Islamic Finance: Ruya’s Role in Shaping a Sustainable Future

ISLAMIC finance has emerged as a cornerstone of the global financial system, offering ethical, Shariah compliant alternatives to conventional banking.

- Kushmita Bose

Built on principles of risk-sharing, asset-backed financing, and ethical investments, the sector has witnessed remarkable growth worldwide. Now, as Islamic finance moves into 2024, the industry is poised for expansion, innovation, and greater global influence, with the UAE standing at the forefront of this transformation.

The history of Islamic finance in the UAE dates back to 1975 with the establishment of the country’s first Islamic bank. Over the last five decades, the sector has grown exponentially, encompassing full-fledged Islamic banks, Islamic banking windows within conventional banks, Takaful (Islamic insurance), and the ever-expanding Sukuk (Islamic bonds) markets.

The UAE has ranked among the top three Islamic economies worldwide for three consecutive years, according to the 2022 State of the Global Islamic Economy Report. The UAE also secured the fourth position globally in Islamic financial markets by assets, as per the 2023 Islamic Finance Development Indicator. These milestones reflect the nation’s commitment to fostering an ecosystem that supports Shariah-compliant financial activities.

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