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subject: Islamic Finance in the UAE: Opportunities and Growth Sectors [print this page]

The UAE stands as a global leader in Islamic finance, with an ecosystem that’s growing faster than ever. From personal banking to large-scale corporate financing, the demand for Sharia-compliant financial solutions continues to rise — driven by both local trust and international investor interest.

According to the Islamic Finance Development Indicator (IFDI) by Refinitiv, the global Islamic finance industry is expected to reach USD 4.94 trillion by 2025, with the GCC countries, particularly the UAE, contributing significantly to this surge. The UAE ranks among the top 3 Islamic finance markets globally, thanks to robust regulation, fintech integration, and consumer awareness.

Key Growth Sectors in the UAE’s Islamic Finance Market

SME & Corporate Financing:
Small and medium-sized enterprises (SMEs) are increasingly turning to Islamic finance for ethical funding. Institutions like Mawarid Finance, a leading Islamic finance company UAE, play a vital role in empowering these businesses through customized Sharia-compliant solutions.

Sukuk (Islamic Bonds):
The UAE continues to dominate the sukuk issuance landscape. With over $11 billion issued in 2023 alone, Islamic bonds are an attractive avenue for infrastructure funding and investment diversification.

Islamic Fintech:
From digital wallets to AI-driven advisory, fintech is transforming Islamic banking. The UAE is fostering this space with sandbox programs and support for startups focused on halal investment and digital zakat platforms.

Halal Investment Portfolios:
Retail and institutional investors are leaning toward halal mutual funds and real estate investment trusts (REITs) that comply with Islamic principles. Platforms offering transparency, risk-sharing, and ethical screening are becoming mainstream.



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