Manama: Bahrain Islamic Bank (BisB), the leading provider of innovative Islamic financial solutions for simplifying money matters in the Kingdom of Bahrain, has officially launched its Sustainable Finance Framework, marking a major milestone in its commitment to responsible and purpose-driven banking.
The launch of the Sustainable Finance Framework reaffirms BisB’s dedication to responsible banking and its role in driving sustainable progress within the Kingdom and the wider region.
Developed in collaboration with Standard Chartered, which served as the Sustainability Structuring Advisor, the Framework has also been independently validated through a Second Party Opinion (SPO) issued by ISS Corporate Solutions, confirming its alignment with internationally recognised sustainable finance standards.
Under the new framework, BisB will be able to fund projects and activities that qualify as green, social, or sustainable in line with the ICMA’s Green Bond Principles (June 2025), Social Bond Principles (June 2025), and Sustainability Bond Guidelines (2021), as well as the LMA’s Green Financing Principles (March 2025) and Social Financing Principles (March 2025). The Framework also provides BISB with a robust platform to raise Green, Social and Sustainable Debt instruments such as sukuk, that can be deployed to finance or refinance eligible sustainable projects, serving as a reference point for classifying BISB’s sustainable revenues and asset base.
“The introduction of our Sustainable Finance Framework marks a significant step forward in integrating ESG principles into the heart of our financing activities. This initiative reflects our vision of delivering long-term value not only to our stakeholders, but also to the broader society and environment. It empowers us to allocate capital more meaningfully, create measurable impact, and contribute to Bahrain’s sustainable development agenda,” Ms. Fatema AlAlawi, Chief Executive Officer of BisB, said.
With the Framework in place, BisB can now evaluate and classify eligible projects across renewable energy, clean transportation, green buildings, and employment-focused initiatives. The framework is built on four core pillars. The first, ‘Use of Proceeds’, establishes clear criteria for allocating funds to eligible sustainable projects. The second, ‘Project Evaluation and Selection’, applies rigorous screening to identify projects with meaningful environmental and social impact. Additionally, the ‘Management of Proceeds’ pillar sets out mechanisms for optimal and transparent usage of funds, while ‘Reporting’ ensures accountability through regular disclosures on fund utilisation and project outcomes.
By embedding ESG principles across its operations, BisB aims to enhance risk management, increase accountability, and support national and global efforts toward a more inclusive and resilient financial system.
“This framework marks a proud moment in our sustainable finance journey and a true reflection of BisB’s commitment to doing well by doing good. It provides us with a strong and credible platform to channel capital toward meaningful, high-impact projects that serve both our communities and the environment,” Ameer Dairi, Chief Financial & Strategy Officer of BisB, said.
By aligning with global sustainability standards and staying true to the ethical principles of Islamic finance, we are ensuring that every decision we make contributes to real, lasting value. This framework brings greater transparency, disciplined fund management, and measurable progress toward our ESG goals.
We are honored to play a role in advancing the Kingdom’s sustainability vision and to help shape a future-ready financial ecosystem — one that is responsible, inclusive, and firmly rooted in the values of the Shari’a
“We are delighted to have supported Bahrain Islamic Bank in the development of its Sustainable Finance Framework, which enables it to raise Green, Social and Sustainable Debt aligned with global standards. Through this framework, BISB can now access sustainable capital markets to finance projects that deliver measurable environmental and social benefits. As the Sustainability Structuring Advisor, Standard Chartered is proud to contribute our global expertise to advancing Bahrain’s sustainable finance ecosystem and supporting the Kingdom’s vision for a more inclusive and resilient economy,” Dr. Boutros Klink, CEO of Standard Chartered Bahrain, said.
ISS Corporate Sustainable Finance team stated “We are pleased to have worked with Bahrain Islamic Bank in furtherance of launching its first Sustainability Finance Framework which identifies various Green and Social categories such as green buildings, renewable energy, clean transportations, employment generation, affordable housing and access to essential services projects as eligible uses of proceeds. The cooperation with the Bahrain Islamic Bank (BisB), the Islamic subsidiary of the National Bank of Bahrain (NBB), comes after the successful launch of NBB’s first Sustainable Finance Framework, which has also been verified by ISS-Corporate. With the disclosure of its first Sustainability Finance Framework, BisB demonstrates its commitment to mobilizing finance that follows global standards as well as Islamic finance values to contribute to the transition to a low-carbon economy in Bahrain, to Bahrain’s Vision 2030 and to the UN SDGs.”
