Best Islamic bank 2025: ADIB
Abu Dhabi Islamic Bank (ADIB) has cemented its position as the UAE’s best Islamic bank through exceptional financial performance and innovative Shariah-compliant solutions.
The bank reported remarkable growth in 2024, with total assets reaching Dh226 billion ($61.53 billion) – a substantial 17% increase from the previous year. Net profits soared to Dh6.9 billion, representing a 26% year-on-year increase and an industry-leading return on equity of 28%.
ADIB’s commitment to digital innovation is exemplified by its fully digital savings account, a solution offering customers a paperless experience while maintaining strict adherence to Shariah principles. This account features a transparent profit-sharing mechanism and comprehensive mobile banking management, with customer adoption exceeding 95,000 new accounts within the first six months of launch.
Environmental responsibility forms a cornerstone of ADIB’s strategy, demonstrated through its pioneering green sukuk programme. This Shariah-compliant investment vehicle has channelled Dh1.8 billion into sustainable projects across the UAE, including renewable energy initiatives and water conservation programmes. The oversubscribed issuance attracted diverse investors, with 40% representing ESG-focused international funds.
The bank’s digital transformation continues to accelerate, with significant enhancements to its mobile banking platform resulting in a 37% increase in active digital users. The revamped application now processes over 94% of all retail banking transactions, with features like instant cross-border transfers and comprehensive bill payment services driving customer satisfaction to record levels.
ADIB’s comprehensive takaful offerings provide ethical insurance alternatives to conventional products. the family takaful portfolio grew by 23% in 2024, providing financial security to over 150,000 families, while general takaful solutions expanded to cover diverse needs from property protection to healthcare, all structured to ensure complete Shariah compliance.
For corporate clients, ADIB delivers sophisticated financing solutions through murabaha structures and specialised trade finance products. The corporate financing portfolio expanded by 19% to reach Dh87 billion, supporting over 3,500 businesses across diverse sectors and cementing ADIB’s position as the premier Islamic financial partner for UAE enterprises.
Through its impressive financial performance, commitment to innovation and unwavering adherence to Islamic principles, ADIB continues setting new standards for excellence in Islamic finance.
Best Islamic digital bank 2025: Emirates Islamic Bank
Emirates Islamic Bank has consistently demonstrated innovation and leadership within the UAE’s banking sector, particularly in the Islamic digital banking domain.
The first Islamic bank in the UAE to introduce Shariah-compliant digital wealth and equity trading, Emirates Islamic has quickly catered to a niche but essential market. In just a year, around 15,000 customers have actively engaged with its platform, with plans already in motion to further expand its features.
Furthering its commitment to innovation and customer convenience, the bank has revolutionised the handling of personal finance asset types through its adoption of digital sourcing. The transition to tablet banking has remarkably ensured that 90% of total sourcing is processed digitally, enhancing operational efficiency and significantly aligning with its ESG goals.
The EI+ app is a flagship initiative that stands testament to Emirates Islamic’s digital-first approach, engaging over 90% of their eligible customers via online and mobile platforms. This app has not only facilitated a substantial growth in customer interaction, evidenced by a doubling of transactions to 18 million, but also supports a rapidly growing customer base which expanded by an impressive 100,000 users in a single year.
Moreover, Emirates Islamic has enriched the EI+ App with over 160 services, innovating beyond its initial 50 offerings. This expansion includes exclusive features like Shariah investment options and quick remittance to five countries.
Through these strategic developments and digital enhancements, Emirates Islamic has established a robust foundation for digital banking tailored to the needs of modern consumers, particularly those observing Shariah principles.
Best Islamic ESG deal 2025: GEMS Group Management US$3.25 billion commodity murabaha multi-tranche term facilities
At $3.25 billion, GEMS Education Group’s multi-tranche term facility stands out for embedding environmental, social and governance mechanics directly into its pricing.
Margin adjustments are triggered by pre-agreed KPI scores, turning sustainability performance into a tangible cost of capital and aligning lender and borrower incentives as the company pursues international expansion.
Portions of the facility employ AAOIFI-compliant commodity murabaha structures, allowing Shariah-sensitive investors to participate on identical commercial terms while still benefiting from the ESG-linked pricing grid.
Emirates Islamic, acting as arranger and financier, demonstrated that complex, large-scale education financing can simultaneously satisfy conventional and Islamic markets, merging two fast-growing themes – sustainable finance and Shariah compliance – within a single, flexible debt package.
Best Islamic bank for ESG 2025: ADIB
ADIB has emerged as the UAE’s best Islamic bank for ESG through its comprehensive approach to sustainability across the entire operation, balancing Shariah principles with environmental and social responsibility.
The bank has made remarkable progress in staff development, with 93% of employees completing mandatory ESG training by December 2024. This bank-wide initiative was complemented by specialised training for relationship managers, enhancing their ESG risk due diligence capabilities in line with the bank’s robust ESG risk policy.
ADIB’s commitment to function-specific expertise has been evident through targeted training programmes covering sustainable finance, ESG investing, green financing, climate risk assessment and stress testing.
The bank’s leadership development in sustainable finance is evident through the Harvard/EIF Sustainable Leadership and Investment training course, ensuring sustainability governance at the highest decision-making levels.
ADIB’s published Net Zero report represents a milestone for Islamic banking in the region, establishing ambitious operational emission reduction targets of 49% by 2030. The report includes financed emissions targets across six high-impact sectors: home finance, auto finance, utilities, real estate development, oil and gas, and aviation –addressing financed emissions in above-average detail.
The bank’s Volt green financing programme offers the UAE’s lowest rate for electric vehicles at 1.79%, making eco-conscious choices more accessible while supporting the UAE’s net-zero economy goals.
ADIB’s sustainable finance framework provides a transparent structure for the bank’s ESG activities, guiding its approach to green and sustainable financing while maintaining strict Shariah compliance. The framework enables the bank to develop innovative financial products that address environmental challenges while adhering to Islamic principles.
Through these initiatives, ADIB has successfully integrated ESG considerations into its core banking operations while maintaining its Islamic banking identity. The bank’s approach demonstrates that Islamic finance principles and sustainability objectives are complementary, creating value for the full range of stakeholders.
Best Islamic project finance deal 2025: Hassyan Independent Water power plan US$920 million facility
Boubyan Bank was the sole Kuwaiti bank participating in the financing of the Hassyan independent water power plant project.
Strategically located near the Abu Dhabi border, the project is set to become the world’s largest desalination facility powered entirely by renewable energy.
At the heart of the project is the integration of solar energy with seawater reverse osmosis technology, a combination that exemplifies innovation in sustainable infrastructure. Once operational in 2026, the plant will produce 180 million imperial gallons of desalinated water per day, significantly bolstering UAE’s water security.
The development is a cornerstone of Dubai’s Clean Energy Strategy 2050 and its Net Zero Carbon Emissions Strategy 2050, reinforcing the Emirate’s ambition to source 100% of its power from clean energy.
Islamic finance deal of the year 2025: Aldar Properties and Aldar Investment Properties over AED2 billion commodity murabaha revolving facilities and a separate guarantee line
Aldar’s latest financing package stands out for marrying scale with sustainability.
At its core lies more than Dh2 billion ($545 million) in revolving commodity murabaha facilities with pricing and margin step-downs hinging on key performance indicators mapped to the group’s ESG strategy. By embedding measurable sustainability targets directly into a Shariah-compliant structure, the deal positions Aldar among the pioneers of Islamic sustainability-linked finance in the Gulf.
Flexibility is another hallmark: the facilities are phased so individual Aldar entities can draw as project pipelines dictate.
Complementing the funded lines, an unfunded Dh500 million guarantee line provides on-demand performance and advance-payment bonds.
Collectively, these features weave a single, integrated solution that expands Aldar’s geographic reach, deepen its access to Shariah-compliant capital, and embed environmental accountability into day-to-day financing.
Emirates Islamic and Emirates NBD Capital, acted as the facility’s mandated lead arrangers, bookrunners and financiers.
Most innovative Islamic deal 2025: Olam Agri over $600 million commodity murabaha term facility
Bringing together 10 banks spanning the Middle East, Asia and Europe, Olam Agri’s recent more than $600 million commodity murabaha term facility signals a decisive expansion of Shariah-compliant finance beyond its traditional borders.
Emirates Islamic Bank seized a lead arranger role despite being a new relationship for the borrower, while sister institution Emirates NBD tapped its Singapore platform to stitch the syndicate together.
For Olam Agri, the facility represents its first engagement with Islamic instruments and illustrates a strategic pivot towards funding solutions that align capital efficiency with sustainability principles.
Proceeds earmarked for general corporate purposes, working capital and fixed-asset investment give the commodity trader balance-sheet flexibility as it accelerates growth.
