Dubai, UAE: The UAE is moving into a new phase of its Islamic Finance and Halal Industry Strategy 2025–2031, with financial institutions now focusing on turning the national strategy into practical financing, investment, Sukuk and technology opportunities.
The latest development came on 30 September 2026, when Al Masraf, in collaboration with the UAE Banks Federation, concluded its inaugural conference on the role of financial institutions in implementing the strategy. Held in Dubai under the theme “From Legislation to Growth and Innovation,” the conference focused on financing, investment, Sukuk, technology, governance and cash waqf.
What Is the Latest News?
The key news is not the launch of a new strategy. The UAE Cabinet approved the UAE Strategy for Islamic Finance and Halal Industry in May 2025. The latest conference shows that attention is now shifting towards implementation and the role of financial institutions in supporting the strategy’s targets.
The strategy aims to increase local Islamic bank assets to AED 2.56 trillion by 2031. It also targets AED 660 billion in local Sukuk issuances and AED 395 billion in international Sukuk listed in the UAE.
This comes as Islamic banking assets in the UAE reached AED 1.4 trillion in June 2026, with 43 licensed Islamic financial institutions operating in the country.
What Does This Mean for Businesses?
For businesses, the latest development points to a stronger focus on Sharia-compliant financing, investment and Sukuk. The conference examined how financial institutions can develop practical products and services, support financial innovation and strengthen the connection between Islamic finance and the halal industry.
This makes business planning and strategy important for companies that may consider Islamic financing or investment as part of their growth plans. Businesses should first understand their funding needs, financial position and long-term objectives before assessing available options.
The strategy also aims to strengthen the integration between Islamic finance and the halal industry. This may be relevant to businesses operating in halal-related sectors as the UAE continues to develop its wider Islamic finance ecosystem.
Why Financial Planning Matters
Businesses considering new financing should review expected income, costs and cash requirements. Strong budgeting and forecasting can help management assess future cash needs and understand how potential financing could fit into wider business plans.
The September conference also highlighted FinTech, governance, transparency and risk management as part of the wider implementation discussion. These areas are expected to remain important as financial institutions work on practical solutions and partnerships under the strategy.
For companies considering a financing structure, investment or partnership, due diligence services can help review relevant business, financial and commercial information before important decisions are made.
Who Should Pay Attention?
Businesses looking for Islamic financing, investment or Sukuk opportunities should follow these developments closely. Companies operating in or connected to the halal industry should also understand how the UAE is developing the relationship between Islamic finance and the wider halal economy.
Islamic financial institutions also face specific regulatory requirements. CBUAE Article 14 on Shari’ah Non-Compliance Risk became effective on 14 September 2026. It requires Islamic Finance Institutions to maintain suitable systems and controls, implement a Shari’ah governance framework, comply with Higher Shari’ah Authority resolutions and manage Shari’ah non-compliance risks.
Ignoring these requirements can create regulatory and risk-management concerns for institutions. For businesses seeking financing, failing to assess their own financial position and funding requirements may also make it harder to evaluate suitable opportunities.
What Should Businesses Do Now?
Businesses should review their business planning and strategy, funding requirements and investment objectives before approaching Islamic financing opportunities. They should also maintain clear financial information and realistic forecasts to support better financial decisions.
Companies considering larger financing or investment decisions should review the relevant commercial and financial information before entering into agreements. This can help management understand the risks and obligations connected with a proposed transaction.
Dubai Business and Tax Advisors (DBTA) can support businesses through business planning and strategy, budgeting and forecasting, due diligence services and outsourced CFO support. These services can help businesses improve financial visibility and make more informed decisions as the UAE’s financing landscape develops.
As the UAE moves from strategy to implementation, businesses should continue to monitor developments in Islamic finance, Sukuk and the halal economy and assess how these developments may fit into their own growth and financing plans.
