Standard Chartered sees the UAE as an Islamic finance connector, linking Shariah-compliant capital with faster-growing markets across Asia and Africa. The pitch matters because Standard Chartered projects global Islamic finance assets will reach US$7.5 trillion by 2028, up from US$5.5 trillion in 2024. Standard Chartered says only 6% of global sukuk capital currently reaches South Asia and Africa.
Capital with a delivery problem
The bank’s latest report is titled Islamic Banking for Financial Institutions: Unlocking Growth Amidst Global Shifts. It frames the next stage of Islamic finance as one of movement, not just scale. It argues that the industry must do more than pool liquidity. It must also direct that liquidity into trade, infrastructure and productive investment.
That gap is central to the UAE’s opportunity. Standard Chartered says the country sits between East and West, with links across the GCC, Europe, Asia and Africa. It also points to the UAE’s expanding digital finance ecosystem and its regulatory frameworks for virtual and digital assets as supporting infrastructure for cross-border capital flows.
The report’s message is clear. Islamic capital is available. The challenge is matching it with projects and markets that can use it well.
Why the UAE stands out
The UAE’s National Strategy for Islamic Finance, announced in May 2025, aims to more than double Islamic banking assets to AED2.56 trillion (US$697.1 billion) by 2031. The strategy aims to expand Islamic capital markets and increase domestic Islamic banking assets.
The report also identifies new economic corridors linking the GCC with Asia, Türkiye and Africa as a growth driver. Those routes could open opportunities in infrastructure finance, private credit, private markets, blended finance and sustainable investment.
Khurram Hilal, Group Chief Executive, Islamic Banking at Standard Chartered, said Islamic finance is becoming a more important channel for cross-border trade and investment. He said many markets do not lack liquidity. They lack the links needed to move capital into live opportunities.
That distinction matters for investors. It shifts the debate from funding supply to market access and execution.
The bank highlighted tokenisation, digital assets and payment infrastructure as tools that could improve cross-border capital mobilisation and widen investor access. In practice, that points to a more connected market structure, where Islamic banking works alongside digital rails and regional trade flows.
For policymakers and investors, the next test is implementation. The UAE has a strategic location and has introduced regulatory frameworks for digital and virtual assets, alongside a national strategy for Islamic finance and the halal industry. What matters now is whether those strengths can turn Islamic capital into repeatable flows into growth markets. That will be the key signal to watch as the Islamic finance connector model develops.
