The UAE has unveiled a bold strategy to double the assets of its Islamic banking sector by 2030, aligning with national goals to enhance competitiveness and reinforce its role as a global hub for Islamic finance. The announcement was made during the Islamic Finance Future Lab hosted by the UAE Government Development and the Future Office, with several high-level officials outlining reforms to accelerate growth across the sector.
Strengthening the UAE’s Global Islamic Finance Standing
Islamic banking currently accounts for approximately 20% of the UAE’s total banking assets. Under the new plan, the government aims to significantly increase this share by implementing targeted policies and stimulating innovation in Shariah-compliant financial services. This move underscores the nation’s broader vision to expand economic diversification and attract foreign investment, especially from countries with high demand for Islamic finance.
Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai, reaffirmed the government’s commitment to positioning the UAE as a leader in ethical and inclusive finance. “The Islamic economy is one of the most promising sectors. We must develop its tools and enhance its competitiveness,” he said. The directive aims to ensure that the UAE remains at the forefront of this rapidly growing financial ecosystem.
Targeted Reforms to Drive Innovation and Asset Growth
To meet its target of doubling Islamic banking assets by 2030, the UAE will focus on several reform areas. These include improving Shariah governance frameworks, developing fintech capabilities in Islamic finance, and introducing products that cater to evolving market demands. The government also plans to strengthen coordination between regulators, scholars, and financial institutions to standardise practices and foster sustainable growth.
Officials indicated that the strategy will involve close collaboration with international partners, thereby ensuring that the UAE remains responsive to global trends while maintaining robust regulatory oversight. Additionally, public-private partnerships will play a key role in scaling up innovation and investment in the sector.
By promoting transparency, sustainability, and technological advancement, the reforms aim to boost investor confidence and unlock new opportunities within Islamic financial markets.
Aligning With Economic Vision 2031
The initiative is in line with the UAE’s We the UAE 2031 vision, which targets enhanced economic performance through diversification and innovation. The expansion of Islamic banking assets not only supports financial inclusion but also strengthens the UAE’s status as a hub for values-based investing.
With Islamic finance projected to exceed $4 trillion in global assets by 2026, the UAE’s strategy positions it to capture a larger share of this growth. By fostering a conducive environment for Islamic banking, the government is ensuring that the sector becomes a central pillar of the national economy over the next decade.
