The UAE Cabinet’s plan to integrate Islamic finance with the halal industry, announced in May, aims to increase halal exports from Dh74 billion in 2024 to Dh315 billion by 2031.
Islamic banks held 18% of sector assets and 22.8% of credit in February, according to Central Bank data. Total credit stood at Dh503.5 billion, up 16% year-over-year, while deposits reached Dh595.3 billion.
Sukuk listed on Nasdaq Dubai totalled $95.7 billion in May, confirming the exchange as one of the world’s largest Sharia-compliant bond venues.
The government also aims for Islamic bank assets to reach Dh2.56 trillion and domestic sukuk issuance to exceed Dh660 billion by 2031.
Industry forecasts project the UAE’s halal food-and-beverage market to exceed $31.27 billion by 2029, driven by demand from Asia and Africa.
UAE Banks Federation chief Jamal Saleh said the strategy “connects Islamic capital with real-economy exports” while food-manufacturing head Saleh Lootah said firms are scaling production ahead of new certification rules.
Fitch Ratings notes the plan could broaden funding options for corporates as climate-risk rules push up conventional borrowing costs.
