The UAE has launched a bold national strategy to accelerate the growth of its Islamic finance sector and halal industry, underscoring its commitment to economic diversification and global leadership in Sharia-compliant markets.
This integrated approach aims to position the UAE as a global powerhouse for Islamic banking, Sukuk (Islamic bonds), Takaful (Islamic insurance), and halal-certified manufacturing and exports.
Islamic Banking and Sukuk Set for Expansion
According to February 2025 data from the Central Bank of the UAE, Islamic banks now represent 18% of total banking assets and 22.8% of national credit. These figures highlight the expanding role of Sharia-compliant institutions in the UAE’s broader financial ecosystem.
The Sukuk sector is gaining momentum as well. Following the 2023 launch of the UAE’s dirham-denominated Islamic Treasury Sukuk (T-Sukuk), the market has witnessed increased investor activity. Nasdaq Dubai currently lists over $95.7 billion in Sukuk, establishing the UAE as one of the leading global centres for Islamic fixed-income instruments.
Jamal Saleh, Director-General of the UAE Banks Federation (UBF), stated that the new strategy lays the groundwork for an integrated Islamic economy. “The UAE’s financial infrastructure has evolved to support the growth of Islamic finance as a key pillar of national diversification,” he said.
In fact, credit extended by Islamic banks rose to AED503.5bn ($137bn) in February 2025—a 16% year-on-year increase. Deposits surged by 16.9%, reaching AED595.3bn ($162bn), further demonstrating market confidence.
Halal Industry Eyes $86 Billion Export Target
Alongside financial sector reforms, the UAE is doubling down on its ambitions to become a global halal manufacturing hub. The national strategy sets an ambitious export growth target—increasing halal exports from AED74bn ($20bn) to AED315bn ($86bn) by 2031.
Saleh Lootah, Chairman of the UAE Food and Beverage Manufacturers Group, hailed the initiative as a transformational moment for the local industry. “This is a significant milestone in our journey to make the UAE a global centre for halal-certified production,” he noted.
Domestic manufacturers are increasingly exploring the halal segment, driven by rising global demand and growing consumer awareness around ethical and dietary choices. According to Bonafide Research, the UAE’s halal food and beverage market is projected to exceed $31.27 billion by 2029.
Strategic Geography and Global Appeal
The UAE’s geographic position continues to offer a competitive edge, enhancing its connectivity with key international markets. This strategic advantage supports both trade and tourism, drawing interest from global investors and manufacturers.
With regulatory support, strong infrastructure, and high investor confidence, the UAE is set to become a leading global hub for Islamic finance and halal commerce—supporting long-term economic sustainability and innovation.
