UAE approves the National Strategy for Islamic Finance and the Halal Industry

Dubai: The UAE Cabinet has approved the National Strategy for Islamic Finance and the Halal Industry, aiming to strengthen the UAE’s position as a global leader in these fields.

The strategy was approved during today’s Cabinet meeting chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai.

The newly approved strategy aims to develop the Islamic financial industry, lead global Islamic finance activities, and enhance the export level of halal products worldwide.

A key objective is to increase the assets of Islamic banks from Dh 986 billion to Dh 2.56 trillion within six years. Additionally, the strategy seeks to raise the value of Islamic sukuk issuances listed in the UAE to over Dh 660 billion by 2031.

To ensure successful implementation, a committee chaired by the Governor of the Central Bank will be set up to oversee the execution of the strategy, further solidifying the UAE's commitment to economic diversification and leadership in the halal sector.

The meeting, held at Qasr Al Watan in Abu Dhabi, was attended by key government figures, including Sheikh Mansour bin Zayed Al Nahyan, Vice President and Deputy Prime Minister, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, and Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs.

In a tweet following the cabinet meeting, Sheikh Mohammed bin Rashid Al Maktoum clarified the vision behind the strategy, stating: "The goal is to develop the Islamic finance industry, lead global Islamic finance activities, and raise halal product exports worldwide."

In addition to the approval of the strategy, the Cabinet also reviewed the performance of the UAE's tourism sector. The tourism, travel, and hospitality industries together contributed to over 800,000 jobs in 2023, with a projected contribution to the national economy of Dh 236 billion in 2024. The UAE plans to further expand the sector, targeting a contribution of Dh 450 billion over the next six years.

The Cabinet also approved a decision updating the National Biosecurity Framework for the UAE, aimed at strengthening national capabilities in prevention and response, boosting research and innovation activities, developing the biological emergency management system, and enhancing the country's biosecurity infrastructure. During the meeting, the Cabinet also reviewed the latest developments regarding SMEs in the UAE.

The UAE ranked first globally for the fourth consecutive year in the Global Entrepreneurship Monitor 2024-2025, and 18th globally in the list of the top 100 startup ecosystems for 2024. SME licenses grew by 160 per cent.

“Our goal is to continue supporting and expanding this sector, providing the best environment for launching and nurturing small and emerging companies, which are a key pillar of the national economy,” Sheikh Mohammed said.