**Dubai**: In a groundbreaking move, Dubai Islamic Bank unveils the first Sustainability-Linked Finance Facilities Framework among Islamic banks, aimed at aiding climate change mitigation by allocating financial resources towards sustainable initiatives, highlighting a commitment to environmental, social, and governance goals.
Dubai Islamic Bank (DIB), the largest Islamic bank in the United Arab Emirates, has announced the establishment of its inaugural Sustainability-Linked Finance Facilities Financing Framework. This framework, noteworthy for being the first of its kind published by an Islamic bank globally, is aligned with the International Capital Market Association’s (ICMA) Sustainability-Linked Bond Principles (SLLBG). The announcement marks a significant step in DIB’s commitment to climate-positive actions.
The Sustainability-Linked Finance Facilities framework provides explicit definitions for what constitutes eligible Sustainability-Linked Finance Facilities (SLF). This will empower DIB to issue financial instruments where the proceeds are specifically allocated to financing or refinancing these SLF Facilities, aimed at contributing to climate change mitigation efforts. In order to enhance credibility and impact, the framework outlines predefined Key Performance Indicators (KPIs) and Sustainability Performance Targets that align with ICMA’s SLLBG. The eligible SLF Facilities under this framework are further guided by the Loan Market Association’s (LMA) Sustainability Linked Principles (SLLP).
Dr. Adnan Chilwan, Group Chief Executive Officer at Dubai Islamic Bank, remarked, “Having published our debut Sustainable Finance Framework in 2022, the development of this new Framework is an important step in our ESG journey.” He highlighted that the framework is a vital component of the bank’s sustainability strategy, titled ‘Finance a Sustainable Future’, and is integral to achieving the target of allocating 15% of DIB’s portfolio to Sustainable Finance by 2030.
Additionally, Dr. Chilwan indicated that the framework will assist both existing and new customers in not only transitioning their business models towards sustainability but also in making clear commitments to environmental and climate-positive outcomes throughout that process.
To ensure accountability, an allocation and impact report will be published annually during the lifetime of the Sustainability-Linked Finance instruments. This report will include details of the SLF Facilities and will undergo a Second Party Opinion (SPO) to ensure its alignment with the established principles. An independent party will also provide limited assurance on this report. The SPO has already been secured from ISS Corporate Solutions (ISS), which confirmed that the framework is consistent with ICMA’s SLLBG. Standard Chartered Bank played a pivotal role as the sole service provider in the framework’s development.
In conjunction with this initiative, DIB has also renewed its Asset-Based Sustainable Finance Framework in 2024, which similarly garnered an SPO from ISS, showcasing the bank’s ongoing commitment to sustainable finance practices and the promotion of environmentally conscious financial solutions.
Source: Noah Wire Services
- https://www.dib.ae/docs/default-source/pdf/sustainability/dib-sustainability-linked-finance-facilities-financing-framework-2025.pdf?sfvrsn=fdb96481_3 – This document provides details on Dubai Islamic Bank’s Sustainability-Linked Finance Facilities financing framework, highlighting its alignment with international sustainability standards.
- https://www.dib.ae/docs/default-source/pdf/sustainability/dib-sustainability-linked-finance-facilities-financing-framework-2025-iss-cspo.pdf?sfvrsn=acb06ec7_3 – This framework outlines the external review process and confirms the alignment of DIB’s Sustainability-Linked Finance Facilities with ICMA’s Sustainability-Linked Bond Principles.
- https://www.zawya.com/en/press-release/companies-news/dubai-islamic-bank-publishes-its-first-sustainability-linked-finance-facilities-financing-framework-g6wbr1gl – This press release announces DIB’s publication of its first Sustainability-Linked Finance Facilities financing framework, emphasizing its role in promoting sustainable finance.
- https://www.icmagroup.org/sustainable-finance/sustainability-linked-bond-principles/ – This webpage explains the ICMA Sustainability-Linked Bond Principles, which DIB’s framework is aligned with, providing a global standard for sustainability-linked finance.
- https://www.lma.eu.com/Content/6/SLP_Guidelines.pdf – This document outlines the Loan Market Association’s Sustainability Linked Principles, which guide the eligible SLF Facilities under DIB’s framework.
- https://www.isscorporatesolutions.com/ – ISS Corporate Solutions provided a Second Party Opinion confirming DIB’s framework aligns with ICMA’s Sustainability-Linked Bond Principles, ensuring credibility and impact.
- https://mea-finance.com/dubai-islamic-bank-publishes-its-first-sustainability-linked-finance-facilities-financing-framework/ – Please view link – unable to able to access data
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative mentions recent developments and includes specific dates, such as the renewal of the Asset-Based Sustainable Finance Framework in 2024, indicating that the content is current and not recycled.
Quotes check
Score:
8
Notes:
The quote from Dr. Adnan Chilwan is specific to this context, but without further online sources, it is difficult to verify if it is the first use of this quote. However, it appears original to this announcement.
Source reliability
Score:
6
Notes:
The narrative originates from a specialized finance website, which may not be as widely recognized as major news outlets like the Financial Times or BBC. However, it provides specific details and references established financial principles.
Plausability check
Score:
9
Notes:
The claims about Dubai Islamic Bank’s sustainability efforts and framework development are plausible and align with broader trends in sustainable finance. The involvement of recognized entities like ICMA and ISS adds credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative appears to be current, with specific details about Dubai Islamic Bank’s sustainability initiatives. While the source is not a major news outlet, the information is plausible and well-supported by references to established financial standards.
