H.E. Bin Touq opens global conference on Islamic finance & reviews UAE’s efforts in developing legislative system to drive the sector’s growth
- Islamic finance has demonstrated a robust growth of 8% in the year 2022, surpassing traditional banks by 3%, attributable to the persistent surge in public demand for Islamic products and the expansive reach of distribution networks.
- The UAE has solidified its status as a pivotal hub for Islamic finance, with Islamic finance constituting 29% of the total banking sector financing at the close of the previous year.
- The banking services sector assumes a pivotal role in the Emirates’ financial landscape, accounting for 23% of the total banking assets in the country, equivalent to 845 billion dirhams in 2022.
- A projection of $3.8 trillion in total financial assets for Islamic finance worldwide by 2023, along with a clientele base of 100 million, underscores the global prominence and appeal of Islamic banking.
- The conference aims to yield impactful recommendations, including:
- Strengthening codification efforts by collaborating with relevant authorities to draft explanatory and complementary memoranda to Federal Law No. 50 of 2022 concerning commercial transactions.
- Propagating the expertise of the Emirati legislator in codifying the jurisprudence of Islamic financial transactions for wider application in Arab and Islamic legislations, fostering a harmonized approach.
- Intensifying training and qualification initiatives facilitated by esteemed institutions such as the Institute of Training and Judicial Studies, the Ministry of Justice, and the Sharjah Center for Islamic Economics.
- Formulating model contracts for pivotal Islamic financial transactions to regulate the rights and obligations of involved parties comprehensively, aligning with UAE legislation from legal, ethical, and technical standpoints.
- Leveraging the IICRA’s services, particularly in the resolution of disputes through institutional reconciliation and arbitration, in accordance with provisions of Islamic Shari’ah, ensuring legal sanctity and fairness.