A Banking Model Combining Economic Growth and Environmental Sustainability

AlRayan Bank: Sustainable Financial Innovation Supporting Green Economy

• Launch of the first green Sukuk listed on the Qatar Stock Exchange
• Sustainability at the heart of AlRayan Bank’s strategy and Qatar National Vision 2030
• The Bank strengthens its leadership in environmental, social, and governance (ESG) practices and green finance
• AlRayan Bank expands Sharia-compliant sustainable investment instruments

AlRayan Bank has reinforced its position as one of the leading banking institutions in the field of sustainability and green finance through the adoption of an integrated strategy focused on developing sustainable financing instruments and enhancing environmental, social, and corporate governance practices, in line with the objectives of Qatar National Vision 2030, which seeks to achieve sustainable economic development and diversify the national economy.

Since 2022, the Bank has launched a comprehensive Sustainable Finance Framework aimed at integrating environmental and social standards across its financing and investment activities, becoming the first Islamic bank in Qatar to introduce a dedicated sustainable finance framework. The framework received a “Strong” rating from Standard & Poor’s, reflecting its alignment with leading environmental, social, and governance standards.

The Bank considers green finance a key pillar of its future strategy through supporting and financing projects with positive environmental impact, including renewable energy projects, energy-efficiency initiatives, sustainable infrastructure, and green buildings, as well as initiatives that contribute to reducing carbon emissions and advancing the transition toward a low-carbon economy, in line with global efforts to address climate change.

Banking Leadership in Sustainable Finance

In a move reflecting its leadership in sustainable financial innovation, AlRayan Bank, in cooperation with HSBC, successfully executed the first Islamic repurchase agreement (Repo) linked to environmental, social, and governance (ESG) performance indicators. This initiative demonstrates the Bank’s ability to combine the requirements of modern Islamic banking with global sustainability objectives.

The Bank also continued to develop green financing instruments through the issuance of the first green Sukuk valued at QAR 500 million, which was listed on the Qatar Stock Exchange in February 2026, in a move considered the first of its kind in the local market. The Sukuk has a three-year tenor and offers an annual profit rate of 4.25%, supporting the development of Qatar’s capital market and expanding the range of sustainable and Sharia-compliant investment instruments.

This issuance is of exceptional significance as it is the first green Sukuk issued through an entity registered with the Qatar Financial Centre and listed, settled, and cleared locally, thereby enhancing the development of the country’s capital market ecosystem and providing broader opportunities for local and international investors to access sustainable financing instruments.

Green Deposit

The Bank also launched the first Sharia-compliant “Green Deposit” in Qatar, aimed at financing environmental initiatives and projects while providing sustainable investment solutions in Qatari Riyals and major currencies. This initiative reflects AlRayan Bank’s commitment to expanding the range of sustainable financial products and providing investment options that combine financial returns with environmental responsibility, thereby strengthening the role of the banking sector in supporting the transition toward a more sustainable economy.

Advanced Rating and a Strong Institutional Sustainability Policy

Further highlighting the progress achieved by AlRayan Bank in environmental, social, and corporate governance, the Bank’s MSCI ESG rating was upgraded during the year from BB to BBB, reflecting the Bank’s tangible year-on-year progress and measurable achievements across its environmental and social initiatives.

This improvement reflects a gradual path of institutional development in sustainability. The Bank’s commitment extends beyond launching green financing products to building a comprehensive framework that integrates ESG standards into policies, operations, risk management processes, and disclosure mechanisms.

In this context, the AlRayan Bank Sustainability Forum, in collaboration with S&P Global, served as a platform bringing together leading industry figures and experts to discuss ways to unlock the potential of sustainable finance through a deeper understanding of climate risks and related opportunities. Through these integrated efforts, the Bank seeks to create a positive and tangible impact on society and the environment while strengthening its contribution to the transition toward a more sustainable and responsible economic model.

Driven by its firm commitment to sustainability principles, the ESG Policy adopted across AlRayan Bank Group reflects a clear orientation toward responsible banking. The policy constitutes a robust and coherent framework for the Bank’s commitments in this area, ensuring alignment across various departments and business units under a unified approach and strengthening the integration of institutional efforts in implementing sustainability principles.

To ensure the effective implementation of this policy, the Bank adopts a range of specialized topic-based policies, together with clear position statements that guide the practical application of ESG principles across all areas of operation, including banking activities, risk management, services, and control functions.

Integrated Framework for Managing Sustainability and Climate Risks

Building on this comprehensive policy, AlRayan Bank has strengthened its approach through the development of an integrated framework for managing ESG and climate-related risks. The framework outlines mechanisms for assessing sustainability risks across the Bank’s customer base, enabling a more accurate understanding of risks arising from environmental, social, and governance factors and their potential implications for customers and financing portfolios.

The framework includes a range of quantitative analyses, including assessments of the materiality of physical climate risks and transition risks, in addition to social and governance risks. This approach helps the Bank measure its exposure to these risks in a more systematic manner and link them to decision-making processes, portfolio management, and customer relationship management.

The framework also incorporates a dedicated ESG screening tool used to evaluate customers’ sustainability profiles and identify areas where the Bank can provide support and guidance. Through this framework, AlRayan Bank seeks not only to deepen its understanding of customers’ exposure to sustainability risks but also to identify opportunities to help them improve their environmental, social, and governance performance.

As a result, the Bank is moving beyond an approach focused solely on compliance and disclosure toward a broader approach that combines risk management, customer support, and the promotion of sustainable finance opportunities, thereby reinforcing its role as a banking partner capable of supporting customers through sustainability and climate-related transitions.

Transparency and Disclosure Through the Qatar Stock Exchange

As part of its commitment to transparency and compliance with ESG disclosure requirements on the Qatar Stock Exchange (QSE), AlRayan Bank continues to align its practices with the Exchange’s approved disclosure guidelines.

In line with the recommendations of the Sustainable Stock Exchanges Initiative and the World Federation of Exchanges, the Qatar Stock Exchange has developed a set of ESG Key Performance Indicators (KPIs) to help listed companies improve disclosure quality and enhance transparency for investors and stakeholders.

In this context, AlRayan Bank discloses its sustainability data through the Qatar Stock Exchange’s Arab Sustainability Platform, reflecting its commitment to providing clear and structured information regarding its ESG performance.

Dedicated Committee to Strengthen Governance and Sustainability

As part of its commitment to strengthening environmental and social governance, the Bank established a specialized committee responsible for monitoring the implementation of sustainability policies and developing organizational structures related to environmental, social, and governance responsibilities.

AlRayan Bank also joined the Partnership for Carbon Accounting Financials (PCAF), becoming the first Sharia-compliant bank in Qatar to join this global initiative. This enhances transparency in measuring the carbon footprint of financing and investment portfolios and strengthens the Bank’s ability to track the environmental impact of its financing activities with greater accuracy and clarity.

Internal Initiatives Supporting Environmental Transformation

The Bank’s efforts have also extended to the adoption of internal environmental initiatives, including the installation of electric vehicle charging stations at its headquarters, making it the first bank in Qatar to implement such an initiative in support of clean transportation and the reduction of carbon emissions.

The Bank has also launched internal awareness initiatives aimed at promoting a culture of sustainability among employees. These include the use of the “AlRayan Eco” logo in electronic signatures and the placement of environmental awareness posters throughout office locations, helping to reinforce responsible daily practices within the workplace.

Environmental and Community Initiatives

As part of its social responsibility efforts, AlRayan Bank signed a cooperation initiative with the Ministry of Environment and Climate Change to support national efforts to protect natural reserves and preserve the environment through clean-up campaigns, tree planting, the cultivation of native vegetation, and awareness programs that promote environmental sustainability.

The Bank also participated in the launch of Qatar’s first National Strategy to Combat Desertification (2025–2030), through which it was recognized for its role in supporting environmental protection efforts and its contribution to national initiatives aimed at safeguarding natural resources and enhancing environmental awareness.

Specialized Awards and Institutional Recognition

AlRayan Bank has received numerous specialized awards in the field of sustainability, including the “Best Green Initiative” award, the “Best ESG Bank in Qatar” award and the “Best Bank for Sustainable Finance in Qatar” award. These achievements reflect the Bank’s success in integrating sustainability principles into its institutional business model and transforming sustainability from a theoretical commitment into a comprehensive practical reality.

Green Finance: A Pillar of a Sustainable Banking Future

AlRayan Bank’s focus on green finance reflects its growing recognition that the future of the banking sector depends not only on profitability but also on the ability of financial institutions to balance economic growth, environmental stewardship, and service to society.

The Bank is expected to further expand its sustainable financial products and services in the coming years, in line with increasing global demand for green financing instruments and sustainability-linked investments.

Through these efforts, AlRayan Bank continues to strengthen its position as a banking institution that combines financial innovation with a commitment to sustainable development, supporting Qatar’s economy and advancing the transition toward a more sustainable future.