The United Arab Emirates has officially launched its 2025–2031 National Strategy for Islamic Finance and Halal Industries, setting a landmark target of expanding domestic Islamic financial assets to AED 2.56 trillion by 2031. The Central Bank of the UAE is accelerating the construction of a comprehensive Sharia-compliant regulatory ecosystem to advance Sukuk expansion, digital tokenized deposits, and cross-border blockchain settlement infrastructure, positioning the UAE as the world’s dual core hub for global Islamic finance and the halal economy.
Approved by the UAE Cabinet in May 2025, the national strategy aims to diversify the UAE’s economy and capture the massive growth momentum of the global Islamic economic sector. As of June 2026, the total assets of UAE Islamic banks have reached AED 1.4 trillion, with 43 licensed Islamic financial institutions operating nationwide. The UAE currently ranks third globally in the 2025 Islamic Finance Development Index, reflecting its solid industrial foundation and substantial growth potential.
The strategy outlines clear quantitative growth targets. In addition to the AED 2.56 trillion overall asset goal, the UAE plans to raise domestic Sukuk issuance from AED 2060 billion to AED 6600 billion. The targeted scale of global Sukuk listed on UAE exchanges will rise to AED 3950 billion. Meanwhile, national halal industry revenue is projected to surge from AED 740 billion to AED 3150 billion, establishing a sustainable two-way capital circulation system between Islamic financial markets and real halal industries.
Led by the Central Bank of the UAE, federal and local regulators are upgrading regulatory frameworks and digital financial infrastructure. The UAE’s Commercial Transactions Law 2022 includes dedicated provisions for Islamic financial contracts. The Central Bank’s Supreme Sharia Authority has issued more than 280 industry standards and resolutions, unifying nationwide Sharia compliance rules and reducing institutional friction for cross-border Islamic investment and financing activities.
Digital transformation serves as the core growth driver of the new national strategy. The Central Bank prioritizes three key innovative sectors: scaling up conventional and green Sharia-compliant Sukuk products, launching regulated tokenized bank deposits, and deploying a multi-party blockchain cross-border settlement network powered by central bank digital currency infrastructure. The new framework significantly shortens settlement cycles and lowers transaction fees for cross-border capital flows across the Middle East and Islamic nations, creating a modern Sharia-compliant on-chain financial ecosystem.
Industry analysts note that the UAE’s strategic vision transcends regional financial leadership, targeting a dual global hub status for Islamic finance and halal industries. Leveraging Dubai and Abu Dhabi’s international financial platforms, the country aims to attract global Sukuk issuances, Islamic funds, and cross-border trade finance, while channeling financial capital into real halal sectors including food, tourism, fashion, and global supply chains — forming a closed-loop economy of finance empowering real industries.
Globally, total Islamic financial assets are projected to exceed USD 8.46 trillion by 2031. Amid intensified competition among Gulf economies, the UAE’s mature offshore financial system, progressive virtual asset regulations, and its new AED 2.56 trillion expansion target will strengthen its position alongside Saudi Arabia and Malaysia as a leading global Islamic finance center, reshaping the international Islamic financial landscape.
Market insiders anticipate that the official launch of UAE blockchain settlement systems and regulated tokenized deposits will trigger a new digital revolution in cross-border Islamic investment, financing, and halal trade settlement. The development will also open new avenues for China–UAE green Islamic financial cooperation under the Belt and Road framework.
Source: Emirates News Agency (WAM), Central Bank of the UAE Official Announcement, 2026-08-13