The UAE has witnessed rapid growth in Islamic finance, driven by an economy that fosters sharia-compliant financial practices. Since the establishment of the first Islamic bank in 1975, the sector has evolved significantly, becoming a key pillar of the national economy. Its influence spans Islamic banks, Islamic windows of conventional banks, and sukuk issuances.
Advanced Sustainability Strategy
The UAE is committed to promoting sustainability within Islamic finance. A Central Bank study reveals that 79% of Islamic banks in the UAE have adopted clear sustainability policies approved at the board level. This strategic focus supports the sustainable growth of the national economy and positions the sector for future resilience.
Rise in Sukuk Issuances
The UAE has experienced a substantial increase in sukuk issuances, bolstering its global standing. Initiatives like Islamic Treasury Sukuk in dirhams have driven the market’s expansion, making the UAE the top-ranked country in the region and second globally for sustainable sukuk volumes.
Global Leadership in Islamic Finance
The UAE remains a leader in Islamic finance, ranking among the top three Islamic economies globally, according to the Islamic Economy Indicator 2022. Additionally, it ranks as the fourth-largest market for Islamic finance worldwide, enhancing its appeal to global investors.
Future Growth Expectations
The Islamic finance sector in the UAE is set for continued growth, supported by advanced regulatory frameworks and a strong economic strategy. According to Fitch Ratings, growth will accelerate alongside improvements in the non-oil economy, reinforcing the UAE’s role as a key global player in sustainability and Islamic finance.