Targeted perspective for Islamic financial institutions in the UAE

INSIGHTS

Targeted perspective for Islamic financial institutions in the UAE

01 Apr 2026

Featuring insights from Mazin Khalil, Partner, Risk & Regulatory
Advisory, Grant Thornton UAE

In a featured article for IFN, Mazin Khalil examines how operational resilience expectations for Islamic financial institutions (IFIs) in the UAE are evolving amid heightened global and regional uncertainty.

The article reflects on the Central Bank of the UAE’s recent review of the financial system, which confirmed the continued stability of UAE payment systems and banking operations, alongside the approval of a Financial Institution Resilience Package. Mazin outlines what these measures mean in practice for IFIs, emphasising that resilience must extend beyond service continuity to include Shariah compliance, governance and customer trust.

He highlights that operational resilience for IFIs encompasses the ability to maintain Shariah-compliant products, processes and decision-making during stressed conditions, supported by robust governance, IT resilience and business continuity frameworks. The article also explores the importance of Shariah-compliant liquidity access, recognising the unique operational and settlement complexities of Islamic finance structures.

In addition, Mazin discusses the need for classification flexibility and appropriate restructuring mechanisms that align with Shariah governance requirements, as well as the critical role of ongoing engagement with Internal Shariah Supervision Committees and adaptive Shariah audit planning during periods of disruption.

The article concludes that resilience for IFIs is not only operational, but Shariah-aligned, reputational and strategic. Institutions that strengthen governance, modernise resilience frameworks and align closely with regulatory expectations will be better positioned to navigate volatility and support the long-term sustainability of Islamic finance in the UAE.

This article was first published in IFN Volume 23 Issue 12 dated the 25th March 2026.

Experts / Authors

Mazin Khalil

Mazin is a Partner in the Risk & Regulatory Advisory practice based in Abu Dhabi. He has over 15 years of experience with leading institutions in the UAE. His expertise in the Financial Services sector primarily focuses on Banking, Islamic Finance, and Investment Management.