FAB To Invest Dh100 Billion In Water Projects Across UAE, Region

(MENAFN- Khaleej Times) First Abu Dhabi Bank (FAB) has set a Dh100-billion blue finance target to support water and blue economy-related financing between 2026 and 2035, as the UAE steps up efforts to mobilise private capital for water security ahead of the UN Water Conference in Abu Dhabi.

FAB has also become the first bank in the Middle East and North Africa (Mena) to sign the UN Sustainable Blue Economy Finance Principles - a global framework aimed at directing finance towards the sustainable use of water resources.

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The Dh100-billion target will support financing for areas including sustainable water infrastructure and blue economy projects, making FAB the first bank in the UAE and the wider region to establish a dedicated water-related financing target.

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The move comes as water security gains greater prominence on the UAE's economic and investment agenda ahead of the 2026 UN Water Conference, which the UAE will co-host with Senegal in Abu Dhabi in December.

Assistant Minister urges other banks to follow

Abdulla Balalaa, UAE Assistant Minister of Foreign Affairs for Energy and Sustainability, said FAB's commitment demonstrates the role financial institutions can play in tackling the funding challenge facing water infrastructure.

“Water underpins economic growth, resilience, and stability, yet it remains critically underfinanced,” Balalaa said.

He encouraged financial institutions in the UAE and internationally to follow FAB's example by putting water at the centre of investment and risk-management decisions and helping unlock capital for water-related projects.

The announcement follows Balalaa's call ahead of the UN conference for governments, banks, institutional investors and the private sector to help address the huge financing needs facing global water infrastructure.

Part of Dh500 billion sustainable finance commitment

FAB said the Dh100 billion blue finance target is not an additional standalone commitment.

Instead, it forms part of the bank's existing Dh500 billion sustainable finance commitment to 2030 and will also support its longer-term sustainable finance ambitions beyond that date.

As of the first half of 2026, FAB had facilitated Dh395 billion in sustainable and transition financing, equivalent to 79 per cent of its Dh500 billion target.

Hana Al Rostamani, Group Chief Executive Officer of FAB, said water security is a major sustainability priority for the UAE, the region and the global economy.

She said the Dh100 billion commitment translates that priority into action at scale while supporting the UAE's long-term water security ambitions.

Water reuse and new technology

The target is aligned with the UAE Water Security Strategy 2036 and is expected to direct capital towards areas including sustainable infrastructure, water reuse, advanced technologies and innovation.

FAB has already been active in water-related financing. It issued the region's first blue bond by a financial institution, with cumulative issuances reaching $70 million.

The UN Sustainable Blue Economy Finance Principles were launched in 2018 as the world's first global framework to guide banks, insurers and investors in supporting a sustainable blue economy.

The UAE and Senegal will co-host the 2026 UN Water Conference, the third such conference since 1977 and the first UN conference dedicated to Sustainable Development Goal 6, which focuses on ensuring water and sanitation for all.

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