Conference identifies practical priorities of the UAE Islamic Finance and Halal Industry Strategy

Dubai: The UAE Islamic Finance and Halal Industry Strategy targets Dhs2.56 trillion in local Islamic finance assets by 2031. Islamic banking assets in the country reached Dhs1.4 trillion in June 2026, with 43 licensed Islamic financial institutions operating in the country, while the UAE ranked third globally in the 2025 Islamic Finance Development Indicator.

Al Masraf, in collaboration with the UAE Banks Federation, concluded its inaugural conference on “The Role of Financial Institutions in Implementing the UAE Islamic Finance and Halal Industry Strategy 2025 - 2031,” held at Grand Hyatt Dubai under the theme “From Legislation to Growth and Innovation.”

The conference aimed to strengthen the UAE’s position as a leading global hub for Islamic finance, highlight the UAE Strategy for Islamic Finance and the Halal Industry and clarify the role of financial institutions in supporting and implementing it locally and internationally.

The conference focused on translating legislative and strategic frameworks into practical tools and initiatives across financing, investment, sukuk, technology, governance and cash waqf, to support implementation of the Strategy and strengthen integration between Islamic finance and the halal industry.

The conference was opened by Dr Omar Alderei, Chairman of the General Authority of Islamic Affairs, Endowments and Zakat, in the presence of Abdulla Ahmed Al Saleh, Undersecretary at the Ministry of Economy and Tourism and Mohamed Omran Al Shamsi, Deputy Chairman of the UAE Banks Federation.

It brought together leading Shari’ah scholars; representatives of the Central Bank and regulatory authorities; senior executives from Islamic financial institutions; and specialists in awqaf, zakat, philanthropy, takaful, higher education and the media.

Strategic and Legislative Framework: The first session was attended by Abdulla Ahmed Al Saleh, Undersecretary at the Ministry of Economy and Tourism, and was chaired by Sheikh Prof. Dr Jassim Al Shamsi, Member of the Higher Shari’ah Authority at the Central Bank of the UAE, along with Sheikh Dr Osaid Kailani, Head of International Shari’ah Affairs at Abu Dhabi Islamic Bank and Member of the Higher Shari’ah Authority at the Central Bank of the UAE; and Fuad Mohamed, Chief Executive Officer of Arab Bank for Investment and Foreign Trade.

The discussion focused on the UAE’s vision and strategic objectives for Islamic finance and the halal industry, together with the legislative, regulatory and Shari’ah frameworks supporting implementation, growth and innovation. It also addressed the importance of closer integration among regulators, financial institutions, the halal industry and philanthropy.

Participants highlighted the progress made in developing the UAE’s legislative environment for Islamic finance, alongside the importance of strengthening legal and Shari’ah certainty and further harmonising relevant standards and references. The discussion also considered how the country’s regulatory infrastructure can be leveraged more effectively to support product development, innovation, investment and growth in the real economy.

Role of financial institutions highlighted: The second session was attended by His Eminence Sheikh Dr Ahmad bin Abdulaziz Al Haddad, Chairman of the Higher Shari'ah Authority at the Central Bank of the UAE and Member of the UAE Council for Fatwa, and chaired by Ali Lootah, Head of Islamic Banking Window at Emirates NBD, along with Ms. Katralnada Binghatti, Chief Executive Officer of Binghatti Holding, and Ali Al Abedin, Head of Islamic Banking at First Abu Dhabi Bank.

The discussion explored the development of innovative Shari’ah-compliant financing and investment solutions, the role of financial institutions in financing halal-industry projects and businesses, and the importance of stronger partnerships among financial institutions, national entities, investors and the private sector.

Cash waqf featured prominently as an area with significant potential for further development within the Islamic finance ecosystem. Participants considered the need for clear institutional frameworks governing investment, disclosure and impact measurement, alongside closer collaboration among Islamic financial institutions, government entities, businesses and family offices.

The discussion also underscored the importance of strengthening the institutional role of waqf, improving the management and investment of waqf assets, preserving their long-term value and building greater confidence through transparency and measurable economic and social impact.

Sukuk, innovation and technology: The third session was chaired by Mustafa Adil, Head of Islamic Finance at London Stock Exchange Group (LSEG), with the participation of Mohammed Dawood, Head of Islamic Finance, Middle East, HSBC; Dr. Salim Al Ali, Assistant Professor at the College of Law, United Arab Emirates University; and Rafi Uddin Shikoh, Founder and CEO of DinarStandard.

The discussion examined opportunities to deepen sukuk markets, broaden the investor base and strengthen Islamic capital markets, alongside the growing role of FinTech, digital transformation and innovative platforms in developing Islamic financial products and services.

Building trust and sustaining growth: The fourth session was chaired by Dr Samya Al Nahdi, Head of the Internal Shari’ah Control Department at Al Masraf, with the participation of Dr Mohamed Al Blooshi, Executive Director for Awqaf and Zakat; Dr Maria Al Qassim, Assistant Undersecretary for the Policies and Economic Studies Sector at the Ministry of Economy and Tourism; and Dr Fazal Rahim, Head of the Internal Shari’ah Control Department at Ajman Bank.

The discussion focused on governance, Shari’ah supervision, risk management and transparency as key pillars for strengthening confidence and sustaining the growth of Islamic finance, while considering how institutions can balance innovation and expansion with Shari’ah and regulatory requirements.

It also extended to emerging risks associated with accelerating digital transformation, including artificial intelligence and automated decision-making, digital assets and smart contracts, cybersecurity and third-party risks, alongside the importance of stronger transparency and customer protection.

Participants explored practical approaches including the integration of Shari’ah non-compliance risk into enterprise risk management, the development of a Shari’ah Risk Appetite, earlier involvement of Shari’ah control functions in product development, and the use of early-warning indicators and regulatory technology to strengthen monitoring, compliance and traceability.

Global Islamic Finance Assets: Mustafa Adil, Head of Islamic Finance at London Stock Exchange Group (LSEG), also provided an overview of the development of the global Islamic finance industry and the UAE’s position within the sector, highlighting trends across assets, sukuk and sustainable finance.

Mustafa Adil noted that global Islamic finance assets reached approximately $6.5 trillion in 2025, compared with around $2.5 trillion in 2018, and are projected to reach approximately $10.5 trillion by 2030, reflecting the continued expansion of the industry worldwide.

He added that Islamic finance assets in the UAE reached approximately $532 billion in 2025, compared with around $251 billion in 2018, more than doubling over the period. Banking accounts for the largest share of Islamic finance assets in the UAE, followed by sukuk, funds, other Islamic financial institutions and takaful.

He also highlighted the breadth of the UAE’s Islamic finance ecosystem, supported by its governance and institutional frameworks, Shari’ah oversight and disclosure practices, as well as a growing base of education, research and specialised industry activity.

On sustainable finance, he pointed to the rapid growth of ESG sukuk in the UAE, rising from approximately $1.8 billion in 2020 to $18 billion in 2025, while the global market reached around $73.2 billion. The UAE accounted for approximately 24.6% of the global ESG sukuk market, while its ESG disclosure index stood at 83%, compared with a global average of 63%.

Commenting on the discussions across the conference, Fuad Mohamed, Chief Executive Officer of Al Masraf, said: “The discussions at the conference reinforced that the next phase must move beyond building frameworks and strategies towards developing implementable products, instruments and partnerships that support growth and investment and connect finance more closely with the real economy. The UAE has built an advanced legislative and regulatory foundation, alongside a financial ecosystem capable of translating these opportunities into practical initiatives across Islamic finance, sukuk, technology and the halal industry.”

He added: “At Al Masraf, we believe the role of financial institutions goes beyond providing financing. It extends to developing innovative financing and investment solutions, enabling high-potential sectors and strengthening partnerships among financial institutions, regulators, government entities and the private sector. We believe the ideas and proposals discussed at the conference can contribute to advancing implementation of the Strategy’s objectives and further strengthening the competitiveness of the sector.”