Islamic banking in the UAE continues to thrive, offering ethical financial solutions that comply with Sharia principles. If you’re searching for the best Islamic bank in UAE in 2025, this in-depth guide compares the top 10 Islamic banks, their services, account types, benefits, and key features.
Why To Choose an Islamic Bank in the UAE?
Islamic banks follow Sharia law, prohibiting interest (riba) and investing only in halal businesses. Key benefits include:
✔ Profit-sharing (Mudarabah) instead of interest
✔ Transparent and ethical banking practices
✔ No investments in prohibited industries (alcohol, gambling, etc.)
✔ Sharia-compliant home, auto, and business financing
Top 10 Best Islamic Banks in UAE (2025)
Here’s an updated comparison of the leading Islamic banks in the UAE for 2025:
1. Dubai Islamic Bank (DIB)
- Established: 1975 (World’s first Islamic bank)
- Headquarters: Dubai, UAE
- Number of Branches: 95+ (UAE), 220+ (International)
- Ownership: Publicly traded (DFM: DIB)
- Key Offerings (2025):
- Savings Accounts: DIB Al Islami Savings, DIB Premium Savings
- Financing: Home Finance (Murabaha), Auto Finance (Ijarah)
- Digital Banking: AI-powered Islamic finance tools
- Unique Feature: Largest Islamic bank in UAE with global reach
- 2025 Update: Expanded sustainability-linked Islamic financing
2. Abu Dhabi Islamic Bank (ADIB)
- Established: 1997
- Headquarters: Abu Dhabi, UAE
- Branches: 75+ (UAE), 120+ (International)
- Ownership: Publicly traded (ADX: ADIB)
- Key Offerings (2025):
- Savings Accounts: ADIB Smart Savings, ADIB Elite Banking
- Financing: Green Home Loans, Takaful Insurance
- Digital Innovation: Blockchain-based Sukuk transactions
- Unique Feature: Leader in corporate Islamic banking
- 2025 Update: New ESG-compliant investment products
3. Emirates Islamic Bank
- Established: 2004
- Headquarters: Dubai, UAE
- Branches: 55+
- Ownership: Subsidiary of Emirates NBD
- Key Offerings (2025):
- Savings Accounts: EI Saadiq Savings, EI Youth Account
- Financing: Buy-Now-Pay-Later (Halal BNPL), SME Financing
- Digital Banking: Voice-activated Islamic banking assistant
- Unique Feature: Best digital experience for millennials
- 2025 Update: Launched UAE’s first Islamic crypto investment platform
4. Sharjah Islamic Bank (SIB)
- Established: 1975
- Headquarters: Sharjah, UAE
- Branches: 35+
- Ownership: Publicly traded (ADX: SIB)
- Key Offerings (2025):
- Savings Accounts: SIB Al Khair Savings, SIB Golden Account
- Financing: Affordable Housing Finance, Wakala Investments
- Community Focus: Strong Zakat management services
- Unique Feature: Best for Sharjah residents
- 2025 Update: Introduced instant Islamic microloans
5. Ajman Bank
- Established: 2008
- Headquarters: Ajman, UAE
- Branches: 20+
- Ownership: Publicly traded (DFM: AJMANBANK)
- Key Offerings (2025):
- Savings Accounts: Ajman Savings+, Business Profit Account
- Financing: Halal Auto Lease, SME Murabaha Financing
- Customer Service: 24/7 Islamic banking concierge
- Unique Feature: Top choice for Northern Emirates
- 2025 Update: Partnered with fintechs for faster Islamic payments
6. Al Hilal Digital (ADIB)
(Fully integrated with ADIB but retains digital brand)
- Established: 2008
- Headquarters: Abu Dhabi, UAE
- Branches: Digital-only
- Key Offerings (2025):
- Savings Accounts: Al Hilal Digital Savings
- Financing: Instant Islamic Personal Finance
- Technology: Metaverse-based Islamic banking
- Unique Feature: UAE’s first fully digital Islamic bank
7. RAK Islamic Bank
- Established: 2016
- Headquarters: Ras Al Khaimah, UAE
- Branches: 15+
- Ownership: Part of RAKBANK
- Key Offerings (2025):
- Savings Accounts: RAK Islamic Savings+
- Financing: 1-Hour Auto Finance Approval
- Innovation: AI-driven Islamic wealth management
- Unique Feature: Fastest Sharia-compliant loan processing
8. Mashreq Al Islami
- Established: 2008
- Headquarters: Dubai, UAE
- Branches: 25+
- Ownership: Part of Mashreq Bank
- Key Offerings (2025):
- Savings Accounts: Mashreq Islamic Elite
- Financing: Expat Home Finance Solutions
- Digital: NFT-based Islamic investment certificates
- Unique Feature: Best for non-resident Islamic banking
9. CBD Islamic
- Established: 2016
- Headquarters: Dubai, UAE
- Branches: 20+
- Ownership: Commercial Bank of Dubai
- Key Offerings (2025):
- Savings Accounts: CBD Islamic Premium
- Financing: Corporate Sukuk Investments
- Technology: Smart contract-based Islamic finance
- Unique Feature: Leading Islamic corporate banking
10. Wio Islamic (New Digital Bank)
(Launched 2023, expanded 2025)
- Established: 2023
- Headquarters: Abu Dhabi, UAE
- Branches: Digital-only
- Ownership: ADQ & Alpha Dhabi
- Key Offerings (2025):
- Savings Accounts: Wio Islamic Digital Account
- Financing: P2P Islamic crowdfunding
- Innovation: UAE’s first neobank with Sharia board
- Unique Feature: 100% app-based Islamic banking
2025 Comparison Table: Best Islamic Banks in UAE
| Bank | Established | UAE Branches | Digital Features | Best For | 2025 Innovation |
|---|---|---|---|---|---|
| DIB | 1975 | 95+ | AI Finance Tools | Global Banking | Sustainable Finance |
| ADIB | 1997 | 75+ | Blockchain Sukuk | Corporate Banking | ESG Investments |
| Emirates Islamic | 2004 | 55+ | Crypto Platform | Digital Banking | Halal BNPL |
| Sharjah Islamic | 1975 | 35+ | Instant Microloans | Sharjah Residents | Affordable Housing |
| Ajman Bank | 2008 | 20+ | Fintech Payments | Northern Emirates | SME Solutions |
| Al Hilal Digital | 2008 | Digital | Metaverse Banking | Tech-Savvy Users | Fully Digital |
| RAK Islamic | 2016 | 15+ | 1-Hour Loans | Quick Financing | AI Wealth Mgmt |
| Mashreq Al Islami | 2008 | 25+ | NFT Investments | Expats | Non-Resident Services |
| CBD Islamic | 2016 | 20+ | Smart Contracts | Businesses | Corporate Sukuk |
| Wio Islamic | 2023 | Digital | P2P Crowdfunding | Digital Natives | Sharia Neobank |
Which is the Best Islamic Bank in UAE for 2025?
- Best Overall: Dubai Islamic Bank (DIB) – Most established with global reach
- Best Digital: Emirates Islamic – Leading in crypto and BNPL
- Best for Expats: Mashreq Al Islami – Top non-resident services
- Best for SMEs: Ajman Bank – Northern Emirates specialist
- Most Innovative: Wio Islamic – Pioneering Sharia neobanking
The best Islamic bank in UAE depends on your needs:
- Choose DIB for reliability and global access
- Select Emirates Islamic for cutting-edge digital banking
- Opt for Wio Islamic if you prefer fully digital solutions
When considering major financial decisions like purchasing a vehicle through Islamic financing, it’s worth exploring Sharia-compliant auto loans offered by top UAE Islamic banks. Many of these institutions provide competitive Murabaha or Ijarah plans for car buyers. If you’re currently researching vehicle options, check out our guide to the best SUV in UAE to pair your ethical financing with the perfect family or luxury SUV model available in the Emirates market.
Frequently Asked Questions (FAQs) About Islamic Banking in the UAE
1. What is Islamic banking?
Islamic banking follows Sharia-compliant financial principles, prohibiting interest (riba), excessive uncertainty (gharar), and investments in unethical industries (e.g., alcohol, gambling). Instead, it operates on profit-sharing (mudarabah), leasing (ijara), and partnership (musharakah) models.
2. How is Islamic banking different from conventional banking?
- No interest (riba): Islamic banks earn via profit-sharing or fixed service fees.
- Asset-backed transactions: Money must be tied to real assets or services.
- Ethical investments: Funds are not used for haram (forbidden) industries.
3. Which are the best Islamic banks in the UAE?
Top options include:
- Dubai Islamic Bank (DIB) – Largest and most established.
- Abu Dhabi Islamic Bank (ADIB) – Strong corporate and retail services.
- Emirates Islamic Bank – Digital-friendly with competitive products.
(Note: Adjust based on the banks highlighted in your blog.)
4. What Sharia-compliant products do UAE Islamic banks offer?
- Savings/current accounts (profit-sharing instead of interest).
- Home financing (ijara or murabaha models).
- Islamic credit cards (usage fees instead of interest).
- Takaful (Islamic insurance).
5. How do Islamic banks ensure Sharia compliance?
Each bank has a Sharia Supervisory Board of Islamic scholars who audit products and transactions to ensure adherence to Islamic principles.
6. Can non-Muslims use Islamic banking services?
Yes! Islamic banks welcome all customers, especially those seeking ethical or asset-backed financial solutions.
7. Are Islamic banks in the UAE regulated?
Yes, they’re licensed and monitored by the Central Bank of the UAE and must comply with both UAE financial laws and Sharia standards.
8. Is my money safe in an Islamic bank?
Absolutely. UAE Islamic banks are as secure as conventional banks, with deposit protection under the UAE Deposit Insurance Scheme.
9. Do Islamic banks charge higher fees than conventional banks?
Not necessarily. While some products may have different fee structures (e.g., profit-sharing), many are competitively priced. Always compare terms before choosing.
10. How can I open an account with a UAE Islamic bank?
- Visit a branch or apply online.
- Submit required documents (ID, visa, proof of income).
- Minimum balance requirements vary by bank.
About the Author
Mohsin Shabbir is a seasoned real estate professional with years of experience in Dubai’s property market. With over 10+ years in Dubai, Mohsin is now a well knowledge individual who has hands on experience and data of everything related to Emirates of Dubai. As a trusted agent at AG Luxury Properties, Mohsin specializes in helping clients find their dream homes and investment opportunities in Dubai. With a deep understanding of the city’s real estate landscape, Mohsin is committed to providing personalized and professional services to meet your needs.
If you’re looking to buy, sell, or rent properties in Dubai, feel free to reach out to Mohsin Shabbir for expert guidance. You can contact him directly through his AG Luxury Properties profile or via email at mohsin.shabbir@agluxuryproperties.com.