The UAE is making a bold move to dominate the global Islamic finance and halal industry with its recently approved ‘UAE Strategy for Islamic Finance and Halal Industry.’ This ambitious plan, unveiled on May 6, 2025, aims to transform the UAE into a globally competitive hub for Islamic finance, driving leadership in sustainable finance and significantly boosting halal exports. The strategy sets targets to increase local Islamic bank assets to AED2.56 trillion and local Sukuk issuances to AED660 billion by 2031.
Indonesia’s Halal Ambitions
Indonesia, meanwhile, is also vying for a leading position in the halal market. The Ministry of Industry is aiming for the country to become the world’s leading producer of halal products, with halal product export transactions reaching US$64.11 billion in 2024. To support this goal, Indonesia is hosting the Halal Indonesia International Industry Expo (Halal Indo) 2025 in Tangerang, Banten, from September 25-28, 2025.
Malaysia’s Halal Exports
Malaysia’s halal product exports reached RM61.5 billion in 2024. MIHAS 2025 has set a target of RM45 billion in global halal trade.
UAE Strategy Details
The UAE’s strategy focuses on increasing local halal production to meet the growing global demand. The plan also seeks to facilitate the activities of the Islamic finance sector and enhance its role in sustainable finance.
Market Dynamics
While Indonesia’s current halal product exports are noteworthy, the UAE’s comprehensive strategy and financial targets signal a more aggressive approach to capturing a larger share of the global Islamic finance and halal market, estimated to reach $800 billion by 2026.
Conclusion
The UAE’s strategic push, with its substantial financial backing and clear targets, positions it as a strong contender to lead the global Islamic finance and halal industry. While Indonesia’s export surge is significant, the UAE’s holistic approach, encompassing finance, production, and sustainable practices, may give it a competitive edge in the long run.