UAE Targets AED 2.56 Trillion in Islamic Finance Assets by 2031
The UAE is targeting AED 2.56 trillion in domestic Islamic finance assets by 2031, as the country moves to strengthen its position as a global centre for Islamic finance and expand the sector’s contribution to investment and the wider economy.
The target was highlighted during the inaugural conference on the implementation of the UAE Islamic Finance and Halal Industry Strategy 2025–2031, held in Dubai on September 30, 2026. The event brought together financial institutions, regulators, Shariah scholars and representatives from the halal economy to discuss the next phase of growth for the sector.
Islamic banking assets reach AED 1.4 trillion
The UAE’s Islamic banking sector has continued to expand. According to figures presented at the conference, Islamic banking assets reached approximately AED 1.4 trillion in June 2026.
The country currently has 43 licensed Islamic financial institutions, highlighting the size and breadth of its Shariah-compliant financial ecosystem. The UAE also ranked third globally in the 2025 Islamic Finance Development Indicator.
The growth of Islamic banking forms a major part of the UAE’s wider strategy to develop financial services, investment products and capital markets that comply with Shariah principles.
Expanding the sukuk market
Sukuk are another key component of the UAE’s Islamic finance ecosystem.
Discussions at the Dubai conference focused on opportunities to deepen the sukuk market, expand the investor base and improve access to Islamic capital-market instruments.
The development of retail investment products is also broadening participation. In September 2026, the UAE Ministry of Finance launched its second issuance under the Sovereign Retail T-Sukuk Programme, offering individual investors access to a five-year government-backed Shariah-compliant investment instrument.
The second issuance offered an annual profit rate of 5.06%, with a minimum subscription of AED 1,000. The sukuk is scheduled to begin trading on Nasdaq Dubai on October 1, 2026.
The Ministry of Finance said the retail programme is designed to broaden access to sovereign investment opportunities for UAE citizens and residents while supporting the development of the domestic capital market.
Technology is becoming part of Islamic finance
The UAE’s Islamic finance strategy is also looking beyond traditional banking.
Conference discussions highlighted the role of FinTech, digital platforms and emerging technologies in developing new Shariah-compliant financial products and improving access to financing and investment.
At the same time, financial institutions are expected to balance innovation with Shariah compliance, regulatory requirements, governance and risk management.
Emerging areas discussed included artificial intelligence, digital assets, smart contracts, cybersecurity and regulatory technology.
Linking Islamic finance with the halal economy
The UAE strategy brings Islamic finance and the halal industry together as connected parts of the wider economic ecosystem.
Financial institutions can support halal-industry companies through financing, investment products and capital-market solutions, while stronger connections between banks, investors, government entities and businesses could create additional opportunities for growth.
The conference also highlighted cash waqf as an area with potential for further development, particularly through clearer frameworks for investment, disclosure and impact measurement.
A growing global market
The UAE’s ambitions come as Islamic finance continues to expand internationally.
Figures presented during the conference indicated that global Islamic finance assets reached approximately $6.5 trillion in 2025, compared with around $2.5 trillion in 2018, and could reach approximately $10.5 trillion by 2030.
Within the UAE, Islamic finance assets were estimated at around $532 billion in 2025, more than double the approximately $251 billion recorded in 2018. Banking remains the largest component, followed by sukuk, funds, other Islamic financial institutions and takaful.
What the 2031 target means
The AED 2.56 trillion target represents the UAE’s broader effort to develop Islamic finance beyond conventional banking and into a wider ecosystem covering investment, sukuk, FinTech, halal-industry financing and philanthropy.
The focus now is increasingly on turning the strategy into practical financial products, stronger partnerships and digital solutions that can connect capital with businesses and investment opportunities.
With Islamic banking assets already at AED 1.4 trillion, the UAE’s 2031 target points to continued expansion across one of the country’s key financial sectors.
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