The UAE government set up a target of AED 2.56 trillion in local Islamic finance assets by 2031 under its national strategy for Islamic finance and the halal industry. The target came as the country planned to strengthen its position as a global hub for Shariah-compliant financial services while making the sector more accessible, competitive and technology-driven.
Islamic bank assets in the UAE reached AED 1.4 trillion by June 2026, with 43 licensed Islamic financial institutions. The country also ranked third globally in the 2025 Islamic Finance Development Indicator.
The Central Bank of the UAE is coordinating with federal and local authorities to implement the strategy and bring Islamic finance and the wider halal economy closer to the country's economic development plans. A key focus is creating greater legal and Shariah certainty for financial institutions and customers.
The UAE's Commercial Transactions Law includes provisions covering Islamic finance contracts and financing arrangements, while regulations are linked to standards issued by the Higher Shariah Authority.
The regulatory framework aims to strengthen customer protection and create conditions that encourage innovation in Islamic financial services. The UAE's Islamic finance ecosystem already includes digital-first financial services, while newer initiatives are opening the sector to a wider customer base. The broader strategy also supports technology startups and small and medium-sized businesses operating in the halal economy.
The Higher Shariah Authority issued more than 280 standards and resolutions, alongside more than nine Shariah governance standards. These measures are intended to create greater consistency across Islamic financial institutions while supporting financial stability, risk management and transparency.
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By 2031, the wider strategy also aims to increase the value of Islamic sukuk issuances listed in the UAE to more than AED 660 billion. Other areas that will be covered include halal production, traceability systems, halal tourism, modest fashion and Islamic-themed media.
For the UAE's fintech sector, the strategy represents an opportunity to combine established Islamic banking expertise with digital financial services. If the targets are achieved, the country could further strengthen its role as a regional and international hub for Shariah-compliant finance.