UAE Aims for Dh2.56 Trillion in Islamic Finance by 2031

Aug 13, 2026

87 min

Aug 13, 2026 09:31

UAE targets Dh2.56 trillion in Islamic finance assets by 2031

## Ambitious Growth Target

The United Arab Emirates has set a goal to expand its Islamic finance assets to Dh2.56 trillion by 2031. This initiative is part of a broader strategy to enhance the legal and Shari’ah frameworks and ensure customer protection in the sector.

## Current Landscape

As of June 2026, Islamic bank assets in the UAE were valued at Dh1.4 trillion. The country hosts 43 licensed Islamic financial institutions and ranks third globally in the Islamic Finance Development Indicator for 2025.

## Strategic Framework

The UAE's strategy, approved in May 2025, aims to integrate Islamic finance more deeply into the national economy. The Central Bank is collaborating with various entities to achieve this, focusing on clearer legal guidelines and Shari’ah compliance.

## Legal and Regulatory Enhancements

The strategy includes updates to the Commercial Transactions Law, which now features a chapter on Islamic finance contracts. This law aligns with Shari’ah standards and aims to reduce disputes by providing a clear framework for transactions.

## Supporting Innovation and Trust

The Central Bank Law of 2025 regulates Islamic financial institutions, allowing them to engage in Shari’ah-compliant real estate and goods transactions. The framework exempts these transactions from certain fees, aiming to foster innovation and trust in the sector.

## Broader Economic Integration

Beyond banking, the strategy seeks to develop the UAE's sukuk, Islamic money markets, and funds. It also aims to strengthen ties between Islamic finance and the halal economy, promoting local production and supporting SMEs and tech startups.

## Future Prospects

The UAE's comprehensive approach includes developing halal tourism, modest fashion, and Islamic-themed media, alongside promoting waqf mechanisms in philanthropy. These efforts are designed to position the UAE as a leader in Islamic finance and the halal industry.

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