The UAE banking sector, one of the world’s leading adopters of fintech, is pushing forward with its digital transformation drive to further enhance digital banking penetration. By the end of 2027, digital banking penetration in the UAE is projected to increase from 22% to 41%.
The Islamic finance industry continues to grow worldwide, surpassing Dh16.5 trillion in 2022 and is forecast to grow to Dh24.5 trillion by 2027. The UAE is the world’s fourth-largest Islamic finance market, with Islamic banking assets representing 23% of the country’s total banking assets.
In this competitive market, a new bank aims to distinguish itself as the nation’s first digital-first Islamic bank, offering ethical banking solutions to meet the growing demand for Sharia-compliant financial services. Headquartered in Ajman and licensed by the Central Bank of the UAE as a Specialised Bank in 2024, ruya (Ruya Islamic Community Bank LLC) combines innovative technology with the principles of Islamic Banking. It is designed for individuals and businesses, delivering a seamless digital banking experience built on robust security and intuitive design.
As a digital-first bank, ruya differentiates itself in the UAE market by offering ethical Islamic banking solutions that empower customers to make financially responsible decisions. “We prioritise products and services that encourage financial literacy and well-being,” said Christoph Koster, CEO of ruya. “We invite the entire community to join us as partners, eliminating barriers such as minimum balance requirements and hidden fees.”
Technology and Islamic finance
In 2023, the Islamic finance industry continued to expand, with assets increasing by 8.0% compared to 8.2% in 2022. And tech has been one of the key contributors to this growth. Technology has helped the Islamic banking industry expand, particularly during the pandemic. Leveraging the opportunities related to disintermediated financing is still a work in progress. From digital sukuk to tokenisation, the opportunities appear significant.
Capitalising on this boom, ruya leverages innovative technology to fulfil the core principles of Islamic finance and cater to the diverse needs of individuals and businesses in the UAE. “Through the integration of advanced technology solutions, ruya ensures Sharia compliance by embedding assurance directly into customer journeys and transaction processes,” Koster stressed. “Platforms like the ruya app serve as enablers, expanding customer product choices beyond traditional roles.
This shift signifies a deeper integration of technology, enhancing customer interactions, operational efficiency, and influencing the development of products, structures and underlying contracts within Islamic finance.”
By embracing technological advancements, ruya offers a comprehensive suite of services while remaining committed to Islamic finance principles and catering to the varied requirements of its clientele across the UAE.
Christoph Koster
Ruya’s strong capital base allows it to invest in market-leading banking technologies and customer service. Its capital base serves as a catalyst for expansion and customer attraction within the dynamic banking sector of the UAE. A key focus area is recognising the potential within the SME sector. The digital-first bank is set to introduce specialised financial products tailored to small and medium enterprises’ unique needs. This strategic move aims to capture and cater to the evolving requirements of this vital market segment, further building its presence and relevance in the UAE banking industry.
Community centres
Facilitating highly personalised interactions between the bank and its clients can be challenging for a digital-first bank. Ruya’s community centres address this by creating local hubs dedicated to financial education and entrepreneurial support across the UAE. “Our vision for ruya’s community centres revolves around creating local hubs dedicated to financial education and entrepreneurial support across the UAE,” emphasised Koster. “These centres serve as focal points for the community, offering a range of services tailored to meet the diverse needs of our clients.”
By providing financial literacy workshops and advisory services, ruya aims to nurture and support local entrepreneurship. These initiatives empower individuals with the knowledge and skills to make informed financial decisions and provide practical resources to help turn entrepreneurial dreams into reality. “Our community centres facilitate highly personalised interactions between our customers and us, and even between customers,” noted Koster. “By offering face-to-face engagements, we strengthen customer relationships and build trust through meaningful conversations and tailored solutions.
This personalised approach ensures that each client receives the attention and support they need to achieve their financial goals effectively.”
All about digital
To ensure a frictionless digital banking experience while maintaining strong security and regulatory compliance, ruya employs a cloud-native technology stack with robust cybersecurity measures that adhere to the specific regulatory standards set by the UAE. “We simplify user access by seamlessly integrating our digital banking platform with the UAE’s national ID system, UAE PASS,” Koster noted. “This integration streamlines the authentication process for users, providing convenient and secure access to their accounts and services while adhering to national identity standards.”
Ruya has implemented several key initiatives, including continuous updates and enhancements to its digital platforms, to ensure they align with the preferences of UAE citizens and residents. “We develop and adjust our product offerings to cater specifically to the needs of individual and SME customers in the UAE,” added Koster. “Through careful market analysis, we tailor our products to provide relevant and valuable solutions to our customers.”
This launch comes as the future of Islamic finance is sustainable, collaborative and digital. It is sustainable thanks to the alignment between Sharia principles and overarching pillars of sustainability. The future is collaborative because it benefits stakeholders by maintaining the industry’s equilibrium and building on the development achieved over the past half-century. Ruya’s innovative approach positions them to capitalise on this trend and cater to the growing demand for tech-savvy Islamic banking solutions.
