Islamic Banks in the UAE Exhibit Significant Growth in 2025
Islamic banks in the United Arab Emirates have demonstrated notable growth in their performance throughout 2025. By the end of October, their total asset portfolio and banking investments surged to over 170 billion dirhams, reflecting an annual growth rate surpassing 18%. This has resulted in their total portfolio exceeding 1.1 trillion dirhams, which accounts for 19% of the overall assets and investments of all banks operating within the country.
Key Statistics
According to recent data from the central bank, Islamic banks captured 17.7% of the total assets of local banks by October 2025. Their assets increased by 16.6% over the year, which translates to an addition of 142 billion dirhams, bringing the total to 922 billion dirhams compared to 780 billion dirhams in October 2024.
In terms of investments, Islamic banks hold a 22% share of the total investments of all banks in the country, amounting to 182 billion dirhams, and showing an increase of 17.2% from the same period in 2024. The central bank’s figures indicate that Islamic banking financing expanded by 21.2% year-on-year, with banks providing additional financing worth 101 billion dirhams since October 2024. The cumulative total of financing reached 579 billion dirhams in October 2025, representing approximately 23% of the total banking financing in the nation.
Financing Breakdown
The private sector has retained its position as the largest beneficiary of Islamic financing, receiving a total of 384.5 billion dirhams—approximately 66.5% of the total Islamic bank financing by the end of October 2025.
Among individuals in the private sector, residents topped the list of beneficiaries with cumulative financing reaching 220 billion dirhams, marking an annual increase of 20%.
Commercial institutions and industrial companies ranked as the second-largest recipients, with cumulative financing of 165 billion dirhams, reflecting a year-on-year growth of 5.6%.
Notably, financing for non-residents from Islamic banks saw a remarkable increase of 104%, reaching 88 billion dirhams in October 2025. This signifies strong confidence in the UAE market from foreign investors.
Customer Deposits
The rising deposits from clients further illustrate the growing trust in Islamic banks. The cumulative deposit balance increased by 24.3% over the year, equivalent to an increase of 135 billion dirhams, bringing the total deposits to 689 billion dirhams in October 2025, up from 554 billion dirhams during the same period in 2024.