Global Islamic Finance Assets Set To Jump Over 60% To $10.5 Trillion By 2030

(MENAFN- Khaleej Times) Banks in the UAE have called for stronger coordination between regulators, banks and the private sector to turn the UAE's Islamic finance and halal industry strategy into implementable products and partnerships.

The call came at the conclusion of their inaugural conference held under the theme“From Legislation to Growth and Innovation”. It examined the role of financial institutions in delivering the UAE Islamic Finance and Halal Industry Strategy 2025-2031.

Recommended For You

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

The strategy targets Dh2.56 trillion in local Islamic finance assets by 2031. Islamic banking assets in the UAE stood at Dh1.4 trillion in June 2026, with 43 licensed Islamic financial institutions operating in the country. The UAE ranked third globally in the 2025 Islamic Finance Development Indicator.

The event was attended by Dr Omar Alderei, chairman of the General Authority of Islamic Affairs, Endowments and Zakat; Abdulla Ahmed Al Saleh, undersecretary at the Ministry of Economy and Tourism, and Mohamed Omran Al Shamsi, deputy chairman of the UAE Banks Federation.

Fuad Mohamed, CEO of Al Masraf, said the next phase must go beyond building frameworks towards developing products, instruments and partnerships that connect finance more closely with the real economy.

“The UAE has built an advanced legislative and regulatory foundation, alongside a financial ecosystem capable of translating these opportunities into practical initiatives across Islamic finance, sukuk, technology and the halal industry,” he said.

He added that the role of financial institutions extends beyond providing financing to developing innovative investment solutions, enabling high-potential sectors and strengthening partnerships among banks, regulators, government entities and the private sector.

Assets

Mustafa Adil, head of Islamic Finance at London Stock Exchange Group (LSEG), said global Islamic finance assets reached about $6.5 trillion in 2025, up from around $2.5 trillion in 2018. They are projected to hit roughly $10.5 trillion by 2030, up 61.5 per cent from 2025 figures.

In the UAE, Islamic finance assets reached about $532 billion in 2025, more than double the $251 billion recorded in 2018. Banking accounts for the largest share, followed by sukuk, funds, other Islamic financial institutions and takaful.

ESG sukuk issuance in the UAE grew from about $1.8 billion in 2020 to $18 billion in 2025, Adil said. The global market reached around $73.2 billion, giving the UAE a share of roughly 24.6%. The UAE's ESG disclosure index stood at 83 per cent, against a global average of 63 per cent.

In his opening address, Al Saleh said Islamic banking assets reached about Dh1.26 trillion by the end of September 2025, up 15.5 per cent from Dh1.09 trillion in 2024. Takaful contributions rose 18.5 per cent to Dh6.4 billion in 2025, accounting for 8.5 per cent of the UAE insurance market.

He said the Higher Sharia Authority had developed 17 standards and guidance notes and issued 985 resolutions and directives by the end of 2024. He also cited Federal Decree-Law No. 50 of 2022 on Commercial Transactions, which made the authority's decisions the final reference on Islamic finance provisions, and Federal Decree-Law No. 6 of 2025 on the Central Bank and financial institutions.

Al Saleh added that the UAE had set up an Islamic Finance and Halal Industry Development Committee and adopted implementation plans for 2025 and 2026, along with specialised subcommittees.

The conference concluded with five recommendations, including strengthen coordination and partnerships between regulators, financial institutions and the private sector; expand the role of Islamic financial institutions in financing priority sectors, while supporting SMEs, trade and the real economy; further develop the sukuk market and improve access to it, while enhancing efficiency, governance and Sharia compliance; accelerate innovation and use digital platforms and emerging technologies to develop more efficient, accessible products; and strengthen the UAE's position as a global hub for Islamic finance and the halal economy through innovation, partnerships, talent development and globally scalable solutions.

ALSO READ

AI and Islamic finance converge as demand grows for digital banking Global Islamic finance set to hit $6 trillion in 2026 as industry posts strong double‐digit growth UAE Islamic finance market poised for major expansion amid global momentum

MENAFN01102026000049011007ID1111747860