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UAE commercial transactions law 'to boost Islamic banking services'
6 Jan 2023 | Friday Source: Zawya
The Commercial Transactions Law 2022, which was implemented through a royal decree last year, will help boost Islamic financial and banking services, and strengthen the leading status of the UAE’s banking sector, according to UAE Banks Federation (UBF).
The Federation, which acts as the unified voice of UAE banks, stated that the new law meets the requirements of the great and rapid development witnessed by Islamic banks and financial institutions and opens the doors to more Islamic sharia-compliant financial services, which reinforces the UAE’s leading position in Islamic banking.
The statistics of the Central Bank of the UAE reflect the significant growth of Islamic banks operating in the country, as their assets exceeded AED600 billion by the end of the first half of 2022.
Their bank credit facilities surged to AED395.4 billion, up 2.1% over the same period in 2021, while the deposits rose to AED430.7 billion, and the total investments of Islamic banks amounted to AED95.4 billion by the end of June 2022.
