UAE aims to boost Islamic bank assets to Dh2.56 billion in six years

07/05/2025 01:24 AST

The UAE Cabinet on Tuesday set up a strategy for Islamic Finance and the Halal Industry, which aims to increase the assets of the country's Islamic banks from Dh986 billion to Dh2.56 trillion within six years and raise the value of listed Islamic sukuk in the UAE to over Dh660 billion by 2031.

The decision was taken at a Cabinet meeting chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai, held at Qasr Al Watan, Abu Dhabi.

"The goal is to develop the Islamic financial sector, lead global Islamic finance activities, and boost the export of Halal products worldwide. We aim to increase the assets of our We also approved the formation of a committee chaired by the Central Bank governor to implement the strategy. The UAE will continue to diversify and expand its national economy across all sectors," Sheikh Mohammed said.

The strategy aims to build a globally competitive national Islamic finance sector, facilitate its activities and drive leadership in sustainable finance. It also seeks to boost exports by increasing local halal production and reach global Islamic markets.

The Cabinet also reviewed the results of the UAE tourism sector for the year 2024. The sector of tourism, travel, and hospitality in the country provided during the year 2023 over 800.000 jobs, and contributed 11.7 per cent to the national economy, and it is expected to score more than Dh236 billion in 2024. "We have the necessary infrastructure, and our goal is to raise the sector's contribution to Dh450 billion over the next six years," Sheikh Mohammed said. Tourism, including travel and hospitality, contributed Dh220 billion (11.7 per cent) to the 2023 national economy. Its contribution is projected to reach Dh236 billion in 2024, and provided over 800,000 jobs in 2023.

The Cabinet also reviewed updates on the small and medium enterprises (SMEs) sector. The UAE ranked first globally for the fourth consecutive year in the International Business Leadership Observatory report of 2024-2025 and 18th among the world's top 100 in the Emerging Ecosystems Ranking in 2024. SMEs licences have grown by 160 per cent. "Our aim is to continue supporting and expanding this sector, providing the best environment for launching and sustaining small and emerging businesses, which are a core pillar of our national economy," Sheikh Mohammed said.

The Cabinet also approved an updated, second edition of the National Biosecurity Framework (2023-2032), focusing on three main aspects: sustainably managing biological risks, strengthening prevention and response capabilities, and promoting biosecurity research and innovation. Key updates include developing a biological emergency management system, implementing relevant international agreements and bolstering national expertise. The Cabinet also reviewed several biofuel projects.

As part of the UAE's commitment to providing excellent services to the community members, the Cabinet reviewed preparations for the 2025 Hajj season, led by the UAE Hajj affairs department, which operates under the General Authority of Islamic Affairs and Endowments and Zakat and in partnership with local governments entities.

To boost federal employee productivity and efficiency, the UAE Cabinet approved the updated performance management system for Federal Government employees (Enjazaty). Focusing on strategic alignment, specialization, employees' roles, results, the system promotes a culture of high performance, continuous feedback, and learning, while emphasizing flexibility, transparency, and a strong employer-employee relationship.

In legislative affairs, the Cabinet further approved the issuance of legislative decisions concerning visiting doctors at federal health facilities, regulating space activities, penalties related to nuclear regulation and public benefit organizations, as well as amendments to Cabinet's resolution on marriage grants.

The Cabinet also reviewed the Ministry of Human Resources and Emiratisation's (MOHRE) AI implementation results. These included an AI-driven labour market simulation model, and an online platform that facilitates analysis to support decision-making and AI-driven solutions to current challenges. Automated solutions mimicking human actions in digital systems were also deployed.

The Cabinet reviewed the latest updates on the national Small and Medium Enterprises (SMEs) sector. The UAE ranked first globally for the fourth consecutive year according to the 2024-2025 report of the International Business Leadership Observatory, seventh globally at the 2024 Global Competitiveness Index, and 18th globally among the 2024 top 100 Emerging Ecosystems Ranking. The country witnessed a growth of more than 160 per cent in the number of SMEs licenses issued between 2020 and 2024.

Additionally, it reviewed the performance results of UAE Council for Digital Wellbeing, combined with national efforts to combat harmful online and social media practices, such as blocking drug-related content and accounts, disrupting malware and phishing schemes, and banning over 8 million phone numbers linked to harmful products.

Performance reports for 2024 were reviewed for numerous federal entities, including the UAE Space Agency, Emirates Drug Establishment, the Federal Authority for Nuclear Regulation, among others.

The Cabinet also addressed requests from the Federal National Council to discuss policies concerning public benefit organizations, support for national companies, consumer protection, and traffic safety improvements.

The agenda of the meeting featured the Cabinet's approval of the restructuring of the UAE Gender Balance Council, chaired by Sheikha Manal bint Mohammed bin Rashid Al Maktoum, and including Mona Ghanem Al Marri, Vice Chairperson, and other members. The Cabinet also approved the issuance of a resolution restructuring the UAE Gender Balance Council, enabling it to carry out its duties and achieve its objectives in coordination with relevant federal and local entities and the private sector.

The meeting witnessed also the Cabinet's approval to restructuring of the UAE Council for Environmental and Municipal Work, chaired by Amna bint Abdullah Al Dahak Al Shamsi, Minister of Climate Change and Environment, and to the formation of a special committee for chemical precursors, chaired by the Emirates Drug Establishment.

The UAE Cabinet ratified four international agreements, focusing on investment promotion and protection, with the Democratic Republic of Congo, Uzbekistan, Somalia, and the Philippines.

The Cabinet also approved numerous MoUs and agreements, including a comprehensive economic partnership with Azerbaijan and an agreement between the Arab Youth Center and Jordan's Crown Prince Foundation. Further approved MoUs addressed mutual recognition of competency certificates with Fiji, energy cooperation with Mongolia and Uzbekistan, and visa exemption with Sri Lanka.

In international affairs, the Cabinet approved hosting eight world class events, including the Intergovernmental Oceanographic Commission (IOC) regional committee meeting for the Central Indian Ocean; World Customs Organization Technology Conference and Exhibition; and the International Operational Risk Working Group Conference.

Khaleej Times