UAE Solidifies Status as Global Remittance Hub and Islamic Finance Powerhouse
The United Arab Emirates continues to cement its position as a central player in the global financial landscape, with the Central Bank’s 2025 Financial Stability Report highlighting a significant surge in both outgoing and incoming funds. Outward remittances saw a sharp 27.8 percent year-on-year increase, climbing to Dh188.8 billion. Personal transfers accounted for the majority of this volume at Dh115.7 billion, while trade-related flows followed at Dh63.3 billion. Simultaneously, inward remittances experienced a remarkable 53.6 percent jump to Dh36 billion, signaling a robust expansion in the country's exchange and trade activities.
Beyond remittance flows, the UAE is making aggressive strides in the Islamic finance sector, supported by a national strategy aimed at establishing the nation as a premier global hub. Islamic banking assets witnessed an impressive 22 percent growth, reaching Dh1.329 trillion in 2025 and capturing a 24.7 percent market share. With the government targeting Dh4.96 trillion in total Islamic finance assets by 2031—bolstered by increased sukuk issuances and sustainable finance initiatives—the sector is well-positioned to become a vital driver of the nation’s long-term economic growth and GDP contributions.