Islamic Finance is rapidly gaining global recognition for its ethical foundations and asset-backed investment approach. Although still in its early stages in Romania, our mission at the Romanian Arab Investments House is to introduce investors to the principles and products that define this dynamic and responsible financial system, from Sukuk and Islamic investment funds to Sharia-compliant banking solutions.

 

Before introducing these products to the Romanian market, we aim to give our clients firsthand exposure to how Islamic Finance thrives in well-established financial hubs. To achieve this, we engaged with a leading expert from Dubai, who shared valuable insights into market developments, emerging opportunities, and investor perspectives within his respective region.

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Question 1:

How is the Islamic Finance landscape evolving in your region and what key trends are shaping investor interest?

Answer:

The UAE has announced in May 2025 a Federal Government level new strategy to become the global hub of Islamic finance, Halal industry and lifestyle and Islamic philanthropy. See the link https://mediaoffice.ae/en/news/2025/may/06-05/uae-cabinet-approves-uae-strategy-for-islamic-finance-and-halal-industry

Following are the key goals to be achieved by 2031:

To increase Islamic banking assets from AED 986billion to AED 2.56trillion

To increase domestic Sukuk issuance from AED 165billion to AED 660billion

To raise foreign Sukuk listing in UAE bourses ton AED 395billion

To grow wealth and asset management from AED 114billion to AED 263billion

To enhance Halal goods export from AED 73billion to AED 315billion

The whole country is gearing up to work on the strategy and for timely delivery

This strategy is part of the broader UAE goal of diversifying away from oil — using Islamic economy (finance + halal) as a pillar of a future, knowledge- and value-based economy.

 

Question 2:

What types of Islamic Finance products are most in demand among investors in your region today and why?

Answer:

Based on the new Strategy, new Islamic retail banking products shall make the difference besides the Islamic fintech and digital and fractionalized Sukuk to attract retail FDI.

 

Question 3:

What challenges do investors face when accessing Islamic Finance opportunities in your market?

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Answer:

Lack of awareness is the main hurdle. There is big need to make the knowledge about Islamic finance products and services being fair, sustainable and ethical.

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Question 4:

What regulatory or market developments are supporting growth in Islamic Finance within your region?

Answer:

The new UAE Strategy for the next 6 years shall focus on supporting Halal industry growth through Islamic finance so that the entire Islamic economy size grows, the focus shall also be on growing sustainable finance, transitional finance, renewable financing through Shams Dubai rooftop initiative (https://www.dewa.gov.ae/en/consumer/solar-community/shams-dubai), Islamic finance first approach by all govt related entities, opening Islamic windows in all conventional banks. Since it is top down agenda, there will be great momentum visible in UAE during the next 6-8 months.   Having a dedicated committee headed by Central Bank Governor and strong regulatory support improves confidence in UAE among local, regional and global Islamic finance institutions.

 

Question 5:

What advice would you give to investors in new markets, such as Romania, who are exploring Islamic Finance for the first time?

Answer:

The investors have been taken for a ride repeatedly by offering complex conventional investment products and derivatives and suffered multiple times. The Islamic wealth management products are based on cast-in-stone Islamic financing principle which have not changed in 14 centuries. When the investors shall examine the parameters of the Islamic investment products, they will find them fair, ethical, sustainable, non-ambiguous, remunerative and transparent, all at the same time.   

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Closing Note

As Romania explores its entry into Islamic Finance, we aim to ensure investors understand the values, structures and advantages behind this system. By learning from leading markets such as Dubai, the UK and Oman, our clients can build confidence and prepare to participate in this exciting new investment landscape with informed perspectives and trusted guidance.

 

Govt. of Romania can take baby steps by deciding to issue Sukuk through Ministry of Finance or Central Bank for a small amount say Euro 100million and list it at Nasdaq Dubai and see the response. I am sure the Sukuk shall be oversubscribed which shall increase the Govt’s confidence to roll out Islamic finance in the country step by step.