Top Islamic Banks in UAE (2025): Sharia-Compliant Banking

List of Islamic Banks in UAE (2025)

Let’s take a closer look at the most prominent Islamic banks in Dubai and the wider UAE, along with their offerings and key differentiators. While many of these are based in Dubai or Abu Dhabi, their services are widely available across the country.

Abu Dhabi Islamic Bank (ADIB)

Founded in 1997, Abu Dhabi Islamic Bank is one of the oldest and most trusted Sharia-compliant banks in the UAE. Headquartered in Abu Dhabi, it operates over 120 branches globally, including 75 across the UAE.

ADIB stands out for its focus on environmental, social, and governance (ESG) investments. Key offerings include green home finance products, smart savings and elite banking accounts, Takaful insurance, and a blockchain-based Sukuk transaction system.

Dubai Islamic Bank (DIB)

Established in 1975, Dubai Islamic Bank is the oldest and one of the most well-known Islamic banks in Dubai. With over 220 branches worldwide — and more than 95 across the UAE — it offers an extensive network and a comprehensive suite of services.

DIB provides everything from AI-powered Islamic finance tools and auto finance to sustainability-linked home loans, multiple savings account types, and advanced digital banking features.

Emirates Islamic Bank

Part of the Emirates NBD Group, Emirates Islamic Bank is one of the top Islamic banks in the UAE and a key player in both retail and corporate Islamic finance. With a growing customer base and strong digital capabilities, it offers a full range of Sharia-compliant products — from Islamic mortgages and personal banking to SME support and business banking solutions. It is also known for its user-friendly mobile app, competitive rates, and commitment to financial inclusion.

Kuwait Finance House (KFH)

Known for its strong digital banking capabilities, Kuwait Finance House is a popular choice among UAE residents seeking modern, tech-enabled Islamic financial services.

KFH offers a wide range of Sharia-compliant banking products, including murabaha and wakala financing, wealth management for individuals and HNWIs, and user-friendly digital platforms for account management and retail services.

Standard Chartered Saadiq

Standard Chartered Saadiq is the Islamic banking arm of the global financial institution Standard Chartered. With operations in over 60 countries, it provides a bridge between international banking and Sharia-compliant financial services in the UAE.

Its offerings include private, business, and corporate accounts, cash and treasury management, and capital market products — all structured in accordance with Islamic principles.

Dukhan Bank

Headquartered in Qatar, Dukhan Bank is gaining prominence as one of the most dynamic Islamic banks in the UAE. In 2024, it issued a USD 800 million, 5-year Sukuk — the largest by any Qatari Islamic bank since 2020.

Dukhan Bank’s services include mutual funds, equities, capital-protected products, and bespoke private banking solutions tailored for high-net-worth individuals (HNWIs).

What Is Islamic Banking?

Now that we’ve reviewed the top Islamic banks in the UAE, let’s take a step back and understand what sets Islamic banking apart from conventional banking models.

Islamic banking operates in accordance with Sharia law, focusing on fairness, transparency, and ethical investment. Key principles include:

• No interest (Riba): Islamic banks do not charge interest. Instead, they rely on profit-sharing, mark-up sales, or leasing models to generate returns.

• Ethical investments: Funds must not be used for industries considered unethical under Sharia law, such as alcohol, gambling, or arms manufacturing.

• Risk-sharing: Profits and losses are shared between the bank and the customer, fostering a more equitable financial relationship.

• Clarity and certainty (No Gharar): All financial contracts must be transparent and free of excessive uncertainty or speculation.

These principles appeal to both devout Muslims and those simply seeking ethical banking in the UAE.

Types of Services Offered by Islamic Banks in the UAE

While each bank tailors its offerings, most Islamic banks in the UAE provide the following core services:

Benefits of Banking with Islamic Banks in the UAE

There are several advantages to banking with a Sharia-compliant institution:

• Transparency: Islamic banks ensure customers fully understand the risks and terms before signing any contracts.

• Ethical focus: Funds are only directed toward socially responsible sectors.

• Inclusivity: Islamic banks welcome both Muslim and non-Muslim customers.

• Interest-free loans: Customers benefit from a more equitable financial model that avoids excessive debt burdens.

• Diversified financial tools: Options like Sukuk, Takaful, and profit-sharing savings offer flexible alternatives to conventional products.

Whether you're a resident or a non-resident, Islamic banks in the UAE offer a transparent, ethical, and secure alternative to traditional banking.

How to Choose the Right Islamic Bank in the UAE

Selecting the right Islamic bank depends on your personal and financial goals.

For property buyers, many Islamic banks provide dedicated Sharia-compliant mortgage options in Dubai, tailored to comply with Islamic finance principles while enabling homeownership.

Here are some key factors to consider:

Real Estate Financing with Islamic Banks in the UAE

Many Islamic banks in Dubai offer Sharia-compliant mortgage solutions for individuals purchasing residential or commercial property. These can include rent-to-own models (Ijara), profit-sharing arrangements, or deferred payment plans.

If you're considering buying a home and want to explore ethical finance options, Engel & Völkers can help.

With more than 45 years of experience in global real estate, we offer:

• Personalised consultations to assess your property goals.

• Expert guidance on Sharia-compliant mortgage options.

• Support throughout the property transaction process.

• Trusted insights into Dubai’s property market and financing landscape.

Contact our experts today to explore our listings and find your ideal property.