The UAE is positioning itself as a global Islamic finance and Halal industry hub through a government-approved strategy running from 2025 to 2031, with the Central Bank of the UAE (CBUAE) coordinating the effort across federal and local entities.
The strategy, which the UAE Cabinet approved in May 2025, targets growth of local Islamic finance assets to AED 2.56 trillion by 2031, up from the current AED 1.4 trillion. The UAE currently ranks third globally on the 2025 Islamic Finance Development Indicator, with 43 licensed Islamic financial institutions operating domestically.
Key initiatives include scaling competitive Islamic financial institutions internationally, integrating Islamic finance with the Halal industry, and fostering sukuk, money markets, and Islamic funds. The legal backbone includes the Commercial Transactions Law of 2022 – the first UAE commercial law to regulate Islamic finance contracts – while the CBUAE's Higher Shari'ah Authority, established in 2018, has issued more than 280 standards and resolutions to standardise practice across the sector.
Gulf Economist Staff Writer