The Central Bank of the UAE (CBUAE) on December 20, 2023, has issued the UAE Islamic Finance Report 2023 which highlights the sustainable Islamic finance efforts of Islamic financial institutions (IFIs) across the UAE. The report comes in line with the UAE’s Year of Sustainability and its recent hosting of COP28.
His Excellency also noted that the Islamic banking sector has become an integral part of the UAE’s financial industry, accounting for 23 percent of total banking assets within the UAE in 2022, equivalent to AED 845 billion. Meanwhile, Islamic windows, in addition to the takaful market and sukuk issuances, account for 25 percent of total Islamic banking assets in the UAE, equivalent to AED 214 billion. His Excellency said: “Islamic banks play a crucial role in the development and provision of sustainable finance and in meeting the sustainability objectives of the wider financial sector, in accordance with the UAE’s regulatory, supervisory and risk management directives. This is further strengthened by the issuance of the Guiding Principles Regarding Sustainability in Islamic Financial Institutions by the Higher Shari’ah Authority.”
The report also presents key statistics and indicators regarding the UAE’s Islamic finance landscape. Chief amongst these is the presence of eight standalone Islamic banks, 16 Islamic banking windows of conventional banks, and nine Islamic finance companies operating in the UAE. The report also highlights the presence of 10 takaful insurance companies with total gross written contributions amounting to AED 4 billion in 2022, whereas the value of sukuk outstanding stood at AED 217 billion in H1 2023. http://tinyurl.com/j6xk6chy
Source: IBP