The UAE offers Islamic banking services. It is governed by Shari'a law and Federal Law No. 6 of 1985 Regarding Islamic Banks, Financial Institutions and Investment Companies. According to Article 3 of the law, Islamic banks have the right to carry on all or part of banking, commercial, financial and investment services and operations. They have the right to engage in all types of services and operations practised by banks and referred to in Federal Law No. 10 of 1980.

Central Bank’s licence ensures that this sector provides banking services that are fully compliant with the provisions of Islamic Shari’a. Islamic banking services are divided as follows:

• local banking for Individuals
• foreign banking for Individuals
• local corporate Banking
• foreign corporate Banking
• specialised banks.

The Islamic banking sector has become an integral part of the UAE’s financial industry, accounting for 23 per cent (equivalent to AED 845 billion) of total banking assets in 2022. For more information read the UAE Islamic Finance Report 2023 (PDF, 1 MB).