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RAKBANK launches green financing mechanisms in Ras Al Khaimah

Initiative is in collaboration with Ras Al Khaimah Municipality

| | Oct 3, 2021 | 1:43 pm
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DUBAI, UAE, 3 October 2021: The National Bank of Ras Al Khaimah (RAKBANK) signed an agreement with Ras Al Khaimah Municipality to launch green financing solutions in Ras Al Khaimah, the Municipality said through a Press release. The Municipality oversees the implementation of Ras Al Khaimah Energy Efficiency and Renewables Strategy 2040, which drives and promotes sustainability as a source of competitiveness for the emirate, by reducing the cost of energy and water for businesses, residents and the government. The agreement facilitates several financing options at preferential rates for green housing initiatives, green auto industry, as well as green personal financing solutions, the Municipality said.

Peter England and H.E. Munther Mohammed Bin Shekar during the signing ceremony

Peter England and H.E. Munther Mohammed Bin Shekar during the signing ceremony

The Bank aligned its vision with that of the Ras Al Khaimah government by supporting Barjeel, the green building regulations of the emirate that aims to reduce 30% of energy and water consumption in new buildings, the Municipality said. RAKBANK will offer an exclusive green mortgage loan at a competitive interest rate to salaried and self-employed customers interested in buying Barjeel-compliant homes with residual financing options, free pre-approvals, attractive discounts on processing and valuation fees, minimal paperwork and more, the Municipality said.

RAKBANK will also present to customers based in Ras Al Khaimah with the ability to gain instant access to green auto loans on the condition that they purchase an electric or hybrid vehicles from Ras Al Khaimah-based dealers at extremely competitive interest rates, including exclusive discounts on insurance rates, the Municipality said. Furthermore, the Bank will extend to Ras Al Khaimah-based customers a new personal loan at exclusive rates, to finance various green initiatives, such as solar panel installations and purchase of energy-efficient appliances, equipment and devices from licensed vendors in Ras Al Khaimah, the Municipality said.

Commenting on the Green Loan Agreement, Peter England, CEO, RAKBANK, said: “In line with RAKBANK’s environmental values of preservation of natural resources, the bank is proud to partner with the Ras Al Khaimah Municipality to encourage UAE nationals and expatriates alike to purchase a Barjeel-compliant house, an electric or hybrid car, or even undertake home improvement projects to install solar panels that ultimately aim at reducing energy, water and gas consumption. At RAKBANK, we believe that our long-term success as a national bank lies in growing people’s trust in us by increasing our social responsibility towards our community and especially our environment.”

H.E. Munther Mohammed Bin Shekar, Director General, Ras Al Khaimah Municipality, said: “Our collaboration with RAKBANK to expand green finance in the emirate is one of the many steps we are taking to encourage sustainable lifestyles and business practices in Ras Al Khaimah. With this initiative, buying green becomes cheaper and more accessible. We would like to encourage residents and businesses who are about to invest in a new building or in improvements of their existing buildings, purchasing solar systems or new electric or hybrid vehicles, to explore how this initiative can help. Introduction of green financing practices is expected to draw more participation to our sustainability programs and, therefore, accelerate achievement of our strategic goals.”

According to the Municipality, the collaboration is expected to promote more sustainable purchase behaviours among residents and businesses, which in turn will contribute to the broader sustainability targets of Ras Al Khaimah, as part of the Ras Al Khaimah Energy Efficiency and Renewables Strategy 2040. The Strategy, established under the patronage of His Highness Sheikh Saud bin Saqr Al Qasimi, UAE Supreme Council Member and Ruler of Ras Al Khaimah, targets 30% energy savings, 20% water savings, and 20% contribution of electricity from renewable sources by 2040.

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