By prioritising projects that have a positive impact on the environment, Ajman Bank is emerging as a force in the UAE’s ESG banking ecosystem
Ajman Bank is an Islamic financial institution in the UAE, operating from its headquarters in Ajman Emirate. Founded and listed on the Dubai Financial Market in 2008, the bank is categorised as a full-fledged Shari’ah compliant National Bank, and is an integral part of the country’s financial ecosystem. Ajman Bank is active in wholesale, commercial, business and consumer banking, and has seen rapid growth over the last year, recording 127% growth in bottom line, one of the highest in the UAE Banking sector.
Ajman Bank CEO Mustafa Al Khalfawi was recently recognised among the top 100 most influential leaders in the Middle East. With over two decades of extensive experience in the UAE’s banking sector, Mustafa is leading the bank into a new era of growth and innovation.
Under his leadership, Ajman Bank has reinforced its commitment to enhance the shareholders’ value, increase the customer base and invest in the human capital by focusing on three main principles – service excellence, speed, and specialisation – that are at the core of the bank’s operations.
Ajman Bank is undertaking ambitious initiatives across its business and operations with a strong emphasis on responsible banking, integrating ESG principles into its core operations. The emphasis on ESG has seen the bank achieve significant milestones in sustainability, and recognised as an ‘Emerging Bank in ESG in the UAE’ by The European.
Aligned with visions of sustainability
“As an Islamic bank, responsible banking is ingrained in our core processes and offerings. The recent increase in global and national commitment towards environmental, social, and governance matters serves as an opportunity for us to further enhance and structure our operations and business. We have strengthened our stance by aligning ourselves with both the UAE Environmental Vision 2030 and Ajman 2030 Vision,” says Zohaib Ali Zahid, Head of Corporate Governance and ESG at Ajman Bank.
Zohaib considers the UAE’s national vision integral to the bank’s future direction: “Supporting initiatives that drive socio-economic development, encourage investment, and improve commercial infrastructure in a sustainable way is how we integrate environmental and social considerations. Ajman Bank gives equal focus to both environmental and social sustainability.”
We are continuously expanding our strategic relationships with key stakeholders, including special economic zones, municipal authorities, chambers of commerce, mainland authorities, and other bodies to be at the centre of initiatives geared towards sustainable economic development.”
The bank’s ESG vision is twofold: to reduce the impact of climate change on its business and to minimise its business’s impact on the climate. This vision guides internal risk management, operational transformation, and external business endeavours. “We aim to leverage our core strength of specialisation to help clients adopt sustainable business models, which in turn will enable them to benefit more from our sustainable finance programme,” explains Zohaib. The bank is also establishing in-house advisory capabilities to support its clients.
Bridging data gaps
CEO of Ajman Bank
While larger businesses have tailored their models towards sustainability, many SMEs have yet to address the realities of climate change. Consequently, ESG decision-making data is often unavailable for banks, impeding their ability to support such clients in transition and physical risk management. Zohaib views data availability as the biggest challenge facing the sustainable finance community globally. Ajman Bank is implementing technologies to address this challenge: “We are adapting our analytical systems to bridge data gaps as much as possible and address residual gaps through intelligent data remediation. Another challenge we see is that despite the buzz around ESG, some businesses are unable to clearly visualise the value of investing in a sustainable future for themselves. Therefore, we engage with them to create awareness and help them understand the risks and benefits of conducting business deals and projects sustainably,” says Zohaib.
Ajman Bank’s ESG programme aims to impact commercial enterprises, individuals, and communities. For example, the bank recently launched a family banking feature that enables families to gain financial literacy, develop joint financial plans, and promote saving and investment behaviours through the bank’s digital banking app, ‘Ajman Bank Connect’. This digital feature quickly gained popularity, and the app’s rating has risen to one of the highest-rated banking apps in the UAE.
Internally, the bank is upgrading its risk management framework, taking into consideration the risk and opportunity trade-offs and embedding ESG assessment into its core lending and investing decisions. It is also modifying its procurement processes to ensure it procures from sustainable resources. The bank is promoting internal initiatives towards the use of biodegradable materials, reuse and recycle programmes, and energy-efficient practices under its environmental stewardship programme. “Our flagship ‘CarbonAware House Model’ programme aims to neutralise our own carbon footprint in a systematic and sustainable manner. We are committed to honesty, accuracy, and modesty in our sustainability disclosures, and we are systematically increasing the quality and depth of these disclosures. We also recognise the power of collaboration among banks and are open to joining hands with peer banks whenever we can create a positive impact,” says Ali Zahid.
“One of the key social aspects that we are passionate about, both internally and externally, is tailoring our services to people of determination. All our offices, branches, and website are designed to be accessible; our website is one of the few in the UAE that can be adapted to how the user wishes to view or listen to its content,” adds Zohaib.
Ajman Bank is diverse in terms of gender, age, religion, and ethnic background, and it boasts a high ratio of female employees at all levels of hierarchy. “This year, we proudly welcomed our first female Board Member, and we are continuously working on initiatives with prestigious global institutions to empower women in leadership roles. Our Emiratisation ratio is one of the highest in the UAE, and we won the coveted ‘NAFIS Award’ this year,” Zohaib concludes.
With green financing becoming significantly popular worldwide and, in the UAE, Ajman Bank identifies and prioritises projects that have a tangible positive impact on the environment and society.
Further information
www.ajmanbank.ae
