Emirates NBD and Chalhoub Group, the largest luxury goods retailer and distributor in the Middle East, have announced a $26.7 million ESG-linked working capital facility.

This facility marks Chalhoub Group’s first ESG-linked initiative and highlights both companies’ commitment to driving sustainable transformation in Saudi Arabia’s retail sector. The agreement aligns with Vision 2030’s objectives and supports Chalhoub Group’s net-zero plans.

During a signing ceremony hosted by Emirates NBD in Jeddah, representatives from both companies discussed their collaborative efforts to ensure the future of the Saudi retail industry through ESG-focused initiatives. Mohammed Aldabbagh, KSA Managing Director of Chalhoub Group, emphasized the critical role of sustainability in the group’s strategy.

He said, “This collaboration aligns with our long-standing commitment to environmental, social, and governance principles. Through this sustainable finance facility, we are enhancing our accountability,  grounded in our belief that achieving ambitious goals requires concerted collective teamwork.”

Pri McNair, Group Co-Head of Corporate Coverage, Corporate and Institutional Banking at Emirates NBD, highlighted the bank’s commitment to sustainable financing. “We are delighted to support our long-term client Chalhoub Group in expanding their sustainability aspirations,” she said.

Ahmed Al Ghamdi, Country Head of Corporate & Institutional Banking at Emirates NBD, KSA, emphasized the bank’s dedication to providing innovative ESG-linked solutions to its clients. “This is a clear demonstration of our dedication to working closely with our customers and wider stakeholders to progress together towards reaching a sustainable low- carbon economy,” he said.

James Adams, Group Treasurer at Chalhoub Group, noted that the agreement marks a successful extension of the Sustainable Finance Framework with Emirates NBD. “We are particularly excited to be launching this in KSA and look forward to continuing the rollout across other countries in the GCC and beyond,” he said.

“This initiative not only highlights our commitment to sustainability but also provides a roadmap for future financing in Saudi Arabia that incorporates environmental, social, and governance principles,” he added.

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