The assets of Islamic banks operating in the UAE grew by more than AED 124 billion, an increase of 16.6% over one year, rising from AED 745 billion at the end of May 2024 to AED 869 billion (USD 236 billion) by the end of May 2025. According to data from the central banks of the Gulf Cooperation Council countries, Islamic banks in the UAE rank second in the Gulf region in terms of asset size, following Saudi Arabia, whose Islamic banks’ assets total approximately USD 954 billion. Kuwait ranks third with over USD 182 billion, followed by Qatar with about USD 166 billion, Bahrain with more than USD 64.5 billion, and Oman with approximately USD 23.5 billion.

UAE central bank data showed that the local private sector received new financing worth AED 43 billion from Islamic banks during the year, increasing its cumulative Islamic credit balance from AED 319 billion in May 2024 to AED 325 billion by the end of May 2025, representing the largest share at 68.2% of the total local Islamic banking credit. Deposits in UAE Islamic banks rose by 19.2% over the year, adding around AED 103 billion in new deposits, increasing the cumulative balance from AED 535 billion at the end of May last year to AED 638.2 billion by the end of May 2025. Resident deposits accounted for 98.2% of total deposits in Islamic banks in the country, with their cumulative balance rising by 19% or AED 100 billion, from AED 527 billion at the end of May 2024 to AED 627 billion by the end of May 2025.

Meanwhile, investments by Islamic banks grew by 14%, adding AED 21 billion over the year, increasing from AED 149.7 billion at the end of May 2024 to AED 170.7 billion by the end of May 2025.