UAE: Islamic Finance & Halal Industry Growth – $162bn Deposits
- The United Arab Emirates is strategically enhancing its position in Islamic finance and the halal industry.
- With supportive government policies and regulations, the UAE seeks to become a global hub for Sharia-compliant finance and halal commerce.
- According to the Central Bank of the UAE, as of february 2025, Islamic banks controlled 18% of total banking assets and 22.8% of the nation's credit.
UAE Aims to Boost islamic Finance and Halal Industry Role
The United Arab Emirates is strategically enhancing its position in Islamic finance and the halal industry. A new national strategy aims to diversify the economy and bolster global competitiveness.
With supportive government policies and regulations, the UAE seeks to become a global hub for Sharia-compliant finance and halal commerce. The strategy focuses on creating an integrated ecosystem encompassing Islamic banking, Takaful, Sukuk, and related financial services, all adhering to international standards.
According to the Central Bank of the UAE, as of february 2025, Islamic banks controlled 18% of total banking assets and 22.8% of the nation’s credit. The Sukuk market is also expanding, spurred by the 2023 launch of dirham-denominated Islamic Treasury sukuk.
Nasdaq Dubai lists over $95.7 billion in Sukuk, solidifying the UAE’s status as a major center for Sharia-compliant fixed-income instruments.
Credit from Islamic banks reached AED503.5 billion ($137 billion) in February 2025, a 16% increase year-over-year. Deposits grew even faster, up 16.9% to AED595.3 billion ($162 billion).
The UAE also plans to become a leading halal manufacturing and export center. The national plan anticipates halal exports increasing from AED74 billion ($20 billion) to AED315 billion ($86 billion) by 2031.
The UAE’s halal food and beverage market is projected to exceed $31.27 billion by 2029,according to Bonafide Research. This growth reflects rising consumer awareness and demand for halal-certified products.
Jamal saleh, Director-General of the UAE banks federation (UBF), noted that the strategy outlines ambitious goals to elevate the Islamic economy’s role both domestically, regionally, and internationally.
Saleh Lootah, Chairman of the UAE Food and Beverage Manufacturers group, said that the strategy is a landmark step toward establishing the United Arab Emirates as a global halal production centre.
What’s next
the UAE’s strategic location will continue to drive its influence in global trade and tourism, attracting investors, consumers, and manufacturers to solidify its position in Islamic finance and halal commerce.