Gargash Group, a prominent UAE business enterprise, has finalized a Sustainability-Linked Facility (SLF) agreement with Mashreq, a leading financial institution in the MENA region. This deal, signed on July 1, 2025, represents one of the largest SLFs in the UAE’s automotive sector to date, bolstering Gargash Group’s alignment with the UAE Green Agenda 2030 and Net Zero Strategy 2050.
The financing terms of the SLF are directly tied to the achievement of measurable Environmental, Social, and Governance (ESG) Key Performance Indicators (KPIs). These targets include reducing carbon emissions, increasing investment in employee development, and promoting responsible practices across the supply chain. This strategic move by Mashreq brings its total sustainable finance transactions in the UAE automotive sector to AED 2.8 billion in 2025.
The signing ceremony, held at the Mercedes-Benz Brand Center in Dubai Design District, underscored Gargash Group’s commitment to ESG principles. This agreement follows a Memorandum of Understanding (MoU) signed with Mashreq in September 2024, further solidifying the group’s dedication to sustainable growth through tangible KPIs and enhanced governance.
By linking financing to ESG performance, the SLF demonstrates how sustainable finance can drive measurable environmental and social impact while supporting Gargash Group’s broader business objectives. The group is implementing a comprehensive energy transformation roadmap, including initiatives focused on solar energy and energy efficiency, aimed at minimizing environmental impact and aligning with national clean energy goals. This agreement also aligns with several UN Sustainable Development Goals (SDGs), notably SDG 13 (Climate Action), SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), and SDG 12 (Responsible Consumption and Production).
Walid Hizaoui, Group Chief Strategy Officer at Gargash Group, stated, “This Sustainability Linked Facility represents a crucial step in translating our ESG commitments into actions… This partnership with Mashreq reinforces our ability to track and measure our progress against clearly defined KPIs, ensuring that sustainability remains at the heart of our strategic decisions.”
Thomas Schulz, General Manager Mercedes-Benz Passenger Cars at Gargash Enterprises, added, “Sustainability is not just a responsibility, it’s a core element of how we shape the future of mobility. This Sustainability Linked Loan reinforces our commitment to embedding sustainability principles into every level of our operations.”
Marwan Galadari, Executive Vice President & Head of Trading Division at Mashreq, emphasized the shared vision, noting, “Integrating Environmental, Social, and Governance (ESG) principles into our financial products is not only essential for driving long-term value but also critical for addressing global challenges.”
Karim Amer, Senior Vice President and Head of Automotive, Heavy Equipment, and Trading Multinational Groups at Mashreq, highlighted the industry shift. “ESG principles are becoming a core part of how financing is structured and deployed across the automotive sector, and this facility is a strong example of that shift,” Amer commented. He reiterated Mashreq’s ambition to facilitate $30 billion in sustainable finance by 2030.
Gargash Group plans to continue integrating ESG principles across its operations, aiming to set new standards for accountability, transparency, and sustainable business practices in the region.
