Central Bank (UAE)

The Central Bank of the United Arab Emirates assumes a crucial role in safeguarding financial stability, promoting consumer protection, and fostering the development of Islamic finance within the United Arab Emirates. By means of its regulatory framework and the pivotal role played by the Higher Shariah Authority, the nation actively fosters its status as a prominent global hub for Islamic finance. Consequently, this contributes to the enhancement of the Emirates’ financial sector by promoting diversification and bolstering its resilience. This entry examines the evolution and activities of the Central Bank of the United Arab Emirates, as they are relevant to the transactions of Islamic finance and economics, particularly Islamic banks, aka participation banks. The summary presented in this brief entry sheds light on how the business of Islamic banking is regulated through the decisions of the Emirates’ Central Bank.