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Khaleej Times
a day ago
- Business
- Khaleej Times
From niche to mainstream: Why Islamic finance is critical to the UAE's future development
Islamic finance is no longer a regional curiosity; it is becoming part of the structural foundation of global financial systems. Once confined to a handful of markets and perceived as serving a niche clientele, Islamic banking was often seen as parallel to, rather than integrated with, the global financial mainstream. This shift reflects a growing recognition of its ethical foundations, structural resilience, and alignment with evolving global economic priorities. Within the UAE, both Dubai and Abu Dhabi are increasingly recognised as critical global financial hubs. This has been driven in recent years by successful economic diversification underpinned by a fast-growing financial services sector and infrastructure aligned with international best practice. Islamic finance has an integral role to play in enabling cross-border market accessibility and diversifying domestic funding sources to support the next phase of financial services development in the UAE. Standard Chartered's latest report, Islamic Banking for Financial Institutions: Unlocking Growth Amidst Global Shifts, reveals that global Islamic finance assets are on track to surpass $7.5 trillion by 2028, up from $5.5 trillion in 2024. This represents an impressive 36 per cent asset growth over the next four years. Rising financial volatility, growing calls for sustainability, and demand for inclusive, ethical finance have brought Islamic banking into sharper global focus. The UAE is at the forefront of this shift, publishing a set of Guiding Principles for sustainability in Islamic financial institutions in 2023 that encourage industry participants to integrate sustainability ambitions into their practices and processes. Recent progress has shown that these values are resonating more than ever with governments, corporates, and investors seeking resilient and inclusive financial frameworks in the UAE and across the MENA region. Islamic banking now accounts for over 70 per cent of total Islamic finance assets and is set to grow from $4 trillion in 2024 to $5.2 trillion by 2028. Meanwhile, the Sukuk market, a vital liquidity tool for governments and institutions, is projected to reach nearly $1.5 trillion. The UAE was one of several countries to make short-term treasury sukuks available in recent years, as they are considered among the most effective tools for fund raising in Islamic money markets. The overall growth in Islamic finance assets highlights shifting preferences, deeper institutional integration, and rising global demand for sustainable finance. This shift also reflects a broader change in mindset. Islamic finance is no longer seen as 'alternative finance,' but as strategic finance, a model that can integrate into the portfolios of global asset managers and the frameworks of sovereign wealth funds. Since the pandemic, the emergence of Islamic digital banks in countries including the UAE has been testament to this. At Standard Chartered, we view this moment as a call to action. As the only international bank with a global Islamic banking franchise, Standard Chartered Saadiq, we are uniquely positioned to partner with financial institutions, corporates, and clients across more than 25 markets, from the UAE to the UK and Africa. From helping institutions meet liquidity requirements to supporting green Sukuk issuances, we are enabling the next chapter of growth in Islamic finance. Yet, with opportunity comes responsibility. The next phase of growth in Islamic banking will depend on how well the industry addresses existing challenges. Regulatory harmonisation across jurisdictions, improved liquidity management mechanisms, and a renewed focus on product innovation are all essential. The journey of Islamic banking reflects growing prominence in the UAE, the broader MENA region and across international markets. As the world becomes more focused on resilience, sustainability, and inclusive prosperity, Islamic finance offers a model that speaks to both values and performance. The work ahead lies in deepening collaboration, improving consistency across markets, and continuing to innovate in ways that serve real economic needs. At Standard Chartered, we are committed to enabling that journey and see this as an opportunity and a responsibility to support our clients, strengthen communities, and help shape a more balanced and purpose-driven financial future for the UAE as an increasingly critical global financial hub serving international markets. The writer is CEO, Group Islamic Banking, Standard Chartered
Zawya
16-06-2025
- Business
- Zawya
Tashkent hosts premier gathering of islamic finance leaders
Dubai – UAE: The 4th CIS Islamic Banking and Finance Forum, organized by AlHuda Center of Islamic Banking and Economics (CIBE), commenced today at the Hyatt Regency, Regency Ballroom, in Tashkent. The event brought together prominent figures from the Islamic finance sector, including policymakers, industry leaders, and scholars, to discuss the latest trends and opportunities in Shariah-compliant finance. The forum was inaugurated by the Chief Guest, H.E. Mr. Ahmed Farooq, Ambassador of the Islamic Republic of Pakistan to Uzbekistan. In his keynote address, he emphasized the growing importance of Islamic finance as an ethical and inclusive alternative to conventional banking. "Islamic finance, with its principles of risk-sharing, transparency, and asset-backing, is not just a religious obligation but a viable economic model that promotes financial justice," he stated. He also highlighted Pakistan's success in Islamic banking, where the sector now accounts for nearly 20% of the country's total banking assets, offering valuable lessons for emerging markets like Uzbekistan. The event featured insightful sessions on Islamic FinTech, Sukuk, Takaful, and Ijarah, led by renowned experts. Mr. Muhammad Zubair Mughal, CEO of AlHuda CIBE, reflected on the organization's two decades of service to the Islamic finance industry. "For the past 20 years, AlHuda CIBE has been at the forefront of developing Islamic banking, Takaful, and FinTech solutions. Our work in Sukuk and capital markets has laid the foundation for sustainable growth in the CIS region. Esteemed speakers from across the CIS region and beyond will share their expertise on critical topics, including Islamic FinTech innovation, Sukuk development, Takaful solutions, and Shariah-compliant financial models. Industry leaders such as Mr. Nuriddin Lafizov (Alif Uzbekistan), Dr. Tamara Alqolaghassi (Capital Investment Holding Group), and Mr. Ravi Kiran Madiki (Royal Bullion Capital) will present cutting-edge perspectives, while panel discussions will explore opportunities for Islamic finance growth in Central Asia. Their insights aim to drive ethical finance forward in the region. The event has garnered wide-ranging support and sponsorship from influential industry stakeholders. It is organized by AlHuda CIBE, with Royal Bullion Capital as the Gold Sponsor, Infoland as the Silver Sponsor, and AutoSoft Dynamics serving as the Technology Sponsor. The Uzbek Leasing International A.O. and Leasing Association of Uzbekistan also serving as the sponsor. In addition, a robust lineup of event supporters has joined to amplify the forum's reach and credibility, including Uzbekistan Banking Association, Azerbaijan Micro-finance Association (AMFA), Azerbaijan Banking Association, Association of Microfinance Institutions (AMFI), Bahrain Association of Banks, Azerbaijan Fintech Association, Insurance Association of Uzbekistan, Fintech Association of Georgia, and the Alternative Investment Management Association (AIMA). The media outreach of the event is further strengthened by the involvement of renowned media partners such as BTCWire, Fintech Finance News, Startup News, The Blockopedia, Web3 Carnival, Threeway Studio, PayAiro, DeGen Summit, and Mizzle, ensuring global visibility and engagement. The event also features the CIS Islamic Banking and Finance Awards 2025, celebrating excellence in Islamic banking, fintech innovation, Sukuk issuance, and Islamic microfinance. With its strategic focus, influential partners, and visionary agenda, the forum is set to become a milestone event for Islamic finance in the CIS region. For details, please contact: info@ or visit About Alhuda CIBE: AlHuda Center of Islamic Banking and Economics (CIBE) is a well-recognized name in Islamic banking and finance industry for research and provides state-of-the-art Advisory Consultancy and Education through various well-recognized modes viz. Islamic Financial Product Development, Shariah Advisory, Training Workshops, and Islamic Microfinance and Takaful Consultancies etc. side by side through our distinguished, generally acceptable and known Publications in Islamic Banking and Finance. We are dedicated to serving the community as a unique institution, advisory and capacity building for the last twelve years. The prime goal has always been to remain stick to the commitments providing Services not only in UAE/Pakistan but all over the world. We have so far served in more than 104 Countries for the development of Islamic Banking and Finance industry. For further Details about AlHuda CIBE, please visit: For Media Contact: Ms. Shaguftta Perveen Manager Communications,
