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UAE Poised to Become a Global Gateway for Islamic Finance

Thu, Aug 6, 2026(90d ago)UAE

A recent report by Standard Chartered underscores the UAE’s strategic potential to bridge the gap between Islamic capital and high-growth markets. As the global Islamic finance sector moves toward a $6 trillion valuation, there is a clear opportunity to better utilize Shariah-compliant funding; currently, only 6 percent of global sukuk capital is directed toward South Asia and Africa. The UAE is uniquely positioned to bridge these regions, acting as a vital financial hub that connects the GCC with burgeoning opportunities in Asia, Turkey, and Africa. By leveraging its role as a cross-continental trade center and its robust regulatory environment for digital assets, the nation is set to lead in mobilizing liquidity toward sustainable infrastructure and private credit projects.

To capitalize on this potential, the industry must focus on creating seamless, cross-border financial connections rather than viewing Islamic banking as a siloed product. According to Khurram Hilal, CEO of Group Islamic Banking at Standard Chartered, the primary obstacle in many emerging markets is not a lack of liquidity, but rather the difficulty in effectively linking that capital to viable investment ventures. By investing in advanced digital infrastructure, such as tokenization and integrated payment systems, financial institutions can facilitate easier access for investors and ensure that capital flows efficiently across jurisdictions. This evolution will be pivotal in establishing the UAE as a central pillar in the next era of global Islamic finance.

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