The UAE is well positioned to become a leading global connector of Islamic capital with high-growth markets, according to Standard Chartered. In its latest report, Islamic Banking for Financial Institutions: The Islamic Finance Connector Era, the bank highlights the UAE’s strategic role in strengthening cross-border Islamic finance as the global industry approaches US$6 trillion in assets.
The report notes that only around 6% of global Sukuk capital currently reaches South Asia and Africa, indicating significant potential to channel more Shariah-compliant financing into emerging markets. Standard Chartered believes the next phase of Islamic finance will depend on its ability to mobilize liquidity, facilitate trade, and connect investment opportunities across borders through stronger financial, trade, and digital linkages.
According to the report, the UAE’s strategic location between East and West, combined with its position as a regional financial and trade hub, makes it ideally placed to connect capital flows across the GCC, Europe, Asia, and Africa. The country’s expanding digital finance ecosystem and progressive regulatory framework for virtual and digital assets are further strengthening its capacity to support cross-border investment.
The bank also highlighted the UAE’s National Strategy for Islamic Finance and Halal Industry 2031, which aims to reinforce the country’s position as a global Islamic finance hub by expanding Islamic capital markets and increasing domestic Islamic banking assets. Standard Chartered expects new economic corridors linking the GCC with Asia, Türkiye, and Africa to create opportunities in infrastructure finance, private credit, private markets, blended finance, and sustainable investment.
Khurram Hilal, Chief Executive Officer of Group Islamic Banking at Standard Chartered, said Islamic finance is becoming an increasingly important facilitator of international trade, investment, and capital flows. He emphasized that the industry’s key challenge is not a lack of liquidity but the ability to connect available capital with investment opportunities through recognized Shariah-compliant financing structures and efficient operational capabilities.
The report further highlights the growing importance of tokenization, digital assets, and modern payment infrastructure in improving cross-border capital mobilization and expanding investor access. Standard Chartered encourages financial institutions to move beyond treating Islamic banking as a standalone offering and instead develop integrated capabilities that connect investors, businesses, and markets across multiple jurisdictions. The bank believes the UAE is well positioned to play a central role in directing Islamic capital toward sustainable investment opportunities across the GCC, Asia, and Africa.