Banks map practical priorities for UAE Islamic finance and halal industry strategy

Al Masraf and the UAE Banks Federation have identified practical priorities for implementing the UAE Islamic Finance and Halal Industry Strategy 2025–2031, putting sukuk, fintech, cash waqf, governance and real-economy finance at the centre of the next phase.

The conference, held at Grand Hyatt Dubai under the theme “From Legislation to Growth and Innovation,” concluded on 30 September 2026, according to Emirates News Agency. It brought together Shari’ah scholars, representatives of the Central Bank and regulatory authorities, Islamic finance executives, and specialists in awqaf, zakat, philanthropy, takaful, higher education and media.

The strategic backdrop is substantial. WAM reported that the UAE Islamic Finance and Halal Industry Strategy targets AED2.56 trillion in local Islamic finance assets by 2031. Islamic banking assets in the UAE reached AED1.4 trillion in June 2026, with 43 licensed Islamic financial institutions operating in the country. The UAE also ranked third globally in the 2025 Islamic Finance Development Indicator, according to the report.

The conference focused on translating frameworks into instruments that banks and financial institutions can actually deploy. Topics included Shari’ah-compliant financing and investment solutions, project finance for halal-industry businesses, market access for sukuk, cash waqf structures, risk management and the role of digital platforms in Islamic finance.

That implementation focus matters. The UAE already has a developed regulatory and institutional base for Islamic finance, but the next stage of growth depends on products that can finance companies, broaden investor participation and link Islamic capital markets with sectors such as food, logistics, healthcare, family business, philanthropy and SMEs.

Participants highlighted the need to expand the role of Islamic financial institutions in financing priority sectors, support SMEs and trade, deepen sukuk markets and accelerate innovation through digital platforms and emerging technologies. The recommendations also included stronger coordination among regulators, financial institutions and the private sector.

The sukuk and sustainable-finance angle is especially important. WAM’s report cited industry commentary that ESG sukuk in the UAE rose from about USD1.8 billion in 2020 to USD18 billion in 2025, while the global ESG sukuk market reached around USD73.2 billion. The UAE’s share of that global market was reported at about 24.6%.

For banks, the commercial message is clear: Islamic finance growth will increasingly be judged by its ability to fund the real economy, widen capital-market tools, use technology safely and produce measurable economic and social value. For companies in the halal economy, the conference signals that more structured Shari’ah-compliant financing channels could become available as the 2031 strategy moves from policy to execution.