the first half of 2026, FAB reported it had facilitated AED 395 billion in sustainable and transition financing, representing 79 percent progress toward its AED 500 billion sustainable finance target for 2030. The scale of this figure underscores the breadth of the bank’s sustainable finance platform and provides context for the newly established blue finance commitment that sits within this broader goal.
The FAB blue finance target reflects the bank’s intention to direct a substantial portion of its sustainable finance activities specifically toward water security and blue economy solutions, including sustainable water infrastructure, water reuse and advanced water technologies. The announcement aligns with the UAE Water Security Strategy 2036 and comes as the country prepares to host the UN Water Conference in Abu Dhabi in December 2026.
