The UAE's Islamic finance sector is on a strong growth trajectory and its role is key to achieving the sustainability goals of the country, its Central Bank has said.
The report comes in line with the UAE’s Year of Sustainability and its recent hosting of Cop28, the regulator said in its UAE Islamic Finance Report 2023.
It analyses the performance of various Islamic finance sectors such as banking, insurance, or takaful, and capital markets that covers sukuk or Islamic bond issuances.
The Islamic banking sector accounted for 23 per cent of total banking assets within the UAE in 2022, equivalent to Dh845 billion ($231 billion), the report said.
Assets held by Islamic banks totalled Dh631 billion while Islamic windows – Islamic outlets in conventional banks – held Dh214 billion, growing at 8 per cent and 49 per cent, respectively, from 2018.
Islamic windows now account for 25 per cent of total Islamic banking assets in the UAE, it said.
“The growth in Islamic banking assets in the UAE is supported by [the] strong funding conditions of Islamic banks and Islamic windows,” said Central Bank Governor Khaled Balama.
“Recent growth has also been driven by the economic activities of retail and corporate consumers despite the increases in benchmark rates.”
In 2022, the UAE’s Islamic banking industry posted its highest growth in funding base since 2019, the report said.
Deposits increased in parallel with financing, by 4 per cent in 2022, and account for 66 per cent of total liabilities for Islamic banks, followed by Islamic capital market funding at 5 per cent, it said
Islamic banking growth in the UAE outpaced that of conventional banks last year on the back of growing investor demand for Islamic products and deep distribution networks, according to Fitch Ratings.
Islamic banks grew by 8 per cent in 2022, higher than conventional banks, which grew by 3 per cent, the rating agency said in May.
High oil prices and solid economic conditions are expected to continue to support UAE Islamic banks’ credit fundamentals in 2023, limiting the impact of rising profit rates on borrowers, the rating agency said.
The central bank report also noted that takaful and sukuk issuances, other key components of Islamic finance, also recorded significant growth last year.
The UAE's takaful sector landscape is being reshaping due to consolidation, the regulator said.
Out of the 62 insurance companies in the UAE in 2022, 10 are takaful operators.
The property sector was the largest takaful business line in 2022, contributing 45 per cent to gross written contributions, compared with 31 per cent in 2021, the report said.
The profits of takaful companies were affected by a drop in gross investment income last year, it said.
Takaful insurance companies posted an overall loss of Dh14 million in 2022, compared with a profit of Dh93 million in 2021, largely due to a sharp decline in investment income.
“Gross investment income dropped 32 per cent in 2022, due mainly to a decrease in net unrealised gains on investments and weaker stock market performance, while investment expense rose 32 per cent over the same period,” it said.
The UAE registered more active sukuk issuance in the first half of 2023 than in the entire years of 2021 and 2022, said the report.
Issuances stood at Dh28.7 billion in the first half of 2023, compared with Dh24.6 billion over the whole of 2022, it said.
The government of Sharjah issued the highest amount of sukuk over the past five years, followed by Dubai Islamic Bank and Abu Dhabi Islamic Bank. Collectively, these three entities accounted for 74 per cent of total sukuk issuances in the UAE.
“The UAE’s sukuk market is also expanding, and the introduction of local-currency Treasury sukuk by the federal government has the potential to encourage the issuance from other players in the market,” the Central Bank said.
The report also provides an overview of the legislative, regulatory and Sharia governance landscape, in addition to an assessment of the sustainability strategies adopted by Islamic financial institutions, as well as the opportunities and challenges they face.
“Islamic banks play a crucial role in the development and provision of sustainable finance and in meeting the sustainability objectives of the wider financial sector, in accordance with the UAE’s regulatory, supervisory and risk-management directives,” Mr Balama said.
UAE currency: the story behind the money in your pockets
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What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
The%20specs
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
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What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Global state-owned investor ranking by size
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China
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UAE
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Canada
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Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
UAE currency: the story behind the money in your pockets
SPEC%20SHEET%3A%20APPLE%20IPHONE%2014%20PRO%20MAX
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Mobile phone packages comparison
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The biog
Favourite book: Men are from Mars Women are from Venus
Favourite travel destination: Ooty, a hill station in South India
Hobbies: Cooking. Biryani, pepper crab are her signature dishes
Favourite place in UAE: Marjan Island
Company%20Profile
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
