The UAE has rolled out an expansive new Islamic finance plan aimed at substantially increasing its presence in the global sukuk and Islamic banking markets, says a new report by Fitch Ratings. The country aims to double sukuk issuance and Islamic banking assets and establish itself as the leading player in the Shariah-compliant finance market.
This strategic push comes at a time when there is increasing global demand for interest-free and ethical financial products. The UAE strategy involves enhanced regulation infrastructure, innovation-friendly policies, and regional and international investment in sukuk products.
Fitch observes that this move can assist the UAE in drawing a wider base of investors, particularly from economies like Southeast Asia and the GCC, where Islamic finance has deep roots. It is also consistent with the diversification objectives of the country under its Vision 2030 strategy.
Experts argue that this step could not only strengthen capital markets but also consolidate the UAE as a global hub for Islamic banking. With more than $800 billion of outstanding sukuk globally, the UAE is set to take a much bigger slice of the market over the next few years.
