UAE In-Focus: FAB launches sustainability-linked current account; ALEC to acquire Target Engineering  

RIYADH: The UAE’s First Abu Dhabi Bank has launched a new sustainability-linked current account for corporate clients in an effort to help companies achieve environmental, social, and corporate governance objectives.   

As with traditional current accounts, FAB corporate clients will be able to use their sustainable accounts to retain their intraday liquidity for business needs, and to carry out daily payables and receivables, the bank said in a press release.  

Meanwhile, FAB said it will ensure that cash amounts held in the account are used to fund sustainable projects based on FAB’s Sustainable Finance Framework.  

Landmark Retail, an omnichannel retailer, is the first corporate to open a sustainable current account with FAB in line with its commitment to convert its Treasury products to sustainable ones, it said.  

This comes as FAB is growing its portfolio of ESG-linked products and services, including sustainability-linked loans and green bonds. It was among the first in the UAE and Gulf Cooperation Council to issue a green bond in 2017 and to join the global Net-Zero Banking Alliance in 2021.  

Mustafa Al Khalfawi, head of Global Banking UAE & Global Head of Government, Sovereigns & Public Sector at FAB, said, “We are pleased to partner with Landmark Retail in piloting our new sustainable account offering in the UAE. This partnership demonstrates our staunch commitment to key stakeholders in our core market as they embark on strategic and operational shifts necessary to deliver on their ESG aspirations.”   

ALEC to acquire Target Engineering  

Dubai-government-owned ALEC Engineering and Construction has signed a share purchase agreement to acquire Target Engineering, a subsidiary of Arabtec, which was dissolved by shareholders in 2020.   

The deal will see the joint turnovers of the companies hitting $2 billion.   

As part of the deal, ALEC, which is owned by Investment Corporation of Dubai, will acquire Target’s assets, including 30 marine vessels, 52,000 sq. m of fabrication facilities, and its 11,000-strong workforce, the company said in a press release.   

Additionally, the deal will allow ALEC to hold Target’s controlling stake in IDROTEC srl, an Italian specialized marine design engineering firm known for its specialist marine, hydraulic and environmental design for the oil and gas sector and marine developments, the statement added.   

“ALEC has an established track record of continuously enhancing the skills and capabilities within the organization, and leveraging this expertise to enter into, and become a market leader in new market segments,” said ALEC CEO Kez Taylor.   

He said bringing Target Engineering within their fold is a move that plays to both these objectives as their specialist skillsets in oil and gas, energy — including renewables, marine, and industrial construction — perfectly augment ALEC’s own capabilities.   

Deyaar launches $82-million projects in Al Furjan   

Dubai-based real estate firm Deyaar Development plans to launch three new projects in Al Furjan worth around 300 million dirhams ($82 million). These projects will comprise 400 residential units and hotel apartments, consisting of one, two and three bedrooms, the company said in a press release.   

Deyaar’s first project in Al Furjan will be Amalia Residences, with the remaining two projects set to be announced in 2023.   

Saeed Mohammed Al Qatami, CEO of Deyaar, said: “We are pleased to announce the expansion of our growing portfolio of residential and hotel projects in conjunction with the launch of our presence in Al Furjan through three distinct projects. Each development will add significant value to the growing and vibrant area. These projects embody Dubai’s elegant lifestyle and will bring unique housing options to the Al Furjan area.”   

The company said Amalia Residences project will have a variety of modern and spacious residential units with a wide range of amenities for residents.   

Listed on the Dubai Financial Market, in which the Dubai Islamic Bank owns a majority stake, Deyaar Development owns a portfolio of commercial and residential real estate units spread across several prominent areas in Dubai.