UAE Solidifies Position as Leading Global Hub for Islamic Finance and Halal Industry

The United Arab Emirates is actively solidifying its standing as a premier global center for Islamic finance and the Halal industry. This strategic push is driven by an integrated ecosystem encompassing legal, Shari'ah, and regulatory frameworks, all coordinated by the Central Bank of the UAE (CBUAE). This comprehensive approach is designed to enhance legal and Shari'ah certainty, support sector growth within a robust legislative environment, and boost competitiveness for sustainable expansion.

The UAE Cabinet approved the "UAE Islamic Finance and Halal Industry Strategy 2025-2031" in May 2025. The strategy's core objective is economic diversification by capitalizing on global growth opportunities within these sectors. The CBUAE is central to this effort, coordinating with federal and local entities to embed Islamic finance and the Halal industry into the nation's economic agenda. The vision is ambitious: to make the UAE a leading global hub for Islamic finance and the Halal industry, distinguished by impact and advanced innovation, with a target of increasing local Islamic finance assets to Dhs 2.56 trillion by 2031.

To achieve this, the strategy focuses on several key areas. It aims to capture opportunities in global Islamic markets by establishing a robust ecosystem for international financial transactions, investments, and Halal product trade. This includes producing high-value Halal products and enhancing social and environmental impacts for sustainable development. Strategic objectives also involve elevating the competitiveness of the Islamic finance industry globally, strengthening local Halal product production and re-export, and expanding the role of Islamic philanthropy in sustainable development.

Specific initiatives are underway to bolster both Islamic finance and the Halal industry. For finance, this includes developing large-scale, competitive institutions and promoting internationalization, integrating finance with the Halal industry, fostering the sukuk and Islamic funds markets, and driving innovation. Within the Halal industry, efforts focus on creating supportive ecosystems for local production, establishing traceability systems to boost re-exports, enabling SMEs and tech startups, and developing foundations for Halal tourism, modest fashion, and Islamic media. The strategy also seeks to catalyze the adoption of waqf mechanisms in philanthropy and establish transparent monitoring solutions.