H.E. Bin Touq opens global conference on Islamic finance & reviews UAE’s efforts in developing legislative system to drive the sector’s growth

By Editor_wr On Dec 24, 2023

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.