February 23, 2026
Methodology About Newsletter
WE THE UAE 2031
The Vanderbilt Terminal for the UAE's National Transformation
INDEPENDENT GLOBAL INTELLIGENCE FOR THE UNITED ARAB EMIRATES
UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% | UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% |

Definition

Murabaha is an Islamic financing structure in which a financial institution purchases a commodity or asset on behalf of a client and then resells it to the client at a pre-agreed markup, with payment made in installments or as a lump sum at a future date. The profit margin replaces interest, making the transaction Sharia-compliant. Transparency is fundamental to murabaha: both the original cost and the markup must be fully disclosed to the buyer. Murabaha is one of the most widely used Islamic financing instruments globally.

UAE Context

Murabaha constitutes a significant portion of Islamic banking transactions in the UAE, used for personal finance, auto loans, home purchases, and corporate trade finance. UAE Islamic banks including Dubai Islamic Bank, Abu Dhabi Islamic Bank, and Emirates Islamic offer various murabaha products. Commodity murabaha, conducted through commodity exchanges such as the London Metal Exchange, is widely used for interbank liquidity management and treasury operations. The UAE Central Bank’s Sharia compliance standards govern murabaha structures to ensure genuine asset transfer and price transparency.

Key Data

  • Usage share: Among the most common Islamic financing structures in UAE banking
  • Applications: Personal finance, auto finance, property purchase, trade finance
  • Key feature: Full cost and markup transparency required
  • Liquidity tool: Commodity murabaha used for interbank and treasury operations
  • Regulatory oversight: UAE Central Bank Higher Sharia Authority standards

Significance for Vision 2031

Murabaha remains a foundational instrument for expanding Islamic banking access in the UAE. As Vision 2031 drives financial inclusion and SME growth, murabaha products provide Sharia-compliant alternatives to conventional lending for businesses and consumers. Digital murabaha platforms and fintech-enabled processing are modernizing this traditional instrument, supporting the UAE’s goals for financial innovation within an Islamic framework.