The United Arab Emirates has launched an ambitious national initiative to double the value of assets held by its Islamic banking sector by the year 2030. The strategy, revealed during the recent Islamic Finance Future Lab organised by the UAE Government Development and the Future Office, supports the country’s broader aim of becoming a world-class centre for Shariah-compliant finance.

Enhancing the UAE’s Role in Islamic Finance

Islamic banking currently comprises around one-fifth of the UAE’s overall banking sector. Under the new framework, the government intends to substantially increase this figure by enacting reforms that encourage financial innovation and expand access to Islamic financial products. The move is part of a wider agenda to diversify the economy and appeal to investors from markets with a strong interest in Islamic finance.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, reiterated the importance of the Islamic economy as a future growth engine. “This is a sector rich with opportunity. Our goal is to refine its tools and elevate its global competitiveness,” he stated, reaffirming the UAE’s commitment to ethical finance and inclusive development.

Key Measures to Accelerate Sectoral Growth

To achieve its 2030 goal, the UAE government is rolling out targeted reforms that include refining Shariah compliance protocols, investing in digital financial infrastructure, and expanding the suite of available Islamic banking products. Officials have emphasised the importance of improved coordination between regulatory authorities, scholars, and financial institutions to ensure standardisation and encourage long-term stability.

The plan also emphasises global cooperation. International partnerships are expected to help the UAE remain agile in adapting to evolving financial trends, while public-private collaboration will be instrumental in fuelling innovation and capital flows into the Islamic finance domain.

By embracing greater transparency, sustainability, and digital transformation, the initiative is designed to increase investor trust and unlock new segments of the Islamic financial services market.

Supporting the Broader Economic Vision

The strategy complements the UAE’s “We the UAE 2031” vision, which focuses on building a diversified, forward-thinking economy. Boosting Islamic banking assets is viewed not only as a step toward financial inclusion but also as a catalyst for attracting values-driven investors and positioning the UAE as a key player in global ethical finance.

With global Islamic financial assets forecasted to surpass $4 trillion by 2026, the UAE is positioning itself to secure a significant share of this expanding market. Through a supportive policy environment and innovative reforms, the government aims to integrate Islamic banking as a core component of its long-term economic framework.