UAE sukuk market strengthens as Islamic finance assets grow 16% in early 2025
The United Arab Emirates’ Islamic finance sector continues to expand, supported by rising sukuk issuance and steady growth in Islamic banking assets, according to newly released government data.
Total credit granted by UAE Islamic banks reached 503.5 billion Emirati dirhams ($137 billion) as of February 2025, marking a 16% year-on-year increase, according to the Central Bank of the UAE. Deposits grew at an even faster pace, rising 16.9% year-on-year to 595.3 billion dirhams ($162 billion).
Jamal Saleh, director-general of the UAE Banks Federation (UBF), said in statements carried by Emirates News Agency (WAM) that the sector’s performance reflects the country’s broader efforts to develop its Islamic finance infrastructure as part of its national diversification strategy. “The UAE has made significant progress in Islamic banking, sukuk issuance and Shariah-compliant finance overall,” Saleh said.
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Muhammad Ali Bandial