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A report from the Central Bank of the UAE detailed how the country has built a comprehensive ecosystem of legal, Shari’ah and regulatory frameworks that support its growing role in Islamic finance and the halal sector. The central bank coordinates implementation of the UAE Islamic Finance and Halal Industry Strategy 2025-2031, which the Cabinet approved in May 2025 to capture global opportunities and diversify the economy. According to the document, Islamic banking assets stood at Dh1.4 trillion as of June 2026, a substantial increase from Dh986 billion at the strategy’s launch. The UAE Media Office reported that the plan also seeks to expand listed Islamic sukuk in the country to more than Dh660 billion and raise international sukuk listings on UAE bourses to Dh395 billion by 2031.
The central bank noted that the Higher Shari’ah Authority, established in 2018, has issued more than 280 standards and resolutions alongside nine governance standards to unify practices and reduce disputes. Federal Decree-Law No. 50 of 2022 on commercial transactions dedicated a full chapter to Islamic finance contracts while linking them to those Shari’ah standards, and the Central Bank Law issued in 2025 further clarified supervisory rules for Islamic institutions. These measures have created clear rights and obligations for all parties, the report stated, enabling stable transactions that meet both customer protection and financial stability requirements.
UAE officials placed the country third globally in the 2025 Islamic Finance Development Indicator compiled by the Islamic Development Bank and LSEG. That ranking reflects strong performance across financial metrics, governance, knowledge, sustainability and awareness, according to the ICD-LSEG Islamic Finance Development Report 2025, which projected global Islamic finance assets to approach $9.7 trillion by 2029 after reaching $5.2 trillion in 2025 on 14.9 percent annual growth. The central bank said 43 licensed Islamic financial institutions now operate in the UAE, underscoring the depth of the domestic market.
The strategy integrates Islamic finance with the halal industry and Islamic philanthropy to drive sustainable development. It calls for a halal traceability system, support for local SMEs and tech startups, and development of halal tourism, modest fashion and Islamic-themed media while catalysing waqf mechanisms to expand philanthropy. The UAE Media Office indicated the plan aims to lift halal exports from Dh74 billion to Dh315 billion and grow Islamic philanthropy to Dh247 billion by 2031, building on the sector’s contribution to broader economic diversification.
Sheikh Mohammed bin Rashid Al Maktoum chaired the Cabinet session that endorsed the strategy and formed a committee led by the central bank governor to oversee its execution. Al Maktoum stated that the goal is to develop the Islamic financial sector, lead global Islamic finance activities and boost halal product exports worldwide. The central bank emphasised that the combined initiatives will position the UAE at the forefront of innovation and impact in these interconnected fields.
Implementation efforts include fostering ecosystems for sukuk, Islamic money markets and funds while promoting international collaboration on sustainable finance. The report highlighted how these steps build on existing legal certainty to attract greater investment and support high-value local halal production for re-export. Such measures align with the country’s longstanding ambition to serve as a bridge between conventional and Islamic financial systems on the global stage.
