The Central Bank has reported a substantial increase in the assets of Islamic banks operating in the UAE, which rose by approximately 150 billion dirhams over the year, reflecting a growth rate of 20%. This growth elevated the cumulative asset total from 763 billion dirhams in August 2024 to around 903 billion dirhams by the end of August.
Data from the Central Bank reveals that by the conclusion of the first eight months of this year, Islamic banks had captured an 18% share of the country’s total banking assets.
In addition, the statistics indicate that investments by Islamic banks grew by 16.5%, adding 25 billion dirhams over the year. The cumulative investment rose from 151 billion dirhams at the end of August 2024 to 176 billion dirhams by the end of August 2025.
The banking data also highlighted an increase in credit extended by Islamic banks, which surged by around 90 billion dirhams, marking a growth of 19.5%. The total credit amount escalated from 469 billion dirhams to 560 billion dirhams in July of this year.
The local private sector was the primary beneficiary of this credit activity, receiving new funding of 41.5 billion dirhams from UAE-based Islamic banks within the year. Consequently, the total Islamic credit balance for this sector rose from 337 billion dirhams in August 2024 to 378.5 billion dirhams at the end of August, capturing 68% of the total local Islamic banking credit.
Deposits within Islamic banks in the UAE experienced a growth of 21.2% over the year, amounting to an increase of about 118 billion dirhams. The cumulative deposits grew from 553 billion dirhams at the end of August last year to 670 billion dirhams in August 2025.
Resident deposits constituted 98.2% of the total deposits in Islamic banks across the country, with their cumulative total increasing by 19%, which represents an additional 100 billion dirhams. The total rose from 658 billion dirhams at the end of August last year to 670 billion dirhams by the end of August 2025.