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STATE OF
THE GLOBAL
ISLAMIC
ECONOMY
REPORT
FROM CRISIS TO CATALYST:
EVOLVING ISLAMIC ECONOMY
OPPORTUNITIES

PRODUCED BY IN PARTNERSHIP WITH SUPPORTED BY

Contents

Executive Summary 008

Chapter 1: The Islamic Economy & Drivers of Opportunity 016

Chapter 2: Consumer Sentiment 030

Chapter 3: The Global Islamic Economy Indicator (GIEi) 042

Chapter 4: Trade, Investments, & FDI 056

Chapter 5: Halal Food 078

4 State of the Global Islamic Economy Report 2024/25

Chapter 6: Islamic Finance 104

Chapter 7: Muslim-Friendly Travel 130

Chapter 8: Modest Fashion 152

Chapter 9: Halal Pharmaceuticals 174

Chapter 10: Halal Cosmetics 192

Chapter 11: Islamic-Themed Media & Recreation 210

Acknowledgments 228

Report Purpose and Methodology 232

Endnotes 246

State of the Global Islamic Economy Report 2024/25 5

CREDIT/PHOTOGRAPHER

6 State of the Global Islamic Economy Report 2024/25

State of the Global Islamic Economy Report 2024/25 7
Executive
Summary

In the name of God, the Most Amid unprecedented geopolitical and economic vola-
tility, driven by factors such as the Israel-Gaza conflict,
Beneficent, the Most Merciful. This shifting trade alignments, and pronounced regionaliza-
year’s State of the Global Islamic tion of economic activities, Muslim spending across the
Islamic economy sectors (excluding Islamic finance)
Economy Report estimates that still expanded by 5.5% in 2023. Looking forward, this
the world’s 2 billion Muslims spent spending is projected to rise to US$ 3.36 trillion by 2028,
indicating a compound annual growth rate (CAGR) of
approximately US$ 2.43 trillion in 2023 5.3% over five years. Despite inflationary pressures and
across core sectors including halal supply chain disruptions due to geopolitical tensions,
consumer resilience remains high.
food, pharmaceuticals, cosmetics, As global consumers increasingly favor authenticity
modest fashion, travel, and media and and ethical responsibility, local and regionally authentic
brands have experienced notable growth and international
recreation, all deeply shaped by Islamic recognition. A key example is “The Fix Chocolatier,” a
ethical considerations and Shariah regional brand gaining global attention through a clear
alignment with ethical and cultural identity, illustrating
compliance. Islamic finance assets, the potential for local brands to scale globally without
integral to these sectors, reached an compromising authenticity. Such developments under-
score the strength of regional economies and illustrate an
estimated US$ 4.93 trillion in 2023, emerging pattern of reduced dependency on traditional
reinforcing the holistic scale of the Western brands and supply chains.
A significant transformation defining this year’s
global Islamic economy. Islamic economy is the marked rise in ethical consumer
activism, directly influencing purchasing behaviors.
Geopolitical tensions, particularly related to the Gaza
crisis, have spurred unprecedented levels of boycotts
against global brands perceived as misaligned with ethical
and regional values. Recognized multinational brands
have notably faced consumer resistance, triggering sub-
stantial shifts toward local and regional alternatives. This
phenomenon extends beyond the immediate political
contexts, reflecting broader consumer trends towards
cultural authenticity and ethical responsibility.

8 State of the Global Islamic Economy Report 2024/25

CREDIT/UNSPLLASH

Executive Summary 9
CREDIT/UNSPLASH

Social-media sentiment analysis of October 2023-March per capita, Muslim consumer spending across halal sec-
2025 period shows a marked uplift in pro-alternative senti- tors is robust, underpinning a multi-trillion-dollar global
ment—especially in Food & Beverages, Technology, Fashion Islamic economy.
and Cosmetics—following worldwide outrage at Israel’s Geopolitical volatility is significantly reshaping trade
actions in Gaza. Among our tracked posts, 15.6 % explicitly and economic alliances, most notably illustrated by Arab
endorsed ethical substitutes, revealing a multilingual, silent states’ unified response to geopolitical events and a stron-
worldwide movement grounded in notions of solidarity, ger inclination towards regional self-reliance. This year
“patriotic consumption”, and faith-based duty. Local cof- has witnessed a pronounced increase in intra-OIC trade,
fee chains such as Malaysia’s ZUS Coffee, emergent cola supported by strategic investments and policies aimed at
labels from Jordan to Pakistan, and halal-certified beauty enhancing regional manufacturing, agricultural resilience,
houses like Wardah are capitalising on this momentum, and economic cooperation among OIC member states.
while activist apps (e.g., Boycat, No Thanks) propagate Countries such as Saudi Arabia, the UAE, Indonesia, and
values-based choice into everyday shopping habits. Türkiye have emerged as leaders in promoting intra-regional
The global Muslim population continues to expand halal trade and investments, underscoring a fundamental
significantly, surpassing two billion people and representing shift from traditional dependencies on Western economies.
over 25% of the global population as of 2023. This growth Simultaneously, the ascendance of BRICS and the pro-
trajectory is set to continue, reaching approximately 2.2 gressive deglobalization marked by reshoring initiatives
billion by 2030. With a particularly strong youth demo- across OIC countries have catalyzed a clear move toward
graphic, over 540 million Muslim youth are projected by economic multipolarity. Indonesia, notably aiming to
2030, significantly shaping market demand. Driven by become the world’s fourth-largest economy by 2045, exem-
rising affluence, especially in OIC nations with high GDP plifies this shift, driving significant regional economic

10 State of the Global Islamic Economy Report 2024/25

activity independent of traditional global power structures. 50 deals worth US$ 1.53 billion and Indonesia completing
The Global Islamic Economy Indicator (GIEI), now in 40 deals worth US$ 1.60 billion, driven by the UAE’s diver-
its eleventh year, benchmarks how effectively national sification focus and Indonesia’s large Muslim population
ecosystems are converting the multi-trillion-dollar Halal and supportive policies. Saudi Arabia and Türkiye followed
economy into inclusive, innovation-driven growth, relative with 34 deals (US$ 1.08 billion) and 23 deals (US$ 127.58 mil-
to their size. Built from 52 metrics across seven sectors— lion), respectively, underscoring the Middle East’s growing
Islamic finance, halal food, Muslim-friendly travel, modest prominence. Saudi Arabia’s leadership position aligns with
clothing, media/recreation, and halal pharmaceuticals & its Vision 2030 efforts.
cosmetics—the index balances scale with quality, weighting By sector, Media & Recreation led the way with 87
financial depth, governance, awareness, social impact and transactions worth US$ 451.27 million—more than qua-
innovation. This composite design enables policymakers and drupling from 21 deals in the previous period—driven by
investors to pinpoint structural gaps and prioritize reforms a post-pandemic surge in digital content. Islamic Finance
that unlock Shariah-compliant capital, certify products recorded the highest deal value at US$ 1.98 billion across
efficiently, and catalyze sector-specific R&D. 59 transactions, though the number of deals dropped
The 2024/25 results confirm Malaysia’s leadership for from 91 to 59 as monetary conditions tightened. Halal
an eleventh consecutive year, topping every sector except Food activity fell from 44 to 29 deals (US$ 1.29 billion),
modest fashion (where it places second). Saudi Arabia, and Halal Pharmaceuticals also contracted from 35 to
Indonesia, the UAE and Bahrain round out a stable top 23 deals (US$ 656.24 million), likely reflecting regulatory
five, underpinned by record sukuk issuances, fast-growing hurdles and inflationary pressures. Muslim-Friendly Travel
Islamic funds, and aggressive halal trade pacts. Sector-wise, experienced a modest uptick in deals, rising from 13 to 17
Malaysia dominates Islamic finance, halal food and Muslim- (US$ 1.37 billion), while niche segments—Modest Fashion
friendly travel; Indonesia overtakes in modest fashion; and (2 deals; US$ 0.3 million) and Halal Cosmetics (8 deals; US$
Malaysia and the UK share media & recreation leadership. 10.01 million)—remained small
Notably, Singapore and the UK remain the only non-OIC Halal food remains the largest sector within the Islamic
countries in the top-15, signaling the competitive advantage economy, accounting for approximately US$ 1.43 trillion of
conferred by robust regulatory and innovation frameworks. Muslim consumer spending in 2023, projected to reach US$
Strategically, three forces differentiate the frontrunners: 1.94 trillion by 2028 with a CAGR of 6.2%. Despite mod-
(1) institutional alignment—exemplified by Malaysia’s JAKIM est growth amidst inflation and geopolitical disruptions,
certification network and Saudi Arabia’s Vision 2030-linked investments in food security, production capacity, and
Public Investment Fund; (2) capital-market depth—evident technological innovations have continued. The UAE, Saudi
in Bahrain’s surge in Islamic finance assets and Pakistan’s Arabia, and Indonesia saw major investments enhancing
asset-backed digital currency pilots; and (3) innovation local halal food production, reducing import dependency,
velocity—illustrated by the UAE’s AI-centric National Strategy and strengthening supply chains. Notable ventures include
and Indonesia’s super-app for halal certification. Momentum JBS’s expansion in Saudi Arabia and significant European
plays to watch include Pakistan (up three places to break consolidation in the halal food market by players like Isla
into the top ten) and Senegal (up 18 places to 25th), each Délice and GoodLife Foods.
leveraging regulatory overhaul and targeted trade financ- Multilateral development banks like the Islamic
ing to scale export-oriented halal clusters. The implication Development Bank (IsDB), African Development Bank, and
for governments and corporates alike is clear: sustained Asian Development Bank have notably increased financial
leadership will hinge on synchronizing halal standards, commitments, supporting large-scale food security projects
deepening Shariah-compliant capital pools, and embedding and sustainable agriculture initiatives across Africa and
digital technology across certification, distribution and Asia, further reinforcing the sector’s resilience.
consumer engagement. Digital transformation and fintech continue to redefine
In 2023, OIC member countries saw a 1.8% decline in Islamic finance, with notable unicorn status achieved by
imports of halal-related products, down to US$ 407.75 bil- Saudi fintech firm Tamara, valued at US$ 1 billion. Islamic
lion from US$ 415.05 billion in 2022. This drop was mainly fintech is projected to significantly contribute to Islamic
driven by a 4.4% contraction in the food sector due to finance’s expected expansion, driven by continuous inno-
price correction in wheat following record highs amid the vation, increased regulatory harmonization, and rising
Russia-Ukraine conflict, currency devaluation, domestic consumer demand for ethical financial solutions. Islamic
self-sufficiency, and climate disruption. Pharmaceutical finance assets were valued at US$ 4.93 trillion in 2023
imports also decreased by 1.0% as vaccine demand sta- and are expected to reach US$ 7.53 trillion in 2028 at a
bilized post-pandemic. Despite this decline, the market is CAGR of 8.9%.
projected to rebound strongly, reaching US$ 608.36 billion Muslim-Friendly Travel, despite declining investment
by 2028 at a 8.3% CAGR, driven by increasing consumer levels, remains a significant economic driver, particularly in
demand, enhanced regulatory frameworks, and expanding Saudi Arabia. It is projected to grow at a CAGR of 12.1% by
halal-compliant supply chains globally. 2028 to reach US$ 384.12 billion from US$ 216.94 billion of
In 2023, the UAE and Indonesia emerged as the leading Muslim consumer spend in 2023. The sector sees substan-
halal-economy investment hubs, with the UAE completing tial innovation in halal-friendly infrastructure and digital

Executive Summary 11
 CREDIT/SHUTTERSTOCK

12 State of the Global Islamic Economy Report 2024/25

services. The sector is recovering steadily post-pandemic, and immersive entertainment offerings, significantly
with investments totalling US$ 1.37 billion despite ongoing enhancing the sector’s global visibility and appeal. Muslim
global volatility. Strategic initiatives like IFC’s investment in spend on Media and Recreation was US$ 259.66 billion in
Indonesia’s GoTo and the UAE’s Beond airline underscore the 2023, and is expected to grow in 2024 to US$ 273.23 billion
continued attractiveness of this sector. As demand grows and reach US$ 336.52 billion in 2028 at a CAGR of 5.3%.
for culturally tailored travel experiences, governments and Islamic ethical principles, sustainability, and innova-
private firms are significantly enhancing infrastructure tive technological advancements are increasingly inter-
and marketing strategies, positioning the sector for robust secting within the Islamic economy. Halal values resonate
long-term recovery and growth. with universal ethical consumerism trends, with brands
Modest Fashion, although facing investment slow- like Saffron Road and Iba Cosmetics successfully attract-
down, projects steady market growth from US$ 326.95 in ing both Muslim and non-Muslim ethical consumers.
Muslim consumer spend in 2023 with a forecasted value Innovation plays a critical role, with significant advances
of US$ 433.28 billion by 2028 at a CAGR of 5.8%, driven by across sectors including AI-driven solutions enhancing
mainstream appeal and sustainability innovations. Modest halal compliance, blockchain technology ensuring supply
fashion experienced a substantial reduction in investment chain transparency, and sustainable practices adopted
but remains resilient through robust digital commerce widely within halal industries.
channels and growing global consumer preference for While adoption rates remain moderate, artificial
sustainable and ethically produced apparel. Significant intelligence (AI) and blockchain technologies are increas-
attention from global fashion brands and increased aware- ingly integrated into halal certification and supply chain
ness of modest fashion’s inclusivity drive sector growth. management, promising transformative efficiency and
Halal Pharmaceuticals, with a Muslim consumer spend transparency enhancements. Countries such as Saudi
of US$ 107.10 billion in 2023 is projected to reach US$ 148.88 Arabia, UAE, and Indonesia have been at the forefront,
billion by 2028 at a CAGR of 6.8%, and it continues to implementing digital tools to strengthen halal standards
attract notable investments, especially in GCC countries. and facilitate easier market access.
The rise of telehealth and halal-compliant vaccines, driven A strengthening of halal certification standards
by the COVID-19 pandemic aftermath, highlights sustained and regulatory frameworks has been observed glob-
investor interest. Buoyed by increased healthcare expen- ally, driven by bodies such as the Islamic Forum for
diture and rising demand for halal-certified medicines Halal Accreditation Bodies (IFHAB) and national halal
and supplements, maintained strong market performance. authorities in Saudi Arabia, Malaysia, UAE, Indonesia, and
Countries like Indonesia, UAE, and Malaysia have emerged Morocco. These enhanced regulatory environments ensure
as innovation hubs, spurring growth through favorable increased market access, improved consumer trust, and
regulatory frameworks and research into halal-compliant compliance, underpinning global halal trade expansion.
vaccines and biopharmaceuticals. As ethical consumption increasingly intersects with
Similarly, the Halal Cosmetics sector, though recently regional self-reliance and geopolitical realignment, the
experiencing a dip, anticipates strong future growth global Islamic economy is positioned for significant
driven by increasing ethical consumerism and sustain- sustained growth. Ethical principles inherent within
able practices in key markets like Indonesia and Malaysia. halal products and Islamic finance resonate beyond
The sector, despite investment fluctuations, continues Muslim-majority markets, offering extensive cross-sec-
expanding through robust demand from ethically con- toral appeal in a rapidly evolving global economic land-
scious consumers in Southeast Asia, the Middle East, and scape. This dynamic position the Islamic economy as a
North Africa. Brands like Indonesia’s Wardah and Turkiye’s crucial contributor to broader global economic resilience,
Joseph Shining illustrate robust sector growth driven by sustainability, and equity.
digital expansion and rising global consumer preference
for ethically and halal-certified beauty products. Muslim
spend on cosmetics was US$ 86.66 billion in 2023, and is
expected to grow in 2024 to US$ 91.94 billion and reach
US$ 117.81 billion in 2028 at a CAGR of 6.3%.
Media and Recreation sector is witnessing heightened
investment activity with significant growth prospects in
halal-friendly digital entertainment, gaming, and educa-
tional platforms, with investment reaching US$ 451.27 mil-
lion. The young Muslim consumer demographic significantly
drives demand for culturally-aligned digital content. With
substantial recent investment activities in countries like
UAE and Saudi Arabia, the sector is poised for continued
expansion, reinforced by technological innovations and
increased consumer spending. Platforms from Saudi Arabia,
the UAE, and Southeast Asia continue driving innovative

Executive Summary 13
THE GLOBAL ISLAMIC ECONOMY
2024/25 OVERVIEW ALL FIGURES IN US$ BILLIONS, UNLESS STATED OTHERWISE

CONSUMER OPPORTUNITY
GOVERNMENT
Represented by US$ 2.43 trillion of consumer spending by 2 billion Muslims across
six real-economy sectors (2023). Reaching US$ 3.36 trillion by 2028 (5.3% CAGR).
LEADERSHIP
2023 2028 CAGR% GLOBAL ISLAMIC
ECONOMY INDICATOR
(GIEI) RANKING (2024)
HALAL FOOD MODEST FASHION
The GIEI benchmarks
leading national
ecosystems’ ability
to support Islamic
economy business
activity, relative to
US$ 327 their size.
(SEE CHAPTER 3 FOR DETAILS)
5.8%

US$ 433 1 Malaysia

Change YoY:
HALAL COSMETICS
US$ 1,434
6.2% 2 Saudi Arabia
US$ Change YoY:
87
US$ 1,939 6.3%

US$ 118 3 Indonesia

Change YoY:
MUSLIM-FRIENDLY TRAVEL MEDIA & RECREATION
HALAL PHARMA
4 UAE
US$ Change YoY:
US$ 217 107.1
US$ 260
12.1%
6.8% 5 Bahrain
US$ 149 5.3% Change YoY:

US$ 384 US$ 337

6 Jordan
Change YoY: +5
PLUS: ISLAMIC FINANCE

US$ 4.93 trillion of Islamic Finance Assets (2023 est.)

7 Kuwait
Change YoY: +2

US$ 4,925 US$ 7,527.5 8 Pakistan

Change YoY: +5

9 Türkiye
Change YoY: -2

10 Qatar
8.9% Change YoY:

14 State of the Global Islamic Economy Report 2024/25

INVESTMENT & TRADE DRIVERS
1.8% YoY decrease in import observed in Halal related sectors US$ BILLION (2023)
Russia
Thickness is proportional to the value 20.6
India
US 28.9 China
20.2 32.5

TOP 5 OIC Brazil TOP 5 EXPORTERS

26.9
IMPORTERS TO OIC

US$ 407.8 3 4
31.7%
Total of OIC 1 2 Share of exports
2
imports in all Halal 5
to OIC by top 5
related sectors 1 exporters

5 4
3

Türkiye
33.9
Saudi UAE
Arabia 41.3 Malaysia Indonesia
43.1 26.8 29.6
INVESTMENTS

US$ 5.8 Top countries by total deal value INVESTMENT SHARE BY SECTOR

billion
US$ BILLION (2023/24)
34.4% 23.8% 22.5% 11.4% 7.8%
1 2 3 4 5 Islamic Muslim- Halal Halal Media &
total investment Finance Friendly Food Pharma Recreation
amount in halal Travel
related sectors, 1.6 1.5 1.1 0.8 0.2
including Islamic Indonesia UAE Saudi Morocco Malaysia
finance Arabia

SOCIAL MEDIA LISTENING

SIGNALS OF OPPORTUNITIES
Consumers rally online to swap multinationals for
ethical, home-grown products (SEE CHAPTER 2 FOR DETAILS)
IMPACT: Low Moderate High
KEY ALTERNATIVE BRANDS RELATED POSTS PER
TOPIC
Zoya
Fashion/Indonesia
27.5%
Boycat
Mature

Tech App/USA Food &

Beverages
Wardah
Cosmetics/Indonesia 16%
Qeblawi Cosmetics Rise of Halal-
Cosmetics/USA Localization oriented Venture Enhanced Halal
Intermediate

LuLu Hypermarket 16% and Resilience Capital and Certification

Fashion in Supply Private Equity and Regulatory
Retail/UAE Chains Investments Harmonization
Albaik 13.3%
F&B/Saudi Arabia Technology
ZUS Coffee & Apps
F&B/Malaysia
Gaza Cola 5%
F&B/UK Media &
AI-driven Product Blockchain and
Entertainment and Service Traceability
Pakola
Early

F&B/Pakistan Innovation Technologies

22.1%
Kinza General / Multi-
F&B/Saudi Arabia sector calls

*All estimates by DinarStandard except for Islamic Finance sector provided by LSEG Data & Analytics Islamic Finance Development Indicator 2024 data. Muslim consumer spend
estimates & analysis by DinarStandard leveraging World Bank’s ICP 2017 consumer data as baseline reference. Halal and related product exports are based on ITC Trademap 2023
data. Projections are baselined on data from IMF Outlook from October 2024. Investments (figures and individual deals) are based on a detailed scan of databases from CapitalIQ,
Crunchbase and DinarStandard analysis from August 2023 to July 2024. For social media listening, related multilingual tweets spanning Oct 2023-Mar 2025 were harvested,
cleaned and distilled to 22 sentiment- and keyword features, then clustered with UMAP/k-medoids to map sectoral shifts in Muslim purchasing chatters. See appendix for detailed
methodology. OIC - Organization of Islamic Cooperation, 57 mostly Muslim majority member countries.

Executive Summary 15
 1
C H A P T E R

THE ISLAMIC
ECONOMY AND
DRIVERS OF
OPPORTUNITY
CREDIT/PHOTOGRAPHER
CREDIT/PHOTOGRAPHER

18 State of the Global Islamic Economy Report 2024/25

Chapter 1: Introducing the Islamic Economy and Drivers of Opportunity 19
Definition

Muslims around the globe, irrespective of their ethnic

origin, are bound together by certain religious beliefs
and practices that influence their consumption patterns
across various economic sectors, driving a US$ 2.4 trillion
opportunity for a range of products and services. Add to
that Islamic financial assets amounting to US$ 4.9 trillion,
and you get a complete picture of the Islamic economy
being worth a staggering US$ 7.3 trillion. In its 11th edition,
the State of Global Islamic Economy (SGIE) annual report
provides an overview of the methodology development and
forecasts made during the last decade, as well as conveying
the current status of the overall Islamic economy and its
various sectors.
The word “halal” is an Arabic term meaning permissi-
ble or lawful under Islamic law. The halal economy, also
referred to as the “Islamic economy,” consists of various
sectors comprising core products and services that are
structurally affected by Islamic ethics and law, including
food, pharmaceuticals, cosmetics, finance, travel, and media
and recreation. The Islamic economy, as a market, caters
primarily to the ethical needs and values of Muslims,
who follow Islamic law and guidance in their daily lives,
as outlined by the principles derived from the Qur’an
(the Muslim holy book comprising the word of God) and
the Sunnah (the sayings and traditions of the Prophet
Muhammad (peace be upon him)).
The SGIE report focuses on the sectors that offer
products and services that are structurally influenced
by Islamic ethics and law, anchored by the concept of
‘halal’ or permissible. In general, products are consid-
ered halal unless they contain ingredients prohibited by
the Qur’an and, therefore, are considered to be ‘haram’
or impermissible. The Qur’an defines impermissible food
items and substances, such as pork and its by-products,
alcohol, and any other intoxicating substances. In terms
of services, there are also several impermissible practices
designated by the Qur’an, such as gambling and taking
interest on money lent. The following section highlights
the impact of Islamic law and ethics on the core sectors
of the Islamic economy.

20 State of the Global Islamic Economy Report 2024/25

Summary of Key Characteristics
of Islamic Economy Across Sectors

HALAL PRODUCTS ETHICAL & SOCIAL FINANCE

Halal food, pharmaceuticals, and cosmetics The Qur’an and Sunnah require Muslims to follow spe-
cific guidelines in their business transactions, ensuring
With the clear prohibition of specific food items by that these transactions are fair to all contracting parties.
Islamic law, such as pork and intoxicants, ingestible These guidelines include ensuring the substance of the
products, whether food and beverage or pharmaceutical transaction is halal and that the details of the transaction
products, need to be free of any impermissible ingredi- and the terms of the contract are all just, clear, and in
ents. Accordingly, most Muslim-majority countries have accordance with Islamic principles, including avoidance of
introduced laws specifying halal ingredients with halal interest (riba). Islamic financial services and instruments,
certification requirements for imported products in the with their underlying values of fair business practices
food and pharmaceutical sectors. and stress on social responsibility, were introduced by
Halal food is also identified as “Tayyib,” meaning good several mainstream banks, attracting both Muslim and
or wholesome, which considers important values from non-Muslim clients.
the perspective of food safety and animal rights, to social
justice and welfare in food production. Consequently, these
values underline ethical and sustainable consumption, HALAL LIFESTYLE
which is gaining importance among both Muslim and
non-Muslim consumers. Muslim-Friendly Travel and Islamic-Themed
Media and Recreation
Modest fashion
Islamic teachings direct Muslims to use their time wisely
The Qur’an and Sunnah’s emphasis on preserving modesty is and positively and to avoid certain activities that are con-
reflected in various styles of Muslim dress, such as clothes sidered impermissible, such as drinking alcohol and gam-
covering the body appropriately, the use of non-transpar- bling. Islamic values influence the types of entertainment
ent fabrics, and loose-fitting attire. Even with the diverse and leisure activities that Muslims choose, including their
interpretations of ‘modesty’ among Muslims worldwide, travel and recreation preferences. Muslim-friendly tour-
there remain some essential aspects that qualify for a ism facilities have proved popular with tourists seeking
garment to be ‘modest.’ Sustainable and ethical practices in a family-friendly vacation environment.
production and the use of halal materials are also gaining
increasing importance among Muslim countries, attracting
eco-conscious consumers to modest fashion products.

Chapter 1: Introducing the Islamic Economy and Drivers of Opportunity 21

Key Growth Drivers

ISLAMIC ECONOMY SECTORS

SUPPLY-SIDE DRIVERS DEMAND-SIDE DRIVERS

Growing Youthful Population

Government Bodies
Functioning as Enablers Affluence of Muslim
Consumers
National Islamic Economy Halal Islamic
Strategies Food Finance Islamic Values-Driven
Lifestyle and Consumption
Global Brand Involvement Patterns

Islamic Economy Investment Digital Connectivity and the

Activity Rise of E-Commerce

Rise in Trade Agreements Muslim-Friendly Modest Intersection of Islamic Value

and Intra-OIC Trade with Sustainable and Ethical
Travel Fashion Consumerism

Halal Halal Media &

Pharma Cosmetics Recreation

Islamic Values

Justice and Equity Social Responsibility Modesty Moderation Family Values

DEMAND-SIDE DRIVERS power of these Gen Z and Millennial Muslims, who are key
economic contributors, will further drive the expansion
Growing young Muslim population of the halal economy, especially in OIC member states.

The global Muslim population is rapidly growing and The affluence of Muslim consumers
currently stands at over two billion, representing over
25% of the global population as of 2023. It is projected The International Monetary Fund (IMF) predicts that the
to reach 2.2 billion (26.4%) by 2030 and 2.8 billion (29.7%) combined GDP of OIC (Organization of Islamic Cooperation)
by 2050. This ongoing growth remains a key driver of the countries is projected to expand by 1.6% in 2024, reaching
halal economy.1 a total of about US$ 5.4 trillion in nominal terms (current
Muslim youth (aged 15–29) constitute a significant seg- prices). This growth in GDP is fueled by a consistent rise
ment of this demographic, representing 27.8% of the global in consumer spending across OIC member states.2
youth population in 2023, and this number is expected to Despite the various economic challenges these nations
exceed 540 million by 2030. The increasing purchasing have faced, their collective GDP was projected to increase

22 State of the Global Islamic Economy Report 2024/25

by approximately US$ 84 billion between 2023 and 2024. report internet penetration rates exceeding 99% of the
This translates to a projected rise from US$ 5.3 trillion total population. There are 5.35 billion people using the
in 2023 to US$ 5.4 trillion in 2024, representing a growth internet in 2024, equating to 66.2% of the world’s total
rate of 1.6%.3 population. Internet users have grown by 1.8% over the
Furthermore, several Muslim-majority countries, past year. This connectivity serves as a key enabler for the
including those in the Gulf Cooperation Council (GCC), as continued growth of the Islamic economy.8
well as Brunei and Guyana, have a GDP per capita that Global e-commerce sales are approaching US$ 6 tril-
exceeds the global average. The increasing economic lion, accounting for 19.5% of total retail sales. The fast-
strength of these markets is driving a significant surge est-growing markets include the Philippines (24.1% growth),
in demand for products and services that are certified India (22.3%), Indonesia (20.0%), and Malaysia (18.0%).
as halal. This trend underscores the growing economic Southeast Asia dominates e-commerce growth, with the
influence of the OIC member states and the expanding region expanding at 18.6% in 2023. Countries like Indonesia,
halal market opportunity.4 the UK, and South Korea already have over 30% e-com-
merce penetration (meaning e-commerce as a percentage
GDP PER CAPITA, NOMINAL TERMS (CURRENT of overall retail sales), while the US ranks among the top
PRICES (2024))5 five.9 As digital adoption increases in high-population
markets, e-commerce is set to outpace traditional retail
Qatar 71,568.39 in more regions.
United Arab Emirates 49,549.59
Brunei Darussalam 34,871.7 The intersection of Islamic values with
Saudi Arabia 32,881.34 sustainable and ethical consumerism
Kuwait 32,289.98
Bahrain 29,573.1 Many Islamic values underlying various sectors of the
Guyana 28,920.55 Islamic economy have a wider appeal, resonating with
Oman 20,631.44 universal principles such as sustainability and ethical con-
Maldives 17,286.83 sumption. Halal products are increasingly associated with
Türkiye 15,665.94 food safety, hygiene, and health. Many halal brands have
Kazakhstan 14,569.9 succeeded in attracting non-Muslim ethical consumers,
World 13,898.44 including brands such as Saffron Road and Iba Cosmetics.
Malaysia 13,142.35 Most consumers report positive attitudes towards
Turkmenistan 12,713.27 eco-friendly products and services, but they often seem
Gabon 9,256.66 unwilling to follow through with their wallets. But experts
have found several ways to nudge consumers to buy sus-
tainable products and services.10 By integrating decisive
The centrality of Islamic values to Muslim strategies, halal businesses can bridge the gap between
lifestyle and consumption patterns consumer intent and actual purchasing behavior, fostering
greater demand for sustainable halal products.
Recent research from the Pew Research Center points to
a significant resurgence in religiosity globally, particu-
larly when compared to the landscape two decades prior.6 SUPPLY-SIDE DRIVERS
This trend is especially pronounced in the Asia-Pacific
and MENA regions, where an overwhelming majority of Government bodies functioning as enablers
Muslims (between 70% and 90%) have rated religion as
“very important” in their lives.7 OIC member governments are participating in forums
This heightened emphasis on faith has tangible impli- aiming to harmonize halal certification regulations to
cations for consumer behavior. For Muslim consumers, in ensure compliance with established standards.11 Several
particular, Islamic values are increasingly shaping both national authorities oversee and accredit halal certifica-
lifestyle choices and consumption patterns. This shift is tion bodies, including the UAE’s Emirates Authority for
not merely theoretical; it is evidenced by the robust and Standardization and Metrology (ESMA) and the Emirates
sustained growth of the Islamic economy, which encom- International Accreditation Centre (EIAC), Saudi Arabia’s
passes a wide array of sectors that cater to the needs and Saudi Food and Drug Authority (SFDA), and Malaysia’s
preferences of religiously observant consumers. Department of Islamic Development Malaysia (JAKIM).
Increased efforts have been made to harmonize halal
Digital connectivity and the proliferation of standards by establishing the Islamic Forum for Halal
e-commerce Accreditation Bodies (IFHAB) in 2023, with backing from the
Organization of Islamic Cooperation (OIC), the Standards
Thirteen countries, including Middle Eastern countries and Metrology Institute for Islamic Countries (SMIIC),
Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE, now and the Islamic Centre for Development of Trade (ICDT).12

Chapter 1: Introducing the Islamic Economy and Drivers of Opportunity 23

 CREDIT/UNSPLASH

24 State of the Global Islamic Economy Report 2024/25

These regulatory efforts have heightened awareness of and investor protection. Saudi Arabia, for example, has
halal requirements among manufacturers, driving greater introduced new regulatory frameworks to equalize local
compliance and supporting the expansion of key sectors and foreign investor rights, although their impact on actual
within the Islamic economy. FDI inflows remains moderate.15
On the flip side, repelling factors have also hindered
National Islamic economy strategies investment flows. First, increased uncertainties in non-de-
veloped economies, where most OIC countries fall, have led
The Islamic economy is experiencing an increase in global to cautious investor sentiment. Geopolitical instability and
interest, even in countries where Muslims are not the economic volatility have made investors hesitant to commit
majority. This growing recognition stems from the under- to long-term projects. Second, global financing conditions
standing that economic diversification, which includes have tightened due to rising interest rates, reducing the
sectors compliant with Islamic principles such as finance, affordability of large-scale investments. A 26% drop in
food, and fashion, can play a pivotal role in stimulating international project finance was recorded in developing
economic growth and development. The appeal of the economies, affecting infrastructure investments crucial to
Islamic economy lies not only in its ethical and social OIC countries.16 Third, the decline in greenfield investments
values but also in its potential to tap into a vast and grow- has been a major setback, with fewer new industrial and
ing consumer market seeking products and services that infrastructure projects being launched due to financial
align with their faith. OIC member states like Saudi Arabia, constraints and policy inconsistencies. Despite reform
the UAE, Nigeria, and Indonesia have actively partnered efforts, Saudi Arabia’s FDI stagnated at US$ 5.2 billion in
with the Islamic Organization for Food Security (IOFS) to Q2 2024, highlighting the challenges in attracting foreign
strengthen halal food security. Across various industries, investment despite a strong reform push (Reuters, 2024).
OIC governments are implementing policies and support These mixed factors shape the investment landscape in
mechanisms to foster economic expansion. A key opportu- OIC countries, requiring strategic interventions to sustain
nity for stakeholders is the push for global harmonization growth and attract stable foreign capital.
of halal standards and accreditation processes, which
would simplify certification requirements and facilitate Rise in intra-OIC trade and investment
the growth of halal trade on an international scale. agreements

Global brand involvement Despite global economic stagnation, intra-OIC trade saw
a modest increase of 1.23%, rising from US$ 873 billion in
The halal economy, a multi-trillion-dollar global industry, 2022 to US$ 884 billion in 2023. This growth was driven
is increasingly attracting major multinational brands like by rising commodity prices, fluctuating exchange rates,
Nestlé, Unilever, and H&M. Their participation highlights geopolitical tensions in Ukraine and the Middle East, and
the rising consumer demand for halal-certified products increased local production to meet regional demand.
and services. These brands are introducing innovative Bilateral and regional trade agreements have reinforced
offerings across various Islamic economy sectors, further trade activity as well. However, the share of intra-OIC trade
driving market expansion. As the halal industry continues in total foreign trade dipped slightly by 0.11 percentage
to grow worldwide, more global players are expected to points, from 19.27% in 2022 to 19.16% in 2023.17
enter, strengthening the sector’s influence and accessibility. One of the core mandates of COMCEC, the Organization
for Islamic Cooperation (OIC), and the Islamic Development
Islamic economy investment activity Bank (IsDB) Group specifically requires all three institutions
to promote intra-OIC trade and foreign direct investment
There are both attracting and repelling factors influencing (FDI) flows in their member states. The OIC Ten-Year Action
investment flows into OIC countries in 2024. Among the Plan (2016-2025) targets increasing intra-OIC trade to
attracting factors, the first is the resilience of emerging 25% by 2025. However, trade and investment flows within
economies within the OIC bloc. Countries like Saudi Arabia, OIC countries have yet to reach this target, highlighting
Indonesia, and the UAE have shown strong economic significant economic disparities among member states.
diversification efforts, reducing dependency on oil revenues Addressing these imbalances remains a priority, as boosting
and investing heavily in infrastructure and technology. For intra-OIC trade and investment could play a transforma-
instance, Saudi Arabia aims to attract US$ 100 billion in tive role in driving economic recovery post-pandemic and
annual FDI by 2030, leveraging its PIF to co-invest with mitigating the impact of geopolitical uncertainties.
global asset managers like Brookfield.13 Second, strate-
gic international partnerships have boosted investment,
particularly in the clean energy and tech sectors. China’s
investment in Saudi Arabia’s green technologies reached
US$ 21.6 billion in greenfield FDI from 2021 to 2024, making
China Saudi Arabia’s largest investor in this category.14 Third,
investment climate reforms have enhanced transparency

Chapter 1: Introducing the Islamic Economy and Drivers of Opportunity 25

Key Trends and Disruptive
Innovations Affecting
the Halal Economy
GEOPOLITICAL INSTABILITY average of 3.7%). Global headline inflation is expected to
decline to 4.2% in 2025 and to 3.5% in 2026, converg-
Challenges in 2024, including regional conflicts, disrupted ing back to target earlier in advanced economies than in
supply chains, commodity prices, and political stability, emerging markets and developing economies.23
will persist into 2025. Energy and raw material shortages Global inflation is forecast to decline steadily, from
will drive price hikes, while political uncertainty in the US 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025, with
and EU will add volatility. US President Trump’s return advanced economies returning to their inflation targets
to ‘America First’ policies could strain global trade, and sooner than emerging market and developing economies.24
the unresolved conflict in the Middle East will escalate But the base of expansion is slow and risks remain, given
geopolitical instability. The global order will fragment, the geopolitical tensions in the Middle East and other
heightening economic volatility.18 parts of the world, attacks that could disrupt commodity
Ongoing geopolitical instability is expected to have a prices and supply chains.
significant economic impact on OIC countries, affecting
trade, energy security, and investment. Disruptions to
supply chains and raw material shortages will drive up THE CLIMATE CRISIS
costs, particularly in import-reliant nations, while energy
price volatility could benefit oil-exporting OIC countries The year 2024 was a challenging year for sustainability,
but harm net importers. Protectionist trade policies, from climate issues to inequality. The three top concerns
such as ‘America First,’ may limit access to US markets, include elections and political turmoil that threaten prog-
prompting OIC nations to strengthen regional trade ties. ress, companies retreating or staying silent on DEI and
Political uncertainty in the US and EU could deter foreign ESG goals, and the rise of sustainability reporting that’s
investment, leading to capital flight and weaker currencies. (temporarily) taking up companies’ time. Other issues from
Regional conflicts may also hinder economic cooperation, the past year include the clean economy hitting tipping
delaying key initiatives and causing instability in countries points, AI’s growth threatening decarbonization, heavy
dependent on tourism. industry making some progress, and the beginning of a
crackdown on “greenwashing.”25
In 2024, the world experienced unprecedented climate
DEGLOBALIZATION events, including record-breaking heatwaves, floods, and
droughts, underscoring the escalating impacts of climate
The growing influence of economic alliances like BRICS change. The United Nations reported that 1.2 billion people
signifies a notable shift towards a multipolar world. This are now at high risk from climate-related hazards such as
is further evidenced by the BRICS GDP (in PPP terms) heatwaves, flooding, hurricanes, and drought.26 The World
surpassing the G7 GDP in 2018, and this trend is projected Bank noted that the year 2024 is set to be the warmest
to persist.19 The consequences of deglobalization are not on record, capping a decade of unprecedented heat fueled
limited to trade but also extend to finance, with initiatives by human activities.27 These developments highlight the
aimed at de-dollarization.20 The impact of deglobalization urgent need for comprehensive climate action to mitigate
is evident in the reshoring trend in several OIC countries, further economic and social disruptions.
such as Malaysia and Indonesia,21 which is projected to
become the world’s fourth-largest economy by 2030.22
THE FERTILITY SLUMP
INFLATION AND ENERGY PRICES As of 2024, the global fertility rate has declined to approx-
VOLATILITY imately 2.4 births per woman, down from 2.7 in 2020.28
Projections indicate a further decrease to 2.2 by 2025, with
Global growth is estimated at 3.2% in 2024 and projected at a continued downward trend expected in the following
3.3% both in 2025 and 2026 (below the historical (2000–19) decades.29 This decline raises concerns about potential

26 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK
labor shortages by 2050 due to a shrinking working-age tors like space, satellite broadband, generative AI, and
population. brain-interface technologies, which are likely to benefit
In Muslim-majority countries, fertility rates have also from supportive policy initiatives. His ability to capitalize on
decreased but remain higher than the global average. For these trends will shape these sectors in the coming years.32
instance, the fertility rate in the Middle East and North Traditional AI is adaptable to some degree but often
Africa region is approximately 3.1 births per woman.30 needs specific training for each unique task or application.
Despite this decline, countries like Nigeria, Pakistan, Generative AI can adapt to various domains and generate
Indonesia, and Egypt are projected to experience signif- content across different fields.33 Generative AI is highly
icant population growth, potentially ranking among the disruptive, with the potential to become a US$ 1.32 trillion
world’s top ten most populous nations by 2100.31 While market by 2032.34 While developing countries will see more
a lower fertility rate can pose challenges to productivity, modest gains, the Middle East is expected to benefit from
the higher fertility rates in countries with existing high overall AI by US$ 320 billion, particularly in the UAE and
unemployment, such as Nigeria and Egypt, may exacerbate Saudi Arabia. AI will also likely improve the halal supply
labor market pressures. chain and ensure compliance.35 AI is expected to improve
the efficiency and productivity of the halal supply chain
as well as ensure halal compliance.36 However, automation
ARTIFICIAL INTELLIGENCE (AI) AND poses challenges for labor markets, with 40% of global
AUTOMATION jobs exposed to AI. Sectors like transportation and man-
ufacturing face long-term risks, while financial services
Elon Musk continues to dominate headlines with disruptive will experience short-term disruption. The impact will
cost-cutting moves and expanding satellite broadband vary, with industrial economies more vulnerable to job
services. Musk is also increasing investments in sec- losses than service-based ones.37

Chapter 1: Introducing the Islamic Economy and Drivers of Opportunity 27

 At the Islamic Development Bank Institute,
we turn insights into actions.

We work collaboratively with our partners to

develop those insights into tangible solutions.

We are the recognised beacon of knowledge

for the Islamic Development Bank Group.

We create solutions that enable and accelerate

sustainable social and economic progress of
our communities around the world.

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Integrating Awqaf assets with Free Zones
and modern technology to enhance food, energy,
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Modernizing intra-OIC trade to reduce debt and
enhance secure, transparent, and Shariah-compliant
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Transforming postal networks into digital Islamic
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empower underserved communities.

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Revolutionizing asset market stability with
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www.isdbinstitute.org [email protected]
 2
C H A P T E R

CONSUMER
SENTIMENT
CREDIT/UNSPLASH

32 State of the Global Islamic Economy Report 2024/25

Chapter 2: Consumer Sentiment 33
A Values-Driven Shift in Muslim
Consumer Behavior (2023–2025)
A significant and accelerating shift in Muslim consumer spending
towards ethical and values-aligned brands is reshaping global markets.

DinarStandard’s previous SGIE Reports have tracked a McDonald’s and Starbucks, for instance, reported
growing shift toward domestic economic development declines in sales and profits in 2024. McDonald’s global sales
initiatives from Saudi Arabia to Indonesia, influenced by declined for the first time since 2020,39 while Starbucks
national strategies, post-COVID-19 supply chain security, saw North American store sales dip by 3% and sales in
and continuing ethical consumerism among the younger the rest of the world by 6% in a Q2 2024 report.40 KFC also
generation. faced significant setbacks, with over 100 outlets reportedly
This trend has accelerated since late 2023, driven by closing temporarily in Malaysia,41 while KFC and Pizza Hut
global condemnation of Israel’s systematic drive towards franchises in Türkiye were affected after the termination
ethnic cleansing of the Palestinian people, as recognized of franchise deals.42
by global agencies such as Amnesty International, among The beverage sector was similarly affected. Coca-Cola
many others, as a ‘genocide.’38 and PepsiCo experienced challenges in Muslim-majority
Analysis of social media reveals strong consumer sen- countries, with local brands gaining market share.43 Western
timent favoring ethical alternatives, particularly in food beverage brands faced a 7% sales decline in the first half
& beverages and technology, with significant underlying of 2024 across the Middle East, according to NielsenIQ.44
interest in fashion and cosmetics. Specifically, Coca-Cola’s volumes in Egypt declined by
This section presents a factual analysis of this signifi- double-digit percentage points in the six months ending
cant shift observed in the past year, given its relevance to June 2024, a stark contrast to high single-digit growth in
the global Muslim consumer market. The period between the same period of 2023.45 PepsiCo’s beverage volumes
October 2023 and March 2025 was evaluated using social in its Africa, Middle East, and South Asia division “barely
media tracking. Based on select related keywords, 2,835 grew” in the six months following October 2023, after
related social media posts were evaluated for sentiment previously strong growth.46
and insights analysis. A focused subset of 443 (15.6%) Carrefour, the French retail giant, saw its net prof-
posts explicitly identified preference for alternative brands, its in 2024 decrease compared to 2023.6 Carrefour was
revealing a discernible trend towards local and ethical forced to close all its branches in Jordan in November 2024
consumption. These discussions, predominantly in English after a sales drop that started in October 2023.47 Majid Al
(53.7%), Arabic (23.9%), Indonesian/Malay (17.6%), and Futtaim Group, Carrefour’s partner in much of the Arab
French (4.7%), underscore a global movement. A key focus region, terminated its dealings with Carrefour in Jordan
of this section is to highlight the very strong investment and Oman due to financial losses,48 while analysts noted
opportunity for alternative brands to global brands that that competition from local market entrants like LuLu,
are seen as complicit in unethical practices across food & Spinneys, etc., could have played a role as well. 49
beverage, modest fashion, and other categories. These instances illustrate a clear economic trend:
consumer activism, amplified by geopolitical events, can
directly impact the financial performance and market
THE SHIFTING ECONOMIC LANDSCAPE: presence of global corporations. The consistency of these
MULTINATIONAL CORPORATIONS reports across different sectors – fast food, beverages,
UNDER PRESSURE retail – points to a broad-based consumer reaction.

Consumer-led activism, amplified by

geopolitical events, is causing significant ASCENDANCE OF LOCAL AND ETHICAL
financial and operational challenges for ALTERNATIVES
multinational corporations (MNCs) across
various sectors. Alongside the pressure on MNCs, there
has been a notable surge in consumer
This pressure has manifested in tangible financial impli- preference for local, Muslim-owned, and
cations, including sales declines, profit warnings, and ethically aligned alternative brands, creating
operational adjustments in affected regions. new market opportunities.

34 State of the Global Islamic Economy Report 2024/25

CREDIT/SHITTERSTOCK

Chapter 2: Consumer Sentiment 35

 Key Alternative Brands by Sector
(OCT 2023–MAR 2025)

BRAND COMPANY NAME WEBSITE SECTOR HQ CITY COUNTRY

Spiro Spathis MYMCO for Food & spirospathis.com F&B Cairo Egypt
Beverage
Kinza Al-Jameel International Co. kinzabev.com F&B Jeddah Saudi Arabia

Shnider United Egypt for unitedegyptonline. F&B Giza Egypt

Investment com/shnider
Palestine Cola Safad Food AB / Palestine palestinedrinks.com F&B Stockholm Sweden
Drinks
Gaza Cola Palestine House CIC gazacola.shop F&B London UK

Cola Next Mezan Beverages (Pvt) Ltd colanext.com F&B Karachi Pakistan

V7 Benefit Co. for Healthy F&B v7-benefits.com F&B Cairo Egypt

Salaam Cola Salaam Cola (Halal salaamcola.com F&B Istanbul Türkiye / USA
Beverage Dist.)
Pakola Pakistan Beverage Ltd — F&B Karachi Pakistan

ZUS Coffee Zuspresso (M) Sdn Bhd zuscoffee.com F&B (coffee) Shah Alam Malaysia

Naskeen Nasken International Sdn naskencoffee.com F&B (coffee) Kota Bharu Malaysia
Coffee Bhd
Matrix Cola Defaf Al-Nahrayn Co. matrix-cola.com F&B Amman Jordan

Alsi Cola Alesayi Beverage Corp. alsicola.com F&B Jeddah Saudi Arabia

Mojo Akij Food & Beverage Ltd akijfood.com F&B Dhaka Bangladesh

Mecca Cola Mecca Cola World Group meccacolagroup.com F&B Hong Kong China (SAR)

ALBAIK ALBAIK Food Systems Co. albaik.com F&B (fast-food) Jeddah Saudi Arabia

Almaz Fried PT Abuya Berkah Indonesia — F&B (fast-food) Bekasi Indonesia

Chicken
Beryl’s Beryl’s Chocolate & berylschocolate.com. F&B Seri Malaysia
Chocolate Confec. my (confectionery) Kembangan
Palmary Sarl Palmary - F&B Blida Algeria
(confectionery)
LuLu LuLu Group International gcc.luluhypermarket. Retail Abu Dhabi UAE
Hypermarket com
Spinneys Spinneys Dubai LLC spinneys.com Retail Dubai UAE

Wardah PT Paragon Tech & wardahbeauty.com Cosmetics Jakarta Indonesia

Innovation
SABA Personal Saba Personal Care Pvt Ltd sabapersonalcare.com Cosmetics New Delhi India
Care
Mad for PT Madverse madformakeup.co Cosmetics Jakarta Indonesia
Makeup
Qeblawi Qeblawi LLC qeblawi.com Cosmetics San Francisco USA
Cosmetics
Talent Talent Cosmetics Co. Ltd talentcosme.net Cosmetics Seoul South Korea
Cosmetic
(Sunwoo)
Ozone Ozone Cosmetics Co. ozonecosmetics.com Cosmetics Amman Jordan
Cosmetics
BooHoo Boohoo Group plc boohoo.com Fashion Manchester UK
(Modest)
LC Waikiki LC Waikiki Mağazacılık lcwaikiki.com Fashion Istanbul Türkiye
(LCW Modest)
Zoya Shafira Corporation zoya.co.id Fashion Bandung Indonesia

Boycat Boycat Inc. boycat.io Tech / App San Francisco USA

No Thanks Bash Software (Play Store) Tech / App Budapest Hungary

Buycat Boycat Inc. buycat.shop Tech / San Francisco USA

Marketplace
*THE LIST IS NOT EXHAUSTIVE; IT COMPRISES ONLY THOSE ENTITIES REFERENCED IN OUR SAMPLE, AND ADDITIONAL ONES MAY EXIST THAT WERE NOT CAPTURED.

36 State of the Global Islamic Economy Report 2024/25

 Global Map of Key Alternative Brands by Sector
Halal Food Retail Halal Cosmetics Modest Fashion Tech/App (OCT 2023–MAR 2025)

This shift is not merely a rejection of certain companies The fast-food segment echoes this pattern. Local and
but an active embrace of businesses that resonate with regional chains have picked up the slack. Indonesia’s
consumer values, creating new market dynamics. Ethical Almaz Fried Chicken expanded to 37 outlets nationwide,
alternatives emerged across food, tech, and other sectors, attributing its success directly to customers “actively
filling the void left by avoided brands. The table below choosing local alternatives” as a form of support for a
lists the prominent alternative brands mentioned (row) by cause.59 A Malaysian survey in early 2024 found 62%
sector, with their tweet counts, dominant language/region, have shifted to domestic fast-food outlets (e.g. a locally
and sentiment. run fried chicken chain), and 58% are choosing local
confectionery brands such as Beryl’s chocolate over
FOOD & BEVERAGES: LEADING THE SHIFT imported alternatives.60
The halal food & beverages sector has been at the forefront The success of these alternatives is often amplified
of this transition, with consumers actively seeking and by a sense of “patriotic consumption” or “solidarity pur-
promoting substitutes for Western brands. chasing.” Consumers are not only choosing these brands
In Malaysia, this shift reportedly “pushed local brands because they are not the non-preferable entities but also
to the forefront,” with the local coffee chain ZUS Coffee because they represent local economic empowerment,
opening 200 new outlets and expanding internationally,50 national pride, or direct support for the cause aligned
while Starbucks Malaysia reported a net loss of RM91.5 with their values. For instance, a tweet promoting Mojo
million for the 2024 fiscal year, compared to a net profit of in Bangladesh highlighted that “Palestine will get BDT 1
RM103.4 million in the previous year.51 Analysts note that per bottle,”61 directly linking consumption to a charitable
consumers who switched away from premium global coffee financial contribution. Cola Next in Pakistan strategically
brands have now become “entrenched in more affordable changed its slogan to “Because Cola Next is Pakistani,”
alternatives,” indicating these habits may stick. 52 emphasizing its local identity.62
Similarly, local cola brands have seen a surge in demand. This emotional and nationalistic connection serves
In Jordan, Matrix Cola reported a 200% rise in sales since as a powerful market driver, suggesting that the appeal
December 2023.53 Egypt’s V7 cola brand tripled its exports of these alternatives is multifaceted, extending beyond
in 2024 compared to 2023 and saw a 40% sales increase simple substitution to embodying positive attributes of
domestically.54 In Pakistan, local brands like Cola Next and local identity and ethical alignment.
Pakola increased their share of the soft drinks category on
a leading delivery app from approximately 2.5% to 12%.55 SENTIMENT SPOTLIGHT ON HALAL FOOD SECTOR
Alsi Cola in Saudi Arabia, which holds a significant domestic Focusing on the halal food sector, our sentiment anal-
market share, also saw sales surge regionally.56 This trend is ysis observes clear growth and inflection points in
further exemplified by the emergence of brands like Palestine alternative engagement.
Cola, launched by a Palestinian-Swedish family,57 and Gaza Engagement with halal food alternative tweets was
Cola in the UK, framed as “apartheid-free” alternatives.58 heavily driven by likes and retweets, indicating broad

Chapter 2: Consumer Sentiment 37

 endorsement. The figure below shows the breakdown of COSMETICS AND FASHION
total interactions for halal food posts. The ratio of likes Mainstream brands face a dual vulnerability with calls
to replies (>35:1) implies that far more people signaled to avoid these brands.
approval or agreement (liking) than engaged in discus- In the cosmetics market, our original dataset noted
sion (replies). This pattern is typical for broadcast-style calls to avoid brands like MAC, Charlotte Tilbury, and
campaign tweets – many supporters amplify the message Estée Lauder. These mainstream brands face a dual vul-
(retweets) or silently agree (likes), but fewer debate or nerability: shifts linked to geopolitical issues and broader
inquire publicly. The relatively low quote count also sug- ethical scrutiny concerning supply chains (e.g., child labor
gests limited pushback or contextual commentary; most allegations in jasmine sourcing for L’Oréal and Estée
users simply echoed the message. We also note that Lauder) or product ingredients. This compounded pressure
these 42 tweets amassed ~2.35 million views, reflecting creates a substantial opportunity for halal and ethically
substantial reach. The average tweet in the halal food certified brands that can offer transparency and value
alignment. While Estée Lauder reported sales declines
in some regions and periods,63 L’Oréal saw growth in
TOTAL ENGAGEMENT ON HALAL FOOD its SAPMENA-SSA64 region (+12% like-for-like in 202465),
ALTERNATIVE-BRAND TWEETS (CUMULATIVE) indicating a complex market landscape where factors
can be intertwined.
Likes 49,565 Numerous halal cosmetic brands are emerging or
Retweets 19,714 expanding, such as Wardah (Indonesia), SABA Personal
Replies 1,404 Care (India), Mad for Makeup (Indonesia), Qeblawi
Quotes 653 Cosmetics (US), and Talent Cosmetic Co. Ltd. (South
Korea, with its Sunwoo Cosme brand being the first
Korean halal-certified line).
sector got ~55K views, 1.18K likes, and 470 retweets. Modest fashion is also gaining traction and going
Breaking down halal food into sub-categories, mainstream. Examples include UK-based BooHoo’s mod-
we find that beverage alternatives (coffee, cola, etc.) est collection, Türkiye retailer LC Waikiki’s dedicated
slightly outpaced food/restaurant alternatives in vol- modest clothing store in Qatar, and Indonesian brand
ume and positivity. Beverage-related tweets were often Zoya’s expansion across Southeast Asia.66
celebratory (as seen with Palestine Cola, Mojo, etc.), The convergence of these developments suggests
whereas restaurant-related tweets sometimes carried that the fashion and cosmetics sectors are poised for a
an undertone of sacrifice (giving up favorite fast food). significant realignment as Muslim consumers increas-
However, statistically, the difference in sentiment was ingly demand products that reflect their ethical and
not significant (as noted, ~54.5% vs 35.3% positive, p religious values.
≈ 0.23). Within beverages, coffee alternatives (e.g., Zus
Coffee, local cafés) featured in regions like Malaysia, USER ADOPTION AS MARKET INFLUENCE
while cola alternatives were a pan-Islamic phenomenon Technology has played a crucial role in this consumer
(Palestine Cola, Mecca Cola mentions across countries). shift, empowering individuals to make informed deci-
Within food, much attention was on fast-food chains: sions.
e.g., McDonald’s and KFC, with hints at alternatives Apps like Boycat67 and No Thanks,68 designed to scan
like AlBaik (a Saudi chain) circulating anecdotally. Dairy barcodes and provide information on brands’ affiliations,
products (Nestlé, etc.) got a few mentions, too, often have gained significant traction.69 In our dataset, one
in lists of brands to avoid, with encouragement to buy tweet introducing the app garnered 15.8K likes and 4.26
local milk or sweets instead (seen in some Arabic tweets million views, indicating massive reach and user interest.
and replies). The rapid adoption and high engagement with such
Narratively, five key themes emerged in halal food “activist tech” demonstrate a behavioral shift. Consumers
alternative tweets: are integrating these tools into their daily shopping rou-
•  Religious duty: Consumers framed choosing halal tines, signifying a new market for tech-enabled ethical
alternatives as part of faith and solidarity. consumerism. While direct revenue for these apps is not
•  Quality and value: Users often claimed local alter- the primary focus, their influence on purchasing decisions
natives tasted better or were better. across numerous other sectors represents a significant
•  Economic resistance: Many explicitly tied pur- indirect economic impact. The emergence of these tools
chases to resistance, using phrases like “vote with and platforms like Buycat (an alternative marketplace)
your wallet”. points towards the development of a dedicated infra-
•  Community building: People shared personal structure supporting long-term ethical consumption,70
experiences of discovery. indicating a maturation of the consumer movement
•  Inflection points: Several tweets highlighted major beyond immediate reactions to a more sustained, tech-
turning points, such as a news report of Starbucks’ nologically facilitated approach to ethical purchasing.
stock dipping in Q4 2023 as MENA sales fell.

38 State of the Global Islamic Economy Report 2024/25

CONSUMER SENTIMENT & KEY SECTORAL DISTRIBUTION OF ALTERNATIVE-FOCUSED
CATEGORIES TWEETS (OCT 2023–MAR 2025, % OF 443 TWEETS)

The social media analysis of 443 alternative

brands’ focused social media posts indicated
a strong focus on food & beverages and
technology, where specific alternative
brands were named. General / Multi- Food & Beverages
sector calls 28%
22%
A subsequent thematic review of the 378 tweets orig-
inally categorized as “Other” (general calls for alternatives
without brand mentions) provided a more nuanced view Media & Entertainment
5%
of the breadth of consumer interest.
This distribution suggests a more widespread interest Technology
in finding alternatives across sectors like fashion and & Apps Fashion
cosmetics than was apparent when only counting explicit 13% 16%
brand mentions.
The sentiment expressed in these social media posts Cosmetics
16%
often correlates with the tangible success of alternatives,
the sense of empowerment provided by new tools, or,
conversely, frustration with the existing market.
The high positive sentiment in food & beverages and
technology reflects consumer satisfaction with read-
ily available and impactful alternatives. For fashion and
cosmetics, while explicit alternative brand mentions were
initially low, the strong market growth and ethical drivers
suggest an optimistic underlying consumer base eager
for suitable options.

Sentiment Towards Ethical Alternatives by Sector

SECTOR % TWEETS % POSITIVE ECONOMIC CONTEXT/IMPLICATION FOR SENTIMENT

SENTIMENT

Food & Beverages 27.5% ~48% High positivity driven by tangible success of local alternatives (e.g.,
ZUS Coffee, local colas), job creation, visible impact on MNCs.
Empowerment through choice.

Fashion 16.0% (Original 100% Growing market for modest fashion indicates high underlying
on n=1) Likely demand. Positive sentiment reflects desire for ethical options.
mixed but Potential for negativity if local/ethical choices are perceived as
optimistic. limited or costly.

Cosmetics 16.0% (Original 100% Strong growth in halal cosmetics. Positive sentiment from desire
on n=1) Likely for ethical/pure products. Scrutiny of MNCs (e.g., child labor)
mixed but could drive negative views of incumbents and positive views of
optimistic. alternatives.

Technology & Apps 13.3% ~58% Highest positivity due to empowerment from tools (e.g., Boycat)
facilitating alternative discovery. Sense of agency.

Media & Entertainment 5.0% 0% Low positivity reflects challenges in finding/adopting alternative
media, ongoing dissatisfaction with mainstream narratives.

General/Multi-Sector 22.1% ~29% Baseline sentiment, often focused on avoiding calls without
immediate solutions, hence more neutral or expressing frustration.

Chapter 2: Consumer Sentiment 39

Strategic Outlook: Four Key
Insights into Long-Term
Market Reshaping
The consumer response to the globally recognized CRUCIAL ROLE OF SUSTAINED
Palestinian genocide is more than a transient phenome- INVESTMENT AND INNOVATION
non; it appears to be a significant catalyst accelerating a
durable shift towards an ethical and halal-centric economy To sustain this consumer shift momentum, continued
within Muslim consumer markets and beyond. financial investment–from venture capital, Islamic finance,
and SME support programs – is crucial, alongside ongoing
innovation in product development, supply chain trans-
STRUCTURAL MARKET RESHAPING parency, and ethical marketing.
AND REALIGNMENT OF CONSUMER
LOYALTIES
AMPLIFICATION OF PRE-EXISTING
The observed phenomena – MNC profit warnings and ETHICAL AND HALAL DEMANDS
operational retrenchments coupled with the concurrent
rise of local and ethical alternatives and their supporting While the Palestinian crisis served as a powerful, unifying
financial ecosystems – point towards a structural reshaping trigger, the rapid and widespread consumer shift was
of consumer market opportunities. This is not merely a enabled by pre-existing, albeit perhaps slower-moving,
temporary downturn for some corporations but a potential ethical consumer sentiments and a growing demand for
realignment of market share and consumer loyalties. The halal, sustainable, and locally produced goods. The recent
“vote with your wallet” philosophy, facilitated by technol- event acted as an accelerant, crystallizing these latent
ogy and heightened awareness, is becoming an ingrained demands into mass action.
consumer practice. The sustained growth in Islamic finance
and various halal market segments predates the recent
shift but is now being significantly amplified.

EMERGENCE OF AN “ETHICAL
PREMIUM” IN HIGH-VALUE SECTORS
The growing ethical and halal markets, particularly in high-
value sectors like fashion and cosmetics, present immense
opportunities for businesses that can authentically align
with consumer values. There is evidence that some con-
sumers are willing to pay a premium for locally sourced
or sustainable products (e.g., 18% of consumers in Saudi
Arabia are willing to pay 11-20% more71), suggesting the
market for ethical alternatives is maturing beyond price
competition to value-based differentiation. This allows
for an “ethical premium” for brands that genuinely deliver
on their promises.

40 State of the Global Islamic Economy Report 2024/25

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Chapter 2: Consumer Sentiment 41

 3
C H A P T E R

THE GLOBAL
ISLAMIC
ECONOMY
INDICATOR
(GIEI)
CREDIT/UNSPLASH

44 State of the Global Islamic Economy Report 2024/25

Chapter 3: The Global Islamic Economy Indicator 45
 Purpose and Methodology

The Global Islamic Economy Indicator (GIEI) offers a com- pharmaceuticals/cosmetics). The different components
prehensive picture of countries currently best positioned that make up the indicator are as follows:
to address the multi-trillion-dollar global halal economy •  Financial sub-indicators: Metrics that gauge the size
opportunity. of the sector.
In its eleventh year, the purpose of the GIEI is to bench- •  Governance sub-indicators: Metrics to gauge the
mark the leading national ecosystems best able to support halal certification and shariah regulatory landscape
the development of Islamic economy business activity (as applicable).
relative to their size. Since its inception, the GIEI has been a •  Awareness sub-indicators: Metrics to understand the
key measurement tool for countries looking to develop their extent of awareness the sector has built through the
Islamic economy offerings. It has allowed them to pinpoint press, as well as through related events.
the areas for development and address those directly. •  Social sub-indicators: Metrics to understand the social
The GIEI is a composite weighted index that measures impact of the sector.
the overall development of the Islamic economic sectors •  Innovation sub-indicators: Metrics to understand
by assessing the performance of its parts in line with its the innovation landscape of the sector.
broader social obligations. It is made up of 52 metrics To further align the indicator with its purpose, the
organized into five components for each of the sectors of weightage of the sub-indicators has been adjusted to
the Islamic economy (Islamic finance, halal food, Muslim- better highlight the development of the Islamic economy
friendly travel, modest clothing, media/recreation, halal ecosystem.

Top 15 Global Islamic Economy Indicator Score

1 2 3 4 5

MALAYSIA SAUDI ARABIA INDONESIA UNITED ARAB BAHRAIN

EMIRATES

6 7 8 9 10

JORDAN KUWAIT PAKISTAN TÜRKIYE QATAR

11 12 13 14 15

OMAN SINGAPORE IRAN UNITED KINGDOM BANGLADESH

46 State of the Global Islamic Economy Report 2024/25

 CREDIT/UNSPLASH
Indicator Scores Breakdown for Top 15 Ranking Countries

MUSLIM- HALAL PHARMA-

HALAL ISLAMIC MODEST MEDIA AND
GIEI FRIENDLY CEUTICALS &
FOOD FINANCE FASHION RECREATION
TRAVEL COSMETICS

1 Malaysia 165.1 117.0 282.6 136.8 76.7 136.1 102.4

2 Saudi Arabia 100.9 59.8 201.6 91.1 32.0 52.6 49.2

3 Indonesia 99.9 78.8 135.9 102.4 106.8 85.8 59.5

4 United Arab Emirates 95.8 84.1 141.9 89.3 50.9 73.1 66.3

5 Bahrain 81.9 59.6 145.4 66.5 30.3 43.6 64.0

6 Jordan 71.4 65.0 121.0 63.3 22.5 43.3 27.4

7 Kuwait 67.0 47.7 139.3 28.5 19.3 33.7 27.4

8 Pakistan 64.1 59.6 115.2 37.6 35.3 28.0 15.4

9 Türkiye 64.0 62.2 66.6 88.5 63.6 55.5 45.7

10 Qatar 60.4 49.2 91.6 48.8 25.1 35.5 72.2

11 Oman 58.0 55.5 95.1 35.7 22.3 34.1 36.4

12 Singapore 57.0 89.8 20.9 55.3 54.1 68.7 60.0

13 Iran 52.3 44.7 92.7 38.4 13.9 32.7 25.4

14 United Kingdom 47.6 63.2 23.2 36.0 52.8 52.1 75.6

15 Bangladesh 45.9 35.6 77.9 34.8 43.6 26.3 14.0

Chapter 3: The Global Islamic Economy Indicator 47

Top 10 Ranked
Countries by Sector

Halal Food Islamic Finance

Score Score

1 Malaysia 117.0 1 Malaysia 282.6

2 Singapore 89.8 2 Saudi Arabia 201.6

3 United Arab Emirates 84.1 3 Bahrain 145.4

4 Indonesia 78.8 4 United Arab Emirates 141.9

5 Jordan 65.0 5 Kuwait 139.3

6 United Kingdom 63.2 6 Indonesia 135.9

7 Türkiye 62.2 7 Jordan 121.0

8 Pakistan 59.8 8 Pakistan 115.2

9 Saudi Arabia 59.6 9 Oman 95.1

10 Bahrain 59.6 10 Iran 92.7

Muslim-Friendly Travel Modest Fashion

Score Score

1 Malaysia 136.8 1 Indonesia 106.8

2 Indonesia 102.4 2 Malaysia 76.7

3 Saudi Arabia 91.1 3 Italy 64.7

4 United Arab Emirates 89.3 4 Türkiye 63.6

5 Türkiye 88.5 5 Singapore 54.1

6 Tunisia 74.2 6 United Kingdom 52.8

7 Bahrain 66.5 7 United Arab Emirates 50.9

8 Morocco 63.8 8 Germany 45.2

9 Jordan 63.3 9 China 45.1

10 Kyrgyz Republic 57.8 10 Australia 43.8

48 State of the Global Islamic Economy Report 2024/25

 Halal Pharmaceuticals and Cosmetics Media and Recreation CREDIT/SHUTTERSTOCK

Score Score

1 Malaysia 136.1 1 Malaysia 102.4

2 Indonesia 85.8 2 United Kingdom 75.6

3 United Arab Emirates 73.1 3 Qatar 72.2

4 Singapore 68.7 4 United Arab Emirates 66.3

5 Türkiye 55.5 5 Bahrain 64.0

6 Saudi Arabia 52.6 6 Singapore 60.0

7 France 52.2 7 Indonesia 59.5

8 United Kingdom 52.1 8 China 53.1

9 Senegal 48.4 9 Saudi Arabia 49.2

10 Brunei Darussalam 48.1 10 Canada 46.2

Chapter 3: The Global Islamic Economy Indicator 49

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50 State of the Global Islamic Economy Report 2024/25

Leading Countries
The top five countries remain unchanged from the previous year, with
Malaysia retaining its leading position for the 11th consecutive year.
Bangladesh and Pakistan are the biggest movers in the top 15, with
Bangladesh entering back into the top 15 for the first time since 2019/20.
Singapore and Iran have moved out of the top 10 but remain in the top 15.

MALAYSIA SAUDI ARABIA

Malaysia has held its grip on the top position in the Saudi Arabia retains the second position in the overall
Global Islamic Economy Indicator. Malaysia achieved GIEI ranking for the fourth consecutive year. Saudi Arabia
a first-place ranking across all sectors except modest ranked among the top 10 in all sectors except modest
fashion, where it placed second. clothing, ranking second in Islamic finance and third in
Muslim-friendly travel.
Malaysia’s Department of Islamic Development (JAKIM)
continues to spur the development of the Islamic econ- Saudi Arabia saw a 24% year-on-year increase in Islamic
omy in the country as well as globally through its col- finance assets. The country also saw significant sukuk
laboration and recognition of other halal bodies. In the activity, and several significant sukuk issuances, including
last year, it recognized five additional foreign halal bodies a US$ 3 billion issuance by Aramco.
from South America and Asia. Also in policy development, Saudi Arabia recorded 38 Islamic economy-related
Bank Negara published an exposure draft of Islamic investment transactions, the third-highest among OIC
banking window guidelines, covering authorization, gov- member states. The fintech platform, Tamara, attained
ernance, and operational requirements to assist conven- unicorn status after it reached a US$ 1 billion valuation
tional banks with their shariah banking offerings. The after securing US$ 340 million in a Series C equity fund-
Islamic Tourism Centre (ITC) and the Malaysian Budget ing round. The travel sector also saw US$ 80 million in
and Business Hotel Association (MyBHA) signed an MoU investments, mostly focused on the religious tourism
to support the Association’s members in obtaining the sector. Saudi Arabia, through its Public Investment Fund
Muslim-Friendly Tourism and Hospitality Assurance and and subsidiaries, is accelerating its tourism and cultural
Recognition from ITC. development by launching heritage-inspired entertain-
Malaysia ranks second-highest among OIC member ment ventures, investing in sustainable regional projects,
countries in the Innovation sub-indicator. Digitalization building hotels and stadiums for its 2034 World Cup bid,
and technological advancement are key priorities for and expanding mid-market tourism – all while surpassing
Malaysia. AEON Bank, the first digital Islamic Bank its Vision 2030 goal of 100 million annual visitors and
in Malaysia, was launched in 2024. Malaysia is among setting a new target of 150 million by 2030.
the fastest-growing e-commerce markets, with a year- Saudi Arabia is becoming an increasingly important
on-year growth rate of 18%. Malaysia Digital Economy part of multinational and regional food producers’ MENA
Corporation (MDEC) has launched the Digital Tourism strategy, with Brazilian company JBS and Nestlé looking
Innovation Lab to advance digital transformation in to expand their manufacturing capabilities in the country.
Malaysia’s tourism sector. The country is also making significant investments in
Investment activity has been steady, with 23 transac- developing its halal food manufacturing industry through
tions recorded for Malaysia. China will make investments helping local players expand production and access export
worth four billion Malaysian ringgits in the halal industry. opportunities.

Chapter 3: The Global Islamic Economy Indicator 51

 Saudi-based cosmetics and fragrance companies are group to expand global market access by aligning programs,
drawing strong investor interest, with Al Majed for Oud’s harmonizing export data, and identifying high-potential
US$ 188 million IPO selling out within hours, and online halal products. Indonesia is one of three OIC member
cosmetics retailer Nice One soaring 30% on its debut after states among the top 10 exporters to the OIC.
a US$ 320 million IPO. International cosmetics companies Building on its strong halal policies, Indonesia is also
like Watson’s and Flormar are set to expand into the country. advancing its Islamic finance sector through supportive
As part of its ambition to become the leading country regulatory measures. The Financial Services Authority has
in technology and innovation, Saudi Arabia is making bold introduced new regulations to facilitate regional bonds
investments across emerging sectors. The Kingdom has and sukuk issuances, enabling local governments to access
launched the US$ 100 billion “Project Transcendence” to Islamic capital markets for infrastructure and development.
position itself at the forefront of AI and data analytics, Indonesia remains the top country for investment
beginning with the integration of AI into national broad- value of deals for 2023/24. Indonesia also received the
casting and the media industry. It is also applying AI to second-highest FDI among OIC member states for 2023.
enhance the Hajj and Umrah experience – supported by a Indonesia continues to strive towards its goal of
dedicated hackathon – and has introduced a “Regulatory becoming the global hub for modest clothing. Its Modinity
Healthcare Sandbox” to accelerate innovation in AI, 3D Group, with its well-known brand ButtonScarves, was
printing, IoT, and biotechnology. named Asia’s Best Performing Company in 2024 at the
ACES awards. There are several government-backed ini-
tiatives aimed at developing the players in the modest
INDONESIA clothing industry.

Indonesia retained its third position in the overall GIEI

ranking. Indonesia has moved into first position in mod- UNITED ARAB EMIRATES
est fashion and is second in Muslim-friendly travel and
pharmaceutical and cosmetics, respectively. The UAE retains the third position in the overall GIEI
ranking. The UAE placed within the top five for each
Indonesia continues to strengthen its halal ecosystem sector except modest clothing, where it placed 7th. This
through a series of strategic initiatives. The Halal Product is mostly driven by excellent trade performance and a
Assurance Agency (BPJPH) plans to launch a super app to strong innovation score.
streamline halal certification for businesses and allow
consumers to verify products with ease. A new halal certi- The UAE is the second-largest intra-OIC exporter and is
fication system for international companies has also been one of only three OIC member states among the overall top
introduced to boost food and beverage imports. Additionally, exporters to the OIC. The UAE is strengthening trade ties
in partnership with KNEKS, the Ministry of Trade is working through a series of mutual economic agreements aimed
through the Indonesia Halal Export Incorporated (IHEI) at enhancing market access and regulatory cooperation.

52 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK
Aerial photo of Jakarta

Its Comprehensive Economic Partnership Agreements the third position. Bahrain has also moved into the fifth
(CEPAs) with Indonesia and Türkiye came into effect in position for media and recreation.
September 2023, with the Türkiye deal notably including
a halal cooperation clause to advance mutual recognition Bahrain’s strongest performance was in the Islamic finance
of halal certification. In 2024, the UAE also concluded indicator, where a 41% increase in IFI assets and a 100%
CEPA negotiations with Morocco and Malaysia and signed increase in the number of Islamic funds helped boost it
a new agreement with Jordan, further reinforcing its to third position.
position as a key trade partner across the Islamic world. Bahrain is intensifying its efforts to achieve food
The UAE is rapidly emerging as a regional hub for security through strategic investments and partnerships
food manufacturing and innovation, driven by strate- that promote sustainable agriculture and reduce reliance
gic investments across the sector. Spinneys Dubai LLC on food imports. In line with its national food security
secured a deal to expand its operations and halal-certified strategy, which emphasizes boosting local production and
offerings, reinforcing its role in the premium halal food adopting modern farming methods, the Kingdom’s sov-
retail space. Al Ghurair Foods broke ground on a major ereign wealth fund, Mumtalakat, established the Bahrain
poultry processing facility at KEZAD in Abu Dhabi, set to Food Holding Company. This entity aims to consolidate
house the country’s largest rendering plant. Meanwhile, food sector assets and prioritize investments in agrifood
UAE-based foodtech startup MealPlanet raised US$ 6 technologies to enhance food production, processing, and
million in seed funding to support its regional expansion. distribution.74​ 75 76
The UAE is positioning itself as a global leader in Complementing this initiative, Mumtalakat’s real estate
artificial intelligence through its National Strategy for arm, Edamah, partnered with Badia Farms to develop a
Artificial Intelligence 2031. This strategy aims to integrate sustainable, solar-powered hydroponic farm in Hamala.
AI across key sectors such as healthcare, education, and Spanning 50,000 square meters, this project will employ
transportation, with the goal of contributing approxi- advanced hydroponic techniques and renewable energy
mately AED 335 billion (US$ 91 billion) to the nation’s to enable year-round crop production, addressing the
GDP by 2031.72 73 UAE-based insilico medicine advances challenges of limited arable land and water scarcity in
the world’s first fully AI-generated drug to clinical trials. Bahrain. These concerted efforts underscore Bahrain’s
AI is leveraged from the treatment target to the drug’s commitment to building a resilient and self-sufficient
unique structure. food system through innovation and sustainable practices.
To further strengthen its food ecosystem, Bahrain has
introduced a new regulation aimed at standardizing halal
BAHRAIN food practices across the Kingdom. The edict outlines clear
guidelines for halal certification processes and introduces
Bahrain is still fifth in the overall GIE indicator for the a national halal mark, ensuring that food products comply
second year in a row. Bahrain’s strength in the Islamic with Islamic dietary laws and enhancing consumer trust
finance sector continues to grow as it has moved into in locally produced and imported halal goods.

Chapter 3: The Global Islamic Economy Indicator 53

Promising Countries
Both Pakistan and Senegal’s rankings have seen a marked increase
this year, with Pakistan moving into the top 10 from 13th place in the
previous year and Senegal moving up 18 ranks to reach 25th position.

PAKISTAN
Islamic Finance: +3
BIG Halal Food: +4
MOVES
Modest Clothing: +11

In Islamic Finance, Pakistan saw a 52% increase in the

value of Islamic Funds and a 27% increase in its IFI assets.
There was a marked increase in exports from Pakistan
to the OIC in food, clothing, media and recreation, and
pharmaceuticals. Reflecting this upward trend, Pakistani
meat processor The Organic Meat Company Limited secured
a US$ 4 million deal to supply frozen boneless beef to the
UAE, while Malaysia agreed to import 100,000 metric
tonnes of halal meat and Basmati rice from Pakistan,
signaling growing demand for Pakistani halal products
across key OIC markets. The Pakistani government is also
considering a new initiative to unify the regulation of
food, pesticides, and cosmetics under a single authority
to align with international quality and safety standards.
This plan would involve phasing out the Drug Regulatory
Authority of Pakistan (DRAP) and establishing a more
integrated oversight framework.
Pakistan is advancing its Islamic capital markets
through a series of comprehensive regulatory reforms
and innovative financial instruments. The Securities and
Exchange Commission of Pakistan (SECP) is leading this
effort under its Strategic Action Plan (2024–26), intro-
ducing new frameworks to strengthen Islamic financial
institutions and enhance investor protection. In parallel,
the State Bank of Pakistan is finalizing an alternative
sukuk issuance structure to improve market liquidity and
diversify funding sources. Additionally, Pakistan is exploring
a non-interest-bearing, asset-backed central bank digital
currency (CBDC).
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Pakistan is also emerging as a high-potential Muslim-

friendly tourism destination, with Saudi Arabia having
shown interest in investing in the development of the
coastal areas of Balochistan and establishing tourist cities
in Khyber Pakhtunkhwa.
Faisal mosque in Islamabad, Pakistan

54 State of the Global Islamic Economy Report 2024/25

 SENEGAL
Islamic Finance: +12
BIG Modest Clothing: +10
MOVES
Pharma & Cosmetics: +11

Senegal is rapidly emerging as a significant player in

the global Islamic economy, propelled by its recent oil
production successes and strategic economic reforms.
In 2024, the country commenced production at its first
offshore oil field, Sangomar, surpassing expectations by
producing 16.9 million barrels of crude oil, well above the
initial target of 11.7 million barrels. This energy boom
has contributed to record economic growth, with GDP
expanding by 8.9% in the third quarter of 2024.77 78 79 80
Complementing its energy advancements, Senegal is
making strides in infrastructure development. The Islamic
Corporation for the Insurance of Investment and Export
Credit (ICIEC) supported a highway and road program in
Senegal, which garnered two Islamic Finance News (IFN)
Awards in 2024, highlighting the country’s commitment
to shariah-compliant infrastructure development. These
developments underscore Senegal’s potential as a hub
for Islamic economic activities in West Africa.81
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Senegal has taken significant steps to enhance its

export potential, particularly within the Islamic world.
In 2023, it signed an EU€ 400 million annual plan with
the International Islamic Trade Finance Corporation
(ITFC) under the Arab Africa Trade Bridges (AATB) pro-
gram, focusing on boosting trade in key sectors such
as agriculture, health, and energy. Additionally, Senegal
acceded to the Geneva Act of the Lisbon Agreement on
Appellations of Origin and Geographical Indications,
enabling international protection for its unique products
linked to specific regions. As a member of the African
Continental Free Trade Area (AfCFTA), Senegal benefits
from reduced trade barriers across the continent, many
of whose countries are members of the Organization of
Islamic Cooperation (OIC).

Chapter 3: The Global Islamic Economy Indicator 55

 4
C H A P T E R

TRADE,
INVESTMENTS,
& FDI
CREDIT/UNSPLASH

58 State of the Global Islamic Economy Report 2024/25

Chapter 4: Trade, Investments & FDI 59
 Islamic Economy
Trade Overview

In 2023, OIC member countries experienced a 1.79% decrease Halal product trade spans diverse segments, including
in imports of halal-related products. The total value dropped food and beverages, fashion (apparel and footwear), phar-
from US$ 415.05 billion in 2022 to US$ 407.75 billion in 2023. maceuticals, and cosmetics. OIC member countries still
The food sector was the main contributor to this decline, account for a substantial portion of the global halal trade,
contracting by 4.41%. One of the key drivers of this decrease underscoring the region’s strategic value in the industry.
was a price correction in wheat following record highs amid With most OIC nations enforcing halal import regulations,
the Russia-Ukraine conflict. Other contributing factors compliance remains a key priority for exporters targeting
included currency devaluation, domestic self-sufficiency, these markets.
and climate disruption. Additionally, pharmaceutical imports
continued to normalise, declining by 0.97% following the
stabilisation of vaccine demand in the post-pandemic period. NEED TO STRENGTHEN PRODUCTION
Despite the overall decrease, the halal-related import AND INTRA-OIC TRADE
market is forecast to grow to US$ 608.36 billion by 2028,
with a compound annual growth rate (CAGR) of 8.33%. This In 2023, OIC member countries remain heavily reliant on
outlook is bolstered by growing Muslim population, rising imports, posting a US$ 76.37 billion trade deficit in halal
halal awareness, stronger halal regulatory frameworks, and products—an increase from US$ 65.19 billion in 2022. Food
improving supply chain infrastructure across both OIC and remains the largest contributor to the deficit, followed by
non-OIC countries. pharmaceuticals and cosmetics. This imbalance is further
underscored by the fact that only three OIC nations—
Türkiye, the UAE, and Indonesia—rank among the top 10
exporters to OIC countries, jointly supplying US$ 46.10
billion worth of halal imports in 2023.
To address this issue, there is a pressing need to bol-
ster intra-OIC trade by enhancing production capacity,
promoting investment in halal-certified manufacturing,
and pursuing regional trade agreements. Cultivating com-
petitive halal industries within the OIC will strengthen
self-sufficiency and mitigate external dependencies.

HALAL PRODUCTS TRADE

OPPORTUNITY
In 2023, food and fashion were the leading halal product
categories. Although food imports experienced a minor
decline, fashion imports rose by 8.58%, reflecting height-
ened demand for modest wear and halal-certified textiles.
The cosmetics sector import expanded by 11.31%, driven
by a growing preference for halal and ethically produced
beauty products.
By contrast, pharmaceutical imports dipped by 0.97%,
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continuing the normalisation witnessed after the pan-

demic-driven surge. Although OIC pharmaceutical imports
remain below 2021 levels, the long-term outlook is positive,
underpinned by increasing healthcare expenditure and
advancements in halal pharmaceutical regulations.

60 State of the Global Islamic Economy Report 2024/25

 CREDIT/UNSPLASH
HALAL IMPORT TRADE IN 2023 HALAL EXPORT TRADE IN 2023
TOP 10 OIC IMPORTERS TOP 10 EXPORTERS TO OIC
(US$ BILLION) (US$ BILLION)

Saudi Arabia 43.06 China 32.51

United Arab Emirates 41.26 India 28.88
Türkiye 33.91 Brazil 26.93
Indonesia 29.64 Russia 20.61
Malaysia 26.84 USA 20.16
Egypt 22.06 Türkiye 17.76
Iraq 19.08 United Arab Emirates 16.01
Iran 18.51 France 15.16
Algeria 12.97 Indonesia 12.33
Kazakhstan 12.70 Germany 12.10

Despite a 2.53 percent decline from 2022 Saudi Arabia BRIC countries have become the top suppliers of halal
remained the OIC’s top halal importer in 2023, with imports products to OIC countries, led by China (US$ 32.51 billion),
totaling US$ 43.06 billion. The Kingdom reported substan- India (US$ 28.88 billion), Brazil (US$ 26.93 billion), and
tial food imports from Brazil, India, and the UAE, along Russia (US$ 20.61 billion). The United States follows the
with fashion products from China. The UAE and Türkiye BRIC countries with US$ 20.1 billion. Three OIC countries
ranked second and third. Kazakhstan recorded a 20.39 are also among the top 10: Turkiye ranks sixth (US$ 17.76
percent increase in imports, reaching US$ 12.70 billion in billion), the UAE ranks seventh (US$ 16.01 billion), and
2023, making it the 10th largest OIC halal importer. Indonesia ranks ninth (US$ 12.33 billion).

Chapter 4: Trade, Investments & FDI 61

ISLAMIC ECONOMY SECTOR IMPORT
GROWTH
The total value of imports for OIC member states in 2023
was US$ 407.75 billion. 72% of this figure was attributed
to food imports. This represents a 1.79% decrease from
the total import value of US$415.05 billion in 2022. While
imports of cosmetics and fashion increased by US$ 2.33
billion and US$ 3.79 billion respectively, the value of food
imports declined by US$ 12.94 billion.

SECTOR GROWTH 2022 TO 2024

(US$ BILLION)

2022 306.52
-4.41%
Halal Food 2023 293.58
+7.12%
2024 (F) 314.52
2022 49.88
-0.97%
Halal Pharma 2023 49.40
+6.38%
2024 (F) 52.55
2022 18.29
+11.31%
Halal Cosmetics 2023 20.62
+10.72%
2024 (F) 22.83
2022 40.36
+8.58%
Modest Fashion 2023 44.15
+4.78%
2024 (F) 46.26
2022 415.05
-1.79%
Total 2023 407.75
+6.79%
2024 (F) 436.16

*(F): FORECASTED VALUE

ISLAMIC ECONOMY SECTOR TRADE categories highlights the urgent need for strategic policy
BALANCE measures to bolster domestic halal production and reduce
external reliance. The expanding trade deficit in key halal
In 2023, the majority of OIC member countries rely heavily product categories is driven by several interrelated factors:
on imports, resulting in a negative trade balance of US$ limited domestic production capacity, exacerbated by
76.37 billion. The food sector is the primary contributor underinvestment in modern infrastructure, technology,
to this deficit, with a negative trade balance of US$ 97.28 and innovation, forces a reliance on imported goods, while
billion. Conversely, the fashion sector is the sole sector complex regulatory and certification procedures further
with a positive trade balance, reaching US$ 71.35 billion, impede local manufacturers from scaling up production
with Bangladesh contributing US$ 51.01 billion from total efficiently. Additionally, logistical challenges make imports
footwear and apparel exports to this surplus. more economically attractive compared to domestically
The expanding trade deficit across key halal product produced items, thus widening the deficit​.82

TRADE BALANCE 2023

Halal Food Halal Pharma Halal Cosmetics Modest Fashion Aggregate (US$ BILLION)

-97.28
-41.25
-9.19
+71.35
-76.37

62 State of the Global Islamic Economy Report 2024/25

Islamic Economy Investment
Activity Total IE M&A Quantification

METHODOLOGY economic adjustments post-COVID, including rising interest

rates and inflation in 2023/24, which increased borrowing
In this year’s report, we ensure that our methodology costs and reduced demand for capital-intensive projects.
encompasses a comprehensive analysis of all sector-rele- Halal pharmaceutical’s decrease may reflect regulatory
vant companies within OIC member countries and Islamic complexities, while the slight rise in Muslim-friendly
economy-focused companies outside the OIC that engaged travel aligns with the sector’s projected growth, driven
in mergers and acquisitions (M&A) activities or secured by renewed global tourism. Modest fashion and halal
funding through venture capital or private equity between cosmetics’ declines highlight their niche status, facing
August 1, 2023, and July 31, 2024. This approach ensures competition from mainstream brands.
a holistic view of the market dynamics. Additionally, we
applied the same methodology to transactions from the
previous year to enable consistent year-on-year compari-
sons. Detailed insights into our methodology are provided
in the Methodology section of this report.

OVERVIEW
Media & recreation leads with the highest number of trans-
actions at 87, with a deal value of US$ 451.27 million and
an average ticket size of US$ 5.19 million. Islamic finance
follows with 59 transactions, recording the highest deal
value at US$ 1.98 billion and an average ticket size of US$
33.68 million. Halal food recorded 29 transactions with a
deal value of US$ 1.29 billion, showcasing the average ticket
size at US$ 44.71 million. Muslim-friendly travel had 17
transaction and halal pharmaceuticals had 23 transactions,
with deal values of US$ 1.37 billion and US$ 656.24 million.
Emerging sectors like modest fashion and halal cosmetics
had the fewest transactions at 2 and 8, respectively, with
smaller deal values of US$ 300 thousand and US$ 10.01
million, highlighting their niche status.
Media & recreation saw a dramatic surge from 21 to
87 transactions, reflecting increased investor interest,
while Islamic finance declined from 91 to 59, and halal
food dropped significantly from 44 to 29 deals. Halal
pharmaceuticals also decreased from 35 to 23 transac-
tions, and emerging sectors like modest fashion and halal
cosmetics saw reductions from 6 to 2 and 10 to 8 deals,
respectively. Muslim-friendly travel, however, experienced
a slight increase from 13 to 17 transactions.
CREDIT/SHUTTERSTOCK

The surge in Media & recreation likely stems from the

post-pandemic boom in digital content consumption, with
platforms catering to Muslim audiences gaining traction.
The decline in Islamic finance and halal food aligns with

Chapter 4: Trade, Investments & FDI 63

 Investment Overview 2023/2024
2023 2024 (# OF TRANSACTION)

2023 44
Halal Food
2024 29
2023 91
Islamic Finance
2024 59
Muslim-Friendly 2023 13
Travel 2024 17
2023 6
Modest Fashion
2024 2
2023 35
Halal Pharma
2024 23
2023 10
Halal Cosmetics
2024 8
Media & 2023 21
Recreation 2024 87

BY DEAL TYPE DEAL VALUE (IN ‘000 US$) # OF TRANSACTION AVERAGE TICKET SIZE

M&A 2,784,500 12 232,042

PE 867,160 36 24,088

VC 2,123,775 177 11,999

Top 10 M&A Transactions by Disclosed Value

DEAL
TARGET SECTOR YEAR VALUE (IN ACQUIROR
‘000 US$)

PT Pantai Indah Kapuk Dua Muslim-Friendly 2023 673,290 PT Multi Artha Pratama
Tbk (IDX:PANI) Tourism

Cosumar SA (CBSE:CSR) Halal Food 2023 610,070 Mutuelle Agricole Marocaine d'Assurances; Sucres
et Denrées S.A.; Caisse Interprofessionnelle
Marocaine de Retraite; Regime Collectif
d'Allocation de Retraite; Mutuelle Centrale
Marocaine d'Assurances (MCMA)

PT Mandala Multifinance Tbk Islamic Finance 2023 469,030 MUFG Bank, Ltd.; PT Adira Dinamika Multi Finance
Tbk (IDX:ADMF)

Spinneys 1961 Holding plc Halal Food 2024 374,920 Emirates International Investment Company LLC;
Templeton Asset Management Ltd.; Franklin
Templeton Investments (Middle East) Limited

Dubai Taxi Company P.J.S.C. Muslim-Friendly 2023 314,710 General Pension and Social Security Authority;
Tourism Emirates Investment Authority

PT GoTo Gojek Tokopedia Muslim-Friendly 2023 150,000 International Finance Corporation; Franke Holding
Tbk Tourism AG

Allianz Saudi Fransi Islamic Finance 2023 133,070 Abu Dhabi National Insurance Company PJSC
Cooperative Insurance (ADX:ADNIC)
Company

BankIslami Pakistan Limited Islamic Finance 2023 23,340 JS Bank Limited (KASE:JSBL)

Arabian Shield Cooperative Islamic Finance 2024 21,600 Alinma Bank (SASE:1150)
Insurance Company

Arabian Mills for Food Halal Food 2023 9,860 The National Agricultural Development Company
Products Company

64 State of the Global Islamic Economy Report 2024/25

CREDIT/UNSPLASH

Chapter 4: Trade, Investments & FDI 65

 Top 10 Private Equity Transactions by Disclosed Value
TARGET SECTOR YEAR DEAL VALUE ACQUIROR
(IN ‘000 US$)

Aster DM Healthcare Halal Pharma 2024 180,689 Axis Bank, Franklin Templeton, Morgan
Stanley Asia, Gov. of Singapore

AmBank Group Islamic Finance 2024 149,000 Undisclosed

Akdital Halal Pharma 2024 94,428 Mediterrania Capital Partners

Kin dairy Halal Food 2023 70,000 Growtheum Capital Partners

Electric Vehicle Infrastructure Muslim-Friendly 2023 67,733 Saudi Electricity Company

Company (EVIQ) Travel

CashPlus Islamic Finance 2024 57,000 Mediterrania Capital Partners, Grouppe

Richbond

Adilmart Media & 2023 39,112 Astrantia

Recreation

Arabian Shield Insurance Islamic Finance 2023 21,600 Alinma Bank

Volcano Media & 2024 10,802 Undisclosed

Recreation

Odysight.AI Halal Pharma 2024 10,000 Mori Arkin

Top 10 Venture Capital Transactions by Disclosed Value

TARGET SECTOR YEAR DEAL VALUE ACQUIROR
(IN ‘000 US$)

Salla Islamic Finance 2024 130,000 Investcorp, Venture Souq, Raeed Venture, STV,
and Vision Venture

Moove Muslim-Friendly 2024 100,000 BlackRock, Uber, AfricInvest, FJ Labs, Franklin

Travel Templeton

HyperSpace Media & 2023 55,000 K5 Global, Galaxy Interactive, Apis Partners,
Recreation Sega Sammy Holdings Inc., Rafael Ilishayev

Spyke Games Media & 2024 50,000 Moon Active, Griffin Gaming Partners
Recreation

Qoala Islamic Finance 2024 46,019 Eurazeo, responsAbility Investments, Peak XV

Partners, MDI Ventures, Omidyar Network

Midas Islamic Finance 2024 45,000 IFC, Earlybird Venture Capital, Portage
Ventures, Spark Capital, Revo Capital

True Gamers Media & 2024 45,000 Nawaf Albishri

Recreation

Cadena Islamic Finance 2023 43,000 LPL Financial, Gaorong Capital, China Equity,
NTEC, Sid Damija

Noon - The Social Learning Media & 2023 40,800 Endeavor, Sanabil 500 MENA Seed Accelerator,
Platform Recreation Raeed Venture, STV4

Flare Network Islamic Finance 2024 35,000 Digital Currency Group, Borderless Capital,
MXC Capital, CoinFund, WinterMinute Venture

66 State of the Global Islamic Economy Report 2024/25

INVESTMENTS BY GEOGRAPHY
The investment landscape in the Halal Economy across key
countries shows the United Arab Emirates (UAE) leading
with 50 transactions and a disclosed value of US$ 1.53
billion, followed closely by Indonesia with 40 transactions
and US$ 1.60 billion, reflecting their strong positions as
halal investment hubs. The UAE’s leadership aligns with its
‘We the UAE 2031’ diversification efforts, while Indonesia’s
strength is driven by its large Muslim population (over
230 million) and government-backed halal initiatives,
suggesting these regions are prime targets for investors
seeking established markets.
Saudi Arabia and Türkiye also demonstrate significant
activity, with 34 and 23 transactions valued at US$ 1.08
billion and US$ 127.58 million, respectively, highlighting
their growing roles in the sector. Saudi Arabia and Türkiye,
with significant transaction volumes, underscore the Middle
East’s growing role, likely boosted by religious tourism
(e.g., Hajj/Umrah) and industrial capacity.
Investors should prioritize the UAE and Indonesia for
high-volume, high-value opportunities, while emerging
markets like Egypt and Nigeria offer growth potential
with targeted support. South Asian countries may require
policy interventions to attract more capital, suggesting a
phased investment approach across regions.

TOP 10 COUNTRIES BY NUMBER OF M&A, VC, AND

PE DEALS IN 2023/24

Total # of Transaction Total Deal Value (US$ Billion)

United Arab Emirates 50

1.53
Indonesia 40
1.60
Saudi Arabia 25
1.08
Türkiye 23
0.13
Egypt 14
0.19
Nigeria 13
0.15
Malaysia 12
0.24
Morocco 8
0.77
Bangladesh 5
0.01
Kazakhstan 3
0.03
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Chapter 4: Trade, Investments & FDI 67

 CREDIT/SHUTTERSTOCK

68 State of the Global Islamic Economy Report 2024/25

Investment by Sector
and Outlook

HALAL FOOD solutions. Food security remains a key factor, with invest-
ments focusing on strengthening supply chains, halal logis-
The Halal Foods segment recorded a total of 29 deals in the tics, and sustainable production. Additionally, halal food
2023/24 period, with a combined disclosed deal value of alternatives are expected to show stronger performance as
US$ 1.29 billion. This represents a decline of about 41.40% mainstream brands face boycotts, increasing the likelihood
compared to the previous year, where we recorded 44 of attracting more investment. Emerging bioindustry and
transactions. The segment now accounts for 12.89% of AI-driven technologies, such as precision-fermented dairy
the total disclosed deal value, a decrease from 20.00% proteins (e.g., Remilk) and AI-formulated flavors (dsm-fir-
recorded last year, reflecting a notable reduction in its menich), offer scalable halal-compliant options, though
overall share. Rising inflation and increased production evolving certification frameworks present challenges.
costs could have deterred large-scale deals, while shifting
consumer preferences toward cost-effective or alternative
food options may have further compressed the segment’s TOP 5 HALAL FOOD DEALS
deal value.
# of Deals Deal Value (US$ Million)
Large ticket sizes reflect investments in manufacturing
facilities, cold chain logistics, and global export networks. Indonesia 8
For example, companies like Kin Dairies in Indonesia have 115
secured multimillion-dollar funding for expansion. Saudi Arabia 6
Some notable deals are coming from the MENA region, 144
which includes Morocco and the UAE: United Arab Emirates 4
•  Sucden and a group of Moroccan institutional inves- 398
tors (MCMA, MAMDA, CIMR, RCAR) have purchased Nigeria 4
Wilmar’s 30.05% stake (of which 10% is for Sucden) 16
in Moroccan sugar producer Cosumar. Sucden and Morocco 1
Cosumar intend to develop further synergies, focusing 610
on marketing Moroccan sugar in the world market.83
•  Spinneys Dubai LLC, a premium UAE-based retailer,
secured a deal focused on expanding its operations
and halal-certified product offerings. The transaction
reflects Spinneys’ strategy to capitalize on the growing
demand for high-quality halal food products in the
GCC, further solidifying its position as a key player
in the region’s halal food retail sector.

Within the halal food segment, Indonesia leads signifi-

cantly, recording eight deals with an investment value of
around US$ 115 million, reflecting its dominant position
in the halal food market. Nigeria follows with four deals
and a much smaller investment value, indicating emerging
but still moderate activity.

Outlook

The global halal food investment outlook remains highly

promising, driven by strong demand from a growing Muslim
population and rising interest in ethical, high-quality food

Chapter 4: Trade, Investments & FDI 69

ISLAMIC FINANCE Outlook

The Islamic finance segment recorded 59 deals in the The Islamic finance investment outlook remains positive.
2023/24 period with a total value of US$ 1.98 billion. This Key drivers include innovative developments that align
marks a decline of 35.16% from the previous year’s trans- with global financial trends and Shariah principles. The
action of 91, reducing its proportion of total number of deal emergence of Shariah-compliant Central Bank Digital
to 26.22%. Despite the sharp drop, the sector remains a key Currencies (CBDCs) alongside the expansion of digital sukuk
pillar of the Islamic economy, with notable investments and blockchain integration opens significant opportunities
reflecting growth opportunities in emerging markets: for banks and tech firms to create transparent, asset-
•  In 2024, AmBank was part of a significant transaction backed solutions that enhance cross-border remittances
as Australia and New Zealand Banking Group (ANZ) and financial inclusion.
fully exited its stake in the Malaysian lender, AMMB Despite a recent decline in the number of transac-
Holdings (AmBank), by selling its remaining 5.2% tions in, the sector’s long-term potential remains strong.
stake for approximately US$ 149 million.84 Investors should focus on digital innovation, sustainable
•  IFC, the Mediterrania Capital, and FMO, the Dutch finance, and regulatory collaboration to capitalize on this
Entrepreneurial Development Bank, invested EUR evolving landscape.
57 million in CASHPLUS, Morocco’s leading fintech
and financial services network, to help the company
expand its delivery of global remittances, digital trans-
fers, bill settlements, and other modern payment
solutions in both Morocco and Europe.85 TOP 5 ISLAMIC FINANCE DEALS
# of Deals Deal Value (US$ Million)
The United Arab Emirates leads with 15 deals, accompanied
by a substantial investment value of US$ 157.00 million. United Arab Emirates 15
Indonesia follows with 13 deals and an investment value 157
of US$ 588.05 million, highlighting its significant mar- Indonesia 13
ket activity. Saudi Arabia ranks third with 10 deals and 588
an impressive investment value of US$ 726.60 million, Saudi Arabia 10
reinforcing its dominance in Islamic finance. Egypt and 727
Nigeria both have 4 deals each, with Egypt recording an Egypt 4
investment value of US$ 163.50 million and Nigeria at 164
US$ 26.50 million, marking the lowest value among the Nigeria 4
five countries. 27

70 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK
Green Spaces and Parks
in Jeddah, Saudi Arabia

MUSLIM-FRIENDLY TRAVEL Outlook

The Muslim-friendly travel sector recorded 17 deals in the The Muslim-friendly travel sector is expected to regain
latest period, reflecting an increase of 30.77% compared momentum in the coming year. The need for tailored travel
to last year’s 13 transactions. Increased awareness and experiences, including halal dining, prayer facilities, and
government support for halal tourism infrastructure, such culturally sensitive accommodations, will continue to rise.
as prayer facilities and halal-certified accommodations, Emerging post-conflict destinations like Syria, Bangladesh,
are encouraging investors to tap into this expanding and Bosnia present high-risk, high-reward prospects as
market. they rebuild tourism infrastructure to cater to halal trav-
Notable investments include GoTo Gojek and Beond, elers, with potential growth tied to stability and govern-
companies making significant strides in travel services ment support. Governments and private sectors in key
and luxury offerings to cater to Muslim travelers. destinations are increasingly investing in Muslim-friendly
•  IFC’s strategic investment in GoTo for US$ 150 mil- infrastructure and marketing campaigns to capture this
lion reflects a shared vision to enhance access to lucrative segment. While economic uncertainties may
new opportunities across Indonesia, highlighting influence short-term investments, the sector’s long-term
GoTo’s position as an environmental, social, and outlook remains robust, offering significant opportunities
governance (ESG) leader in the region and IFC’s for innovation and expansion in halal tourism.
reputation globally as a proponent of ESG practices.
•  Beond has announced the closing of a US$ 25 million
Series A funding round. Beond aims to deploy a fleet
of 32 state-of-the-art and luxurious aircraft within TOP 5 MUSLIM-FRIENDLY TRAVEL DEALS
the next five years, realizing its groundbreaking
# of Deals Deal Value (US$ Million)
business model in the airline industry.
United Arab Emirates 4
The Muslim-Friendly Travel sector in 2024 saw the United 340
Arab Emirates and Türkiye leading with 4 and 3 deals Türkiye 3
respectively, while Indonesia, Nigeria, and Saudi Arabia
each recorded 2 deals. This distribution highlights the Indonesia 2
UAE’s dominance in deal value, likely driven by its stra- 823
tegic investments in halal tourism infrastructure, and Nigeria 2
Türkiye’s appeal as a cultural and religious tourism hub 105
for Muslim travelers. Saudi Arabia 2
83

Chapter 4: Trade, Investments & FDI 71

MODEST FASHION or existing firms leveraging AI to enhance accessibility
and scalability for modest fashion brands, particularly
The modest fashion industry shows a modest performance in emerging markets. Global fashion brands diversifying
as well, with only two recorded investments in the period sourcing away from China to avoid high tariffs and supply
compared to 6 investment it had in the previous year. chain disruptions creates a niche for investors to back man-
The sector accounted for 0.89% of the total investment ufacturers in countries like Indonesia, Türkiye, or Morocco,
across other sectors, indicating that there remains some strengthening local supply chains and reducing costs.
level of investor interest in modest fashion, albeit at a
much lower scale than in previous years. The investment
only happen in Lebanon and Egypt, with each recorded
only one investment.
Lebanon is leading in investment value, recording
over US$ 300,000 across one deal. This investment is
attributed to FabricAID, a Lebanese social enterprise
dedicated to promoting sustainable fashion by collect-
ing, sorting, and redistributing second-hand clothing
at affordable prices. FabricAID’s mission focuses on
reducing textile waste and providing quality clothing to
marginalized communities. Their most recent funding
round secured over US$ 300,000, with the purpose of
expanding operations, enhancing sorting and distribu-
tion capabilities, and furthering their environmental
and social impact. In comparison, Egypt and Malaysia
each reported one deal, but with minimal or negligible
investment values.

Outlook
TOP 5 MODEST FASHION DEALS
Looking ahead to 2025, the modest fashion segment
# of Deals
within the halal market is poised for significant growth.
AI-driven marketing is democratizing professional brand- Lebanon 1
ing for small and medium-sized enterprises (SMMEs), Egypt 1
offering investors opportunities to support tech startups

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 CREDIT/SHUTTERSTOCK
HALAL PHARMACEUTICALS pharmaceuticals innovation, supported by favorable gov-
ernment policies and growing public-private partnerships.
The Halal Pharmaceuticals sector recorded 23 deals in Progress in halal standards and guidelines for phar-
the latest period, decreased by 34.29% from the previous maceuticals is creating a structured framework, offering
year which recorded 35 transactions. The sector strug- investors opportunities to support companies developing
gles with ambiguous halal standards and resistance from compliant products and certification processes, enhancing
global pharmaceutical bodies. Despite this modest decline, market trust and accessibility. Vitamins, a major category in
the sector accounted for 11.36% of the total deals across halal adoption, are propelled by the growing trend toward
other sectors, highlighting sustained investor interest in healthy and preventive lifestyles, suggesting strong potential
the development of halal-certified pharmaceuticals and returns for investors targeting health-focused halal brands,
healthcare services. particularly as global Muslim spending on wellness rises.
One notable investment during this period was by Additionally, the push for halal-compliant vaccines and
Aster DM Healthcare, a UAE-based healthcare provider biopharmaceuticals, accelerated by the COVID-19 pandemic,
that focuses on offering halal-compliant pharmaceutical has opened new avenues for research and development.
products and medical services. Their latest funding round Investors are expected to focus on scaling production capa-
has given them an additional equity of more than US$ 180 bilities and entering underserved markets in Africa, South
million to expand their operation in India. Asia, and the Middle East, where the need for affordable
The halal pharmaceuticals segment shows a dominant and accessible halal medicines remains significant.
market with Indonesia leading with six recorded deals,
followed by the United Arab Emirates, recording five deals
and an investment value of around US$ 500,000. Saudi TOP 5 HALAL PHARMACEUTICALS DEALS
Arabia and Egypt follows with 3 deals and a moderate
# of Deals Deal Value (US$ Million)
investment value, reflecting growing activity in the sector.
Morocco recorded smaller investment values, with 2 deals, Indonesia 6
showcasing limited but notable engagement. 22
United Arab Emirates 5
Outlook 486
Saudi Arabia 3
Increasing consumer awareness of halal standards, coupled 19
with advancements in biotechnology and pharmaceutical Egypt 3
manufacturing, is likely to attract further investments in 12
this sector. Countries in the Gulf Cooperation Council (GCC) Morocco 2
and Southeast Asia are emerging as key hubs for halal 94

Chapter 4: Trade, Investments & FDI 73

HALAL COSMETICS Outlook

The Halal Cosmetics sector recorded 8 deals in the lat- The halal cosmetics sector is expected to see a surge in
est period, slightly declining compared to 10 investment it investment in the coming years, fueled by increasing con-
had last year. The sector accounted for 3.56% of the total sumer awareness and demand for ethically sourced, cruel-
investment disclosed value across other sectors, signaling ty-free, and halal-certified beauty products. Key markets
ongoing but reduced interest in halal-certified beauty and such as Southeast Asia, the Middle East, and North Africa
personal care products. Competition from mainstream brands are projected to lead the demand, supported by government
incorporating halal practices without full certification splits initiatives promoting halal certification standards and
the market, reducing the perceived need for dedicated halal incentives for local manufacturers. Additionally, global
investments. beauty brands are entering the halal segment to capital-
Some notable investments in this sector include Joseph ize on this rising trend, leading to increased competition
Shining, a Türkiye-based halal cosmetic brand recognized and innovation. However, the growing issue of counterfeit
for its high-quality skincare and beauty solutions, and Rose beauty products, with millions seized in the UAE, under-
All Day, an Indonesia-based halal beauty brand that has scores the need for robust supply chain transparency and
been gaining traction for its chic and accessible skincare regulatory compliance, posing risks that investors must
and makeup products. mitigate through partnerships with certified manufactur-
•  Joseph Shining plans to use the funds to expand its port- ers. Investment is likely to focus on product development,
folio of personal care and beauty products, including its market entry strategies, and digital marketing to tap into
exclusive private label, Joseph’s Collection. Additionally, the e-commerce boom in halal cosmetics.
they are seeking to raise an additional US$ 750,000
to support their expansion and innovation efforts,
particularly as they aim to broaden their presence in
international markets.
•  The funds raised will be used to grow distribution within
Indonesia, expand into other ASEAN countries, improve
product offerings, and strengthen the team. This invest-
ment will help Rose All Day continue to innovate while
expanding its reach to new markets across the region. TOP 5 HALAL COSMETICS DEALS
# of Deals Deal Value (US$ Million)
Two markets dominated the Halal Cosmetics segment with
Saudi Arabia leading in the number of transactions. Indonesia Saudi Arabia 4
recorded the highest investment value at US$ 9 million 0.35
across 2 deals. Türkiye recorded but with significantly smaller Indonesia 2
investment values. 9
Türkiye 1
0.25
Uganda 1

74 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK
MEDIA AND RECREATION on the sector. Malaysia recorded a moderate investment
value with seven deals, while Türkiye and Indonesia each
The Media and Recreation sector recorded 87 deals in reported 15 and nine deals, respectively, but with lower
the latest period, with a total investment value of US$ investment values compared to the UAE and Saudi Arabia.
451 million, reflecting a significant increase compared to
last year’s 21 transactions. The sector is now accounted Outlook
for 38.67% of the total investment disclosed value across
other sectors, signaling growing interest in halal-friendly As Muslim audiences worldwide seek media content that
media and recreational offerings, particularly in the Middle aligns with their values, there is a growing opportunity for
East and Southeast Asia. The significant increase in the investments in halal-certified films, streaming platforms,
halal media & recreation sector is primarily driven by the gaming, and recreation spaces tailored to Islamic principles.
rapid rise in digital content consumption among Muslim This trend is further supported by the increasing spending
audiences. Some notable investments include Hyperspace, power of young Muslim consumers, who are a significant
a Saudi-based digital entertainment company focused on driver of digital content consumption and recreational
providing immersive experiences through virtual reality activities. Cross-border media collaborations are boosting
(VR) and augmented reality (AR) technologies, and Noon, demand for Islamic cultural narratives, offering inves-
another Saudi-based e-commerce and entertainment tors a chance to support co-productions that blend local
platform, which has been gaining traction in the digital stories with international appeal. Advancing educational
media and entertainment sectors. and edutainment initiatives for Islamic youth highlight
•  Hyperspace has raised US$ 55 million in funding from a niche for investments in content that educates while
a variety of investors, including the US-based venture entertaining, catering to a young, digitally-savvy Muslim
Galaxy Interactive, Riyadh Season, Sega Ventures, and audience. Investors are expected to focus on digital content
Apis Venture Partner. This funding will be used to platforms, Islamic-themed entertainment franchises, and
support Hyperspace’s global expansion, particularly its family-friendly recreational facilities.
entry into the US market, as it looks to extend its cul-
turally inclusive entertainment solutions worldwide.
•  Noon raised US$ 41 million in a Series B funding TOP 5 MEDIA AND RECREATION DEALS
round co-led by Wa’ed Ventures and Raed Ventures.
# of Deals Deal Value (US$ Million)
The company plans to use the funds to enhance its
AI-powered solutions, which will enable the platform United Arab Emirates 22
to offer personalized learning experiences. Noon also 147
intends to fuel its global expansion over the next two Türkiye 15
to three years, strengthening its position as a leader 57
in digital media and entertainment. Saudi Arabia 9
103
The UAE is leading in both investment value and deal Indonesia 9
count, recording over US$ 140 million across 22 deals. Saudi 47
Arabia follows with an investment value exceeding US$ Malaysia 7
100 million and nine deals, showcasing its growing focus 65

Chapter 4: Trade, Investments & FDI 75

Foreign Direct Investment
Sector Analysis by OIC Country

The UAE emerged as the leading recipient, with FDI inflows inflows in the range of US$ 2–4 billion, showcasing their
growing consistently, reaching a peak of US$ 26.8 billion ability to attract consistent foreign investment. However,
in 2023, reflecting its robust economic environment and volatility remains evident in countries such as Nigeria
investor-friendly policies. Indonesia followed closely, main- and Pakistan, which experienced fluctuations but showed
taining strong growth with inflows surpassing US$ 24.4 recovery in the latter years.
billion in 2023, underscoring its position as a key destina- The OIC Top 10 contributors nearly doubled their FDI
tion in Southeast Asia. Similarly, Saudi Arabia rebounded inflows over the decade, reaching US$ 145.6 billion in
significantly after a dip during 2019–2020, achieving US$ 2023, compared to US$ 76.6 billion in 2014, highlighting
12.1 billion in inflows in 2023, driven by ongoing economic their critical role in driving regional investments. The
diversification efforts under Vision 2030. Other nota- OIC average also reflects a positive upward trend, sig-
ble contributors include Türkiye and Egypt, with Türkiye naling improved investor confidence across key member
recording over US$ 14 billion in 2023, and Egypt stabilizing states. However, challenges persist for bottom-performing
at US$ 11 billion, despite fluctuations during the decade. economies like Syria, Libya, and Yemen, where political
Overall, FDI inflows in OIC countries demonstrate instability and conflict continue to hinder FDI growth.
resilience, particularly post–2020, as many economies Smaller nations such as Guinea-Bissau and Comoros
recovered from pandemic-related disruptions. Countries recorded minimal inflows, underscoring limited investor
like Malaysia, Kazakhstan, and Morocco maintained steady activity in these markets.

Top 5 OIC member states by net FDI inflow in 2023

United Arab Emirates Indonesia Saudi Arabia Türkiye Egypt OIC Average (US$ BILLION)

30.69
30

25

22.09

20

15

12.32
10.64
10 9.84

2.83

2019 2020 2021 2022 2023

76 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK

FDI OUTLOOK
Within the OIC, several member countries are expected
to experience significant economic growth, which could
enhance their attractiveness to foreign investors. For
instance, Libya is projected to see a 13.7% increase in GDP
in 2025, largely due to the resumption of oil production.
Similarly, Senegal anticipates a 9.3% GDP growth, driven by
its recent emergence as an oil and gas producer. However,
challenges persist. Geopolitical tensions, potential trade
wars, and supply chain disruptions pose risks that could
impact investor confidence and FDI flows into OIC coun-
tries. Additionally, the global shift towards automation and
the deployment of industrial robots may influence the
nature of FDI, with a potential focus on capital-intensive
investments over labor-intensive ones.86

Chapter 4: Trade, Investments & FDI 77

 5
C H A P T E R

HALAL
FOOD
CREDIT/PHOTOGRAPHER

80 State of the Global Islamic Economy Report 2024/25

Chapter 5: Halal Food 81
 HALAL FOOD
ALL FIGURES IN US$ BILLIONS, UNLESS STATED OTHERWISE

CONSUMER OPPORTUNITY
Represented by US$ 1.43 trillion of consumer spending by 2 billion Muslims on food & beverage (2023).
Reaching US$ 1.94 trillion by 2028 (6.2% CAGR).

159 ia
.6
s
one
Ind
US$ 1,434 US$ 1,939
2023
sh 2028
de
n gla 138.5
Ba

Egypt
Rest of countries
116.8
468.8

Tür
kiye
a
eri 102
Alg .3
Sa

38
ud

a
di
iA

In 3.6
rab 3.1

6
9
ia
Pakistan

Nige .7
n
2
Ira
82.

6.2%
87
83.9

ria

CAGR

GOVERNMENT LEADERSHIP Financial Governance Awareness Social Innovation

HALAL FOOD – GLOBAL ISLAMIC ECONOMY INDICATOR (GIEI) RANKING (2024)

61 51 41 31 21 11 1

1 Malaysia

2 Singapore

3 UAE

4 Indonesia

5 Jordan

61 51 41 31 21 11 1

82 State of the Global Islamic Economy Report 2024/25

INVESTMENT & TRADE DRIVERS
Halal food imports are set to grow to US$ 442.3 billion by US$ BILLION (2023)

2028, at a CAGR of 8.5%

Thickness is proportional to the value Türkiye Russia
13 India 19.5
21.9
USA
Brazil
13.2
TOP 5 OIC 26.5 TOP 5 EXPORTERS
IMPORTERS TO OIC

US$ 293.6 5 3
US$ 196.3
1
Total of imports by OIC 5 3 Total of exports from
countries 2 OIC countries
4

1 4
2

Türkiye UAE
22.5 20.7
Saudi Arabia
27.4
Malaysia
20.8 Indonesia
25.5
INVESTMENTS

US$ 1.3 Top countries by total deal value and number of deals
US$ MILLION (2023/24)

billion = 1 deal
1 2 3 4 5
Disclosed value for
all 29 deals
610.1 397.9 144.4 115.4 16.3
Morocco UAE Saudi Arabia Indonesia Nigeria

KEY DEVELOPMENTS SIGNALS OF OPPORTUNITIES

IMPACT: Low Moderate High

1 JBS invests US $50 million in a Saudi

plant, quadrupling halal-meat output.
Mature

2 New Indonesia-UAE-Türkiye-Malaysia
halal mutual recognition pacts cut
duplicate audits and costs. Global Trade
Frontier markets Agreements KSA is
emerge to show and Mutual Positioning Itself
future potential Recognition Are as the Global
3 Isla Délice buys Gürkan and Takul, for halal market Driving Halal Hub for Halal
speeding Europe-wide halal expansion. opportunities Market Efficiency Market Growth
Intermediate

Consumer Boycotts Bioindustry and AI-

4 UAE’s Pure Food unveils solar-powered
and Ethical Sentiment
Are Catalyzing Local
Driven Food Innovation
Present Emerging Halal
vertical farm using 95% less water. Product Innovation Opportunities

5 Activism boosts local colas—Cola Next,

V7, Kinza, Gaza Cola etc.—moving them
Early

to the mainstream.

*All estimates by DinarStandard except for Islamic Finance sector provided by LSEG Data & Analytics Islamic Finance Development Indicator 2024 data. Muslim consumer spend
estimates & analysis by DinarStandard leveraging World Bank’s ICP 2017 consumer data as baseline reference. Halal and related product exports are based on ITC Trademap 2023
data. Projections are baselined on data from IMF Outlook from October 2024. Investments (figures and individual deals) are based on a detailed scan of databases from CapitalIQ,
Crunchbase and DinarStandard analysis from August 2023 to July 2024. See appendix for detailed methodology.
OIC Organization of Islamic Cooperation, 57 mostly Muslim-majority member countries.

Chapter 5: Halal Food 83

IFANCA (Islamic Food and Nutrition Council of America)
is an internationally accredited, globally recognized leader
in third-party certification for halal products and services.
You can find our Crescent-M logo ( ) on products and
ingredients around the world, like Abbott Nutrition medical
nutritional products, Organic Valley dairy products, Saffron
Road frozen meals, Wonderful Pistachios, and thousands
more.

Over the past 40 years, we have worked with

governmental institutions, industry, and religious bodies
locally and globally to develop and implement halal
oversight into existing quality programs.
IFANCA was founded in 1982 to help companies meet the
needs of halal consumers, and our core mission was, and
continues to be, making halal accessible for everyone. This
includes enabling access to halal products so that halal
consumers can feel food and health secure while
simultaneously preserving their core religious values.

Get to know us at www.ifanca.org

 The halal food sector is undergoing significant transformation,
driven by structural shifts towards regional manufacturing,
strategic market consolidation, and significant investments in the
Gulf, Europe, and emerging markets. Muslim consumers’ food
spending increased by 2.6% in 2023, reaching US$ 1.43 trillion,
with Indonesia leading globally, followed by Bangladesh and
Egypt. Spending is projected to reach US$ 1.94 trillion by 2028,
growing at a CAGR of 6.2%.

Gulf national strategies have shown successful implemen- The integration of digital technologies, particularly
tation, positioning the region as a central hub for halal blockchain and AI, remains gradual but promising for
food manufacturing and processing. Key investments enhancing halal certification, transparency, and efficiency.
include Brazilian firm JBS’s new US$ 50 million facility Initiatives like Serunai Commerce’s AI-powered halal ver-
in Saudi Arabia, UAE-based Al Ghurair Foods’ poultry ification app and Indonesia’s halal certification super app
processing plant, and Nestlé’s inaugural manufactur- exemplify this trend.
ing plant in Saudi Arabia aimed at boosting local and Tech-driven farming initiatives are increasingly
regional markets. addressing water scarcity challenges, exemplified by UAE-
Multilateral development banks are actively imple- based Pure Food Technology’s solar-powered hydroponic
menting food security and agricultural resilience strate- vertical farm and Masdar City’s collaboration with Alesca
gies, notably the Islamic Development Bank’s significant Technologies for an indoor vertical farm.
projects in Tunisia, Benin, Côte d’Ivoire, and Kazakhstan. Regulations across the halal food supply chain are tight-
The African and Asian Development Banks are also ening, with strengthened halal standards and expanded
funding impactful projects in Nigeria, Chad, Togo, and accreditation efforts. Mutual recognition agreements and
Bangladesh to strengthen food security and agricultural strategic trade partnerships, notably Indonesia’s extensive
productivity. agreements and the UAE’s comprehensive economic part-
European investors are consolidating their regional nerships, are reshaping the global halal trade landscape.
presence in the halal food market, illustrated by acquisi- Innovation is further highlighted by the introduction
tions such as Isla Délice’s purchase of German premium of halal-certified cruises, developments in cultivated meat
brand Gurkan and UK-based Takul, as well as GoodLife certification, and advancements in AI-driven food inno-
Foods’ acquisition of Pure Ingredients. vations and precision fermentation.
OIC sovereign wealth funds and governments are Consumer behavior has continued to evolve, with
investing substantially in agriculture and food pro- increased preference for products reflecting cultural
duction to enhance food security. Prominent projects identity, ethical considerations, and geopolitical factors.
include Bahrain’s establishment of a new food holding The emergence of local beverage brands and healthier,
company, Saudi Arabia’s launch of the food-tech entity mood-enhancing alternatives to alcoholic beverages are
Topian, Algeria’s US$ 455 million agricultural project, and notable examples.
Kazakhstan’s US$ 600 million poultry farm. Overall, the halal food sector is rapidly evolving, driven
Foodtech investments, particularly in the MENA by substantial investments, strategic trade agreements,
region, are accelerating, with notable fundraising by technological advancements, and shifting consumer trends,
startups such as Calo, Grubtech, and MealPlanet to sup- presenting both significant opportunities and challenges
port regional and global expansion efforts. for stakeholders.

86 State of the Global Islamic Economy Report 2024/25

Sector Developments (2023/24)

REVENUE DEVELOPMENTS •  Brazilian-origin company JBS is aiming to quadruple

its production in Saudi Arabia with the opening of
The halal food sector is undergoing a structural trans- a new facility. The US$ 50 million plant, based in
formation, driven by regional manufacturing expansion, Jeddah, is expected to create 500 jobs.87
financial investments, and strategic market consolidation •  Pakistani F&B manufacturer Ismail Industries Limited
across the Gulf, Europe, and emerging markets. announced in 2024 its intent to set up a subsidiary in
the UAE capital, Abu Dhabi, which would manufac-
Latest projections ture, market, and distribute food products, including
biscuits and confectionery items.88
Latest projections: (market sizing and projections in nar- •  Nestlé partnered with the Saudi Authority for
rative format) Industrial Cities and Technology Zones to build its
Muslim consumers’ food spending grew by 2.6% in first food manufacturing plant in the Kingdom. The
2023, reaching US$ 1.43 trillion from US$ 1.40 trillion in facility aims to fulfil product demand locally as well
2022. Indonesia remains the largest market by expenditure, as export to other MENA markets.89
with Bangladesh now in second place and Egypt in third. •  UAE-based food processing company Al Ghurair Foods
By 2028, spending is projected to reach US$ 1.94 trillion, broke ground on a new poultry processing facility at
growing at a 6.2% CAGR between 2023 and 2028. KEZAD in Abu Dhabi, which will include the largest
rendering plant in the country.90
Note: This does not represent the actual value of •  Saudi supermarket business Tamimi Markets Company
‘halal-certified’ product consumption. Rather, it fully acquired Al Raya For Food Stuffs Company to
represents the total addressable Muslim consumer drive its national expansion plans.91
market spending in the food sector.
The Islamic Development Bank, African Development
Updates on revenue developments Bank, and Asian Development Bank are making significant
financial commitments to improve food security, agri-
The rapid expansion of multinational and regional food cultural productivity, and rural economic development
companies into Saudi Arabia and the UAE signals a stra- across Africa, Central Asia, and South Asia.
tegic shift towards localizing halal food production in •  The Islamic Development Bank (IsDB) approved EUR
the Gulf region. 48.04 million to fund a project in Tunisia, which seeks

Investment summary
COUNTRY DEAL TYPE ORGANIZATION NAME DEAL VALUE (US$ 000s)

Morocco M&A Consumar SA 610,070

UAE M&A Spinneys 1961 Holding 374,920

Saudi Arabia PE Gulf Central Company 133,000

Indonesia PE Kin Dairy 70,000

Indonesia VC Segari 23,500

Chapter 5: Halal Food 87

 CREDIT/PEXELS

88 State of the Global Islamic Economy Report 2024/25

 to improve access to affordable finance for micro, production, processing, and distribution.102
small, and medium enterprises, particularly in agri- •  Saudi Arabia’s NEOM launched Topian, a food com-
food systems.92 pany, to redefine food production and distribution
•  The IsDB board approved EUR 60.57 million and EUR and pioneer technologies and solutions to overcome
70.46 million for projects in Benin and Côte d’Ivoire, food-related challenges.103
respectively, which aim to improve food security, •  Burkina Faso launched a project to bolster food secu-
economic growth, and household income.93 rity, supported by the African Development Bank,
•  IsDB and Kazakhstan launched a US$ 1.32 billion whose implementation is expected to yield increased
climate-resilient water project, which would focus crop production.104
on food security and sustainable economic growth. •  Cameroon initiated a project to boost rural food
The project is expected to yield 350,000 hectares security. Funded with around EUR 16 million, the
of sustainably irrigated land for crop production by project is expected to strengthen the production of
the year 2032.94 agricultural and agri-food products in rural areas.105
•  The African Development Bank approved a US$ 50 •  Kazakhstan is looking to build a poultry farm in the
million loan to boost food security and improve live- Almaty region. The project, billed as the largest across
lihoods in Nigeria’s Yobe State, with the Arab Bank the CIS (Commonwealth of Independent States) region,
for Economic Development in Africa expected to will cost more than US$ 600 million and have the
co-finance the project.95 capacity to process 240,000 tons of poultry.106
•  The Asian Development Bank and Rupshi Seed •  The Algerian National Investment Fund signed an
Crushing Limited, a City Group member, signed a agreement with a subsidiary of Qatar-based Baladna
US$ 10 million loan to construct an energy-efficient, to establish an integrated dairy and milk powder
oilseed crushing plant in Bangladesh, to improve food production project in southern Algeria.107
security. The new facility would process different •  The Niger State Government inked a US$ 2 billion
types of oilseeds, helping improve resilience against MoU with Turkiye’s Direkci Group, for the off-taking
crop failure or price fluctuations.96 of soya beans. The partnership is expected to boost
•  The African Development Fund approved a US$ 11 agriculture in the state and create job opportunities.108
million grant to Chad to increase rice production, •  Algeria signed a US$ 455 million deal with Italian
helping reduce food insecurity.97 firm Bonifiche Ferraresi SpA to develop an agricultural
•  The African Development Fund approved a loan of US$ project over 36,000 hectares in the Algerian state
26.55 million to Togo to develop primary agricultural of Timimoune to produce wheat, beans, and
sectors through private sector investments.98 other produce.109

The acquisition of halal food brands in Europe signals The MENA foodtech ecosystem is maturing, with start-
a growing focus on consolidating the halal F&B sector ups securing multi-million-dollar funding rounds to
to scale operations, expand distribution networks, and scale operations, enter new markets, and address food
capture the growing Muslim consumer base in that region. security challenges.
•  European F&B manufacturer GoodLife Foods signed •  UAE-based foodtech startup Grubtech secured US$ 15
an agreement to acquire Pure Ingredients, a German million as part of its Series B round and an extension
halal frozen food manufacturer.99 of Series A to accelerate geographical expansion and
•  French halal meat leader Isla Délice acquired Gurkan, set up offices in Saudi Arabia, the UK, and Europe.110
a premium German halal business specializing in •  Oman-based cloud kitchen IO Kitchens secured US$
pastirma. This move extends Isla Délice’s reach across 2.8 million in a seed funding round to expand its
seven European markets, including the UK, Germany, operations across the sultanate.111
Belgium, the Netherlands, Spain, and Italy, with group •  MealPlanet, a UAE-based foodtech company, raised
sales surpassing EUR 155 million.100Perwyn’s portfolio US$ 6 million in a seed round to fund its regional
company Isla Délice acquired British halal brand expansion plans.112
Takul, adding the UK to its existing markets of France, •  Entlaq, an Egypt-based entrepreneurship support
Belgium, and Spain.101 platform, acquired a stake in foodtech Brotinni to
help expand its operations domestically and in other
Governments and sovereign entities are accelerating regional markets.113
investments in agriculture and food production to •  Moroccan agritech YoLa Fresh raised US$ 7 million
enhance self-sufficiency, reduce import dependency, in a pre-Series A funding round to expand beyond
and strengthen food security. borders and tackle food security challenges.114
•  Bahrain’s sovereign wealth fund Mumtalakat launched •  Saudi-headquartered foodtech company Calo raised
a new firm to strengthen the agri-food sector and US$ 25 million in a Series B funding round. The com-
underpin efforts to achieve food security. The Bahrain pany provides personalized meal subscriptions to
Food Holding Company would prioritize investments health-conscious customers and is eyeing an IPO
in technologies and ventures, helping improve food by 2027.115

Chapter 5: Halal Food 89

OPERATIONAL DEVELOPMENTS would help introduce innovative sustainable farming
practices, enhancing Bahrain’s agricultural industry.122
While technology holds significant potential to improve •  Masdar City, an Abu Dhabi-based sustainability and
efficiency and transparency, adoption has been slow. innovation hub, partnered with agritech company
Alesca Technologies to launch its first indoor vertical
The integration of AI and blockchain into food production farm, deploying automated equipment and AI software
and distribution is creating a more transparent, efficient, to help grow fresh produce.123
and resilient global food ecosystem. Regulatory bodies •  Azerbaijan grew 100,000 tons of wheat through
are digitizing halal certification processes, improving circular irrigation systems in 2023 to increase
efficiency, standardization, and consumer trust. self-sufficiency.124
•  Halal digital technology provider Serunai Commerce
Sdn Bhd has teamed up with Jordan to enhance the
country’s halal ecosystem under the reverse linkage
modality of the Islamic Development Bank. NATIONAL/TRADE DEVELOPMENTS
•  Jordan’s halal ecosystem is set to be enhanced through
collaboration between Serunai Commerce Sdn Bhd, Total OIC food imports amounted to US$ 293.58 billion in
a halal digital technology provider, and Jordan. This 2023, reflecting a 4.41% decrease from US$ 306.52 billion
initiative falls under the Islamic Development Bank’s in 2022. One of the key factors behind this decline was a
reverse linkage modality.116 significant drop in the value of cereal imports — particularly
•  AlMukarramah developed Trade57, a platform that wheat and meslin, which fell by US$ 5.52 billion. This was
integrates food security, trade, and agriculture, driven by a correction in global wheat prices following the
leveraging technologies such as AI, blockchain, and record highs of 2022 amid the Russia–Ukraine conflict.
machine learning to tackle food production ineffi- Additionally, currency devaluation and domestic sufficiency
ciencies and waste management.117 in some OIC countries contributed to a lower import value.
•  Serunai Commerce Sdn Bhd, a member of the Zaiyadal Over the next five years, it is estimated that this import
group, has launched an innovative “Scan Halal Logo” figure will rise from US$ 293.58 billion in 2023 to US$ 442.27
feature in its Verify Halal app, powered by advanced billion in 2028, with a 8.54% CAGR.
artificial intelligence (AI) technology. The Verify Halal Saudi Arabia, Indonesia, and Türkiye lead the OIC in
app, developed by Serunai Commerce Sdn Bhd (a imports, with US$ 27.41 billion, US$ 25.48 billion, and US$
Zaiyadal group member), now features a new “Scan 22.55 billion, respectively. A new initiative was also intro-
Halal Logo” function, utilizing AI technology.118 duced to decrease import dependency. Saudi Arabia is ambi-
•  The Indonesian Halal Product Assurance Organizing tious to localize 85% of the country’s food industry by 2030.
Agency (BPJPH) announced plans to develop a super In 2024, it launched the Jeddah Food Cluster, the world’s
app to accelerate halal certification for businesses in largest food cluster with investments of SAR 5.3 billion. It
Indonesia. This integrated platform aims to simplify is expected to contribute SAR 8 billion to national exports.
the certification process for businesses while allowing Among the top supplying markets, Brazil leads with US$
consumers to verify halal-certified products.119 26.53 billion, followed by India and Russia with US$ 21.90
•  The United Nations World Food Programme has imple- billion and US$ 19.45 billion. The largest products exported
mented the Building Blocks project, which utilizes to OIC countries are cereals (21.22%), animal and vegetable
blockchain technology to facilitate cash transfers and oils (10.07%), and sugar (7.07%). With the ongoing shift in
enhance supply chain transparency. This initiative global trade and the growing membership of BRICS (which
has been active in various OIC member countries, has expanded to include OIC member countries such as
aiming to improve the efficiency and traceability of the UAE, Indonesia, Egypt, and Iran), BRICS’ role in global
food assistance delivery.120 halal food trade is set to become increasingly significant
in the years ahead.
The UAE, Bahrain, and other Gulf nations are heavily
investing in sustainable, high-efficiency farming solu-
tions to address water scarcity, food security, and climate OIC HALAL FOOD IMPORTS AND GROWTH
challenges. (2023-2028)
•  UAE-based agricultural and food technology company
US$ BILLION
Pure Food Technology developed an innovative, solar
energy-powered, hydroponic vertical farm, requiring
95% less water than traditional farming and deliver- 293.58
ing 100 times higher crop yield. The pilot plant was CAGR
2023 8.50% 442.27
designed and built in the UAE.121 2028 (F)
•  Badia Farms announced plans to invest in a new sus-
tainable farm in Bahrain through a partnership with
Mumtalakat’s real estate arm, Edamah. The initiative *(F): FORECASTED VALUE

90 State of the Global Islamic Economy Report 2024/25

Halal Food Trade
US$ BILLION (2023)

EXPORTS IMPORTS

Cereals Others
Trade Balance 21.22% 42.97%

196.30 (Export - Import) 293.58

-97.28

Animal or vegetable Sugars and Oil Seeds and Dairy and Animal Industry residue
fats and oils Confectionery Oleaginous Fruits Products and animal feed
10.07% 7.07% 6.51% 6.25% 5.89%

TOP EXPORTERS TO OIC TOP OIC IMPORTERS

US$ BILLION (2023) US$ BILLION (2023)

Brazil 26.53 Saudi Arabia 27.41

India 21.90 Indonesia 25.48
Russia 19.45 Türkiye 22.55
United States of America 13.19 Malaysia 20.76
Türkiye 12.98 United Arab Emirates 20.68
United Arab Emirates 12.64 Egypt 17.73
China 11.22 Iran 16.94
Indonesia 11.05 Iraq 14.40
Australia 10.41 Algeria 9.88
Argentina 9.02 Morocco 9.83

OIC countries

A new phase of halal trade globalization is emerging, and one from Brazil, Mongolia, and Uruguay.126
driven by strategic trade agreements and Southeast •  Indonesia’s Halal Product Assurance Organizing
Asia’s structured approach to halal market leadership. Agency signed a mutual recognition agreement on
halal certification with Korean halal certification
Mutual recognition, trade partnerships, and strategic bodies in November 2023 – the agreement aimed
trade agreements continue to be the strongest drivers to assist Korean food and agricultural companies in
of halal trade and mutual recognition, with significant entering the Indonesian market.127
efforts being made by Indonesia. •  The UAE’s comprehensive economic partnership agree-
•  Indonesia’s Halal Product Assurance Organizing ments (CEPAs) with Indonesia and Türkiye entered into
Agency signed 52 mutual recognition agreements force in September 2023. The Türkiye pact includes
with foreign halal certification agencies from 24 a halal cooperation article, encouraging both sides
countries during the Halal-20 forum, helping cement to finalize an agreement to cooperate on the mutual
the momentum of the global halal ecosystem.125 recognition of halal certification.128
•  The Department of Islamic Development Malaysia •  The UAE also concluded negotiations for CEPAs with
(JAKIM) recognized five additional foreign halal Morocco and Malaysia in 2024, as well as signed one
certification bodies last October, two from Russia with Jordan.129 130

Chapter 5: Halal Food 91

 •  Kazakhstan and Türkiye signed a US$ 2 billion invest- visitors and 150 exhibitors, representing over 120
ment agreement related to the agro-industrial sector countries.141
and agricultural trade.131 •  Further agreement has been reached between
•  Indonesia, among the top global suppliers of halal Tanmiah Food Company of Saudi Arabia and MHP
goods to OIC members, is calling on its fellow of Ukraine over the formation of a new joint venture.
Developing-8 or D-8 members to establish a halal A new joint venture has been established between
value chain ecosystem to boost the bloc’s growth Tanmiah Food Company of Saudi Arabia and MHP
during the D-8 Summit in Cairo in December 2024. of Ukraine.142
All D-8 members are part of the Organization of
Islamic Cooperation (OIC), including Bangladesh,
Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, ECOSYSTEM DEVELOPMENTS
and Türkiye.132
•  Pakistani meat processor The Organic Meat Company The global halal ecosystem is no longer a single, unified
Limited secured a US$ 4 million contract to export market – it is becoming a complex, multi-layered system
frozen boneless beef to the UAE.133 influenced by regulations, political agendas, and techno-
•  Brazil reached an agreement in Q4 2023 to export logical shifts.
chicken to Algeria in an attempt to widen the
presence of Brazilian poultry in Muslim-majority OIC-led halal accreditation efforts are enhancing global
markets.134 halal trade standardization
•  Egypt intends to import live sheep and goats from •  The Islamic Forum for Halal Accreditation Bodies
Somalia and Djibouti for slaughter to ensure meat (IFHAB) held its inaugural executive committee meet-
availability and balance market prices, particularly ing in Riyadh, bringing together committee members
ahead of Ramadan.135 representing accreditation bodies from Organization
•  Malaysia agreed to import 100,000 metric tonnes of Islamic Cooperation (OIC) member states.143
of halal meat and Basmati rice from Pakistan.136
•  Malaysia expects to receive 4 billion Malaysian ring- A growing number of Muslim-majority and non-Muslim
gits from China through potential halal industry countries are implementing stricter halal food regula-
investments, covering sectors such as food and tions, certification policies, and consumer protection
beverages and herbal medicines, among others.137 laws, signaling a shift towards greater regulatory over-
•  Brazil and Egypt signed an agreement to simplify sight and standardization.
exporting Brazilian beef and poultry to Egypt.138 •  Morocco’s National Office of Food Safety has imple-
mented a control system to ensure the safety of
Disclosure: DinarStandard is currently engaged imported red meat, with the framework applicable
in a contract with Halal Products Development to all imported meat, including fresh and frozen.144
Company. •  Bangladesh framed a policy on halal certification
towards the end of 2023 to facilitate local production
Saudi Arabia’s significant investments in developing its and marketing of halal products, including foods.145
halal market are driven by strategic initiatives aimed •  Bahrain introduced a new edict regarding halal food
at positioning the Kingdom as a global leader in the products to standardize practices in the Kingdom. The
halal industry: ruling includes details regarding halal food certifica-
•  BRF and Halal Products Development Company, tion and the halal national mark to ensure compliance
a Public Investment Fund subsidiary, invested in with Islamic laws.146
Saudi Arabia’s Addoha Poultry Company through •  India set policy conditions for halal meat exports
their joint venture BRF Arabia, strengthening BRF’s effective last October, according to which specified
portfolio and helping boost the halal chicken market meat and meat products would be allowed to be
in the Middle East.139 exported as halal-certified to 15 countries, based on
•  S audi Arabia launched the Halal Products specific conditions.147
Manufacturing Accelerator Program, a joint initia- •  A new bill to safeguard the integrity of halal food
tive by HPDC and the Saudi Export Development in the state of Washington came into effect in June
Authority (SEDA). The program is designed to boost 2024. The Wilson bill protects Muslim consumers
local halal production capabilities and expand from purchasing food falsely advertised as halal,
exports, positioning the Kingdom as a global halal with violations punishable under the new Halal Food
production hub​. Consumer Protection Act.148
•  HPDC’s investment in Aldella Food Production Southeast Asia, led by Indonesia, the Philippines, and
aims to boost Saudi Arabia’s halal food sector by Malaysia, is moving beyond regulatory compliance to a
increasing production capacity and enhancing proactive, structured approach to halal trade facilitation,
global market reach.140 market expansion, and strategic positioning in the global
•  The Makkah Halal Forum attracted over 5000 halal economy.

92 State of the Global Islamic Economy Report 2024/25

 CREDIT/UNSPLASH
•  Indonesia launched a new halal certification system auxiliary materials for F&B products; and slaughtered
for international companies, expected to boost food products and slaughtering services.154
and beverage imports into the country.149 •  Hong Kong’s Islamic body is looking to certify more
•  The Philippines has created the National Halal than 500 halal restaurants by the end of 2025, adding
Industry and Development Office to simplify halal to the 142 existing halal-certified eateries in the city.155
certification and to increase the number of local Restrictive policies on halal certification signal a polit-
halal industry players.150 icization of halal consumption in domestic markets
•  Japan launched a food export platform in Malaysia •  India’s Uttar Pradesh government banned the sale
to support the expansion of Japanese food in the of halal-certified food products in November 2023,
Southeast Asian nation.151 excluding products meant for export. It also prohib-
•  In collaboration with the National Committee for ited the manufacturing, storage, and distribution of
Sharia Economy and Finance (KNEKS), Indonesia’s halal-certified products.156
Ministry of Trade is enhancing synergy through the •  Air India has limited its halal meal options, offering
Indonesia Halal Export Incorporated (IHEI) working halal certification only for pre-booked Muslim meals.157
group to boost global market access for Indonesian •  The European Court of Human Rights rejected the
halal products. The latest 2024 coordination meeting request to review a previous ruling last July, validating
focused on harmonizing programs, aligning data on the ban on slaughter without stunning. In February
export destinations, and identifying high-potential 2024, the Court ruled that bans on slaughter without
halal products for development. This collaborative stunning – adopted by two Belgian regions – do not
effort represents a strategic approach to strength- infringe on religious freedom.158
ening Indonesia’s position in the international halal
market.152
•  Vietnam announced the launch of a national halal cer-
tification authority, overseeing certification activities One of the biggest challenges
and facilitating training and international cooperation facing SME food businesses is
across the halal sector.153
•  Indonesia has mandated halal certification on prod-
access to Islamic finance solutions
ucts within the country, beginning last October, with tailored to food producers.”
the mandate initially applying to three product groups DR. MOHAMED ALI,
produced by medium and large businesses – food MANAGING DIRECTOR
and beverages; raw materials, food additives, and HALAL PRODUCTS ADVISORY

Chapter 5: Halal Food 93

 IFHAB (Islamic Forum for Halal consumer demand for natural and sustainable options.
Accreditation Bodies) takes a This innovation not only enhances product quality but
also aligns with consumer trends, particularly among
bottom-up, multilateral approach, Generation Z, driving the industry towards smarter and
empowering national halal more sustainable solutions.162
accreditation bodies through peer
training, technical harmonization,
and mutual recognition.” SOCIAL IMPACT DEVELOPMENTS
İHSAN ÖVÜT, Climate efforts, empowerment, and training initiatives con-
SECRETARY GENERAL, OIC STANDARDS tribute to food security.
AND METROLOGY INSTITUTE FOR ISLAMIC
COUNTRIES (SMIIC) Governments and international organizations are increas-
ingly integrating climate resilience, circular economy
models, and sustainable food systems into national and
INNOVATION DEVELOPMENT global policy frameworks to address food security, waste
reduction, and environmental impact.
Businesses are leveraging technology, personalization, and •  The COP28 presidency launched the UAE Declaration
premium offerings to appeal to a broader, experience-driven on Sustainable Agriculture, Resilient Food Systems,
consumer base. and Climate Action, endorsed by 159 countries, which
account for 70% of the world’s farmers and 80% of
Debut halal-certified cruise to Antarctica agriculture-related emissions.163 164
•  Albatros Expeditions will operate a halal-certified •  Egypt’s Ministry of Planning, Economic Development
cruise to visit Antarctica starting 2026, making it and International Cooperation, alongside the World
a world first for an expedition vessel to operate a Food Program, announced a program to bolster food
halal-certified kitchen in Antarctica.159 security. The initiative invites entrepreneurs, startups,
and companies with climate innovation solutions in
Cultivated meat continues to gain new certifications, Egypt, Jordan, and Lebanon to win grants and men-
with progress being slow. torship.165
•  The Islamic Religious Council of Singapore announced •  The Indonesian Ministry of National Development
that cultivated meat is halal, provided the cells are Planning (Bappenas) launched the Circular Economy
sourced from animals that Muslims are permitted to Roadmap and National Action Plan, which are set to
consume. The ingredients that make up the texture guide stakeholders in transitioning to a circular econ-
and composition of cultivated meat are halal. The omy from 2025 to 2045. The implementation of the
product must be non-toxic and clean.160 Circular Economy Roadmap focuses on five priority
sectors – including food and beverage, retail (focus-
The new age of taste ing on plastic packaging), textiles, construction, and
•  AI and fermentation technology are being used to electronics – representing almost a third of Indonesia’s
create next-generation products that are healthier, GDP.166
ethically sourced, and regionally customized.
•  Sensegen has developed a range of bio-based exotic Canada opened first halal food bank
flavors through precision fermentation. Their technol- •  Canada opened its first halal food bank in Ontario to
ogy enables the creation of unique and sustainable support the local Muslim community and other indi-
flavor profiles for various food applications. Precision viduals facing food security challenges.167
fermentation transforms the production of high-value
sweeteners, flavors, and proteins by using specialized
bacteria as “cell factories” to create natural ingredients CONSUMER AND MARKET
sustainably. This technology enables the development DEVELOPMENTS
of key ingredients, smells, textures, and tastes that are
otherwise difficult to source, aligning with consumer Politics and product awareness have converged in the minds
demand for natural products.161 of consumers, reflecting in their purchasing decisions.
•  dsm-firmenich has pioneered the creation of
AI-generated flavors, such as a natural, lightly grilled The halal F&B sector is evolving beyond compliance
beef taste designed for plant-based meat alterna- and cultural identity, embracing innovation to meet
tives. By leveraging extensive data on raw materials shifting consumer preferences for health, indulgence,
and flavor compounds, their AI system formulates and authenticity.
complex and authentic flavor profiles, accelerating •  Fix Dessert Chocolatier, a Dubai-based confectionery
the development of new products that align with brand, created a chocolate bar filled with toasted kataifi

94 State of the Global Islamic Economy Report 2024/25

 CREDIT/UNSPLASH
pastry, pistachio cream, and tahini coated in milk choc- •  Brands such as Kin Euphorics and Hiyo are leading
olate. Sold initially exclusively in Dubai, the chocolate this emerging “euphoric” category, offering products
bar gained global attention through social media virality, that aim to deliver mood-enhancing effects without
prompting interest from international markets.168 alcohol.175
•  Milaf Cola is a groundbreaking beverage introduced by •  Functional beverages are gaining traction as con-
Saudi Arabia’s Turath Al-Madina Company, a subsidiary sumers increasingly prioritize health and wellness
of the Public Investment Fund. Launched at the Riyadh alongside the desire for convenience and variety.176
Date Festival, it is touted as the world’s first cola made •  Beverage giant PepsiCo has purchased Poppi, a soda
from dates, offering a healthier alternative to traditional brand that specializes in prebiotic sodas. Poppi sodas
soft drinks.169 contain agave inulin and cassava root fiber, prebiotics
•  A Spanish brand, La Dehesa de Gaia, has introduced that promote the growth and activity of beneficial
halal-certified lamb-based cured meat products, includ- microorganisms.177
ing chorizo and salchichón, catering to both Muslim
consumers and those seeking sustainable, high-quality Consumer interest in protein consumption is shifting
meats. These types of cured meats are part of Spanish from sheer intake levels to the quality, composition,
culture but were previously only porcine-based.170 and nutritional value of proteins, driving demand for
complete proteins that deliver all essential amino acids.
The growing demand for locally produced and politically •  In 2023, 67% of consumers aimed to increase their
aligned beverages reflects a shift in consumer behavior, protein intake, reflecting a growing emphasis on
where national identity, ethical considerations, and geo- dietary protein.178
political events influence purchasing decisions. •  In 2024, discussions have shifted towards not only
•  Cola Next has seen a significant increase in demand as the quantity but also the quality of protein consumed,
consumers seek local alternatives. The brand emphasizes with an emphasis on complete proteins that provide
its Pakistani roots, appealing to nationalistic sentiments all essential amino acids.179
amid boycotts of Western products.171
•  Egypt’s V7 cola has experienced a surge in popularity,
with exports tripling compared to the previous year.172 At Tanmiah, we recognize the
•  Saudi Arabia is witnessing a shift in consumer preferences
responsibility of advancing
towards locally produced, high-quality beverages, exem-
sustainable, secure food systems
plified by the rise of Kinza Drinks, a Saudi-owned brand.
The company, introduced by Al-Jameel International in for a growing global Muslim
2022, has expanded its presence across GCC and African population. We support the the
markets.173 halal food industry by investing
•  Brands like Gaza Cola and Palestine Drinks have emerged
in technology, transforming our
as alternatives in European markets, gaining popularity
among consumers supporting the Palestinian cause. value chain, and partnering with
These beverages not only offer a unique taste but also global leaders —leveraging their
contribute to humanitarian efforts, with profits sup- expertise and market reach to
porting Gaza.174
bring Saudi halal standards and
Consumers are shifting away from traditional soft drinks innovative solutions to the world.”
and alcohol alternatives, embracing functional beverages MUHAMMAD ABBAS KHAN,
that offer health benefits, mood enhancement, and sensory CHIEF STRATEGY OFFICER,
experiences. TANMIAH

Chapter 5: Halal Food 95

SIGNALS OF OPPORTUNITIES
IMPACT: Low Moderate High MATURITY: Early Intermediate Mature

Frontier markets
are emerging to show future
potential for halal market opportunities
Indonesia, the Philippines, Vietnam, and
Kazakhstan are emerging halal markets,

1 improving access through regulatory reforms,

national certification bodies, and trade
agreements, offering high-growth potential
for international halal businesses and
investors seeking streamlined market entry.
Global trade agreements
Impact Maturity
and mutual recognition are driving
halal market efficiency
Bilateral and multilateral agreements,
such as CEPAs and Indonesia’s 52 MRAs,
are promoting regulatory alignment,
easing halal certification, and reducing
2
trade barriers—paving the way for a more
integrated, cost-efficient global halal
KSA is positioning trade system.
itself as the global hub for
Impact Maturity
halal market growth
Saudi Arabia is rapidly emerging as a global

3 halal hub through major investments in

halal production, infrastructure, and exports,
supported by initiatives like the Halal
Accelerator, HPDC partnerships, and growing
foreign investment in food industries.
Consumer boycotts and
Impact Maturity
ethical sentiment are catalyzing
local product innovation
Amid geopolitical shifts and rising
consumer activism, local brands like
Cola Next and Fix Dessert Chocolatier
are gaining traction by offering culturally
4
aligned, ethical products, showing how
Bioindustry and domestic producers are innovating to rival
AI-driven food innovation present global FMCG giants.
emerging halal opportunities
Impact Maturity
Precision fermentation and AI-driven food
tech are creating sustainable ingredients

5 and proteins, like AI-formulated flavors and

fermented dairy. While promising, these
innovations face evolving halal certification
challenges, offering both opportunities and
regulatory hurdles for pioneering businesses.

Impact Maturity

96 State of the Global Islamic Economy Report 2024/25

Strategic Considerations
by Stakeholders
High-impact opportunities are emerging across investors, governments,
and businesses, especially in expanding halal production in markets
like Indonesia, Vietnam, and Kazakhstan, leveraging Saudi Arabia’s
push to be a global halal hub, and using advanced technologies
like AI and precision fermentation. Trade agreements and consumer
trends favoring ethical, local brands are spurring innovation. However,
challenges remain, including fragmented certification frameworks,
politicized halal regulations, and scaling issues for startups.
Stakeholders who navigate these hurdles while capitalizing on market
shifts will lead the future of the global halal economy.

INVESTORS

O P P O R T U N I T I E S

1 Emerging halal markets in Indonesia,

Philippines, Vietnam, and Kazakhstan
offer significant investment potential in
Relevant developments & precedents:
•  Indonesia signed 52 mutual recognition agreements
and mandated halal certification.
production, certification infrastructure, and exports •  Vietnam launched a national halal certification
These countries are actively expanding their halal authority.
sectors through regulatory reforms, certification •  Kazakhstan signed a US$ 2 billion agro-industrial
authority launches, and investment agreements. investment agreement with Türkiye.
Investors can capitalize on early-stage market Potential outcomes by 2035:
entry by funding halal production facilities, certi- •  Investors have diversified portfolios in emerging
fication centers, and agrifood ventures, aligning halal markets, securing first-mover advantage as
with national goals to become global halal hubs. these countries become central players in the global
halal economy.

2 Investors can back local brands, capital-

izing on rising consumer preference for
ethical, culturally aligned halal products
Relevant developments & precedents:
•  Rise of Cola Next, Gaza Cola, and Kinza Drinks amid
boycotts.
Consumer boycotts and national identity movements •  Fix Dessert Chocolatier’s success blending regional
are fueling the growth of local halal brands (e.g., Cola flavors with premium offerings.
Next, Gaza Cola, Kinza Drinks, Fix Dessert Chocolatier). Potential outcomes by 2035:
Investors can fund innovative FMCG brands focusing •  Investor-backed halal brands lead domestic markets
on authenticity, health, and ethical sourcing, meeting and achieve global scale, setting benchmarks for
rising demand for local alternatives. ethical, innovative halal products.

Chapter 5: Halal Food 97

 C H A L L E N G E S

1 Diverse and fragmented halal certifica-

tion landscape
The lack of global standardization in halal
Risk:
•  Investors may face operational inefficiencies and
reduced returns due to non-harmonized halal cer-
certification complicates investment decisions, rais- tification, hindering the scalability of investments.
ing entry costs and compliance risks across multiple
jurisdictions.

GOVERNMENTS

O P P O R T U N I T I E S

1 Governments can leverage bilateral and

multilateral trade agreements to posi-
tion themselves as leaders in halal trade
Relevant Developments & Precedents:
•  The formulation of IFHAB
•  UAE’s CEPAs with Indonesia, Türkiye, Malaysia, and
efficiency. Jordan.
By driving mutual recognition agreements and stra- •  Indonesia’s 52 MRAs.
tegic CEPAs, governments can eliminate cross-border •  Malaysia’s recognition of five additional halal certi-
certification barriers, streamline halal trade, and attract fication bodies.
investment. Potential outcomes by 2035:
•  Governments successfully position their countries
as global halal trade facilitators, attracting FDI and
fostering seamless halal market access.

2 Governments can establish structured

national halal ecosystems, integrating
certification, production, innovation, and
Relevant Developments & Precedents:
•  Philippines established National Halal Industry and
Development Office.
exports •  Indonesia’s Halal Export Incorporated (IHEI) working
National efforts, such as the Philippines’ Halal Industry group launched.
Development Office and Indonesia’s halal export ini- Potential outcomes by 2035:
tiatives, demonstrate how governments can create •  Governments build globally competitive halal ecosys-
holistic halal ecosystems to promote growth and tems, reducing dependency on imports and strength-
self-sufficiency. ening domestic industries.

C H A L L E N G E S

1 Slow Digitalization of Halal Trade and

Certification
Restrictive policies (e.g., India’s Uttar
Risk:
•  Governments may face trade tensions, reduced market
access, or internal polarization due to misaligned or
Pradesh ban, Europe’s stunning regulations) sig- politicized halal regulations.
nal the growing politicization of halal certification,
complicating regulatory diplomacy.

98 State of the Global Islamic Economy Report 2024/25

BUSINESSES

O P P O R T U N I T I E S

1 Businesses have the opportunity to

expand into Saudi Arabia’s rapidly grow-
ing halal market through partnerships,
Relevant Developments & Precedents:
•  HPDC and BRF Arabia joint venture for poultry pro-
duction.
production facilities, and exports •  Launch of KSA’s Halal Products Manufacturing Accel-
KSA’s substantial investments, such as HPDC initia- erator Program.
tives, BRF Arabia’s poultry investments, and the Halal •  HPDC’s investment in Aldella Food Production.
Products Manufacturing Accelerator, offer businesses Potential outcomes by 2035:
fertile ground to localize production and expand oper- •  Businesses operating in KSA dominate regional halal
ations. production and export markets, leveraging supportive
infrastructure and investment policies.

2 Businesses can leverage AI and bioin-

dustry innovations to offer next-gen
halal products aligned with evolving
Relevant Developments & Precedents:
•  dsm-firmenich developed AI-generated halal-friendly
flavors.
consumer preferences •  Precision fermentation highlighted as a key food
Technologies like AI-driven flavor science and precision innovation.
fermentation (e.g., dsm-firmenich’s AI-formulated Potential outcomes by 2035:
flavors) enable businesses to develop healthier, person- •  Businesses become global leaders in next-generation
alized, and ethically sourced halal products, appealing halal food offerings, integrating sustainable produc-
to Gen Z and health-conscious consumers. tion methods and personalized products.

C H A L L E N G E S

1 Scaling Halal Startups Amid Limited Late-

Stage Investment
While early-stage funding for halal startups
Risk:
•  Halal startups may stagnate at a regional level, unable
to capitalize on broader market potential due to fund-
is rising, there is limited support for scaling regionally ing gaps and operational bottlenecks.
successful foodtech or agritech startups to interna-
tional markets.

Chapter 5: Halal Food 99

Special Contribution from IFANCA

Bridging Nutrition and Faith:

Ensuring halal food access, one
plate at a time
In today’s age of bite-sized nuggets of information con- prehensive data on food insecurity among Muslim children
stantly overloading our senses, critical issues that deserve specifically is limited, available statistics highlight the
our immediate attention sometimes get swept away. One broader challenges faced by Muslim communities in access-
such pressing issue is that of food insecurity and global ing adequate and culturally appropriate food. According to
hunger. its 2022 report, the US Department of Agriculture states
The United Nations Food and Agriculture Organization that 10% of Muslims reported “sometimes” or “often” not
defines food insecurity as the lack of regular access to having enough to eat in the past week, a rate comparable
enough safe and nutritious food for normal growth, devel- to Black (8%) and Hispanic (10%) Americans.
opment, and an active, healthy life. Based on this definition,
the FAO estimates that in 2023, nearly 733 million people Why halal matters
worldwide were impacted by hunger, approximately one Behind these jarring numbers lies another dimension
in every eleven individuals globally and one in five across often overlooked: the need for food that aligns with spe-
the African continent. cific cultural and religious values. According to data from
the US Religious Consensus, Islam, at 1.34% of the total
Food insecurity is a silent pandemic that doesn’t population of the US, is the third-largest religion in the
differentiate country. For such a large population, halal, an Arabic term
It would be normal to associate food insecurity and hun- meaning “permissible,” goes beyond mere dietary guide-
ger with third-world and developing countries. However, lines. It encompasses the ethical treatment of animals,
what’s often considered normal is not always backed by avoidance of certain ingredients, and strict cleanliness
the truth. Food insecurity remains a significant issue standards. In practice, halal ensures that every step from
in the United States, affecting millions of households, farm to table meets Islamic dietary rules. This isn’t a mat-
including those with children. According to the ‘Household ter of preference; it’s a matter of necessity. For Muslims
Food Security in the United States in 2023’ report by the in low-income communities or refugee camps, it’s not
US Department of Agriculture, approximately 13.5% of uncommon to skip meals entirely rather than compromise
households experienced food insecurity. This comes out on religious values.
to around 47.4 million people, including 14 million chil- When these religious obligations are ignored, vulner-
dren. The Map the Meal Report 2024 goes so far as to say able families—especially children—often face an impossi-
that children are more likely than adults to suffer from ble choice between violating their faith or going hungry.
food insecurity, resulting in poor health and long-term According to the findings of a report by the Institute for
behavioral outcomes. Social Policy and Understanding (ISPU), a significant major-
Breaking these numbers down further doesn’t make for ity (83%) of Muslims in the US prefer or require a halal diet.
pleasant reading. Among households with children under The lack of access to halal-certified foods can exacerbate
18, 17.9% or 6.5 million households were food insecure. ​In food insecurity, especially for children in school settings
8.9% (3.2 million households), both children and adults where such options are limited.
experienced food insecurity. Furthermore, approximately Health experts point out that such choices have dire
1.0% (374,000 households) had children who experienced consequences. Malnutrition among children, in particular,
reduced food intake and disrupted eating patterns due to can trigger a lifetime of setbacks—from poor academic
insufficient resources. ​These numbers also show a year- performance to long-term health issues and social mar-
on-year progression, which hints at a lack of, or the very ginalization. By neglecting halal requirements, society
least, inadequate provisions and checks. effectively puts an already vulnerable population at an
even greater disadvantage.
A growing crisis of access The situation seemed ripe for intervention by a body
While these numbers are alarming, the picture is even that could place the interests and potential of these young
bleaker when it comes to Muslim households. While com- minds at the forefront. That’s where IFANCA came in.

100 State of the Global Islamic Economy Report 2024/25

Enter IFANCA For IFANCA, spreading awareness and best practices is CREDIT/SHUTTERSTOCK

Since its inception in 1982, the Islamic Food and Nutrition key. The organization has funded educational programs at
Council of America’s (IFANCA) central focus has been places like Texas A&M University, focusing on ethnic and
enhancing access to halal products for those requiring faith-based food systems. It also supports a permaculture
them. By emphasizing that nutritional security is inextri- garden at Zaytuna College that blends Islamic ethics with
cably linked to the availability of halal-certified options, environmental stewardship.
the organization’s mission has been to provide consumers These projects aren’t just about ticking boxes; they’re
with the guidance needed to navigate the myriad prod- about shaping a new generation of leaders who appreci-
ucts found in grocery stores and identify those that align ate how religious practices, ethical considerations, and
with halal dietary standards without compromising their sound environmental policies intersect. Yet IFANCA’s
nutritional needs. reach extends well beyond Illinois. This globally recognized
Today, with over four decades of experience, IFANCA authority on halal certification works with clients in more
stands as a leader in setting and upholding the best prac- than 70 countries—across the food, pharmaceutical, and
tices in halal certification. The IFANCA team, composed cosmetics industries—to maintain standards of cleanliness,
of industry experts and scholars in Islamic jurisprudence, ethical sourcing, and transparency. Nationally, IFANCA has
has developed standards that have undergone extensive initiated pioneering projects in public institutions such
review and are widely endorsed by both Islamic scholars as universities, correctional facilities, and food banks. It
and the practicing Muslim community. published the Handbook for Halal Campus Dining Food

Special Contribution 101

 CREDIT/SHUTTERSTOCK

102 State of the Global Islamic Economy Report 2024/25

Service Programs, a comprehensive guide that provides life expectancies, and socio-economic marginalization.
best practices for institutional compliance with halal When Muslim children are denied access to halal meals,
standards. Their impact is evident in major initiatives, they are effectively forced to choose between religious
such as collaborations with Chicago Public Schools (CPS), observance and sustenance—a decision that undermines
Alliance to End Hunger, and food banks in Pennsylvania both their rights and well-being.
and Delaware, where they help distribute halal-certified The Faith by Plate Act exemplifies how public insti-
products to diverse communities. tutions can play a key role in bridging cultural gaps and
One such example that crystallized the organization’s meeting critical needs. Together with IFANCA’s global
mission and brought the urgent need to provide halal meals expertise, Illinois is illustrating that when faith and prac-
to young minds was the “Faith by Plate Act.” ticality converge, food insecurity doesn’t have to be an
insurmountable problem.
Illinois takes a bold step Ultimately, the drive toward inclusive food security
A historic turning point arrived on March 28, 2025, when isn’t just about feeding people; it’s about respecting their
Illinois became the first state in the US to require public values, preserving their dignity, and ensuring that no one
schools, hospitals, and other state-run facilities to provide is forced to choose between hunger and faith. As govern-
halal and kosher meal options upon request. Known as ments, nonprofits, and local communities unite to expand
the “Faith by Plate Act,” this legislation reflects a growing halal-friendly infrastructure, one thing becomes crystal
understanding that access to culturally and religiously clear: equitable food systems benefit everyone, whether
appropriate meals is a matter of equity, not luxury. you consider halal a necessary practice, a moral stance,
Illinois has the country’s highest per capita Muslim or simply a better standard of care.
population. For years, many observant families and com-
munity groups have voiced concerns that the lack of halal
meals in public institutions is aggravating hunger and
health disparities. Under the new law, schools and state
agencies no longer decide if halal is “important enough”
to warrant a menu item; they must now ensure that it’s
available.
IFANCA played a central role in bringing the Faith by
Plate Act to life. Drawing on four decades of experience,
IFANCA helped draft the legislation’s technical details,
ensuring that halal-friendly processes are feasible at scale.
From clarifying dietary standards to guiding kitchen pro-
tocols, their input has been instrumental in making halal
compliance second nature for big institutions.

A roadmap for inclusive food security

By showing that large institutions can incorporate halal-
friendly systems at scale, Illinois’ example offers a blueprint
for others grappling with food insecurity among Muslim
populations. When states or organizations integrate faith-
based dietary requirements into their offerings, they take
a meaningful step toward inclusive and dignified access
to nutrition.
Halal certification, in this context, is more than a
religious seal of approval. It’s a powerful framework for
addressing hunger in a way that respects cultural iden-
tity and ethical principles. With the right leadership and
collaboration, initiatives like the Faith by Plate Act can
be replicated everywhere, from bustling cities to remote
refugee camps—anywhere people need both sustenance
and a sense of belonging.

Toward a more equitable future

As the global hunger crisis intensifies, inclusive policies
become increasingly urgent. Studies show that from short-
term effects such as undernutrition, social exclusion, and
psychological distress, unchecked food insecurity among
children can lead to poor academic performance, reduced

Special Contribution 103

 6
C H A P T E R

ISLAMIC
FINANCE
CREDIT/PHOTOGRAPHER

106 State of the Global Islamic Economy Report 2024/25

Chapter 6: Islamic Finance 107
 ISLAMIC FINANCE
ALL FIGURES IN US$ BILLIONS, UNLESS STATED OTHERWISE

SIZE OPPORTUNITY
Represented by US$ 4,925 billion in Islamic finance assets globally (2023).

1,6 Iran
7
75.
US$ 4,925 US$ 7,527.5
2023 2028

a
rabi
di A 113.5
Sau 1 ,

Rest of countries
258
8.1
n 5
a k ista 106.9
P e
kiy
Tür
tar
Qa 9.7
M

14
9. in

al 681
.2 sia
14 ahra

ay .6
si
In 8
162 done
B

a
198. ait
Kuw
4

371.2
UAE

8.9%
CAGR

GOVERNMENT LEADERSHIP
ISLAMIC FINANCE – GLOBAL ISLAMIC ECONOMY INDICATOR (GIEI) RANKING (2024)
61 51 41 31 21 11 1

1 Malaysia

2 Saudi
Arabia

3 Bahrain

4 UAE

5 Kuwait

61 51 41 31 21 11 1

*All estimates by DinarStandard except for Islamic Finance sector provided by LSEG Data & Analytics Islamic Finance Development Indicator 2024 data. Muslim consumer spend
estimates & analysis by DinarStandard leveraging World Bank’s ICP 2017 consumer data as baseline reference. Halal and related product exports are based on ITC Trademap 2023

108 State of the Global Islamic Economy Report 2024/25

INVESTMENTS
US$ MILLION (2023/24)

US$ 2 billion Top countries by total deal value and number of deals
Disclosed value for = 1 deal
1 2 3 4 5
all 59 deals

726.6 588 163.5 157 149

Saudi Arabia Indonesia Egypt UAE Malaysia

KEY DEVELOPMENTS SIGNALS OF OPPORTUNITIES

IMPACT: Low Moderate High

1 IsDB approves a record US$ 1.15 billion

for Kazakhstan’s climate-resilient
water project.

Mature
2 ICMA, IsDB & LSEG publish the
first global guide for green and
sustainable sukuk. Expansion of Digital Growth of Green
Sukuk and Blockchain and Sustainable
Integration Sukuk

3
Intermediate

Pakistan’s SECP issues tiered-capital

and ADR rules for Islamic non-banks.
Fintech Innovations Growth in Islamic
in Islamic Finance Finance Contribution
with BNPL, AI, and towards Global ESG
Blockchain Initiatives
4 AEON Bank debuts as Malaysia’s first
fully digital Islamic lender.

Emergence of Shariah-Compliant
5 Tamara’s US$ 340 million Series C Central Bank Digital Currencies
Early

crowns it Saudi Arabia’s first fintech (CBDCs)

unicorn.

Financial Governance Awareness Social Innovation

61 51 41 31 21 11 1

6 Indonesia

7 Jordan

8 Pakistan

9 Oman

10 Iran

61 51 41 31 21 11 1

data. Projections are baselined on data from IMF Outlook from October 2024. Investments (figures and individual deals) are based on a detailed scan of databases from CapitalIQ,
Crunchbase and DinarStandard analysis from August 2023 to July 2024. See appendix for detailed methodology.
OIC Organization of Islamic Cooperation, 57 mostly Muslim-majority member countries.

Chapter 6: Islamic Finance 109

 The Islamic finance sector experienced continued growth in
2023/24, driven by strategic investments and innovation across
multiple markets. Global Islamic assets grew by 9.2% to US$ 4.93
trillion, with Islamic banking representing 72% of this total. By
2027/2028, these assets are forecasted to reach US$ 7.53 trillion,
at a CAGR of 8.9%.

Multilateral organizations played pivotal roles in facilitat- inaugural digital sukuk issuance leveraging blockchain
ing this growth. Notably, the Islamic Development Bank’s technology, and Saudi Arabia’s substantial sukuk activities,
(IsDB) historic US$ 1.15 billion investment in Kazakhstan’s including Saudi Aramco’s US$ 3 billion issuance. Türkiye
Climate-Resilient Water Resources Development Project Wealth Fund’s US$ 750 million sukuk issuance attracted
was complemented by substantial sukuk issuances total- record demand, reinforcing market confidence and high-
ing US$ 3.25 billion and an additional EUR 500 million lighting investor appetite for innovative and sustainable
Euro-denominated sukuk, which supported sustainable financial instruments.
development projects globally. Islamic fintech also benefited from these develop-
The momentum from multilateral efforts significantly ments, gaining prominence through significant investments
impacted regional Islamic finance markets. Pakistan intro- and groundbreaking innovations. Noteworthy examples
duced comprehensive regulatory reforms and alternative include Saudi Arabia’s fintech licensing expansions, block-
sukuk structures to strengthen its Islamic capital markets. chain-based stablecoins in Indonesia, and digital invest-
Kuwait developed regulatory roadmaps to promote sukuk ment platforms in Malaysia and the UK. Concurrently,
and Islamic investments, while Malaysia emphasized takaful advancements incorporated regulatory enhance-
digital transformation by establishing AEON Bank, its first ments and digital innovations, particularly in Saudi Arabia,
Islamic digital bank. Indonesia enhanced regional sukuk Malaysia, and Indonesia, increasing financial inclusion
regulations, and Saudi Arabia facilitated digital banking and customer engagement.
advancements and regulatory improvements aligned with Additionally, Islamic social finance experienced critical
Vision 2030 objectives. advancements. Malaysia allocated substantial resources
These regional developments were closely linked to the for waqf asset development, while microfinance expanded
growing emphasis on social impact finance and sustain- in Pakistan and Syria. The Akhuwat Foundation notably
able investments. There was significant growth in green impacted financial inclusion in Pakistan through extensive
and sustainable sukuk issuances, such as Warba Bank’s microfinance initiatives. Innovation continued strongly
pioneering US$ 500 million green sukuk and Indonesia’s with digital transformations and blockchain integration
US$ 600 million issuance. Initiatives in Tanzania and in sukuk markets, along with digital currency trials in
Afghanistan further utilized Islamic finance for social Iran and Pakistan.
development and sustainability projects, emphasizing Overall, the continued expansion and innovation within
the sector’s expanding global relevance. the Islamic finance sector highlight its essential role in
The momentum in sustainable finance bolstered fur- fostering sustainable economic growth, financial inclusion,
ther innovation in the sukuk market, notably Russia’s and technological advancement across global markets.

110 State of the Global Islamic Economy Report 2024/25

 Sector developments (2023/24)

REVENUE DEVELOPMENTS MULTILATERAL ISLAMIC FINANCE

DEVELOPMENTS
Islamic finance continues its robust growth, with financial
institutions expanding into new markets and exploring Multilateral organizations have been instrumental in
innovative product categories. OIC-based international advancing Islamic finance by fostering collaboration,
and multilateral entities are investing in Shariah-compliant standardization, and capacity-building initiatives.
products, sustainable finance, and digital solutions. Fintech •  One significant development is the collaboration
and blockchain applications are seeing increased attention, between the International Capital Market Association
with new designs catering to efficiency and accessibility. (ICMA), the Islamic Development Bank (IsDB), and
Strategic partnerships are also driving growth, supporting the London Stock Exchange Group. Together, they
local initiatives and enhancing market understanding. released a comprehensive document on green and
sustainable sukuk.180 This guidance aims to support
Latest projections issuers and market participants in appropriately label-
ing sukuk, ensuring transparency, and aligning with
Global Islamic assets were valued at US$ 4.93 trillion for the global sustainability standards. By providing a clear
2023/2024 period, reflecting a 9.2% increase from US$ 4.50 framework, this initiative encourages the issuance
trillion in 2022/2023. Islamic banking accounts for 72% of of green and sustainable sukuk, thereby promoting
this total. By 2027/2028, global Islamic assets are projected environmental and social projects within the Islamic
to reach US$ 7.53 trillion, growing at a CAGR of 8.9%. finance sphere.
•  Furthermore, the Islamic Financial Services Board
(IFSB) partnered with the Bangko Sentral ng Pilipinas
OPERATIONAL DEVELOPMENTS (BSP), the central bank of the Philippines, to deliver
Islamic finance-focused consultation sessions.181
Islamic finance continues to make significant strides globally, These sessions are designed to enhance the regula-
reflecting its resilience and adaptability in an ever-evolving tory and supervisory capacities of Philippine author-
financial landscape. This comprehensive overview highlights ities, facilitating the country’s integration of Islamic
recent developments across various sectors of Islamic finance, finance into its financial system. Such collaborations
organized under key thematic areas. The developments are highlight the role of multilateral organizations in
interconnected to provide a cohesive narrative that under- expanding Islamic finance into new markets and
scores the growth, innovation, and impact of Islamic finance fostering international cooperation.
worldwide.

Investment summary
COUNTRY DEAL TYPE ORGANIZATION NAME DEAL VALUE (US$ 000s)

Indonesia M&A Mandala Multifinance 469,030

Saudi Arabia VC Tamara 340,000

Egypt VC MNT-Halan 157,500

Malaysia PE AmBank Group 149,000

Saudi Arabia M&A Allianz Saudi Fransi Cooperative Insurance 133,070

Chapter 6: Islamic Finance 111

CREDIT/UNSPLASH

•  In 2024, the Islamic Development Bank (IsDB) reforms. The SECP plans to introduce Tier I and Tier
approved its largest Islamic finance deal ever, invest- II capital frameworks for Islamic non-bank financial
ing US$ 1.15 billion in Kazakhstan’s Climate-Resilient institutions, enhancing their financial stability and
Water Resources Development Project. This marks capacity to absorb risks. Additionally, the introduc-
the largest Islamic finance-backed water initiative, tion of an alternative dispute resolution mechanism
supporting the construction of 11 reservoirs, the for shariah-compliant contracts aims to streamline
rehabilitation of 3,400 km of irrigation networks, conflict resolution and increase investor confidence.
and the enhancement of 100 km of river flows. The These are part of the Strategic Action Plan (2024–26).187
project aims to strengthen climate resilience, water Simultaneously, the State Bank of Pakistan is finaliz-
security, and agricultural sustainability, setting a ing an alternative Sukuk issuance structure to boost
precedent for large-scale Islamic finance applications liquidity and diversify funding sources, reinforcing
in infrastructure and environmental sustainability.182 the country’s Islamic capital markets.188
•  The Islamic Development Bank (IsDB) continued •  Kuwait is advancing its Islamic financial industry
to be a major sukuk issuer with total capital fund through strategic planning. The Capital Markets
raised of US$ 3.25 billion183 184 along with a EUR 500 Authority is developing a roadmap focused on reg-
million Euro-denominated sukuk.185 The funds sup- ulatory enhancements and market development.
port sustainable development, climate action, and This includes facilitating the issuance of sukuk and
infrastructure projects across 57 member countries, promoting Islamic investment products.189 Gulf
reflecting strong investor demand. Bank postponed its plan for a potential merger with
•  Islamic Corporation for the Development of the Boubyan Bank.190
Private Sector (ICD) issued a US$ 500 million sukuk in •  In Malaysia, technological advancement is a key
February 2024.186 This is its first in four years, attract- focus. Mizuho Bank launched an Islamic banking
ing US$ 2.2 billion in orders to support private sector window, expanding its product offerings to include
growth in 56 member countries. shariah-compliant services.191 Additionally, AEON
Bank, Malaysia’s first Islamic digital bank, received
approval for operational readiness and commenced
MAJOR REGIONAL DEVELOPMENTS operations in May 2024.192 This development high-
FROM ISLAMIC FINANCE COUNTRIES lights Malaysia’s commitment to embracing digital
innovation in Islamic finance, enhancing accessibility,
Countries with established Islamic finance sectors have and catering to a tech-savvy population.
undertaken significant initiatives to strengthen and •  Indonesia continues to bolster its Islamic finance
expand their markets. sector. The Financial Services Authority of Indonesia
•  In Pakistan, the Securities and Exchange Commission issued new regulations supporting regional bonds and
of Pakistan (SECP) is spearheading comprehensive sukuk issuances,193 empowering local governments to

112 State of the Global Islamic Economy Report 2024/25

 tap into Islamic capital markets for infrastructure and and Livestock introduced Islamic financial products
development projects. Moreover, the authority’s new designed to aid farmers and livestock owners.204 By
equity requirement for takaful and re-takaful players, providing shariah-compliant funding options, these
IDR 100 billion and IDR 200 billion, respectively,194 initiatives aim to improve livelihoods, promote food
which would integrate Islamic insurance into capital security, and stimulate rural economic growth.
market activities and provide additional protection •  The United Nations Development Programme (UNDP)
for investors. is collaborating with Kuwait Finance House to develop
•  In the Philippines, efforts to expand Islamic bank- an Islamic sustainable financing platform.205 This
ing are gaining momentum. The government aims to partnership aims to leverage Islamic finance prin-
have 10 Islamic banks operating within the next four ciples to fund sustainable development projects,
years.195 The Bangsamoro Autonomous Region in Muslim further integrating Islamic finance into global efforts
Mindanao plans to acquire shares in the country’s to address social and environmental challenges.
lone Islamic bank,196 enhancing local ownership and
financial inclusion. Maybank Philippines launched its
inaugural Islamic banking unit, becoming the first The top trend right now is the
private commercial bank in the country to offer sha- growth of green and sustainable
riah-compliant services.197 These developments signify
sukuk. Demand for green and
a strategic push to integrate Islamic finance into the
national banking system, catering to the needs of the sustainable assets keeps rising,
Muslim population and promoting economic growth. and investors who’ve signed the
•  Saudi Arabia is also enhancing its financial markets. The
UN PRI pledge need to convert
Capital Market Authority proposed regulatory enhance-
their portfolios into green,
ments on debt instrument offerings, including sukuk,
to facilitate greater market participation.198 The beta responsible formats. This pushes
launch of STC Bank, an Islamic digital bank transformed more issuers to label sukuk as
from the digital wallet company stc pay,199 marks a green or sustainable.”
significant step in the Kingdom’s digital banking evo-
lution. These initiatives align with Saudi Arabia’s Vision RAFE HANEEF, GROUP CEO, MBSB HOLDINGS
2030, aiming to diversify the economy and modernize
the financial sector.
ISLAMIC BANKING DEVELOPMENTS
SOCIAL IMPACT DEVELOPMENTS Islamic banking institutions are undertaking strategic
expansions, mergers, and embracing digital technologies
Recent developments highlight the sector’s increasing to enhance their competitiveness and meet the evolving
alignment with global sustainability initiatives, leveraging needs of customers.
Islamic financial instruments to achieve social impact. •  Kuwait Finance House (KFH) Group is at the fore-
•  The surge in green and sustainable sukuk issuances front of such strategic moves. KFH completed the
underscores this trend. For instance, Warba Bank in conversion of Ahli United Bank Egypt into a fully
Kuwait launched a US$ 500 million green sukuk, the shariah-compliant institution, expanding its Islamic
first of its kind in Kuwait. The issuance was oversub- banking footprint in Egypt.206 The group also exited
scribed 3.6 times,200 indicating strong investor appetite the Malaysian market to concentrate on growth
for sustainable investment opportunities. Similarly, within the GCC and the Middle East, 207 indicating
Indonesia issued a US$ 600 million green sukuk as part a strategic realignment to focus on core regions.
of its international offering,201 emphasizing its com- Additionally, KFH sold its entire stake in the UAE’s
mitment to funding environmentally friendly projects. Sharjah Islamic Bank for approximately AED 1.29
•  In Tanzania, the use of sukuk for social projects is billion (US$ 351.16 million),208 reallocating resources
evident. to support its regional expansion.
•  The Premier Girls Secondary School issued a sukuk •  International expansions are also noteworthy.
to fund the construction of a health center,202 mark- Qatar’s Lesha Bank completed its acquisition of
ing the first time a non-financial institution in the Kazakhstan’s Bereke Bank after it received approval
country utilized this instrument. Additionally, ZIC from the Kazakhstan regulator, marking its entry into
Takaful Company provided a full guarantee covering the Kazakh market.209 This acquisition aligns with
the entire TZS 1.2 billion sukuk,203 effectively mitigating Lesha Bank’s strategy to diversify its portfolio and
investor risk. This marks the first instance in Tanzania tap into emerging markets with growth potential in
where sakaful coverage has been utilized as a credit Islamic finance.
enhancement mechanism for a sukuk issuance. •  In the United States, Stearns Bank launched its Islamic
•  In Afghanistan, the Ministry of Agriculture, Irrigation, division and plans to introduce more shariah-com-

Chapter 6: Islamic Finance 113

 pliant products.210 This development highlights the million), which was oversubscribed 3.27 times.218 The
growing demand for Islamic financial services in strong demand demonstrates investor confidence in
non-Muslim majority countries and reflects the the group’s creditworthiness.
increasing acceptance and integration of Islamic •  In Africa, the sukuk market is expanding. Zambia’s
finance principles in global markets. Eden Villas Properties could be the first issuer of
•  In Indonesia, a new regulatory directive issued in sukuk in Zambia after it secured regulatory approval
February 2024 mandates that if a conventional bank’s to raise US$ 3 million through sukuk.219
Islamic banking unit reaches 50% of total assets or •  The Türkiye Wealth Fund successfully issued a US$
Rp 50 trillion (US$ 3.25 billion) in value, it must either 750 million sukuk with a 6.95% return, attracting
be spun off as a separate Islamic bank or merged record demand of nearly US$ 7 billion, 14 times the
with an existing one.211 This measure is part of OJK’s initial offering. This marks TWF’s first global sukuk
broader 2023-2027 plan to streamline and strengthen issuance, supporting the Istanbul Financial Center
the country’s Islamic banking sector. project.220
•  Salaam Bank Uganda, a subsidiary of Salaam African
Bank of Djibouti, was officially launched on March
27, 2024, marking the commencement of Islamic We started with cross-listing [of
banking operations in Uganda.212 sukuk]. Now, our stock exchange
is learning how to work with
SUKUK DEVELOPMENTS sukuk. We need [concrete]
examples to show others how
The sukuk market continues to grow and innovate, with to use Islamic capital market
new issuances reflecting diversification in terms of geog-
raphy, structure, and purpose.
products.”
•  Russia made a significant entry into the Islamic MADINA TUKULOVA, HEAD OF ISLAMIC
finance arena by issuing its first-ever digital sukuk. FINANCE, ASTANA INTERNATIONAL
The joint initiative by Islamic financial services pro- FINANCIAL CENTRE
vider As Salam Group and registrar Status utilized the
Status-Invest platform to issue the digital sukuk.213
This innovative approach leverages blockchain tech- Corporate sukuk only flourishes
nology to enhance transparency, efficiency, and if there’s real demand for longer-
accessibility in sukuk issuances, potentially setting
a precedent for future digital Sukuk offerings.
term instruments. Malaysia,
•  In Saudi Arabia, several noteworthy sukuk issuances Saudi Arabia, and the UAE have
took place: strong institutional investors –
w  Riyad Bank concluded its offering of a sustainable
like takaful and pension funds
sukuk worth US$ 750 million, featuring a perpet-
ual tenor and a profit rate of 5.5% per annum.
– so they need 10 to 20-year
The proceeds are intended to fund sustainable instruments. In volatile-currency
projects, aligning with environmental and social markets, or where capital markets
governance (ESG) objectives.214 are undeveloped, sukuk won’t
w  Saudi Aramco returned to the international sukuk
grow much.”
market with a US$ 3 billion international sukuk
issuance, indicating confidence in Islamic finance RAFE HANEEF, GROUP CEO, MBSB HOLDINGS
as a means to diversify funding sources.215
w  The Saudi Investment Bank established a Tier 1

sukuk program worth up to US$ 1.5 billion with ISLAMIC FUNDS DEVELOPMENTS (ETF,
the debut offering of US$ 750 million, aiming to INVESTMENT FUNDS, AND INDICES)
strengthen its capital base and support growth
initiatives.216 Asset management within Islamic finance is experiencing
w  Saudi Arabia’s sovereign wealth fund, PIF, started significant growth, with new funds and investment prod-
issuing benchmark-sized three-year sukuk and ucts catering to diverse investor needs and preferences.
a green bond maturing in 2032, with proceeds •  In South Africa, Satrix, a leading provider of
directed towards general fund purposes and eli- index-tracking products, launched the Satrix MSCI
gible projects.217 World Islamic ETF. This ETF is the first shariah-com-
pliant ETF in the country with offshore exposure,
•  Malaysia’s Johor Plantations Group launched its debut allowing investors to access global equities while
Sukuk Wakalah paper worth RM 1.35 billion (US$ 325.68 adhering to Islamic investment principles.221

114 State of the Global Islamic Economy Report 2024/25

 CREDIT/UNSPLASH
•  Saudi Arabia’s GIB Capital and India’s Tata Asset a benchmark for shariah-compliant investment in
Management jointly launched the GIB Opportunistic the Egyptian stock market, facilitating the creation
Indian Equity Fund, 222 a shariah-compliant fund of investment products like ETFs and mutual funds
approved by the Saudi regulator.223 This collaboration based on the index.
offers investors exposure to the Indian equity market
within a shariah-compliant framework, showcasing
cross-border partnerships in Islamic finance. ANGEL, VC, AND PRIVATE EQUITY
•  In the United Kingdom, Cur8 Capital, a shariah-com- DEVELOPMENTS
pliant wealth management company, launched a
new US dollar-denominated income fund.224 The fund Venture capital and private equity investments are play-
provides exposure to markets in Uzbekistan, other ing a crucial role in driving innovation within Islamic
Central Asian countries, the UAE, the UK, and the finance, particularly in the fintech sector.
US. This diversification allows investors to tap into •  Gulf Islamic Investments (GII) secured US$ 100
emerging markets and established economies, bal- million in growth capital to expand private equity
ancing risk and potential returns. Cur8 Capital also opportunities across Saudi Arabia and the GCC.227
provided a US$ 5 million credit line to Uzbekistan’s Additionally, GII acquired a significant stake in Abeer
Alif, which will be used to expand Alif’s Nasiya retail Medical Company for SAR 600 million (US$ 160 mil-
financing service.225 lion), strengthening its shariah-compliant healthcare
•  The Egyptian Exchange (EGX) launched EGX33, a investments.228
shariah-compliant index featuring 33 selected com- •  A fintech-focused funding vehicle managed by Arbah
panies from various sectors.226 The index provides Capital, in partnership with Fintactics and the UK’s

Chapter 6: Islamic Finance 115

 Vemi Capital (formerly Ethos Invest), announced plans •  In
2024, Cordoba Capital Markets (CCM) in the UK
to invest over SAR 150 million (US$ 39.93 million) in secured regulatory approval for its shariah-compliant
early-stage fintech companies in Saudi Arabia.229 This working capital investment program, launching the
initiative aims to accelerate fintech innovation, support first listed Profit Participating Note (PPN).239 This
the growth of shariah-compliant financial solutions, milestone enhances Islamic finance by offering
and contribute to the Kingdom’s Vision 2030 goals. ethical, participatory investment in real economy
•  In Egypt, fintech company Bokra raised US$ 4.6 million business activities.
in a pre-seed funding round. Bokra, which has a sub-
sidiary sukuk arm licensed by the Financial Regulatory
Authority, plans to launch its investment platform Fintech influences quantitative
before the end of the second quarter of 2024.230 The analysis by allowing large and
platform will offer innovative financial products,
including sukuk, to investors seeking shariah-com-
more frequent datasets, better
pliant investment opportunities. data collection, and even real-
•  Oman-based Islamic fintech Mamun allocated US$ time analytics. This leads to
1 million in funding to invest in shariah-compliant faster turnaround for research
startups in the MENA region.231
outputs and a more detailed
understanding of consumer
FINTECH DEVELOPMENTS behavior or investment trends.”
Fintech companies are at the forefront of transforming PROF. RAZALI HARON, IIiBF, INTERNATIONAL
Islamic finance, leveraging technology to create innovative ISLAMIC UNIVERSITY MALAYSIA
products and services that enhance customer experience
and expand market access.
•  Deenar, a gold-backed stablecoin, launched in the TAKAFUL DEVELOPMENTS
Indonesian market on the HAQQ Network. Issued
by Fiduciary Standard, licensed and regulated in The takaful (Islamic insurance) sector is witnessing
Switzerland, Deenar represents a fusion of Islamic growth through strategic collaborations, regulatory sup-
finance principles with blockchain technology.232 The port, and the introduction of new products that cater to
stablecoin provides a shariah-compliant digital asset the evolving needs of consumers.
backed by physical gold, offering stability and aligning •  Several insurers in Saudi Arabia, including United
with Islamic prohibitions against excessive uncertainty Cooperative Assurance, 240 Malath Insurance, 241
and speculation. Wataniya Insurance, 242 and Almamoon Insurance
•  In Malaysia, the initial exchange offering platform Brokers,243 received shariah-compliance certifications
Kapital DX debuted its inaugural RM 150 million from Shariyah Review Bureau. These certifications
tokenized shariah-compliant offering, the proceeds affirm the companies’ commitment to adhering to
of which will be used to establish four new rehabilita- Islamic principles in their insurance offerings, enhanc-
tion centers for Integra Healthcare.233 Later in the year ing consumer trust.
2024, Kapital DX partnered with Koperasi Kakitangan •  Bank Negara Malaysia, the central bank, issued an
Petronas (KOPETRO) to provide KOPETRO members exposure draft on the broader application of Ta’awun
access to shariah-compliant private market assets.234 (mutual assistance) in takaful, 244 emphasizing the
•  Ethos Ventures in the UK partnered with a cloud-native cooperative nature of Islamic insurance. The Malaysian
banking technology firm to introduce a shariah-compli- Takaful Association (MTA) also launched the Hijrah27
ant digital banking service.235 This initiative addresses framework to expand the industry’s reach through
the demand for ethical and shariah-compliant finan- public awareness, reach to underserved segments,
cial services in the UK, leveraging technology to offer while focusing on ESG principles .245 The association
accessible and user-friendly banking solutions. Ethos also launched the Maqasid al-Shariah Value-Based
also applied for a full FCA and PFA UK banking license, Intermediation (VBI) scorecard for takaful, developed
which is currently pending.236 by INCEIF University’s ISRA Institute.246 The central
•  In Saudi Arabia, Mekyal, an Islamic crowdfunding plat- bank is also refining the Paddy Crop Takaful Scheme,
form, received a fintech experimental permit from aiming to provide better protection for farmers and
the capital market regulator, enabling it to pilot its support the agricultural sector.247
services.237 Additionally, Hala Financing secured a license •  In Indonesia, the Financial Services Authority released
from the central bank to offer debt-based crowdfunding new regulations for takaful companies. The authority
solutions.238 These contribute to making the landscape has introduced a new equity requirement of IDR 100
more competitive and appeal to younger, tech-savvy billion for takaful providers and IDR 200 billion for
consumers. re-takaful players,248 designed to integrate Islamic

116 State of the Global Islamic Economy Report 2024/25

 CREDIT/UNSPLASH
insurance into capital market activities and offer exceeding PKR 220 billion (~US$ 789 million).252 Akhuwat
enhanced protection for investors. The authority plans maintains a 99.9% repayment rate, demonstrating the
to mandate the use of takaful for shariah capital market strength of its shariah-compliant microfinance model
players,249 integrating Islamic insurance into capital in promoting financial inclusion and poverty alleviation.
market activities and enhancing investor protection. •  Eq8 announced the listing of the world’s first waqf-fea-
tured exchange-traded fund (ETF).253 This innovative
investment vehicle channels dividends from shari-
ISLAMIC SOCIAL FINANCE ah-compliant stocks into waqf-funded projects sup-
DEVELOPMENTS (WAQF, ZAKAT, porting education, healthcare, economic empowerment,
MICROFINANCE) and environmental initiatives, while also providing
returns to investors.
Islamic social finance instruments, such as waqf (endow- •  Also in 2024, the United Nations Development
ment), zakat (almsgiving), and microfinance, are being Programme (UNDP), in collaboration with Badan Wakaf
utilized to support community development, alleviate Indonesia (BWI), introduced the Green Waqf Framework,
poverty, and promote financial inclusion. integrating waqf assets with environmental sustain-
•  In Malaysia, the national budget allocated significant ability goals. This initiative prioritizes sustainable
funds for the development of waqf land and assets. The investments.
government, through Wakaf MADANI, plans to enhance
the development of waqf land for retirement homes,
allocating RM 300 million with the Retirement Fund Inc In Malaysia, the government
(KWAP) to support low-income retirees. Additionally, provides allocations to universities
UDA Holdings Berhad will focus on affordable housing
(like INCEIF and IIUM) for Islamic
on waqf land with RM 200 million.250
•  Microfinance initiatives are expanding access to finan- finance research. The Ministry
cial services for underserved populations. In Syria, of Higher Education also sets
Siraj Financial Services, established by the Near East KPIs for policy briefs that can
Foundation, offers Islamic financing solutions and
be adopted by regulators – one
business training to small businesses in Northern
Syria.251 This support helps entrepreneurs grow their accepted policy paper counts as
businesses, create jobs, and contribute to economic much as publishing many indexed
development. journal articles.”
•  In 2024, Akhuwat Foundation surpassed a milestone of
supporting six million families through its interest-free PROF. RAZALI HARON, IIiBF, INTERNATIONAL
microfinance program, with total loan disbursements ISLAMIC UNIVERSITY MALAYSIA

Chapter 6: Islamic Finance 117

INNOVATION DEVELOPMENT
Innovation is a driving force in the evolution of Islamic
finance, with institutions embracing technology to
enhance services, improve efficiency, and reach new
markets.
•  The integration of blockchain technology is evident
in the issuance of digital sukuk, such as Russia’s
first-ever digital sukuk254 and blockchain-based sukuk
initiatives in Nigeria.255 These innovations enhance
transparency, reduce costs, and increase accessibility
for investors.
•  Iran initiated a pilot program for a digital rial, 256 and
Pakistan is exploring a non-interest-bearing, asset-
backed CBDC,257 which indicates a growing preference
for digital currencies that are compliant with Islamic
finance.
•  Digital transformation initiatives, such as the launch
of Islamic digital banks like AEON Bank in Malaysia258
and STC Bank in Saudi Arabia,259 reflect a shift towards
digital service delivery. These banks leverage technol-
ogy to offer seamless, customer-centric experiences,
catering to the preferences of modern consumers.
•  Fintech platforms like Kapital DX are utilizing tech-
nology to offer tokenized primary offerings of sha-
riah-compliant products,260 democratizing access to
investment opportunities and facilitating efficient
capital raising.
•  The Central Bank of Iran has drafted regulations for
cryptocurrency transactions, aiming to bring shari-
ah-compliant digital finance solutions to its market.261

REGULATORY AND INSTITUTIONAL

DEVELOPMENTS
Regulatory bodies are enhancing frameworks to support
the integrity and expansion of Islamic finance, ensuring
that institutions operate within robust legal and ethical
boundaries.
•  In Saudi Arabia, the Capital Market Authority pro-
posed amendments to regulations to facilitate debt
instrument offerings, including sukuk, streamlining
CREDIT/UNSPLASH

processes for issuers and protecting investors.262

•  Bank Negara Malaysia published an exposure draft of
Islamic banking window guidelines, covering autho-
rization, governance, and operational requirements.263
These guidelines aim to ensure that conventional
banks offering Islamic windows maintain compliance
with shariah principles and operate effectively.
•  In Uzbekistan, discussions with the IsDB Institute
focused on introducing green Sukuk regula-
tions and issuances, 264 affirming commitment
to integrating Islamic finance into sustainable
development strategies.

118 State of the Global Islamic Economy Report 2024/25

SIGNALS OF OPPORTUNITIES
IMPACT: Low Moderate High MATURITY: Early Intermediate Mature

Emergence of shariah-compliant
central bank digital currencies (CBDCs)
Iran’s digital trial and Pakistan’s asset-
backed, non-interest CBDC pilot show
the push to weave Shariah principles into
sovereign digital money. The shift leaves

1 white space for banks and tech firms to

create transparent, asset-backed schemes
that meet Islamic rules, ease cross-border Expansion of digital sukuk
remittances and widen financial inclusion. and blockchain integration
Early movers can secure strong positions Russia’s first digital Sukuk and Indonesia’s
by working with regulators, standards blockchain pilots signal growing
bodies and local partners to build scalable acceptance of distributed ledgers in
Shariah-compliant models. Islamic capital markets. Blockchain can
cut costs, increase transparency and
Impact Maturity
widen investor reach. The biggest play is
to collaborate with fintechs on intuitive
issuance and trading platforms. Early
2
Growth of green and sustainable sukuk movers who showcase immutable audit
Rising demand for green Sukuk in Saudi trails can strengthen trust and open new
Arabia, Malaysia and Egypt signals regional and global investor pools while
investors’ desire for environmentally and aligning with Shariah principles and
socially responsible assets that comply supporting regulatory digitalisation drives.
with Shariah. Asset managers and banks

3 can meet this appetite through innovative

green and social Sukuk structures that
fund renewables, sustainable infrastructure
Impact Maturity

and other impact projects. Branding and Fintech innovations in Islamic finance
alignment with recognised ESG standards with BNPL, AI, and blockchain
will be vital to attract climate-conscious Platforms such as Tabby (Saudi Arabia) and
investors and position issuers as leaders in Deenar (Indonesia) show how fintech can
ethical finance. reinvent Islamic finance across payments,
lending and investment. Accelerating
Impact Maturity

Growth in Islamic finance contribution

digital innovation now opens ample
space for newcomers to launch Shariah-
compliant products—from stablecoins
4
towards Global ESG Initiatives to BNPL—powered by AI and blockchain.
The rise of ESG-compliant Shariah funds Firms that embed robust governance,
in the UK, Kenya and Malaysia shows transparent pricing and agile, customer-
how ethical investing and Islamic finance first services will seize share, draw venture
are converging. This space offers value capital and future-proof their models as
by uniting sustainability with Shariah the ecosystem rapidly evolves.

5 principles. Fund managers and ESG

start-ups can gain first-mover advantage
by creating vehicles that blend rigorous
Impact Maturity

Islamic standards with measurable social

and environmental impact; early actors
with credible metrics and transparent
reporting are poised to secure a values-
aligned investor base.

Impact Maturity

Chapter 6: Islamic Finance 119

Strategic Considerations
by Stakeholders
Investors have opportunities in green and digital sukuk, but face
challenges with standardization and regulatory barriers. Governments
can enhance financial inclusion through Islamic microfinance and fund
infrastructure via sukuk, though capital limitations and market volatility
pose risks. Businesses can expand shariah-compliant fintech and
takaful products but must address challenges like digital literacy and
regulatory complexities.

INVESTORS

O P P O R T U N I T I E S

1 Growing demand for green and sustainable

sukuk
The global financial ecosystem is seeing
finance principles and the broader ESG framework.
Relevant developments & precedents:
•  Saudi Arabia’s sustainable sukuk focused on financing
a continuous shift towards sustainable and respon- renewable energy and sustainable infrastructure.
sible investing, with ESG (Environmental, Social, and •  Malaysia’s leadership in green sukuk, with multiple
Governance) principles guiding institutional and retail issuances dedicated to funding clean energy and
investment strategies. Islamic finance, with its inherent infrastructure.
focus on ethical and risk-sharing principles, is well-po- •  Egypt’s green sukuk, which aims to support environ-
sitioned to align with this trend. mentally friendly public sector projects.
The rise of green and sustainable sukuk is a tes- Potential outcomes by 2035:
tament to this opportunity. Recent issuances in Saudi •  A more mature and standardized global market for
Arabia, Malaysia, and Egypt highlight the growing inves- green sukuk.
tor appetite for shariah-compliant investment vehicles •  Increased participation of ESG-focused institutional
that also fulfill sustainability objectives. Green sukuk investors in Islamic finance.
are particularly attractive to institutional investors such •  Stronger integration between sustainability frame-
as sovereign wealth funds, pension funds, and impact works (e.g., SDGs, Paris Agreement) and shariah-com-
investors looking for assets that align with both Islamic pliant financial instruments

2 Expansion of blockchain-driven digital

sukuk
The digitalization of Islamic finance is
The issuance of Russia’s first digital sukuk marks
a milestone in integrating blockchain technology with
Islamic capital markets. Additionally, Indonesia’s regu-
creating new asset classes and investment latory sandbox for blockchain-based Islamic financial
channels, increasing efficiency and transparency in the instruments signals further potential for scaling digital
market. Blockchain technology has the potential to sukuk solutions globally.
enhance the issuance, trading, and management of sukuk Relevant developments & precedents:
by reducing administrative costs, increasing accessibility, •  Russia’s blockchain-enabled sukuk on the Status-In-
and providing a more transparent audit trail. vest platform.

120 State of the Global Islamic Economy Report 2024/25

 •  Indonesia’s fintech-friendly regulatory initiatives for •  Development of decentralized Islamic finance (DeFi)
blockchain adoption. solutions, fostering inclusivity for retail investors.
Potential outcomes by 2035: •  Increased adoption of real-time transaction tracking
•  Broader investor participation in sukuk due to reduced and verification, reducing fraud risks.
issuance costs and faster settlement cycles.

C H A L L E N G E S

1 Limited standardization for green sukuk

Despite strong demand, there is a lack of
uniformity in ESG reporting frameworks,
Risk:
•  Regulatory fragmentation may lead to a lack of inves-
tor confidence.
certification standards, and compliance mechanisms •  Greenwashing risks, where issuers may claim ESG
across different jurisdictions. Investors face difficulties benefits without proper compliance, could undermine
in comparing green sukuk across markets due to the market credibility.
absence of universally accepted evaluation metrics. •  Lower liquidity and higher due diligence costs, as
investors must conduct independent verifications
of green credentials.

2 Withdrawal of US from the Paris Accord

The US, being the driving force behind the
climate accord, recently pulled out.
Risk:
•  This would jeopardize the shift towards greener and sus-
tainable finance as the incentives would be diminished.

3 Regulatory barriers to digital asset adop-

tion
While blockchain offers transparency and
Risk:
•  Slow regulatory approvals for digital sukuk across
different jurisdictions.
efficiency, many regulators have yet to develop clear •  Security vulnerabilities related to smart contracts
guidelines for digital sukuk. Regulatory fragmentation and decentralized platforms.
creates uncertainty for investors and issuers, slowing •  Limited investor confidence in new financial instru-
the adoption of these innovations. ments due to a lack of a global regulatory framework.

Green bonds already require an underlying asset and purpose,

so it’s actually easier to persuade issuers to do sukuk – now
the hurdles are similar for both conventional green bonds and
Islamic green sukuk, which expands the pool of investors.”
RAFE HANEEF, GROUP CEO, MBSB HOLDING

Chapter 6: Islamic Finance 121

GOVERNMENTS

O P P O R T U N I T I E S

1 Expansion of Islamic microfinance

Financial exclusion remains a significant
challenge in emerging markets, partic-
Relevant developments & precedents:
•  Burkina Faso’s introduction of Islamic microfinance
to enhance financial inclusion.
ularly in sub-Saharan Africa and South Asia. Islamic •  Pakistan’s efforts to develop microfinance-friendly
microfinance provides an opportunity for governments regulatory policies.
to facilitate financial access for SMEs, rural populations, Potential outcomes by 2035:
and informal sector workers, while adhering to shariah •  Increased access to capital for rural entrepreneurs,
principles of risk-sharing and ethical financing. particularly women and small businesses.
The establishment of the first Islamic microfinance •  Stronger SME ecosystems in OIC countries, contrib-
institution in Burkina Faso and Pakistan’s regulatory uting to economic diversification.
enhancements signal growing government support •  Reduction in poverty and income inequality through
for microfinance as a tool for economic development. ethical finance solutions.

2 Leveraging sukuk for infrastructure •  Indonesia’s use of green sukuk for renewable energy
development projects.
Governments can issue sukuk to finance Potential outcomes by 2035:
infrastructure projects, diversifying public debt instru- •  Increased fiscal flexibility for governments seeking
ments while attracting global Islamic investors. alternative financing beyond conventional debt.
Countries like Saudi Arabia, Türkiye, and Indonesia •  Stronger international investor participation in
are already leveraging Sukuk for renewable energy, national infrastructure projects.
housing, and transport projects. •  Acceleration of renewable energy and sustainabil-
Relevant developments & precedents: ity projects, particularly through green and social
•  Saudi Arabia and Türkiye’s benchmark-sized sukuk impact sukuk.
issuances for infrastructure.

C H A L L E N G E S

1 Insufficient capital for microfinance

institutions
Many Islamic microfinance institutions
Risk:
•  Lower financial sustainability of IMFIs, making them
dependent on government or donor funding.
struggle with liquidity constraints, making it difficult •  Limited scalability, restricting IMFIs from achieving
to scale operations and serve more clients. meaningful market penetration.
•  Higher operational costs, as Islamic financing models
require additional due diligence and structuring to
ensure compliance.

Displaced people make up a good part of the community. We

believe we can help them by giving them financing, making them
self-reliant, and eventually able to move from IDP camps back
into towns. There’s significant potential for shariah-compliant
microfinance in neighboring Ethiopia, Djibouti, and Kenya, which
have large Somali and Muslim populations.”
MUSTAFA ABDI ALI, CHAIRMAN, KIMS MICROFINANCE

122 State of the Global Islamic Economy Report 2024/25

 2 Market volatility and currency risks
Sukuk markets, particularly in emerging
economies, are susceptible to currency
Risk:
•  Higher borrowing costs, especially in countries with
weaker credit ratings.
fluctuations and macroeconomic volatility, which can •  Reduced investor confidence, particularly when sov-
impact both pricing and investor appetite. High debt- ereign issuances are not properly hedged against
to-GDP ratios in some markets could also limit a gov- currency depreciation.
ernment’s ability to issue sukuk at competitive rates.

Many Muslims who live outside the country want to invest in

Islamic products. [Yet] I expect Islamic banks to come up with
dollar-denominated products to attract these people who earn in
dollars. This would also help with FX reserves and volatility.”
DR. ABDULLATIF BELLO, MEMBER OF BOARD OF DIRECTORS, JAIZ BANK

3 Regulatory uncertainty and market frag-

mentation in the sukuk market due to
AAOIFI’s proposed Standard 62
may exit the market due to increased risk exposure.
•  Lower issuance volume, as the added complexity and
costs associated with asset transfers may discourage
The proposed Standard 62 requires issuers of sukuk to issuers from using sukuk, reducing new issuances.
transfer legal ownership of underlying assets to inves- •  Market fragmentation, as different countries may
tors. This move is intended to bring sukuk structures adopt varying interpretations of Standard 62, the
closer to Islamic principles of risk-sharing; however, Islamic finance market could become more region-
it introduces challenges for sovereign and corporate alized, limiting cross-border investment.
issuers, particularly in countries with restrictions on •  Downgraded credit ratings or unrateable sukuk, as
foreign ownership of land and assets. rating agencies have indicated that certain sukuk
Risk: structures under the new rules may no longer be
•  Investor withdrawal from the sukuk market, as sukuk classified as fixed-income securities, making them
structures shift from bond-like instruments to more harder to rate and reducing their appeal to institu-
equity-like structures. Many fixed-income investors tional investors.

The first sukuk issuance in Nigeria was oversubscribed…and every

time they issue sukuk in the country, it’s oversubscribed, to tell you
that Islamic finance has come to stay. When you see a sukuk, [it’s]
attached to assets; you cannot take the money unless I know what
you want to use the money for. The underlying asset is sukuk. So,
when people realized the government was channeling the money
directly to contractors – building roads, schools – it changed the
cycle of everything in the country.”
DR ABDULLATIF BELLO, MEMBER OF BOARD OF DIRECTORS, JAIZ BANK

Chapter 6: Islamic Finance 123

BUSINESSES

O P P O R T U N I T I E S

1 Developing shariah-compliant fintech

platforms
Islamic fintech startups and financial
crowdfunding.
•  Operation of digital investment platform Kapital DX
in Malaysia.
institutions have the opportunity to bridge the acces- Potential outcomes by 2035:
sibility gap by offering digital-first, shariah-compliant •  Fintech-enabled Islamic banks will compete with
financial solutions. The younger, tech-savvy Muslim and surpass traditional banks, capturing millions of
population is demanding frictionless financial ser- new customers.
vices that integrate ethical finance with cutting-edge •  Shariah-compliant BNPL and microfinancing products
technology. become mainstream, especially in Southeast Asia,
Relevant developments & precedents: and Africa, where financial gaps persist.
•  Launch of gold-backed stablecoins (Deenar). •  Islamic decentralized finance (DeFi) platforms emerge,
•  Saudi Arabia’s Hala Financing license for debt-based allowing peer-to-peer financing.

2 Digital transformation in takaful

The takaful industry is poised for major
disruption and growth, with an increasing
Potential outcomes by 2035:
•  Widespread adoption of AI-driven, micro-takaful
solutions, in emerging markets with high demand
shift towards digital platforms that cater to under- but low penetration.
served sectors. •  Development of customized takaful products for SMEs
Businesses can create digital takaful products and gig economy workers, expanding financial security
catering to niche markets. for self-employed.
Relevant developments & precedents: •  Increased use of IoT and AI for real-time risk assess-
•  Introduction of digital takaful platforms in Indonesia. ment, reducing claim fraud and administrative over-
•  Regulatory support for takaful innovation in Malaysia head.
and Saudi Arabia.

C H A L L E N G E S

1 Limited digital literacy in target markets

Businesses may face challenges in pro-
moting fintech solutions due to low digital
Risk:
•  Slower fintech adoption in rural or unbanked pop-
ulations.
literacy in some regions. •  Security risks and cyber fraud, if businesses do not
establish strong security and transparency mechanisms.

Kazakhstan is trying to be a fintech country. In AIFC, fintech is also

a high priority, as well as Islamic finance. We have regulations in
AIFC for fintech, and we have a fintech hub. It’s a kind of sandbox.”
MADINA TUKULOVA, HEAD OF ISLAMIC FINANCE, ASTANA INTERNATIONAL
FINANCIAL CENTRE

2 Regulatory and compliance hurdles

Complex and varying regulatory require-
ments across regions may hinder the scal-
Risk:
•  Higher compliance costs for companies looking to
scale digital takaful offerings across countries.
ability of takaful solutions. •  Fragmented adoption due to varying regulatory
approvals across OIC nations.

124 State of the Global Islamic Economy Report 2024/25

Your gateway
to the Islamic
finance industry
Access market data

Gain knowledge and insights

Leverage trading solutions

Advance thought
leadership

Visit lseg.com/en/data-analytics/islamic-finance
@IFGateway LSEG Data & Analytics

@IFGateway

Chapter 6: Islamic Finance 125

Special Contribution from IsDBI

A Smart Solution for Market

Stability: Why the Global Islamic
Economy Needs a New
Approach
The Challenge: Islamic Finance Lacks a Shariah- •  Stablecoins & Algorithmic Price Controls: Existing
Compliant Market Stabilization System stablecoins either depend on fiat reserves (which
The global Islamic economy, projected to exceed $5 trillion involve interest) or lack sustainability, as seen in
by 2025, continues to expand at an impressive rate. Yet, past failures like Terra/LUNA’s collapse.
despite this growth, one fundamental challenge remains
unaddressed: the lack of a Shariah-compliant mechanism As a result, Islamic financial markets remain vul-
to stabilize financial markets. nerable to capital flight, currency volatility, and asset
Conventional financial markets rely on a variety of price instability—issues that are further compounded
stabilization tools to counteract volatility and price dis- by global economic shocks and geopolitical uncertainty.
tortions—from central bank interventions and sovereign
wealth funds to derivatives-based hedging and circuit
breakers. However, these mechanisms are not aligned with
Islamic finance principles. Most stabilization methods
are built on interest-bearing capital reserves, speculative
instruments, or excessive uncertainty (gharar), making
them unsuitable for Islamic financial markets.
For OIC governments, Islamic banks, and Shariah-
compliant investment markets, the absence of an effective
stabilization system creates a persistent risk of volatility,
liquidity crises, and investor hesitancy. Without a viable A Shariah-Compliant Alternative: The Smart
alternative, Islamic finance is left without a dedicated Stabilization System (SSS)
solution to prevent excessive price swings, particularly To address this gap, the Islamic Development Bank
in sukuk, Islamic equities, and digital assets. Institute (IsDBI) has introduced the Smart Stabilization
System (SSS)—an innovative, self-funded, and block-
Why Existing Stabilization Mechanisms Are Not chain-enabled mechanism designed to proactively man-
Suitable for Islamic Finance age supply-demand imbalances in financial markets
Islamic finance principles prohibit riba (interest), gharar without relying on interest-based reserves.
(excessive uncertainty), and maysir (speculation), making
most existing stabilization mechanisms non-compliant: How SSS Works
•  Central Bank Interventions: Traditional monetary The SSS employs a proactive stabilization approach,
policy tools rely on interest rate adjustments and ensuring that market imbalances are addressed before
fiat liquidity injections, which contradict Shariah they translate into price volatility:
principles. •  Supply & Demand Balance: When excess supply
•  Sovereign Wealth Funds (SWFs) & Stabilization or demand occurs, the system deducts a portion
Funds: These funds are capital-intensive and often of the surplus (either in cash or assets) and moves
rely on interest-based financial instruments to man- it to a Stabilization Network.
age market fluctuations. •  Tokenized Ownership: Users receive stabilization
•  Derivatives-Based Hedging: Futures, swaps, and tokens representing their stake in the network,
options introduce excessive gharar and specula- ensuring transparency and market confidence.
tive trading (maysir), making them impermissible •  Blockchain Security & Transparency: All transac-
in Islamic finance. tions are immutable, traceable, and trust-based,

126 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK

making it a resilient alternative to traditional market Future Applications: Transforming Islamic

interventions. Financial Markets
The completion of the SSS demo platform in 2024 marks
Key Advantages of SSS for OIC Markets a significant step forward in stabilizing Islamic financial
•  Self-Funded & Interest-Free: Unlike central bank markets. With potential applications across OIC govern-
interventions, SSS does not require external capital or ments, sovereign wealth funds, and digital Islamic finance,
interest-bearing reserves. the SSS presents a viable industry-wide solution.
•  Proactively Stabilizes Markets: Unlike circuit breakers, For OIC central banks and regulators, adopting the SSS
which halt trading after volatility occurs, SSS prevents could enhance financial stability without relying on con-
price distortions before they happen. ventional interest-based tools. In the era of Islamic digital
•  Shariah-Compliant & Blockchain-Enabled: Ensures currencies and blockchain-based financial systems, this
transparency and aligns with Islamic finance prin- solution offers a future-proof model for market stabilization.
ciples.
•  Applicable Across Asset Classes: Can be used
for Sukuk, Islamic equities, stablecoins, and CBDCs,
offering a universal solution for OIC markets.

Special Contribution 127

Special Contribution from LSEG

Islamic Finance Development in

2024: From Niche to Norm

According to the latest issue of the ICD – LSEG Islamic Islamic Capital Market’s Growing Role in
Finance Development Indicator (IFDI), the Islamic finance Industry Expansion
industry’s assets posted double-digit growth of 11% to By sector, Islamic banking is the largest contributor to
US$ 4.9 trillion in 2023, nearing the US$ 5 trillion mark. Islamic finance assets, growing by 12% to US$ 3.6 trillion
Regionally, the Middle East and North Africa dominate the in 2023. Notably, Afghanistan, Iraq, and Bahrain posted
industry, while Iran, Saudi Arabia, and Malaysia remain the the highest growth rates. The sector has also recently
largest Islamic financial markets globally. welcomed new entrants such as Malawi and Uganda, as
well as new digital banking players in Malaysia, Saudi
Arabia, Türkiye, and the UAE.
ISLAMIC FINANCE ASSETS GROWTH Similar trends were observed in the takaful sector in
countries such as the Philippines and Tanzania, with its
(2017-2023, US$ BILLIONS)
total global assets reaching US$ 86 billion. However, the
2017 2,786 sector faces challenges including competition from con-
2018 2,901 ventional insurance, limited Shariah-compliant options,
2019 3,359 and pressures from the monetary tightening cycle. For
2020 3,852 Islamic financial institutions other than Islamic banks
2021 3,919 and takaful operators, there is growth in Islamic FinTechs
2022 4,420 aiming to digitalise sukuk, setting new benchmarks for
2023 4,925 innovation in the industry.
2028 (Projected) 7,528 Sukuk had a notable year, growing by 9% to US$ 863
billion in outstanding amounts and over US$ 200 billion
in issuance in 2023. This rise is attributed to an increase
ISLAMIC FINANCE ASSETS GROWTH in sovereign issuances in key markets, notable offerings
from non-traditional markets, and a significant increase
(2023, US$ BILLIONS)
in the issuance of green and sustainability sukuk, resulting
in US$ 35.9 billion in such sukuk outstanding in 2023.
Additionally, another part of the Islamic capital market
saw buoyant growth. Islamic funds’ AuM outstanding grew
by 16% to US$ 254 billion, with US$ 8 billion focusing on
ESG investments, thanks to positive investor sentiment
Islamic Banking as earnings exceeded forecasts.
3,569 (73%)

Improvements in the Islamic Finance Industry’s

Sukuk
863 (18%) Supporting Ecosystem
There were also governance and regulatory developments
across many countries that show promise in further
strengthening their Islamic finance industries. Among
them is the focus on Shariah governance by Islamic capital
market regulators in Bangladesh and Malaysia, as well
Takaful Other IFIs Islamic Funds as new sukuk regulations in Tanzania and amendments
86(2%) 153 (3%) 254 (5%) introduced in Egypt and Ethiopia. Meanwhile, Syria and

128 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK
Sri Lanka moved towards introducing regulatory backing Shereen Mohamed
for sukuk. Senior Research Specialist
As Islamic capital markets grow, the focus on aware- LSEG Data & Analytics
ness and knowledge of the fundamentals of investing in
its products, such as sukuk, Shariah-compliant equities,
and Islamic funds, is rising in tandem, according to the
IFDI database. This was most notably evident in countries
such as Malaysia, Indonesia, and Pakistan.
While a brighter outlook is expected for the industry
due to various global developments and overall financial
market recoveries, downside risks remain. These include
broader financial and economic considerations that will
impact the industry. Additionally, risks such as geopo-
litical tensions, natural disasters, trade fragmentation,
and effects of high interest rates exist, which will have
implications for the Islamic finance industry in the short
term, especially as the size and growth of the industry are
largely driven by the GCC and wider Middle East region,
which are impacted by these risks.
In the mid-term, the IFDI expects the Islamic finance
industry to grow to US$ 7.5 trillion in total global assets
by 2028, up from US$ 4.9 trillion in 2023.

Special Contribution 129

 7
C H A P T E R

MUSLIM-FRIENDLY
TRAVEL
CREDIT/PHOTOGRAPHER

132 State of the Global Islamic Economy Report 2024/25

Chapter 7: Muslim-Friendly Travel 133
 MUSLIM-FRIENDLY TRAVEL
ALL FIGURES IN US$ BILLIONS, UNLESS STATED OTHERWISE

CONSUMER OPPORTUNITY
Represented by US$ 216.9 billion of consumer spending by 2 billion Muslims on travel (2023)

30 ia
.6
rab
di A
US$ 216.9 US$ 384.1

Sau
2023 2028

a
aysi
Mal 21.4

Rest of countries
65.3
UAE
18.9
5.8
Iraq re
po
ga
Sin 5
Qa 17.

9.
ta 3
r
11.1 nesia
10 ina

Kuw .2
Ch
.6

Russia
Indo

14
ait
12.1

12.1%
CAGR

GOVERNMENT LEADERSHIP
MUSLIM-FRIENDLY TRAVEL – GLOBAL ISLAMIC ECONOMY INDICATOR (GIEI) RANKING (2024)
61 51 41 31 21 11 1

1 Malaysia

2 Indonesia

3 Saudi
Arabia

4 UAE

5 Türkiye

61 51 41 31 21 11 1

*All estimates by DinarStandard except for Islamic Finance sector provided by LSEG Data & Analytics Islamic Finance Development Indicator 2024 data. Muslim consumer spend
estimates & analysis by DinarStandard leveraging World Bank’s ICP 2017 consumer data as baseline reference. Halal and related product exports are based on ITC Trademap 2023

134 State of the Global Islamic Economy Report 2024/25

INVESTMENTS
US$ MILLION (2023/24)

US$ 1.4 Top countries by total deal value and number of deals

billion = 1 deal
1 2 3 4 5
Disclosed value for
all 17 deals
823.3 339.7 105 82.9 8.9
Indonesia UAE Nigeria Saudi Arabia Malaysia

KEY DEVELOPMENTS SIGNALS OF OPPORTUNITIES

IMPACT: Low Moderate High

1 PIF’s QSAS crafts heritage-rich

storytelling attractions across Saudi
sites.

Mature
2 AROYA Cruises begins Red Sea voyages,
offering Arabian-themed halal luxury. Saudi Arabia Emerging markets like

Intermediate
accelerates tourism Indonesia, the Philippines,
sector transformation and Pakistan are evolving
through bold capital into key halal tourism
3 Zanzibar crowd-maps hidden gems to
deployment and foreign
investment access
hubs, fueled by targeted
GCC investment
steer sustainable tourism plans.

Emerging post-conflict
4 Malaysia’s MDEC opens a Digital
Artificial intelligence destinations including
Tourism Innovation Lab for sector
is emerging as a key Syria, Bangladesh and
digitalisation.
Early

lever for competitive Bosnia

differentiation in travel,
powering personalization,
5 UAE law now requires travel firms to
efficiency, and content
innovation
Muslim hospitality
as a brand
report carbon emissions.

Financial Awareness Social Innovation

61 51 41 31 21 11 1

6 Tunisia

7 Bahrain

8 Morocco

9 Jordan

10 Kyrgyz
Republic
61 51 41 31 21 11 1

data. Projections are baselined on data from IMF Outlook from October 2024. Investments (figures and individual deals) are based on a detailed scan of databases from CapitalIQ,
Crunchbase and DinarStandard analysis from August 2023 to July 2024. See appendix for detailed methodology.
OIC Organization of Islamic Cooperation, 57 mostly Muslim-majority member countries.

Chapter 7: Muslim-Friendly Travel 135

 Despite global economic uncertainties, investment in the travel
industry across OIC countries continues to grow, driven by
expanding tourism offerings, enhanced connectivity, and digital
transformation. GCC countries are increasing investments in
OIC and non-OIC markets, while Saudi Arabia continues to
develop heritage, cultural, and eco-friendly tourism. The halal
cruise sector is expanding with new offerings from AROYA
Cruises, Resorts World Cruises, and Antarctica’s first halal-
certified voyage. Meanwhile, governments and businesses are
strengthening Muslim-friendly tourism through cross-border
partnerships, national marketing campaigns, and infrastructure
development. Multi-destination travel is also gaining traction,
with joint tourism campaigns and the anticipated unified GCC
tourist visa expected to enhance regional connectivity.

AI-driven innovations are reshaping the industry, with strides in travel services and luxury offerings to cater
airlines, tourism boards, and hospitality providers inte- to Muslim travelers.
grating advanced technologies for personalized services, In 2023, Muslim consumer spending on outbound
seamless travel experiences, and improved operational travel surged by 43.2%, reaching US$ 217 billion, with
efficiency. Digital platforms and B2B marketplaces are also projections to hit US$ 384 billion by 2028 at a CAGR of
seeing significant growth, enhancing travel accessibility 12.1%.
and service delivery. Additionally, financial accessibility Looking ahead, AI will enhance traveler experiences
in travel is improving with digital payment solutions, through dynamic pricing, personalized itineraries, and ser-
including Saudi Arabia’s Nusuk Wallet, Thailand’s crypto- vice optimization. Post-conflict destinations such as Syria,
currency payment initiative, and the EU’s Identity Wallet Bangladesh, and Bosnia are expected to see renewed tour-
for secure travel transactions. ism interest. Saudi Arabia’s tourism expansion, including
Medical tourism continues to attract investment, with infrastructure and mid-market hospitality, will continue
new healthcare facilities and digital platforms supporting shaping the sector. GCC countries, including Indonesia, the
cross-border patient services. Standardization efforts Philippines, and Pakistan, are also increasing investments
in halal tourism are advancing, with new certification in emerging markets. Meanwhile, the rise of Muslim
frameworks and regulations being introduced, though the hospitality as a distinct brand presents opportunities for
challenge of multiple standards remains. Sustainability is hotels and tourism operators to offer culturally immer-
also becoming a greater focus, with the UAE implementing sive, faith-aligned experiences. Investors can explore
a new law requiring travel businesses to report their carbon emerging markets and mid-market hospitality, while
emissions, aligning with global climate goals. governments can facilitate multi-destination travel and
Investment in the travel industry remains strong, with improve halal tourism standardization. Businesses can
15 deals recorded in 2024. Notable investments include leverage AI, expand Muslim-friendly offerings, and build
GoTo Gojek and Beond, companies making significant strategic partnerships to strengthen market positioning.

136 State of the Global Islamic Economy Report 2024/25

Sector Developments (2023-24)

REVENUE DEVELOPMENTS Updates on Revenue Developments

GCC countries are increasing investments in OIC and non- GCC countries are increasing their investment in OIC and
OIC markets, with Saudi Arabia expanding heritage and cul- non-OIC countries.
tural tourism. The halal cruise industry is growing, with new •  Dubai-based real estate developer Eagle Hills has
offerings from AROYA Cruises, Resorts World Cruises, and partnered with the Indonesian government to jointly
Antarctica’s first halal-certified voyage. Medical tourism is invest US$ 3 billion in new airports, hotels, and tourism
attracting investment, while the Middle East strengthens infrastructure development.265
its entertainment sector with major theme parks in Qatar, •  Qatar is investing in the Philippines’ halal tourism
Saudi Arabia, and Dubai. Travel tech innovation and B2B sector to diversify its portfolio and strengthen its
marketplace expansions are driving global growth. global economic presence.266
•  Saudi Arabia has expressed interest in investing in
Latest projections Pakistan, specifically in developing the coastal areas
of Balochistan and establishing tourist cities in Khyber
In 2023, Muslim consumer spending on outbound travel Pakhtunkhwa, as part of a collaboration between the
rose by 43.2%, totaling US$ 217 billion, up from US$ 151 two governments to attract Middle Eastern tourists
billion in 2022. Saudi Arabia remains the top spender, through halal tourism initiatives.267
while Malaysia has climbed to second place and the UAE
to third. By 2028, spending is expected to reach US$ 384 Saudi Arabia is continuing to invest in tourism across
billion, with a CAGR of 12.1%. heritage, eco-friendly, and cultural experiences.
Note: This does not represent the actual value of •  Saudi Arabia’s Public Investment Fund (PIF) launched
Muslim-friendly travel consumption. Rather, it rep- the National Interactive Entertainment Company (QSAS)
resents the core addressable Muslim consumer mar- to develop immersive storytelling experiences, inspired
ket spending in the general travel category. by authentic Saudi heritage and Islamic history.268
•  Aseer Investment Company, a PIF subsidiary, estab-
lished a new holding company in partnership with
Rikaz to invest in sustainable and heritage projects
in the Aseer region.269

Investment summary
COUNTRY DEAL TYPE ORGANIZATION NAME DEAL VALUE (US$ 000s)

Indonesia M&A PT Pantai Indah Kapuk Dua 673,290

UAE M&A Dubai Taxi Company 314,710

Indonesia M&A GoTo Gojek Tokopedia 150,000

Nigeria VC Moove 100,000

Saudi Arabia PE Electric Vehicle Infrastructure Company (EVIQ) 67,733

Chapter 7: Muslim-Friendly Travel 137

 CREDIT/UNSPLASH

138 State of the Global Islamic Economy Report 2024/25

 •  Saudi Arabia revealed plans to build a large number tified kitchen, an alcohol-free environment, and des-
of hotels and 11 new stadiums as part of its World ignated ladies-only hours in the panoramic sauna.278
Cup in 2034 bid.270 •  In November 2024, Resorts World Cruises’ Resorts
•  Saudi Arabia surpassed its Vision 2030 tourism goal World One set sail from Dubai on its maiden voyage,
of attracting 100 million visitors annually by 2030, offering all-halal F&B across 12 restaurants and cafés,
seven years ahead of schedule. It has now increased prayer mats in cabins, and a dedicated ladies’ lounge.279
its goal to 150 million visitors by 2030.271
•  Expanding beyond its giga-projects, Saudi Arabia Medical tourism is proving to be an attractive invest-
has started developing mid-market tourism projects. ment area.
Baheej, which is partly owned by PIF, has started •  Singapore-based IHH Healthcare will acquire
developing the waterfront area of Yanbu. Additionally, Malaysia’s Island Hospital for US$ 901 million.280
Red Sea Global announced plans to develop three-star •  The National Bank of Oman’s Islamic banking win-
hotels south of the Red Sea luxury destination.272 dow, Muzn, launched a shariah-compliant medical
•  PIF launched a hospitality management company finance program for medical care within Oman and
called Adeera to develop world-class Saudi hotel internationally.281
brands that embody authentic Saudi culture and •  Iran has invested in hospitals to meet international
hospitality. standards, licensing 247 hospitals and medical cen-
•  Dan Company, a PIF subsidiary, introduced Tuaja, a ters for international patients while simplifying visa
new luxury resort brand, with its first three Hilton- procedures for patients and their companions to
managed properties to be located in Al-Ahsa, a encourage medical tourism.282
UNESCO World Heritage site renowned for its cultural •  Malaysia-based startup MedTrip launched a digital
significance and natural beauty. Tuaja Luxury Resorts platform that connects patients to cross-border med-
aims to provide immersive experiences that highlight ical services, offering personalized doctor/hospital
Saudi Arabia’s diverse landscapes and rich heritage.273 recommendations and medical cost estimations.283
•  PIF-owned Saudi Tourism Investment Co. (Asfar)
announced plans to develop Hail as its fifth desti- The Middle East is expanding its theme park industry,
nation, following projects in Al-Baha, Yanbu, Al-Ahsa, with major projects in Qatar, Saudi Arabia, and Dubai.
and Taif. Collaborating with private sector partners, •  Qatar is developing a US$ 3 billion Land of Legends
Asfar aims to create unique travel destinations that theme park within the Simaisma project. The theme
showcase each city’s identity. Recently, it signed park is set to be one of the largest in the Middle East,
agreements to develop four tourism projects in Yanbu, with seven themed zones, immersive attractions,
including a Cloud 7 resort with Kerten Hospitality.274 and two hotels. Expected to open in 2028, it aims to
•  Umm Al Qura is launching an IPO to fund the US$ attract two million visitors annually.284
26.6 billion Masar Destination in Makkah, a 3.5 km •  Saudi Arabia is planning a soft opening of Six Flags
mixed-use development. It will feature hotels, resi- Qiddiya City in mid-2025, 285 while construction is
dences, retail, commercial spaces, and a hospital. IPO underway for a Dragon Ball Theme Park in Qiddiya,286
proceeds will fund land settlements, infrastructure, an entertainment megaproject near Riyadh designed
and project activation.275 to be a global hub for entertainment, sports, and
•  Saudi Arabia now permits foreign investment in listed the arts.287
firms owning real estate in Mecca and Madinah. The •  Dubai opened its Real Madrid World theme park in
move aims to attract foreign capital while limiting April 2024,288 adding to its existing entertainment
non-Saudis to 49% ownership in shares and con- portfolio, which includes Dubai Parks and Resorts,
vertible debt. This aligns with Vision 2030’s goal to Ferrari World Abu Dhabi, and Warner Bros Abu Dhabi.
diversify the economy beyond oil.276
New investments drive travel tech innovation, B2B
The halal cruise industry is expanding, driven by Cruise marketplace expansion, and strategic acquisitions for
Saudi’s AROYA Cruises, Resorts World Cruises, and the global growth.
first halal-certified Antarctica voyage. •  HalalBooking raised US$ 10 million in a Series B angel
•  Cruise Saudi’s AROYA Cruises launched its inaugu- funding round at a valuation of US$ 125 million and
ral voyage from Jeddah to the Red Sea in December is in talks with institutional investors for a larger
2024, offering Arabian-themed luxury rooted in Series C round in 2025.289
Islamic values. The cruise line plans to expand to •  Seeru.ae, a travel tech startup, secured pre-seed
the Mediterranean in summer 2025. Cruise Saudi aims funding from Nabtah Ventures (US-based VC) and
to attract 1.3 million passengers annually by 2035 launched three platforms: seeru.com for direct traveler
and expand its routes to 10 destinations by 2030.277 bookings, seeru.travel for B2B flight bookings, and
•  Antarctica’s First Halal Cruise: Albatros Expeditions SeeruX, an API integration for developers. Future
will launch the first halal-certified cruise to Antarctica expansions include a dedicated Umrah platform and
in January 2026. The voyage will feature a halal-cer- a travel marketplace.290

Chapter 7: Muslim-Friendly Travel 139

 •  Malaysian private equity firm Creador acquired offering halal businesses an opportunity to tap into
Indonesia’s MG Group, a leading Indonesian B2B hos- the Muslim market.299
pitality marketplace, with plans for global expansion.291 •  Malaysia’s HalalHolidays OTA partnered with the Thai
Muslim Trade Association (TMTA) to promote halal-
friendly travel packages in Thailand and connect
OPERATIONAL DEVELOPMENTS travelers with guides who are familiar with the local
Muslim culture and history.300
Tourism operations advance, with Gambia’s digital •  Tourism Australia partnered with four Indonesian
platform launch, Qatar’s tourism awards, and Uganda’s travel agencies to curate Muslim-friendly travel
promotional partnership with Emirates. itineraries for Indonesia’s predominantly Muslim
•  Gambia launched a digital tourism platform with tech- middle-class market.301
nical assistance from the Commonwealth Secretariat •  Zambia developed a range of halal-certified accom-
to enhance tourism accessibility and promotion.292 modations and dining options in a bid to attract
•  Qatar Tourism, in collaboration with UN Tourism, Muslim travelers.302
hosted the Qatar Tourism Awards 2024, recognizing
excellence across categories such as hotels, dining Countries are strengthening tourism ties through stra-
experiences, attractions, and sustainability.293 tegic partnerships and cross-border agreements.
•  Uganda Tourism Board (UTB) and Emirates Airlines •  Saudi Arabia’s Aroya Cruises partnered with Malaysia’s
signed a partnership to promote Uganda’s tourism IslamiCruise International Sdn Bhd to launch a
offerings through in-flight promotional videos and 26-night chartered voyage, with stops in Salalah
familiarization trips for travel professionals. Emirates (Oman), Male (Maldives), and Banda Aceh (Indonesia),
will also offer a 10% discount on fares for tourism-re- offering Muslim-friendly recreational activities and
lated bookings.294 entertainment, in addition to congregational prayers
and religious lectures.
•  Kenya and Jordan formed a strategic tourism part-
NATIONAL/TRADE DEVELOPMENTS nership to increase tourist flow between the two
countries as well as knowledge exchange.303
Governments and businesses are expanding Muslim- •  Uzbekistan and Kazakhstan signed an agreement to
friendly tourism through marketing, partnerships, and enhance pilgrimage tourism, easing border crossings
infrastructure projects. Post-conflict destinations like and promoting cooperation between travel agencies.304
Baghdad and Bosnia are experiencing a tourism revival. •  Qatar and Djibouti initiated discussions on tourism
Cross-border collaborations are strengthening regional ties, collaboration, with Qatar Tourism proposing training
and new rail developments in the UAE and Saudi Arabia opportunities and workforce development to support
are enhancing connectivity and luxury travel. Djibouti’s tourism growth.305
•  Malaysia is positioning itself as an Umrah transit
Governments and businesses worldwide are investing in hub, focusing on attracting Indonesian travelers.
halal-friendly travel to attract Muslim tourists.
•  The Taiwan Tourism Bureau implemented marketing Post-conflict destinations experience tourism revival.
initiatives to attract the Malaysian Muslim travel •  Baghdad has been named the Arab Tourism Capital for
market. They launched a promotional video high- 2025 by the Arab Tourism Organization. The selection
lighting the country’s urban attractions, eco-friendly recognizes Baghdad’s rich cultural and historical
travel, as well as adventure and culture travel. They significance while aiming to boost tourism among
also engaged a Malaysian media star as the Muslim Arab nations. The city’s designation was based on
travel ambassador.295 key criteria, including tourism sector management,
•  The Philippines is developing Muslim-friendly options infrastructure development, diverse attractions, envi-
in Boracay island, with a plan to convert Megaworld ronmental sustainability, and safety measures.306
hotels in the Philippines to Muslim-friendly.296 It has •  Bosnia and Herzegovina achieved a record-breaking
also launched a brand campaign titled “Halal-Friendly year for tourism in 2024, marking its highest-ever
Philippines” to attract Muslim visitors from the GCC visitor numbers. Tourist arrivals surged by 31.67%,
and ASEAN.297 while overnight stays increased by 25.03% compared
•  AirAsia Philippines partnered with the Universal to the previous year, surpassing even the pre-pan-
Islamic Center and Philippine Halal Trade and Tourism demic peak of 2019.307
to position the Philippines as a halal-friendly des-
tination.298 Major infrastructure projects are improving connectivity
•  Thailand released a Halal Route app developed by and enhancing luxury travel experiences.
Chulalongkorn University’s Halal Science Centre. The •  UAE’s Etihad Rail announced plans for a high-speed
app provides users with halal-certified restaurants, train connecting Abu Dhabi and Dubai in just 30
mosques, and prayer rooms as well as prayer timings, minutes, at speeds reaching up to 350 kilometers

140 State of the Global Islamic Economy Report 2024/25

 CREDIT/UNSPLASH
Luxury beach and resort center
in Nungwi, a small village
located in the northern tip of
Zanzibar, Tanzania

per hour. This development positions the UAE’s rail the global landscape.
network among the world’s top ten fastest trains,
surpassing Japan’s Shinkansen, which operates at Facilitation of multi-destination travel in the GCC through
speeds up to 320 kilometers per hour. The initiative joint campaigns and the anticipated unified GCC tourist
is part of the UAE’s broader strategy to enhance its visa.
transportation infrastructure and promote sustainable •  Qatar Tourism and the Saudi Tourism Authority
travel options.308 launched a joint campaign titled “Double the
•  The Saudi Railway Company (SAR) is set to launch Discovery” to promote both countries to interna-
the Dream of the Desert, an ultra-luxury train, in tional visitors by offering curated travel packages,
late 2026, which will run 1,300 km from Riyadh to Al including flights, accommodation, and city guides,
Qurayyat. The train features 34 luxury suites across facilitated by Qatar Airways.310
14 carriages, accommodating 82 passengers. Interiors •  Bahrain and Saudi Arabia signed an agreement to
are inspired by traditional Saudi reception areas, and market themselves as a single destination, with Gulf
the corridors showcase Saudi cultural artworks. Dining Air flying tourists from Saudi Arabia to Bahrain as
includes Michelin-starred cuisine, blending local and part of a two-center holiday.311
international flavors.309 •  Ras Al Khaimah Tourism Development Authority in
the UAE and Oman’s Ministry of Heritage and Tourism
launched a unified summer travel campaign titled
ECOSYSTEM DEVELOPMENTS “See Double.” The partnership aims to attract visitors
to explore the natural emirate of Ras Al Khaimah and
GCC countries are boosting multi-destination travel neighboring Musandam in the governorate of Oman,
with joint campaigns and a planned unified visa. Halal which are a 90-minute drive from each other.312
tourism standardization is expanding, though multiple •  GCC countries continue to develop the GCC Grand
frameworks remain a challenge. Countries are enhancing Tours visa, a unified tourist visa similar to the
their halal tourism ecosystems through certifications Schengen visa, allowing travelers to visit multiple
and Muslim-friendly accommodations, while initiatives GCC nations with a single-entry permit.313
like Zanzibar’s halal-friendly tourism push are shaping Standardization efforts continue, with global frameworks,

Chapter 7: Muslim-Friendly Travel 141

national certifications, and expanded Muslim-friendly unveiled a vision to transform the island into a regen-
hospitality initiatives, though the challenge of multiple erative economic model, emphasizing sustainability
standards persists. and long-term growth.322
•  UN Tourism (formerly UNWTO) proposed a unified •  Oman’s Bisya and Rustaq Forts have been added to the
halal tourism certification framework during an online Islamic Heritage List, highlighting their cultural and
workshop by SESRIC and ICDT. The framework begins historical significance. This recognition is expected
with assessing current halal tourism standards and to boost tourism by attracting visitors interested in
practices, followed by an action plan to ensure regula- Islamic history and architecture.323
tory and institutional alignment among participants.314
•  The Standards and Metrology Institute for Islamic
Countries (SMIIC) is developing a “Halal Medical SOCIAL IMPACT DEVELOPMENTS
Tourism” standard.315
•  The Philippines released the Guidelines Governing Sustainable tourism practices are being implemented
the Operations and Recognition of Muslim-Friendly by some OIC countries, with the UAE enforcing carbon
Accommodation Establishments, focusing on accom- reporting, Bangladesh promoting eco-tourism, and Jordan
modation, restaurants, and services that cater to expanding nature-based travel.
the specific needs of Muslim travelers. Additionally, •  The UAE issued a law requiring travel businesses to
the Department of Tourism held a Halal Tourism report their carbon emissions, impacting airlines and
and Trade Expo in 2024 to promote Muslim-friendly major hotel groups. This initiative aims to promote
tourism products.316 sustainability and align with global climate goals.324
•  The Malaysian arm of Indian hospitality brand OYO •  BRAC, a Bangladesh-based development organiza-
announced its plans to launch 200 Muslim-shariah- tion, partnered with the Bangladesh Tourism Board
compliant hotels by 2028, which are in line with the to launch “Otithi,” a project promoting communi-
government’s Muslim-Friendly Hospitality Assurance ty-based, eco-friendly tourism. The initiative aims
(MFAR) program.317 to enhance travel experiences while supporting local
•  The Islamic Tourism Centre (ITC) and the Malaysian communities, positioning tourism as a key driver of
Budget and Business Hotel Association (MyBHA) socio-economic development.325
signed an MoU to support the Association’s mem- •  Ajloun, Jordan, has introduced a cable car system
bers in obtaining the Muslim-Friendly Tourism and to boost eco-tourism, attract visitors, and sup-
Hospitality Assurance and Recognition from ITC.318 port the local economy while preserving natu-
•  Uzbekistan plans to introduce halal certification ral beauty. Managed alongside the Royal Society
for hotels in a bid to strengthen its halal tourism for the Conservation of Nature, the project aligns
ecosystem. The Ministry of Culture and Tourism’s with international eco-tourism standards, though
Tourism Services Certification Center has signed a concerns remain about climate change risks like
memorandum with the World Halal Trust Group and landslides and fires.326
the International Halal Certification Center MAIB to
collaborate on developing the certification, as well as
providing training on halal tourism and conducting
joint research.319
•  Russia’s halal certification body, Roskachestvo-Halal, We have significantly reduced
began certifying hotels and tourism services according our plastic usage, transitioned
to a standard developed by the Halal Competence
to eco-friendly materials, and
Center together with the muftis of the regions of
the Russia, based on the standards of 30 countries.320 implemented waste management
systems. Food waste is donated
New Muslim-friendly initiatives and Islamic heritage to animal shelters, and we
site designations are enhancing the global halal tourism
are working on a project to
landscape.
•  In a bid to boost halal tourism in the region, Dubai convert waste into animal feed.
is building the world’s first floating mosque, half Additionally, we hold several
of which will be underwater. It will include sitting certifications, including the
areas and a coffee shop, in addition to the prayer
Blue Flag for our beach, which
hall. The construction is expected to cost close to
US$ 14.9 million.321 highlights our commitment to
•  Tanzania’s Zanzibar has announced plans to enhance sustainability.”
halal-friendly tourism by introducing alcohol-free
accommodations, prayer facilities, and gender-seg- RUHAT ÜLGEN CENGIZ, GENERAL MANAGER,
regated spaces. Additionally, the Minister of Tourism BERA ALANYA HOTEL

142 State of the Global Islamic Economy Report 2024/25

CREDIT/UNSPLASH

Chapter 7: Muslim-Friendly Travel 143

 Balanced tourism is about check-in, flight status updates, seat selection, meal
attracting high-yield travelers— preferences, and travel requirements.332 The airline
has also introduced an AI-powered digital crew
those who spend more, stay
member on Instagram to engage with users and
longer, and leave a positive share insights about the airline’s services.333
footprint. When visitors choose •  Abu Dhabi-based theme park, Miral, is using AI

locally owned hotels, dine at to personalize visitor experiences and optimize

resource management, providing customized mar-
neighborhood restaurants, and
keting promotions, predictive maintenance for rides,
buy from community artisans, and optimized resource allocation.334
they drive real economic value.
That’s how tourism becomes a Religious and heritage sites are integrating technology
to improve visitor experiences and accessibility.
force for inclusive growth, not •  Saudi Arabia plans to launch flying taxis to enhance
just volume.” the Hajj and Umrah experience, reducing congestion
DR. JENS THRAENHART, and improving transportation efficiency during
CO-FOUNDER, HIGH-YIELD TOURISM peak seasons.335
•  The Royal Commission for AlUla (RCU) has developed
a digital strategy to modernize tourism while pre-
INNOVATION DEVELOPMENT serving the region’s heritage. The plan includes using
technologies like virtual and augmented reality to
Advancements in AI and digital solutions are reshaping enhance visitor experiences and digital tools to
the travel industry, with personalized services, dynamic manage sites, promote sustainability, and protect
pricing, and resource optimization. Religious and heritage AlUla’s archaeological and natural assets.336
sites are adopting technology, including flying taxis for Hajj •  Zanzibar utilized crowd-mapping and mobile sur-
pilgrims and digital tools for site management. Payment veys to identify less-visited tourist attractions,
innovations are expanding, with Saudi Arabia’s Nusuk Wallet providing data-driven insights for investors, policy-
for pilgrims, Thailand’s cryptocurrency payments, and the makers, and tour operators to support sustainable
EU’s Identity Wallet for seamless travel. site development. The project, aimed at driving
economic growth and supporting local communi-
AI and digital solutions are enhancing traveler experiences, ties, was a collaboration between UNDP Accelerator
streamlining operations, and modernizing tourism services. Lab, OpenMap Development Tanzania, and youth
•  Riyadh Air is implementing AI-driven solutions for mappers from the State University of Zanzibar.337
dynamic pricing, personalized travel recommendations,
and seamless check-in and boarding processes.327 New payment technologies are transforming financial
•  Malaysia Digital Economy Corporation (MDEC) has accessibility and convenience in travel.
launched the Digital Tourism Innovation Lab to advance •  Saudi Arabia has introduced the Nusuk Wallet, a
digital transformation in Malaysia’s tourism sector. The digital payment solution that enables pilgrims to
initiative fosters innovative solutions and strengthens manage expenses, make secure payments, and
the industry’s competitiveness through collaboration access services seamlessly during their visit. This
with tech and tourism stakeholders.328 initiative aligns with Vision 2030’s focus on lever-
•  The Jordan Tourism Board incorporated artificial intel- aging technology to enhance religious tourism and
ligence into its 2024 strategy to enhance the country’s provide a more convenient, efficient experience for
tourism offerings. AI will be used to analyze traveler millions of pilgrims.338
data, predict tourism trends, and provide personalized •  Phuket, Thailand, has introduced cryptocurrency
recommendations for visitors. It will also streamline payment options to attract tech-savvy tourists. The
marketing efforts, improve customer service through initiative aims to modernize payment systems and
AI-powered chatbots, and optimize resources.329 cater to evolving traveler preferences.339
•  Saudi Arabia held hackathons to develop AI solutions for •  The European Union introduced an Identity Wallet
improving the Umrah experience. This initiative seeks that will allow its citizens to securely store and share
to integrate cutting-edge technology into religious IDs, streamlining travel processes like bookings
tourism, improving pilgrim services and logistics.330 and border checks while ensuring data privacy.
•  The Saudi Tourism Authority has introduced “Sara,” It aims to enhance cross-border mobility across
an AI-powered virtual travel companion. Currently in member states.340
beta, it provides personalized trip planning and real-
time assistance.331
•  Qatar Airways has launched Sama 2.0, an AI-powered
assistant that provides real-time support for booking,

144 State of the Global Islamic Economy Report 2024/25

SIGNALS OF OPPORTUNITIES
IMPACT: Low Moderate High MATURITY: Early Intermediate Mature

Artificial intelligence is
emerging as a key lever for
competitive differentiation in travel,
powering personalization,
efficiency, and content innovation
Travel companies have started
implementing AI technology to
improve customer satisfaction through

1 personalized recommendations; for

operational efficiency in predicting
demand patterns and optimizing
Emerging post-conflict
destinations, including Syria,
Bangladesh, and Bosnia
efficiency; and in marketing, through After the fall of President Bashar al-Assad,
content creation. For example, Delta Air airlines started resuming flights to
Lines launched an AI-powered digital Damascus, including Qatar Airways and
concierge tool that provides personalized Turkish Airlines.342 Exiled Syrians have
contextualized insights to provide a started returning with the intention of
seamless traveler experience.341 rebuilding the country. An estimated
Impact Maturity

Saudi Arabia accelerates

125,000 Syrians returned, mainly from
Türkiye, Jordan, and Lebanon.343 Similarly,
with the forced resignation of the
2
tourism sector transformation Bangladesh Prime Minister, amid protests,
through bold capital deployment expats may consider returning, as well as
and foreign investment access tourists. Bosnia, recovering from an older
Saudi Arabia is driving a tourism conflict, has seen a tourism revival.
revival through nearly US$1 trillion in
Impact Maturity
infrastructure and megaprojects like

3 NEOM, the Red Sea Project, AMAALA,

AlUla, and Qiddiya.344 Mid-market hotel
developments are also expanding along
Emerging markets like Indonesia,
the Philippines, and Pakistan are
the Red Sea coast.345 To boost religious evolving into key halal tourism hubs,
tourism, the country opened real estate fueled by targeted GCC investment
investment in Makkah and Madinah to GCC countries are funding major
foreign firms. In 2024, tourism sector projects in these destinations to boost
private investment hit US$3.8 billion, with infrastructure and meet rising Muslim-
foreign capital making up about 40%.346 friendly travel demand. Notably, Eagle
Impact Maturity

Muslim hospitality as a brand

Hills (UAE) has embarked on a US$ 3
billion initiative in Indonesia, enhancing
the country’s airports, hotels, and tourism
4
Hospitality brands are moving beyond infrastructure.347 Qatar is investing in
generic international models to embrace halal tourism in the Philippines348 ; while
Islamic cultural traditions. Shaza Hotels Saudi Arabia is working with Pakistan
fuses Arabian heritage with modern luxury, to develop its coastal areas for halal
while Türkiye’s Bera Alanya Hotel reflects tourism.349 These investments highlight
Islamic hospitality values. Saudi Arabia’s the GCC’s strategic capital deployment

5 PIF launched Adeera to create hotels rooted

in Saudi traditions, 350 and the Hafawa
campaign highlights the Kingdom’s culture
in shaping global travel destinations.
These strategic partnerships position
these markets as attractive, high-growth
of generous hospitality. As demand for opportunities for investors and tourism
faith-aligned experiences grows, there’s a businesses looking to capitalize on rising
clear opportunity to build authentic Muslim global demand for Muslim-friendly travel
hospitality brands that reflect cultural and experiences.
religious values.
Impact Maturity
Impact Maturity

Chapter 7: Muslim-Friendly Travel 145

 CREDIT/UNSPLASH

146 State of the Global Islamic Economy Report 2024/25

Strategic Considerations
by Stakeholder
Emerging trends in the tourism sector highlight strategic opportunities
for investors, governments, and businesses to drive growth and
innovation. Investors can tap into the expanding demand for Islamic
hospitality and invest in early-stage tourism infrastructure in post-
conflict destinations. Governments have the potential to accelerate
AI adoption in tourism and attract foreign direct investment (FDI) for
large-scale projects. Businesses, meanwhile, can improve operational
efficiency through AI-driven solutions and create differentiated offerings
by developing culturally themed travel brands rooted in Islamic values.
The following sections outline key areas where each stakeholder can
capitalize on emerging trends and industry developments.

INVESTORS

O P P O R T U N I T I E S

1 Growth equity and strategic investments

in Islamic and local culture-themed
hospitality
growing tourism market.
•  Shaza Hotels blends Islamic aesthetics with modern
luxury, attracting affluent Muslim travelers.
With a growing demand for culturally immersive •  Bera Alanya Hotel in Türkiye has built a strong reputa-
experiences, growth equity investments in Islamic- tion on Islamic hospitality principles, demonstrating
branded hospitality chains present a strong upside the demand for halal-certified, culturally immersive
potential. Strategic investors should partner with sov- accommodations.
ereign wealth funds and local developers to establish Potential outcomes by 2035:
Islamic-themed hospitality brands that cater to both •  Exit opportunities through IPOs or strategic acqui-
regional and international visitors. sitions, as global hospitality firms seek to acquire
Relevant developments & precedents: well-established Islamic hotel brands to capture the
•  Saudi Arabia’s Adeera Hotels focuses on authentically growing Muslim travel market.
Saudi-branded hospitality, catering to the country’s

Chapter 7: Muslim-Friendly Travel 147

 2 Infrastructure and real estate invest-
ments in post-conflict destinations
Post-conflict destinations such as Syria
in Bosnia’s tourism sector, funding infrastructure
development as the country continues to rebuild
from the devastation of the 1990s war.
and Iraq offer early-stage investment opportunities •  The Iraqi government is actively attracting investment
in hospitality infrastructure, airports, and tourism in its tourism sector by offering hotel development
transportation. Investors should pursue real estate projects to investors.
development projects, hotel construction, and tour- •  The resumption of flights to Damascus signals growing
ism-focused infrastructure investments to capitalize market confidence, with Qatar Airways and Turkish
on recovery-driven growth. Airlines reinstating services to Syria in 2025 after a
A public-private investment approach, including long suspension.
joint ventures with local governments and development Potential outcomes by 2035:
finance institutions (DFIs), will mitigate risk while •  Syria, Iraq, and Bangladesh will re-establish them-
enabling scalable, high-impact projects. selves as key religious and cultural tourism desti-
Relevant developments & precedents: nations, attracting millions of visitors annually and
•  Saudi Arabia and the UAE have been key investors driving economic revitalization.

C H A L L E N G E S

1 High capital barriers to entry in Saudi

Arabia’s tourism boom
Saudi Arabia’s Vision 2030 has unlocked
funds, niche markets, or public-private partnerships,
many investors may struggle to gain access to this
high-growth market.
massive tourism investment opportunities, but Risk:
giga-projects, luxury developments, and large-scale •  Limited participation for smaller investors could lead
infrastructure require significant capital, making it to concentration of market control among major
difficult for small-to-medium investors to participate. players, reducing diversification and missing oppor-
Without structured entry points such as investment tunities to develop mid-market tourism offerings.

GOVERNMENTS

O P P O R T U N I T I E S

1 Government initiatives to foster

AI-driven tourism growth
Governments can accelerate AI adoption
Relevant developments & precedents:
•  The Jordan Tourism Board has incorporated AI into its
national tourism strategy to enhance data analytics
in tourism by developing supportive regulations, fos- and visitor personalization.
tering public-private partnerships, and investing in •  Saudi Arabia’s AI hackathons have focused on improv-
AI-driven infrastructure. AI-powered tools – from ing the Umrah and Hajj experience through AI-driven
predictive analytics to real-time personalization – are solutions.
transforming travel, enhancing decision-making and •  Malaysia Digital Economy Corporation (MDEC)
visitor experiences. launched a Digital Tourism Innovation Lab, fos-
To maximize impact, governments should offer AI tering AI-driven travel solutions to enhance visitor
incentives, invest in digital infrastructure, and collab- experiences.
orate with tech firms to integrate AI across tourism Potential outcomes by 2035:
segments. Clear regulatory frameworks will be key to •  AI-driven tourism ecosystems will be fully integrated,
ensuring ethical AI use and data protection. enabling seamless, real-time personalization for Mus-
lim travelers across flights, hotels, halal dining, and
religious tourism experiences.

148 State of the Global Islamic Economy Report 2024/25

 2 Positioning national tourism projects
to attract global investment
Governments can unlock significant tour-
ism projects, focusing on developing halal tourism
to attract Middle Eastern visitors.
•  Qatar is funding the Philippines’ halal tourism sector,
ism potential by positioning their national tourism strengthening its global tourism investment portfolio.
sectors as attractive destinations for global inves- •  Dubai-based Eagle Hills is investing US$ 3 billion in
tors, including sovereign wealth funds, private equity Indonesia to develop airports, hotels, and tourism
firms, and multinational hospitality groups. By offering infrastructure, boosting its Muslim-friendly travel
investment incentives, streamlining approval processes, sector.
and ensuring regulatory transparency, they can secure Potential outcomes by 2035:
foreign direct investment (FDI) for large-scale tourism •  Increased FDI in tourism infrastructure will drive
infrastructure projects. economic growth and job creation in emerging travel
Relevant developments & precedents: destinations.
•  Saudi Arabia has invested in Pakistan’s coastal tour-

C H A L L E N G E S

1 Ensuring local economies benefit from

foreign investments
Foreign investment in large-scale tour-
infrastructure reinvestment policies to ensure wide-
spread economic benefits.
Risk:
ism projects can drive economic growth, but without •  Overreliance on foreign capital without local economic
structured policies, it may benefit only foreign firms integration may lead to limited job creation, wealth
and high-net-worth stakeholders rather than local concentration, and economic leakage, weakening
businesses and communities. Governments must long-term sustainability.
establish clear guidelines, local hiring mandates, and

AI and financial technology must integrate in the payment sector

to support travelers. Consumer economies across Asia Pacific are
heavily focused on digital wallets and QR code payments, but
most are localized and lack cross-border interoperability. Younger
travelers, who are value-conscious, prefer mobile payments with
instant currency conversion. Banks, central banks, and payment
providers are collaborating to enhance seamless payment
connectivity, a trend expected to grow in the next few years.”
GARY BOWERMAN, FOUNDER & MANAGING DIRECTOR, ASIA TRAVEL RE:SET

Chapter 7: Muslim-Friendly Travel 149

BUSINESSES

O P P O R T U N I T I E S

1 Incorporate AI to enhance customer

experience, deliver personalized market-
ing, and automate back-end processes
Relevant developments & precedents:
•  Qatar Airways’ AI-powered Sama 2.0 delivers per-
sonalized customer engagement and operational
AI-powered personalization, real-time data analyt- efficiency.
ics, and automation can create more seamless and •  Economy Car Rentals Group implemented an AI model
engaging experiences for Muslim travelers. Develop using Google Cloud’s AI infrastructure to predict
AI-powered customer service tools tailored for Muslim- cancellations in real-time.
friendly travel. Leverage predictive analytics to opti- Potential outcomes by 2035:
mize demand forecasting, pricing, and travel trends. •  Increased revenue due to enhanced traveler sat-
Collaborate with governments and AI startups to isfaction and retention, and cost savings through
access funding, regulatory support, and emerging AI operational efficiency.
innovations in tourism.

2 Build authentic, culturally themed travel

brands
With growing demand for culturally
Relevant developments & precedents:
•  Saudi Arabia’s QSAS (National Interactive Entertain-
ment Company) is developing AI-driven immersive
immersive and faith-aligned travel experiences, busi- storytelling experiences that highlight Saudi heritage
nesses can differentiate their offerings by integrating and Islamic history.
local traditions, Islamic values, and regional aesthetics •  The Royal Commission for AlUla is creating archaeo-
into their tourism and hospitality brands. logical and heritage-based experiences, integrating
Develop culturally themed hotels, resorts, and travel digital technology to enhance visitor engagement.
experiences that reflect local heritage and Islamic Potential outcomes by 2035:
traditions. Collaborate with artisans, cultural institu- Businesses investing in Islamic hospitality and cultural
tions, and historians to design authentic experiences. tourism will benefit from stronger brand differentiation.

C H A L L E N G E S

1 Meeting rising traveler expectations for

customization and efficiency
Today’s travelers expect seamless and
risk losing market share to competitors that prioritize
tech-driven travel experiences.
Risk:
hyper-personalized experiences in hotel stays, trans- Slow adoption of AI and digital solutions may result in
portation, and itinerary planning. Companies that fail reduced customer loyalty and competitive disadvantages,
to integrate smart solutions and digital convenience making it harder for brands to differentiate themselves.

AI will drive hyper-personalization, making travel experiences

more tailored to individual preferences, from recommendations to
customized upgrades, translation abilities, and operational efficiency.”
ABD ELMOHAIMEN MANSI, CO-FOUNDER, SEERU

150 State of the Global Islamic Economy Report 2024/25

 For us, everyone who enters through the door is a guest, not a
customer. The monetary relationship ends at the point of check-in,
and after that, it becomes about hospitality. We believe that by
welcoming guests with the same warmth as in our own homes, we
elevate their experience and the brand’s reputation.”

RUHAT ÜLGEN CENGIZ, GENERAL MANAGER, BERA ALANYA HOTEL

CREDIT/SHUTTERSTOCK

Mararya, the largest mirror-

covered building in the
world. One of the new travel
destination in AlUla, Saudi Arabia

Chapter 7: Muslim-Friendly Travel 151

 8
C H A P T E R

MODEST
FASHION
154 State of the Global Islamic Economy Report 2024/25
Chapter 8: Modest Fashion 155
 MODEST FASHION
ALL FIGURES IN US$ BILLIONS, UNLESS STATED OTHERWISE

CONSUMER OPPORTUNITY
Represented by US$ 326.95 billion of consumer spending by 2 billion Muslims on modest fashion (2023).
Reaching US$ 433.28 billion by 2028 (5.8% CAGR).

54 ran
.28
I
US$ 326.95 US$ 433.28
2023 2028

Türkiye
Rest of countries
46.42
95.96

Iraq
7.03 Sa
ud
USA 1 iA
ra
8.6 25 bia
a
di .46
In .14
sh

1 2
57 de

Pak 23.47
17. ngla

17.86 esia

ista
Ba

n
Egypt
Indo

5.8%
18.14

CAGR

GOVERNMENT LEADERSHIP Financial Awareness Social Innovation

MODEST FASHION - GLOBAL ISLAMIC ECONOMY INDICATOR (GIEI) RANKING (2024)

61 51 41 31 21 11 1

1 Indonesia

2 Malaysia

3 Italy

4 Türkiye 70

5 Singapore

61 51 41 31 21 11 1

156 State of the Global Islamic Economy Report 2024/25

INVESTMENT & TRADE DRIVERS
Modest fashion imports are set to grow to US$ 63.8 US$ BILLION (2023)
Türkiye
billion by 2028, at a CAGR of 7.7% 3.3
Italy China
Thickness is proportional to the value 3.7 18.6
India
2.8

TOP 5 OIC TOP 5 EXPORTERS

IMPORTERS Vietnam TO OIC
3.1
US$ 44.2 2 4 3
US$ 115.5
Total of imports by OIC 2
1 Total of exports from OIC
1
countries 5
3
countries
4

Türkiye UAE
4.4 9.8
Saudi Arabia
5.3
Malaysia Kazakhstan
2.5 4.4
INVESTMENTS

US$ 300 Top countries by total deal value and number of deals
US$ THOUSANDS (2023/24)

thousands = 1 deal
1
Disclosed value for all
2 deals
300
Lebanon

KEY DEVELOPMENTS SIGNALS OF OPPORTUNITIES

IMPACT: Low Moderate High

1 Indonesia’s Global Halal Fashion

scheme certifies textiles and promotes
designers abroad.
Mature

2 Riyadh Fashion Week spotlights

modestwear, backing Saudi’s 230k Global fashion
fashion-jobs goal. AI-Driven brands are looking There is an urgent
Marketing is to source from need for modest
Democratizing other countries sport-specific
3 Lara Active launches burkini line on the
Access to
Professional
instead of China to
prevent incurring
apparel which
aligns with
New York Fashion Week runway. Branding for high tariffs and sporting body
Intermediate

Modest Fashion supply chain requirements

SMMEs. disruptions

4 EU circular-economy rules force

textile collection by 2026, raising
sustainability stakes. Lifestyle-Driven Modest clothing stylists
Branding have an increasingly
Experiences Boost important role in helping
Engagement for develop a brand’s image
5 Saudi fashion-show guidelines
Premium Modest at fashion week events
requires respect for public taste and
Early

Fashion and on social media.

limited exposure.

*All estimates by DinarStandard except for Islamic Finance sector provided by LSEG Data & Analytics Islamic Finance Development Indicator 2024 data. Muslim consumer spend
estimates & analysis by DinarStandard leveraging World Bank’s ICP 2017 consumer data as baseline reference. Halal and related product exports are based on ITC Trademap 2023
data. Projections are baselined on data from IMF Outlook from October 2024. Investments (figures and individual deals) are based on a detailed scan of databases from CapitalIQ,
Crunchbase and DinarStandard analysis from August 2023 to July 2024. See appendix for detailed methodology.
OIC Organization of Islamic Cooperation, 57 mostly Muslim-majority member countries.

Chapter 8: Modest Fashion 157

 The global modest fashion industry is experiencing significant
growth, with Muslim consumer spending on apparel and footwear
reaching US$ 327 billion in 2023, marking a 3% increase from the
previous year. This figure is projected to rise to US$ 433 billion
by 2028 at a CAGR of 5.8%. Iran, Türkiye, and Saudi Arabia lead in
Muslim consumer spending on apparel, while OIC-based modest
clothing businesses continue to expand internationally, attracting
global brands to enter these markets. Innovation is also shaping
the sector, with new products like hijab jewelry, 3D-printed hijab
undercaps, and modest medical scrubs gaining traction. Modest
activewear remains in high demand, and Ramadan collections
continue to be a key focus for mainstream brands.

Social commerce is thriving, particularly in Asia, where evolution, with AI enhancing customer engagement and
platforms like Shopee Live and TikTok Shop are reshaping personalization. Sustainable textile innovation is advanc-
consumer engagement and showing potential for growth ing, with new eco-friendly materials improving comfort
in the US and Europe. Premium modest clothing brands and functionality. These developments present multiple
are leveraging experiential marketing to enhance brand opportunities, such as leveraging AI tools to enhance mar-
engagement, while the second-hand clothing market is keting, expanding sourcing beyond China, and addressing
expanding due to sustainability concerns and evolving the demand for modest sportswear that meets regulatory
consumer preferences. Global supply chain disruptions requirements. Additionally, premium brands can benefit
are prompting retailers to reconsider sourcing strategies, from interactive branding events, and the role of modest
with some moving away from Chinese suppliers. fashion stylists in shaping brand identities is becoming
The rise of modest fashion is evident in the increasing increasingly vital.
number of dedicated fashion weeks and events worldwide. To sustain growth, stakeholders must take strategic
Indonesia is positioning itself as a global modest fashion action. Investors should focus on developing clothing man-
hub, and bilateral showcases between OIC nations are ufacturing industries within OIC countries and supporting
strengthening trade relations. The presence of modest sustainable textile innovation. Governments can drive
fashion in mainstream fashion weeks further underscores progress through incentives such as Production-Linked
its growing influence. Meanwhile, incubators, conferences, Incentive (PLI) schemes and tax reductions on sustainable
and training programs are enhancing business knowledge apparel. Businesses should adopt AI-driven marketing
in the sector. Social media, particularly TikTok, is driving strategies, explore alternative sourcing, invest in modest
trends and increasing the visibility of modest clothing styl- sportswear, and recognize the growing influence of modest
ists and influencers. However, challenges remain, including fashion stylists. By addressing challenges and capitalizing
hijab bans in some countries and ongoing concerns over on emerging opportunities, the modest fashion sector can
Islamophobia. achieve sustainable and inclusive development, solidifying
Innovation is playing a crucial role in the industry’s its role as a dynamic force in the global fashion industry.

158 State of the Global Islamic Economy Report 2024/25

Sector Developments (2023/24)

REVENUE DEVELOPMENTS launched in Dhaka, Bangladesh.352

•  After great success with their debut modest-inspired
Modest fashion continues to evolve, with brands expand- collection last year, Club L London is launching a
ing into new markets and exploring innovative product dedicated UAE website. Club L experienced a 57%
categories. Both OIC-based and international companies increase in total Middle Eastern trade in 2023 com-
are investing in modest clothing, luxury collections, and pared to 2022.353
seasonal campaigns. Activewear and functional modest •  Modest clothing brand house Modinity Group was
wear are seeing increased attention, with new designs named Asia’s Best Performing company in 2024 at
catering to performance and everyday needs. Strategic the ACES awards. They were the only fashion group
partnerships are also driving growth, supporting local among the winners and the first Indonesian company
talent and enhancing market understanding. to achieve this award.354
•  Al Shaya group is in talks with international fashion
Latest projections retailer Primark to explore opportunities to bring its
stores to the Middle East.355
Muslim consumer spending on apparel and footwear grew •  Dolce and Gabbana opened a 2,000-square-meter
by 3% to US$ 327 billion, from US$ 318 billion in 2022. flagship brand center in Saudi Arabia’s Diriyah his-
Iran holds the top spot, with Türkiye and Saudi Arabia toric region. The store includes a café, the first in the
maintaining their second and third ranks, respectively. GCC, and will feature an exclusive abaya collection.356
Forecasts indicate spending will reach US$ 433 billion by
2028, growing at a CAGR of 5.8%. New products continue to be developed to meet the needs
Note: This does not represent the actual value of modest of the modest clothing consumer. Utility modest wear
fashion consumption. It represents the core address- continues to be an area with significant developments.
able Muslim consumer market spending in the apparel •  Bakshish, a Bangladesh-based brand, specializes in
category. hijab jewelry, offering belts, brooches, and rings to
enhance hijab styling. This emerging niche presents
Updates on revenue developments significant opportunities for innovation and new
entrants.357
OIC-based modest clothing businesses are excelling and •  Taj Hijab Crown, designed in the USA, is a 3D-printed
expanding internationally, while international compa- hijab undercap, designed to be more comfortable
nies are also seeing the opportunity to expand into the and effective than other conventional undercaps.358
OIC markets. •  Hawraa Sabra, a pediatric ICU nurse in Detroit, USA,
•  Saudi Arabian brand Leem opened its first permanent founded Avicenna Scrubs, which offers modest med-
store in Westfield, UK, after successfully hosting a ical scrubs.359
pop-up in the center through 2023.351 •  USA-based Henna and Hijabs collaborated with
•  UAE-based modest clothing brand Elaf Al Dubai Amazon to design hijabs in accordance with ware-

Investment summary
COUNTRY DEAL TYPE ORGANIZATION NAME DEAL VALUE (US$ 000s)

Lebanon VC FabricAid 300

Egypt VC El-Outlet ED undisclosed

Chapter 8: Modest Fashion 159

 house safety regulations for their employees in sales, particularly in Asia. Experiential marketing is gaining
Brooklyn Park and Detroit, with the goal of offering traction among premium modest fashion brands, enhanc-
hijabs to Amazon employees around the world.360 ing brand appeal through immersive pop-ups and events.
The second-hand clothing market is expanding, fueled
Modest activewear remains in high demand, with new by sustainability concerns and shifting consumer mindsets,
brands emerging and mainstream brands showing sig- with notable growth in Senegal, Indonesia, and Pakistan.
nificant interest in the segment. Meanwhile, global supply chains face renewed disruptions
•  UK heritage cycling brand Rapha worked for four due to geopolitical instability, impacting sourcing strate-
years with Muslim women’s cycling group Cycle gies. Retailers are adjusting, with many shifting away from
Sisters to design a cycling hijab, a long jersey, and a Chinese suppliers in response to tariffs, logistics delays,
pair of padded cycling trousers suitable for Muslim and evolving trade policies.
cyclists.361 362
•  New modest activewear brands, Kuwait-based Qynda Social commerce is thriving in Asian countries and has
and USA-based UpLift, were launched.363 364 significant potential for the US and Europe.
•  Mainstream activewear brands, Sweaty Betty and •  Shopee Live in Malaysia recorded a more than 6.5-fold
GymShark, launched sports hijabs.365 366 increase in sales during the 9.9 Super Shopping Day
•  Franco-Malian artist Emile-Samory Fofana collab- event, driving nearly 100 million user interactions
orated with Adidas to design a ‘functional football through livestreams, game shows, and exclusive deals,
qamis.’367 resulting in higher sales and stronger engagement.375
•  The Saudi Fashion Commission signed a memo- •  Muslim fashion on TikTok Shop reached US$ 506
randum of understanding with Adidas in London million in sales and 96.92 million products sold in
to support Saudi designers to develop their skills 2023/24, with 95% of sales coming from Southeast
through training programs at Adidas and collaborate Asia. TikTok Shop launched in the US and UK in 2023
in a comprehensive research project to understand and has since generated over US$ 1.4 billion in gross
the needs of Saudi consumers, with a special focus merchandising value.376
on women’s sportswear.368 •  TikTok Shop relaunched in Indonesia on December
11, 2023, integrating with Tokopedia’s system to com-
Ramadan collections remain the most prominent ply with Indonesian regulations. TikTok acquired
approach for mainstream brands to offer modest cloth- a majority stake in Tokopedia for US$ 840 million,
ing options or dedicated modest clothing lines. expanding the marketplace from six million to 23
•  Indian womenswear brand Papa Don’t Preach by million merchants, enabling seamless operations
Shubhika launched an exclusive modest wear col- between TikTok Shop and Tokopedia.377
lection at multi-brand South Asian fashion boutique
Bibi London in time for Eid.369 Premium modest clothing brands have used experiential
•  Leading global luxury platform Farfetch released marketing events to showcase their lifestyle appeal,
an exclusive modest clothing capsule collection creating significant social media buzz and enhancing
for Ramadan featuring pieces from 30 regional and brand engagement.
international designers, only available on the Farfetch •  ButtonScarves hosted the Tropical Paradise pop-up,
website.370 featuring a store, lounge, and beachside restaurant
•  British shoemaker Dune London collaborated collaboration. At their Singapore pop-up store, they
with Dubai-based influencer Deema Al Asadi for partnered with One Dollar Ice Cream, showcasing a
its Ramadan collection.371 design with their monogram. Visitors also had photo
•  Luxury German brand MCM launched its inaugural opportunities with the ButtonScarves mascot.378 379
Ramadan collection in stores across Dubai, Kuwait, •  Dutch brand Merrachi created the Merrachi Exhibition
London, Germany, Korea, Malaysia, and Singapore.372 in Amsterdam, which featured a café and gallery-style
•  Olivia Von Halle launched its first-ever Ramadan set-up featuring pictures, videos, and samples of
collection titled ‘The Modest Edit.’373 the latest collection; a behind-the-scenes view of
•  With Ramadan marketing nearing saturation in the production process, and multiple photo oppor-
Dubai, brands are exploring new strategies and tunities for customers. Customers could also have
venues across Gulf cities like Riyadh, Abu Dhabi, a color analysis done to find the hijab colors that
and Kuwait City, focusing on localized campaigns best suited them.380
and events.374 •  ZALORA won the Marketing Initiative of the Year –
Malaysia award at the Retail Asia Awards 2024 for
ZALORAYA, featuring a virtual fitting room, 3D map-
OPERATIONAL DEVELOPMENTS ping tunnel, a dramatic two-level stage, real-time
shopping integration, and a star-studded event that
Social commerce is rapidly evolving, with platforms like achieved six million social media reach and boosted
Shopee Live and TikTok Shop driving engagement and sales.381

160 State of the Global Islamic Economy Report 2024/25

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Chapter 8: Modest Fashion 161

Consumers are embracing purchasing pre-owned clothing OIC MODEST FASHION IMPORTS AND GROWTH
in markets like Senegal, Indonesia, and Pakistan. (2023-2028)
•  A study by ThredUp and GlobalData projects the global
US$ BILLION
second-hand market to grow 126% by 2026. Around
62% of Millennials and Gen Z seek second-hand
options, driven by sustainability, cost concerns, and
44.15
increased online accessibility.382 2023 CAGR
•  Several second-hand marketplaces and online plat- 7.65% 63.83
2028 (F)
forms like HuntStreet, Tinkerlust, and The VV have
emerged in Indonesia as consumer mindsets shifted
away from associating thrift shopping with financial *(F): FORECASTED VALUE

difficulties.383
•  Many Senegalese purchased second-hand traditional
wear for the Tabaski, or Eid, celebration. Seynabou Sarr, in 2022.The largest products imported are knitted clothing
a second-hand store, grew significantly since opening (36.97%), followed by non-knitted clothing (33.91%).
a physical store in 2022, after starting online in 2018, The UAE leads as the largest importer, with US$
and now has 80,000 TikTok followers.384 9.78 billion, nearly twice the amount of Saudi Arabia’s
•  Pakistani second-hand sneaker online platform Swag imports, which ranks second. Kazakhstan follows as
Kicks raised US$ 1.2 million in seed funding in early the third-largest importer. As a fashion hub in the Gulf,
2023. The platform has 135,000 followers across TikTok, the UAE re-exports a significant share of its imports to
Instagram, and Facebook.385 neighboring Gulf countries. Saudi Arabia and Kazakhstan
are witnessing growing demand, driven by their large
After just recovering from the effects of COVID-19, global populations, the rise of e-commerce, and innovation in
supply chains are once again placed in a volatile position modest fashion. OIC fashion imports are projected to
due to political uncertainty and the turmoil in the Middle rise to US$ 63.83 billion by 2028, with a CAGR of 7.65%.
East. Clothing retailers have also been affected, and some Unlike halal food, pharmaceuticals, and cosmetics,
are moving away from Chinese suppliers. fashion is the only category where OIC countries main-
•  Following Donald Trump’s election, US clothing brands tain a trade surplus. In 2022, this surplus reached US$
anticipated significant tariffs on Chinese goods. Steve 71.35 billion. Five OIC countries were among the top
Madden, which sourced 79% of its products from ten fashion exporters to the OIC: Türkiye, Bangladesh,
China, announced plans to reduce sourcing. A U.S. Indonesia, the UAE, and Pakistan. A key driver of this
Fashion Industry Association survey revealed 80% surplus is the availability of low-cost labor, particularly
of fashion executives plan to decrease sourcing from in Bangladesh, Indonesia, and Pakistan. These countries
China in the next two years. 386 387 support both the upstream and downstream segments of
•  Attacks on cargo ships in the Red Sea have caused the fashion supply chain. Additionally, creative talent and
10–12-day shipment delays for European retailers, the adoption of technology are enhancing their export
leading to shorter lead times and supply chain bot- competitiveness.
tlenecks. Air freight is not a viable alternative due Although some OIC countries rank among the top
to high demand from Chinese retailers like Shein exporters, China remains the largest exporter to the OIC,
and Temu. 388 with fashion exports totaling US$ 18.54 billion in 2022.
It supplies a significant share of modest fashion prod-
ucts, including headscarves, abayas, and even keffiyehs.
NATIONAL/TRADE DEVELOPMENTS Amid rising demand during the peak of the Gaza conflict,
around 70% of keffiyehs were reportedly produced in
Dedicated modest fashion weeks and events are emerg- Zhentou, a town in Shaoxing’s Wujiang district.389 China’s
ing, alongside the continued growth and evolution of production capability is increasingly enabled by digital
established annual Modest Fashion gatherings. Indonesia supply chains. As of May 2025, Similarweb data shows
continues to strive to become the global leader in modest that Shein is one of the top three most-used shopping
fashion through government-backed programs, export platforms in both Saudi Arabia and the UAE. The Chinese
growth, and international showcases. Modest fashion digital cross-border fashion retailer’s popularity highlights
continues to gain traction in mainstream fashion weeks, China’s growing influence in the region’s fashion market.
with brands from diverse regions like the Middle East,
Southeast Asia, and Australia presenting collections in
major cities such as London, Paris, and New York, reflecting
the sector’s expanding influence and integration into the
global fashion landscape.
Total OIC fashion imports amounted to US$ 44.15 billion
in 2023, marking an 8.58% increase from US$ 40.36 billion

162 State of the Global Islamic Economy Report 2024/25

Modest Fashion Trade
US$ BILLION (2023)

EXPORTS IMPORTS

Trade Balance
115.50 (Export - Import) 44.15
71.35

Knitted clothing Non-knitted clothing Footwear and

and accessories and accessories related items
35.97% 33.91% 30.12%

TOP EXPORTERS TO OIC TOP OIC IMPORTERS

US$ BILLION (2023) US$ BILLION (2023)

China 18.64 United Arab Emirates 9.78

Italy 3.69 Saudi Arabia 5.28
Türkiye 3.33 Kazakhstan 4.42
Vietnam 3.09 Türkiye 4.37
India 2.80 Malaysia 2.48
Bangladesh 2.27 Iraq 2.15
Indonesia 0.99 Kuwait 1.87
Cambodia 0.76 Indonesia 1.51
United Arab Emirates 0.71 Algeria 1.17
Pakistan 0.57 Qatar 1.05

OIC countries

New dedicated modest fashion weeks and events are workshops nationwide to help local designers incor-
emerging, while existing annual modest fashion events porate Iranian-Islamic design principles, including
continue, growing and evolving with each edition. color, patterns, and motifs.394 395
•  Riyadh Fashion Week debuted, featuring a blend of •  The Malaysia Modest Fashion Show was held as part
local and international designers focused on modest of the 20th Malaysia International Halal Showcase
fashion. The event, organized by the Saudi Fashion (MIHAS) and featured designers from Malaysia,
Commission, is part of efforts to develop the local Indonesia, UAE, and Morocco.396
fashion industry and create 230,000 jobs.390 •  The 9th edition of Modest Fashion Week was held
•  Tokyo Muslim Fashion Week returned. Indonesian in Istanbul, featuring modest clothing brands from
designer Irna Mutiara was featured in the line-up.391 Türkiye, the Middle East, Indonesia, Pakistan, South
•  The inaugural Modest Fashion Week Brussels was held, Africa, the US, and Australia.397 398
featuring The Designer’s Showroom, where attendees •  Modest Fashion Day was held as part of the 15th anni-
can discover and shop the designers’ products, and versary of the Kazan Summit in Russia.399
an Ultra VIP and Exclusive Fashion Show.392
•  The Islamic Fashion Festival was held in Pahang, Bilateral modest clothing showcases between OIC nations
Malaysia, featuring 100 costumes from 10 designers have become a popular avenue for strengthening trade
from Malaysia and Indonesia.393 relations and promoting local modest clothing brands.
•  In Iran, Tehran Fashion Week coincided with the 12th •  The Malaysia Tourism Agency Association (MATA)
Fajr Fashion and Clothing Festival, featuring over 22 and Indonesia Halal Lifestyle Center hosted the

Chapter 8: Modest Fashion 163

 CREDIT/SHUTTERSTOCK

164 State of the Global Islamic Economy Report 2024/25

 International Minang Food & Fashion Festival 2024, strengthen the value chain, and support sustainable
alongside AITEX 2024, celebrating modest clothing fashion.416
and halal heritage while strengthening Malaysia-
Indonesia collaboration.400 Several modest clothing labels were showcased in major
•  The 6th Showcase Malaysia, organized by BMCCI, mainstream international fashion weeks in London and
was held in Dhaka to strengthen bilateral relations Paris
between Bangladesh and Malaysia, featuring a modest •  Saudi-based design house ArAm Designs presented
clothing show by Malaysian designers.401 their collection of luxury abayas, loungewear, and
evening gowns at London Fashion Week as part of
Indonesia continues to strive towards being the global a partnership between the British Fashion Council
modest clothing hub, hosting multiple showcases locally and Film AlUla, under the banner AlUla Creates.417
and internationally, as well as introducing several gov- •  Indonesia-based ButtonScarves was the first
ernment-backed initiatives to strengthen the Indonesian Indonesian brand in the Ethereal Escapades collec-
modest clothing offering. tion at Kuala Lumpur Fashion Week and also show-
•  Jakarta Muslim Fashion Week 2025 secured potential cased at Dubai Fashion Week alongside sister brand
transactions worth US$ 20.4 million, with 239 brands Benang Jurum.418 419
and over 1,000 collections participating. The event, •  Modest clothing brands from Malaysia, Indonesia,
supported by the Ministry of Trade and the Indonesian Qatar, and Egypt were showcased at the BRICS+
Chamber of Commerce, featured a business matching Fashion Summit in Moscow, Russia, which was held
platform.402 403 in parallel with Moscow Fashion Week.420 421 422
•  Bank Indonesia reported that modest clothing exports •  UAE-based Lara Active debuted its burkini line at
from January to July 2024 reached US$ 632.76 million, New York Fashion Week.423
a 3.38% year-on-year increase.404 •  Australian brand Asiyam showed for the second time
•  October was declared Modest Fashion Month by the at Australian Fashion Week.424
Ministry of Cooperatives and SMEs, coinciding with •  Measure, a modest clothing brand from the Dagestan
major events like JMFW and IN2MF.405 region in Russia, showed its Toi collection at the
•  The Indonesia International Modest Fashion Festival Lakme Fashion Week in Mumbai, India.425
(IN2MOTIONFEST) was showcased at Front Row Paris •  Luxury demi-couture modest clothing label Sabirah
2023 at Porte de Versailles, Paris, integrating with by Deborah Latouche was shown at London Fashion
the global trade fair Who’s Next. It was also held in Week.426
Kuala Lumpur. 406 407 408
•  The Association of Indonesian Citizens in Victoria
(PERWIRA), Australia, hosted an Indonesian Modest ECOSYSTEM DEVELOPMENTS
Fashion Week in Melbourne for the second time.409
•  The Amazing Indonesia Trade Expo in Jeddah, Incubators, training programs, and conferences are essen-
organized by the Indonesian consulate, promoted tial for growing the modest clothing sector. Social media
Indonesian products, including modest clothing platforms, particularly TikTok, are crucial in driving trends
brands like Inabee Mukena, to the Saudi Arabian and popularizing styles like abayas and thobes, also leading
market.410 to the rise of new professions like modest clothing stylists
•  The Ministry of Religious Affairs launched the and influencers. Hijab bans continue to be a focus for
Indonesia Global Halal Fashion initiative, aiming some countries, including Muslim-majority countries.
to position Indonesia as a global halal fashion hub. Sustainability is becoming a focus, with the EU, US, and
The initiative promotes certified halal textiles and major manufacturing hubs adopting eco-friendly practices
showcases Indonesian Muslim fashion at interna- and regulations to meet global standards.
tional events, with ten designers featuring traditional Modest clothing incubators, conferences, and training
fabrics like Batik, Ikat, and Songket.411 412 programs are focusing on improving business knowledge
•  The Ministry of Industry introduced the Indonesia for modest clothing industry players.
Melangkah program to boost the competitiveness •  Luxury modest clothing brand DWL was accepted into
of over 60,000 SMME footwear industries.413 the Scale7 Fashion Accelerator program funded by
•  Indonesian rayon textile producer APR collaborated Qatar Development Bank (QDB). The program is the
with six local designers for collections for MUFFEST+.414 first fashion and design incubator in Qatar, founded
•  President Joko Widodo inaugurated the Amanah Youth in 2021.427
Creative Hub in Aceh, supporting MSMEs in seven •  The Modest Fashion & Womenpreneur Summit 2024
sectors, including modest clothing, with facilities in Kuala Lumpur focused on empowering women
like studios and workshops.415 entrepreneurs. It featured influential speakers, col-
•  With mandatory halal compliance for clothing set laborated with eight global partners, and covered
for October 2026, BPJPH launched the Indonesia key business and fashion insights.428
Global Halal Forum (IGHF) to promote halal fabrics, •  AlHuda Centre of Modest Fashion (CMF) in the UAE

Chapter 8: Modest Fashion 165

 launched the four-month-long, online Executive Fashion shows are also banned in Makkah and
Diploma in Modest Fashion program.429 Madinah.438
•  The 3rd PINTU Incubator Program will have 20 French •  The parliament of Tajikistan signed into law a bill out-
fashion experts mentor five Indonesian modest cloth- lawing hijab, identifying it as a threat to the ancestral
ing designers. Two designers will attend the Premiere values and culture of Tajikistan.439
Classe trade show at Paris Fashion Week and receive •  The hijab ban in educational institutes in the Indian
a six-month scholarship at École Duperré Paris.430 state of Karnataka was lifted.
•  Prof. Hina Tayyaba of PIFD, with support from Pakistan’s
Federal Minister, introduced a “Design Centre Concept” Regulations to promote sustainability in the fashion
to boost the country’s fashion industry through edu- sector are being rolled out strongly in the EU and some US
cation, research, and development, aiming to enhance states. Other international clothing manufacturing hubs
global competitiveness and promote exports.431 are also implementing sustainable practices to comply
with the sustainability regulations of buyers’ countries.
Social media platforms, especially TikTok, have had a •  By 2026, the EU will require textiles and shoes to
significant impact on the popularity of modest clothing be separated from other waste. Brands like Inditex,
as well as the trends arising related to specific styles H&M, Decathlon, Ikea, and Primark are participating
within it. in a voluntary pilot scheme ahead of the law’s formal
•  Consumers are now discovering new brands as much implementation.440
through social media as they are through search •  In the US state of California, all clothing retailers
engines, with 38% and 37% of customers utilizing must set up a system for customers to return their
these methods, respectively.432 clothes for recycling.441
•  Abayas are gaining popularity in the UK, with brands •  Bangladesh is home to 60 of the top 100 highest-rated
like Sumayah, boasting 200,000 TikTok followers, factories certified by LEED globally. Recently, Saadatia
leading the trend. Social media platforms, including Sweaters Ltd and Executive Greentex Ltd received
TikTok and Instagram, have helped make abayas more their LEED certification, bringing the total number
mainstream through influencers and hashtags like of green factories in Bangladesh to 226.442
#abayastyle and #abayafashion. Similarly, thobes, •  The ILO and Türkiye’s EkoDoku Women Sustainable
once worn only for religious events, are now embraced Living Cooperative have launched an initiative in
as everyday wear, with growing styling content on Türkiye to promote eco-friendly textiles, raise aware-
social media driving their appeal among second- and ness about fast fashion, and create formal green job
third-generation British Muslims. 433 434 opportunities through nature-based solutions and
•  Saeedah Haque from the UK went viral on TikTok after sustainable practices.443
sharing her Hoodie Abaya design, gaining 200,000 •  Vinatex, the Vietnam National Textile and Garment
followers and six million likes. She launched a limited Group, is adopting carbon reduction measures, includ-
Nike By You collection and sold out all five original ing assessing product lifecycle carbon footprints and
collections on her online store within minutes of advancing a green, circular production strategy. They
going live.435 have achieved a 2% reduction in electricity consump-
tion per product unit compared to 2022. However,
The growth of the modest clothing industry echoes in the many Vietnamese textile exporters, especially small
growth of professions such as modest clothing stylists and medium enterprises, face challenges meeting
and modest clothing influencers, with special training green standards due to high conversion costs and
and networking platforms emerging. long transition periods.444
•  Malaysia’s first and largest influencer platform,
GoFluence, was launched during the Malaysia Modest
Fashion Showcase at MIHAS 2024. 45,000 influencers SOCIAL IMPACT DEVELOPMENTS
and 4,000 brands are registered on the platform.436
•  Malaysia-based PIZZASCARF has trained over 100 Women’s sports are gaining global prominence, leading
hijab stylists since its launch in 2018. Stylists undergo to greater participation, especially among Muslim women
a two-day training course and can move up to more athletes, who are benefiting from the rise of modest
skilled levels based on the number of clients they sportswear and tailored facilities. However, hijab bans at
have styled.437 various sporting levels have excluded some athletes. This
shift is evident with historical moments like Nouhaila
Regulation related to modest clothing is largely related Benzina wearing a hijab at the World Cup and athletes
to hijab bans in several countries. like Sifan Hassan making statements of personal identity.
•  New guidelines for hosting fashion shows in Saudi Despite increasing visibility, hijab-wearing women still
Arabia include ensuring they respect public taste, face Islamophobia, with incidents rising post-Gaza war.
avoiding excessive exposure of models’ body parts, The backlash also affected brands like Puma and Zara, who
and prohibiting the display of public figures’ images. faced boycotts, particularly in Muslim-majority markets.

166 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK

Women’s sports are gaining increased prominence on •  Hijab-wearing athletes on the French Olympic team
the global stage, inspiring more women to participate. were banned from wearing the hijab, while athletes
This growing visibility has also driven the rise of modest from other countries, like marathon runner Sifan
sportswear for Muslim women athletes, as well as the Hassan, competed in modest gear. Hassan nota-
expansion of sporting events and facilities tailored to bly accepted her gold medal while wearing a hijab,
their needs. However, hijab bans at a country or sporting making a strong statement of personal identity.447
code level have left some professional Muslim athletes •  Wrestler Jamilah McBryde from the USA was denied
excluded from major sporting events. a spot on the US Olympic team because the United
•  England’s largest Muslim women’s sports charity, World Wrestling (UWW) deemed her modified modest
the Muslimah Sports Association (MSA), conducted a uniform unacceptable for international competi-
survey revealing that 97% of British Muslim women tion.448
expressed a desire to increase their participation in •  Jannah Eissa and Diaba Konate are hijab-wearing
sports, while 37% reported not being involved in any players in the USA’s NCAA Basketball league, which
sports or physical activities.445 has seen record viewership and attendance.449
•  Moroccan football player Nouhaila Benzina made •  The Abaya Rally was held for the third time in Dubai,
history as the first player to wear a hijab at the World where participants will demonstrate their driving
Cup.446 prowess while wearing the abaya.450

Chapter 8: Modest Fashion 167

 •  Malaysia’s first-ever hijab-friendly pilates studio was targeted campaigns. Sustainable innovation in textiles
launched.451 is advancing with new eco-friendly materials, including
Hijab-wearing women are increasingly visible in spaces plant-based and spider silk alternatives, offering envi-
where they were previously underrepresented, breaking ronmentally conscious options for the fashion industry.
barriers and reshaping the narrative around modest Additionally, research is producing fabrics designed to
clothing and inclusion. improve comfort by reducing heat, contributing to more
•  Vogue Scandinavia editor, Rawdah Mohamed, appeared functional and sustainable clothing options.
on the red carpet in Cannes in memorable modest
clothing looks.452 AI technology is being used to make it easier for busi-
•  International fashion designer Prabal Gurung featured nesses to connect with their audiences and help cus-
two hijab-clad models in his Fall 2024 show.453 tomers find exactly what they want.
•  The hijab-wearing heavy-metal band Voice of Baceprot •  TikTok is launching the AI video generator “Symphony
from Indonesia played at the Glastonbury music Creator Studio,” designed to assist advertisers in
festival.454 creating targeted content. The studio will offer ready-
•  The hijab-wearing Moroccan AI-influencer Kenza to-use videos for ad campaigns, using assets from
Layli, created by Myriam Bessa, CEO of Phoenix AI, TikTok Ads Manager or product details provided by
won the title of Miss AI 2024 over 1,500 contenders. brands.461
Miss AI is the first international beauty pageant solely •  Google Agentspace will allow retailers to build
for AI influencers.455 their own AI agents to help retailers offer custom-
ers tailored product suggestions, answer real-time
Despite the hijab being more accepted in some non-Mus- questions, and guide shoppers through the buying
lim majority countries, levels of Islamophobia, especially process.462
against hijab-wearing women, have seen an increase •  Malaysian actress and TV presenter Neelofa unveiled
since the beginning of the war in Gaza, Palestine. her AI replica to launch the StampliCity Collection,
•  A sculpture called “The Strength of Hijab,” designed a headscarves line showcased at Tokyo’s Shibuya
to celebrate women who wear hijabs, was installed in Crossing. AI is increasingly being used in advertising
the UK’s second-largest city, Birmingham.456 campaigns.463
•  Tell MAMA, a UK charity that tracks anti-Muslim inci- •  Mango launched a campaign for its limited-edition
dents, has reported a 600% increase in Islamophobic Sunset Dream collection for Mango Teen, entirely
incidents since the events in Israel on October 7th.457 created using generative AI. Since 2018, Mango has
•  The Council on American-Islamic Relations (CAIR) developed over fifteen machine learning platforms
reported in its 2024 civil rights report that it received to apply AI across its value chain, including areas
the highest number of Islamophobic complaints in like pricing and personalization.464
its 30-year history, with most incidents occurring
after October 2023.458 Through the research and development efforts of textile
manufacturers globally, several new sustainable fab-
Clothing companies included in the boycott on companies rics have been developed and are being used by large
affiliated with Israel have felt the effect, especially in mainstream fashion brands.
Muslim-majority markets like Malaysia and Indonesia. •  Natural Fiber Welding has developed the first plas-
•  Puma did not renew its sponsorship of the Israel tic-free, leather alternative called Mirum with the
Football Association after being added to the Boycott, potential to be circular, scalable, customizable, and is
Divestment, Sanctions (BDS) list in 2018. The brand already low-carbon. Mirum has secured US$ 160 mil-
faced protests and was dropped by Ireland’s largest lion in investment. Ralph Lauren, Stella McCartney,
sportswear chain, O’Neills, after October 2023.459 and Allbirds have already used the fabric in their
•  Zara faced backlash and boycotts over its “The Jacket” designs.465
campaign, which many found insensitive during the •  Biosteel is a silk alternative made from spider silk
Gaza war. According to CARMA, brand sentiment proteins and is said to be thinner and more delicate
dropped significantly, with negative sentiment ris- than the products of Mulberry silk. Companies AMSilk
ing to 76.4% and positive sentiment falling to just and 21st.BIO have partnered to upscale Biosteel pro-
4.2%, down from 13.6% negative and 31.6% positive duction, with AMSilk patenting a new biosilk material,
prior to the campaign.460 potentially bringing more spider silk-based perfor-
mance clothing to market in the coming years.466
•  Researchers from the UChicago Pritzker School of
INNOVATION DEVELOPMENT Molecular Engineering have developed a textile that
reduces heat from both the sun and thermal radiation
AI is transforming business-customer interactions by from nearby buildings. When tested in the heat of
enabling brands to create personalized content and enhance Arizona, USA, the material stayed 2.3°C cooler than
shopping experiences with tailored recommendations and sports fabric and 8.9°C cooler than commercial silk.467

168 State of the Global Islamic Economy Report 2024/25

SIGNALS OF OPPORTUNITIES
IMPACT: Low Moderate High MATURITY: Early Intermediate Mature

AI-driven marketing is democratizing

access to professional branding for
modest fashion SMMEs
With the introduction of accessible AI
tools like Google’s AgentSpace, Gemini
Flash 2.0, and TikTok’s Symphony Creator

1 Studio, modest clothing businesses can

improve their marketing and customer
engagement efforts. With most modest
Global fashion brands are looking to
source from other countries instead of
China to prevent incurring high tariffs
clothing businesses categorized as and supply chain disruptions
SMMEs, these tools will allow them As global fashion brands look to diversify
to professionalize their branding and their sourcing away from China, OIC
improve customer experience without member countries with strong clothing
significant cost. production capacities can position
themselves as alternative suppliers,
Impact Maturity
offering competitive pricing, skilled labor,
and politically aligned partnerships. North
Africa and Türkiye can become the main
2
There is an urgent need for modest clothing production hubs for Europe.
sport-specific apparel that aligns with Growth in OIC member countries’ overall
sporting body requirements clothing production sector enhances
Multiple cases have been highlighted infrastructure, expertise, and investment,
of Muslim women being excluded from creating a stronger ecosystem for the
competing in sports at an amateur and modest clothing sector to scale and

3 professional level, due to not having

sport-specific apparel that adhered to
the safety requirements of various sports
compete globally.

Impact Maturity

codes. With many modest sportswear

brands emerging globally, there is an Lifestyle-driven branding
opportunity for these specialist brands experiences boost engagement for
to develop gear that fulfils both modesty premium modest fashion
and safety requirements. Customers today discover new brands as
much through social media as they do
Impact Maturity through search engines. By creating unique
experiences that customers are eager
to share online, modest clothing brands
4
Modest clothing stylists have an can expand their social media reach. This
increasingly important role in helping strategy helps foster a deeper connection
develop a brand’s image at fashion between customers and the brand,
week events and on social media encouraging them to integrate it into
Stylists play a crucial role in shaping a various aspects of their lifestyle, rather
fashion brand’s image by curating its than viewing it as just a clothing choice.

5 visual identity and ensuring its alignment

with target audiences and brand values.
In the case of modest clothing, a stylist
Brands such as Indonesian Buttonscarves
and Dutch Merrachi have successfully used
this technique to raise their brand profile.
can bridge the gap between the regional
and global appeal of various modest Impact Maturity

clothing styles. This is a crucial area to

address in scaling brands.

Impact Maturity

Chapter 8: Modest Fashion 169

Strategic Considerations
by Stakeholders
Investing in key areas of the modest clothing sector can drive
its overall growth. Critical focus areas include enhancing local
manufacturing capacity in OIC member states, fostering continuous
innovation in product development, improving sustainability, and
strengthening established modest clothing brands. These areas
present valuable investment opportunities for governments,
businesses, and investors looking to capitalize on the expansion of
the global modest clothing market.

INVESTORS

O P P O R T U N I T I E S

1 International clothing retailers are looking

to source their products outside of China
US clothing retailers are expected to face
Relevant developments & precedents:
•  In anticipation of potential tariffs under the Trump
administration, Steve Madden announced plans to
significant increases on goods imported from China, reduce its sourcing from China. The company is
anticipated to come about as part of President Donald expanding its manufacturing presence in countries
Trump’s reforms. Many are seeking to locate suppliers like Cambodia, Vietnam, Mexico, and Brazil to miti-
outside of China. Clothing retailers outside the US gate risks associated with over-reliance on Chinese
are also implementing a China plus one strategy for production.468
sourcing to mitigate the potential for supply chain-dis- Potential outcomes by 2035:
rupting events. Clothing manufacturers in OIC member •  OIC-based clothing manufacturers are the leading
states like Bangladesh, Indonesia, Türkiye, and Pakistan suppliers to the global clothing retailers and have
have the potential to fulfil this demand. However, they developed the capabilities to support the growth of
would require investment to help them develop their modest clothing brands. Sustainable practices are
production capabilities and expand product offerings. cost-effective and well-developed, thus reducing the
negative impact of fashion on the environment

2 Material science labs in universities

around the world are developing new
functional and sustainable textiles
Relevant developments & precedents:
•  Researchers from the UChicago Pritzker School of
Molecular Engineering (PME) developed a fabric that
Investors can work together with material science reduces heat from both the sun and thermal radiation
faculties in universities to identify new, sustainable from nearby buildings.
clothing textiles that can be successfully scaled com- •  A research collaboration between De Montfort Uni-
mercially. They can also fund these labs to develop versity Leicester and Loughborough University, led by
textiles to fit the specific needs of the modest clothing Professor Jinsong Shen, developed innovative laser and
industry. biotechnology dyeing methods to apply dye directly
to textiles, saving energy, water, and chemicals.469

170 State of the Global Islamic Economy Report 2024/25

 Potential outcomes by 2035: made with fabrics catering to the unique needs of
•  Sustainable and innovative fabrics are affordable and the modest consumer.
accessible to all clothing brands. Modest clothing is

C H A L L E N G E S

1 Limited quantitative data is available

on the growth trends of specific niches
within the modest clothing sector
nesses in different niches of the sector are limited.
Risk:
•  Investors do not have sufficient quantitative infor-
Detailed studies on the modest clothing sector to mation to gauge the potential of investments in the
quantify the historical monetary successes of busi- modest clothing sector.

The major unmet needs of European Muslim consumers in the

modest fashion industry include access to affordable, high-quality
clothing, adaptable designs that blend with the European lifestyle,
and physical stores with a range of sizes.”
DIDEM ZEYNEP CELEBI, FOUNDER AND CREATIVE DIRECTOR OF THE CELEBI, BELGIUM

GOVERNMENTS

O P P O R T U N I T I E S

1 Production-linked incentive (PLI)

schemes encourage growth in textile
and clothing manufacturers
investment and turnover targets. The government
offers 4%–6% cash incentives over a period of five
years to the selected companies for achieving pro-
PLI schemes offer textile and garment manufacturers duction targets.470,471
incentives for investing in their company to expand Potential outcomes by 2035:
production capacity, improve product quality, and •  Textile and garment manufacturers in the OIC will
create employment opportunities. have strong production capabilities, producing gar-
Relevant developments & precedents: ments that meet the global standard of quality. The
•  India’s PLI scheme for textiles promotes high-quality modest clothing sector will then also benefit from
man-made fiber apparel, fabrics, and technical textiles these enhanced capabilities.
by offering financial incentives to companies meeting

2 Reduced taxes on clothing products made

from recycled or more sustainable fabrics
Clothing made from recycled or sustain-
Relevant developments & precedents:
•  Norway is the only country where the number of
electric vehicles (EV) outnumber gasoline-powered
able fabric is often more expensive. Consumers can be cars. One of the drivers of this adoption is that zero
encouraged to choose recycled or sustainable fabric VAT or import duties are charged on EVs.472473
options by introducing lower taxes on those products. Potential outcomes by 2035:
•  Sustainable and innovative fabrics are affordable and
accessible to all clothing brands. Modest clothing is
made with fabrics catering to the unique needs of
the modest consumer.

Chapter 8: Modest Fashion 171

 C H A L L E N G E S

1 Very few OIC member states prioritize

modest clothing as a dedicated sector
Government programs for the fashion
struggle to compete for funding, visibility, and market
opportunities, limiting their ability to fully benefit from
such initiatives and grow within the broader fashion
industry are typically broad in scope, rarely addressing ecosystem.
the unique needs of the modest clothing sector. This Risk:
one-size-fits-all approach often prioritizes mainstream •  Modest clothing brands risk being overshadowed and
fashion trends and leaves modest clothing brands at a constrained, limiting their potential to scale beyond
disadvantage. Without targeted support, these brands the small and medium enterprise level.

Consumer awareness in Indonesia regarding sustainable fashion

remains low. Unlike in Europe, most Indonesian consumers prioritize
affordability over sustainability credentials. This highlights the need for
greater advocacy from industries, universities, and the government to
educate the public on the importance of both business opportunities
and sustainability in the fashion sector.

However, younger designers, particularly millennials, are already

integrating sustainability into their work. This shift has led to the
establishment of organizations like Rantai Textile Lestari (RTL) – a not-
for-profit sustainable textile alliance. RTL focuses on advocacy, aiming
to educate stakeholders across the supply chain – from fiber producers
to fashion designers.”
ON SUSTAINABLE PRACTICES, RENEWABLE ENERGY, AND CIRCULAR ECONOMY PRINCIPLES.
BASRIE KAMBA, RTL CHAIRMAN AND PRESIDENT DIRECTOR, PT ASIA PACIFIC RAYON, INDONESIA

BUSINESSES

O P P O R T U N I T I E S

1 Modest clothing companies using the

services of modest clothing stylists to
act as a creative director
Relevant developments & precedents:
•  Former Vogue Paris editor-in-chief, Carine Roitfeld, has
a background in styling, which led to the development
Modest clothing stylists can help brands create a stream- of the magazine’s visual identity.
lined image across their marketing platforms. A stylist can •  Edward Enninful, the editor-in-chief of British Vogue,
also assist in styling the clothing in a way that is more started his career as a stylist. His styling background
globally appealing, for instance, styling Indonesian batik heavily influences the visual and editorial tone of
in a more European aesthetic for the European modest the publication.
clothing consumer. Social media content is also central Potential outcomes by 2035:
to clothing brand success. A stylist can also work on this. •  Modest clothing brands have strong brands with
unique and consistent creative vision, appealing to
many customers globally.

172 State of the Global Islamic Economy Report 2024/25

 2 AI-powered agents are becoming more
accessible through platforms like Google
AgentSpace
and style preferences, aiming to enhance online sales.474
•  Italian luxury clothing brand Brunello Cucinelli has
launched an innovative website, brunellocucinelli.ai,
AI-powered agents can vastly improve the customer that combines human creativity with artificial intel-
experience when using e-commerce sites. With many ligence, featuring a unique interface without tradi-
modest clothing companies being based online, AI agents tional pages or menus, where the Solomei AI platform
could help customers navigate the product range, pro- responds to user queries by dynamically presenting
vide them with customized suggestions, and even offer relevant content.475
multilingual support to cater to global audiences. Potential outcomes by 2035:
Relevant developments & precedents: •  Modest clothing brands provide customers with an
•  British clothing retailer Marks & Spencer is utilizing excellent experience on their online platforms, provid-
artificial intelligence to provide personalized outfit ing them with the relevant information and data-based
recommendations based on customers’ body shapes product suggestions, leading to higher conversions.

C H A L L E N G E S

1 Striking a balance between modesty and

contemporary fashion trends
In a bid to increase the appeal of modest
Risk:
•  Modest clothing brand will lose its essence of catering
to the needs of the modest clothing consumer while
clothing brands to a wider audience, modest clothing trying to win over a larger audience.
businesses must continually ensure that they remain
true to the core values of their brand.

When they call me or they call our agency, they’re craving something
fresh, something that makes a statement. They want to stop people
from scrolling. An S.O.S for creativity. ‘Can you help us?’ they asked.
Because there’s an art to this. Art direction and styling, though
they cross paths, are not the same. Styling is all about layers, about
aesthetics, about adding that extra touch. That’s the stylist’s role in
modest fashion, to transform ordinary into extraordinary.”
MIN LUNA, FASHION STYLIST, CREATIVE DIRECTOR OF MIN LUNA CREATIVE AGENCY, MALAYSIA

Chapter 8: Modest Fashion 173

 9
C H A P T E R

HALAL
PHARMACEUTICALS
176 State of the Global Islamic Economy Report 2024/25
Chapter 9: Halal Pharmaceuticals 177
 HALAL PHARMACEUTICALS
ALL FIGURES IN US$ BILLIONS, UNLESS STATED OTHERWISE

CONSUMER OPPORTUNITY
Represented by US$ 107.10 billion of consumer spending by 2 billion Muslims on pharmaceuticals (2023).
Reaching US$ 148.88 billion by 2028 (6.8% CAGR).

10.2 e
3
iy
Türk
US$ 107.1 ia US$ 148.9
2023 A rab .80 2028
i 9
ud
Sa

USA
8.59
Rest of countries
50.59
Indo
nesia
6.33

Al
ge
4.7 ria
5
Ir 7
an
3.5
Ru 3.43
Pakistan

ssi
a
UAE
3.36

6.8%
Iraq
3.22

3.22

CAGR

GOVERNMENT LEADERSHIP Financial Governance Awareness Social Innovation

HALAL PHARMACEUTICALS – GLOBAL ISLAMIC ECONOMY INDICATOR (GIEI) RANKING (2024)

61 51 41 31 21 11 1

1 Malaysia

2 Indonesia

3 UAE

4 Singapore

5 Türkiye 72

61 51 41 31 21 11 1

178 State of the Global Islamic Economy Report 2024/25

INVESTMENT & TRADE DRIVERS
Halal pharmaceuticals imports are set to grow to U$ US$ BILLION (2023)

69.8 billion by 2028, at a CAGR of 7.2% Germany

Thickness is proportional to the value 6.2 India
Switzerland France 3.5
3.2 4.6

TOP 5 OIC TOP 5 EXPORTERS

IMPORTERS TO OIC
1

US$ 49.4 US$ 8.1

3
5 3

Total of imports by OIC USA 4 1 2 4

Total of exports from OIC
countries 5.4 countries

5
Türkiye
5.0
Egypt
3.6
2
Saudi Arabia UAE
7.8 6.2
Malaysia
2.3
INVESTMENTS

US$ 656.2 Top countries by total deal value and number of deals
US$ MILLION (2023/24)

million = 1 deal
1 2 3 4 5
Disclosed value for
all 23 deals
486.19 94.43 21.54 19.20 12.37
UAE Morocco Indonesia Saudi Arabia Egypt

KEY DEVELOPMENTS SIGNALS OF OPPORTUNITIES

IMPACT: Low Moderate High

1 Kalbe launches Ezelin, Indonesia’s first

locally made halal insulin.
Mature

2 Lifera-Novo Nordisk JV aims to meet

over half of Saudi insulin demand by
2027.
Growing Halal supplement Global Muslim
products to tap into the Humanitarian Efforts in
Intermediate

Muslim market Medical Support

3 UAE-based Insilico Medicine
advances the world’s first fully AI-
generated drug to clinical trials

4 Blackmores became the first Australian

Progress in the
finished goods manufacturer to receive development of
Malaysia’s JAKIM halal certification. halal standards
Investment to and guidelines for OIC countries
develop AI for pharmaceuticals are progressing
5 Azerbaijan adopts OIC/SMIIC halal- Drug Discovery in local drug
manufacturing
medicine standards, driving global
Early

alignment.

*All estimates by DinarStandard except for Islamic Finance sector provided by LSEG Data & Analytics Islamic Finance Development Indicator 2024 data. Muslim consumer spend
estimates & analysis by DinarStandard leveraging World Bank’s ICP 2017 consumer data as baseline reference. Halal and related product exports are based on ITC Trademap 2023
data. Projections are baselined on data from IMF Outlook from October 2024. Investments (figures and individual deals) are based on a detailed scan of databases from CapitalIQ,
Crunchbase and DinarStandard analysis from August 2023 to July 2024. See appendix for detailed methodology.
OIC Organization of Islamic Cooperation, 57 mostly Muslim-majority member countries.

Chapter 9: Halal Pharmaceuticals 179

 The halal pharmaceutical sector continues to demonstrate
resilience and innovation. Muslim consumer spending on
pharmaceuticals reached US$ 107.1 billion in 2023, slightly
increasing from US$ 106.9 billion in 2022. Türkiye maintained its
position as the largest market by expenditure, followed by Saudi
Arabia and the USA. This market is projected to grow at a CAGR
of 6.8%, reaching US$ 149 billion by 2028.

In parallel with spending growth, significant advancements with Padjajaran University, have supported R&D initiatives
have been made in the localization of pharmaceutical crucial for halal pharmaceutical growth.
production, particularly insulin. Indonesia launched its The halal pharmaceutical ecosystem has further
first locally produced halal insulin, Ezelin, through Kalbe matured, with countries like Azerbaijan adopting OIC/
Group, and Saudi Arabia aims to localize over half of its SMIIC halal medicine standards and Indonesia intro-
insulin needs by 2027 in partnership with Novo Nordisk ducing comprehensive halal manufacturing guidelines.
Arabia. Similarly, Egypt initiated local insulin production Regulatory frameworks for herbal and natural products
through collaboration between Eva Pharma and Eli Lilly, have also advanced in Malaysia, Indonesia, and Nigeria,
while Julphar in the UAE established a licensing partnership strengthening oversight and market confidence.
to localize modern insulin analogues in the MENA region. Amid these regulatory advances, humanitarian medical
Alongside these developments, halal certification support has been pivotal, particularly in regions affected
for supplements has continued to gain traction glob- by ongoing conflicts. Initiatives in Gaza, Sudan, and rural
ally. Notable initiatives include South Korea’s Cosmax areas through telemedicine solutions underscore the poten-
NBT expanding into Indonesia, Haleon Pakistan pre- tial of digital health technologies to enhance healthcare
paring to manufacture Centrum multivitamins, and accessibility.
Australia’s Blackmores obtaining halal certification from Investments in AI-driven drug discovery have also
JAKIM. Additionally, Nestlé Health Science and US-based accelerated, exemplified by the UAE’s Insilico Medicine,
ChromaDex have introduced halal-certified supplement MERCK’s integration of AI in drug synthesis, and Nvidia’s
ranges to address rising health consciousness among strategic partnerships supporting healthcare startups in
Muslim consumers. Southeast Asia. Regulatory sandboxes in Saudi Arabia,
Complementing product certification efforts, opera- Abu Dhabi, and Indonesia continue fostering innovation
tional developments have shown OIC countries accelerating by balancing technological advancement with appropriate
their localization of medicine production. Saudi Arabia, regulatory oversight.
Egypt, Iraq, and Kazakhstan have made significant strides, Overall, the halal pharmaceutical sector is experiencing
enhancing local pharmaceutical manufacturing capabilities sustained growth and innovation, driven by increasing
to increase self-sufficiency. Furthermore, collaborations localization, robust regulatory frameworks, rising consumer
between universities and industries, such as Duopharma demand for halal-certified products, and expanding digital
Biotech with Universiti Kebangsaan Malaysia and Biofarma healthcare infrastructure.

180 State of the Global Islamic Economy Report 2024/25

Sector developments (2023/24)

REVENUE DEVELOPMENTS 50% of the components for this glargine insulin are
produced locally.476
In the post-pandemic era, the pharmaceutical industry is •  Lifera aims to localize more than 50% of Saudi Arabia’s
trying to explore revenue streams beyond vaccines, such as insulin needs with Novo Nordisk Arabia by 2027, with
in insulin and supplements. These categories are growing the intention of becoming the first producer of bio-
with rising demand and increasing health awareness among logic insulin in the GCC.477
Muslims. This has attracted local and global players to •  Gulf Pharmaceutical Industries PJSC (Julphar)
develop specific products to cater to the demand. announced the signing of a licensing partnership
with the Chinese pharmaceutical company Sunshine
Latest projections Lake Pharma to establish Julphar as the first phar-
maceutical company to localize the manufacturing
Muslim consumer spending on pharmaceuticals saw a of modern insulin analogues in the MENA region.478
0.2% rise in 2023, growing from US$ 106.9 billion in 2022 •  Egypt launched the first batch of locally made insu-
to US$ 107.1 billion. Türkiye retains its top position by lin after a partnership between Eva Pharma and Eli
Muslim consumer spending, with Saudi Arabia and the Lilly. 479
USA remaining in second and third position, respectively.
By 2028, spending is forecasted to reach US$ 149 billion Local and global brands have launched halal supplement
at a CAGR of 6.8%. products to tap into the Muslim market.
Note: This does not represent the actual value of •  Cosmax NBT, a health supplement original devel-
‘halal-certified’ pharmaceutical consumption. Rather, it opment manufacturing (ODM) affiliate of the South
represents the core addressable Muslim consumer market Korean Cosmax Group, announced that it will enter
spending in the general pharmaceutical category. the Indonesian market in the first half of 2024 after
receiving halal certification. The company will use
Updates on revenue developments Cosmax NBT’s Australian subsidiary for this ven-
ture into Indonesia, as Australia’s health supplement
Insulin demand is growing rapidly, and OIC countries industry gains global attention for its clean and safe
are making progress in producing local alternatives. image.480
•  Kalbe Group launched Ezelin, claimed to be the first •  Haleon Pakistan is set to start manufacturing the
halal insulin locally produced in Indonesia. Nearly multivitamin brand Centrum. The company plans to

Investment summary
COUNTRY DEAL TYPE ORGANIZATION NAME DEAL VALUE (US$ 000s)

UAE VC Alpheya 300,000

UAE PE Aster DM Healthcare 180,690

Morocco PE Akdital 94,429

Egypt PE Yodawy 10,000

Indonesia VC Good Doctor Technology Indonesia 10,000

Chapter 9: Halal Pharmaceuticals 181

CREDIT/SHUTTERSTOCK

capture 7% to 8% of the remaining market imme- maceutical factories has increased by 37%, and pro-
diately. The brand is targeted to launch in the first duction lines have grown by 60%. He supports the
quarter of 2025.481 pharmaceutical industry and its localization efforts
•  Blackmores attained JAKIM halal certification, becom- in providing safe and effective pharmaceutical prod-
ing the first Australian manufacturer of finished goods ucts.486
with this certification.482 •  The Iraqi Prime Minister inaugurated the Al-Mansour
•  Nestlé Health Science has launched a new range of and Al-Mustaqbal pharmaceutical plants as part of
Garden of Life microbiome supplements, available for the government program to support the localization
the first time in all 600+ Holland & Barrett stores, of the pharmaceutical industry and increase self-suf-
marking a significant expansion of the brand in the ficiency rates.487
UK and Ireland. These products are gluten-free, dairy- •  The Kazakhstani government is working with investors
free, soy-free, and halal-certified.483 to localize 29 new projects for medicine and medical
•  ChromaDex, a U.S. bioscience company dedicated to device production. The country aims to increase the
healthy aging, launched Tru Niagen, a halal-certified share of locally produced medicines and medical
NAD+ supplement for the US military. Tru Niagen sup- devices to 50% by 2025, up from 14% at the end
ports cellular energy, combats psychological stress, of 2023.488
and aids in cellular repair and recovery, which are vital
for physically demanding environments in military Educational institutions are playing a critical role,
operations.484 especially in talent pipeline and research and develop-
ment partnerships with industry.
•  Duopharma Biotech and Universiti Kebangsaan
OPERATIONAL DEVELOPMENTS Malaysia partner to elevate halal standards in health-
care. Duopharma supports research and development
OIC countries are localizing critical medicines to build a efforts led by UKM’s Halal Pharmaceutical Business
more resilient health supply chain and contribute to the Initiative Center (HPBI). HPBI is a shared facility for
local economy. Educational institutions are also playing faculty members across disciplines, including the
a critical role, especially in the early stages of halal R&D, Faculty of Science and Technology, Pharmacy, Islamic
talent development, and consumer awareness. Studies, and the Graduate School of Business.489
•  Universitas Gadjah Mada from Indonesia and UDST
OIC countries are making progress in their localization Qatar are collaborating on halal testing and health
efforts for medicine. technology. This collaboration covers education,
•  Saudi Arabia has identified approximately 200 medi- research, and community service.490
cines prioritized for localization projects in the coun- •  Biofarma and Padjajaran University accept 10
try. Actual steps have begun to localize 42 medicines researchers from eight OIC countries to learn about
in coordination with private entities.485 vaccines through the COMSTECH OIC Fellowship
•  Head of the Egyptian Drug Authority, Dr. Ali Program, Center of Excellence for Halal Vaccine and
Al-Ghamrawi, mentioned that the number of phar- Biotechnology.491

182 State of the Global Islamic Economy Report 2024/25

 •  National
University of Medical Science (NUMS) to •  The National Association of Nigerian Traditional
manufacture Halal Vaccine in collaboration with Saudi Medicine Practitioners (NANTMP) is seeking a reg-
Vax in Pakistan. ulatory council to boost the development of herbal
medicine products. The association’s president men-
tioned that establishing the council would help reg-
ECOSYSTEM DEVELOPMENTS ulate traditional medicine in the country and elevate
it to global standards.497
Alongside local standards developed by OIC countries,
global standards for halal pharmaceuticals have progressed,
promoted by SMIIC to ensure global halal governance and OIC HALAL PHARMACEUTICALS IMPORTS AND
consumer protection. Some countries are also developing GROWTH (2023-2028)
standards for the growing herbal and natural medicine
US$ BILLION
sector.

Some halal standards have been introduced or updated

49.40
in OIC countries, building a stronger halal ecosystem. 2023 CAGR
•  The Azerbaijan Institute of Standardization 7.15% 69.79
2028 (F)
(AZSTAND) has adopted the state standard AZS OIC/
SMIIC 50-1:2023, ‘Halal Medicines – Part 1: General
Requirements.’ The standard defines basic require- *(F): FORECASTED VALUE
ments for the production and transportation of halal
medicines, contributing to increased consumer confi-
dence in such products. In preparing the state stan- NATIONAL/TRADE DEVELOPMENTS
dard, it was officially agreed upon with the Center
for Analytical Expertise of the Ministry of Health.492 Total OIC pharmaceutical imports amounted to US$ 49.40
•  Indonesia’s Minister of Health has decided to intro- billion in 2023, representing a 0.97% decrease from US$
duce a set of halal manufacturing guidelines for drugs, 49.88 billion in 2022. The largest imported products were
biological products, and medical equipment. These medicines (68.82%), followed by blood, vaccines, and medical
guidelines also address the affixation of material biology products (23.12%). As the world moves beyond the
information to medical equipment through the issu- pandemic, this decline was primarily driven by a US$ 3.3
ance of Regulation No. 2 of 2024, which has been in billion drop in human vaccine imports. Iran, Bangladesh,
force since April 2, 2024.493 Pakistan, and the UAE were among the top countries con-
•  Afghanistan is set to export medicine worldwide. Over tributing to this correction, as vaccine demand began to
18 months in 2022 and 2023, the country granted normalize.
licenses to 10 factories and removed 342 tons of Over the next five years, pharmaceutical imports across
subpar foodstuffs. Rigorous efforts have also been the OIC are projected to rise to US$ 69.79 billion by 2028,
conducted to combat drug trafficking, with laborato- with a compound annual growth rate (CAGR) of 7.15%.
ries now initiating procedures to distinguish between Although some OIC countries have started localizing phar-
halal and haram substances.494 maceutical production, the full impact will take time due
to the lengthy processes involved in research, technol-
As demand for natural medicine increases, herbal reg- ogy development, and regulatory approvals required to
ulations are being developed in some OIC countries. ensure product safety and efficacy. Saudi Arabia, the United
•  Malaysia is strengthening the regulation of natural Arab Emirates, and Türkiye lead the OIC in pharmaceutical
products with a new guideline effective in April 2024. imports, with US$ 7.85 billion, US$ 6.17 billion, and US$ 4.99
The Ministry of Health stated that this implementa- billion, respectively.
tion of registration is a holistic step to enhance the In terms of top supplying markets, Germany leads with
regulatory system for natural products in Malaysia. US$ 6.24 billion, followed by the USA (US$ 5.36 billion) and
Applications for the registration of natural products France (US$ 4.55 billion). Although exports from these coun-
with therapeutic claims for diseases must be accom- tries rarely carry explicit halal certification, some Islamic
panied by evidence of effectiveness and safety based scholars have deemed vaccines permissible (halal) due to
on clinical studies to support the application.495 their critical role in public health and the lack of halal-cer-
•  The Indonesian government is preparing new reg- tified alternatives.
ulations for phytopharmaceuticals, including their Currently, no OIC country ranks among the top 10 phar-
integration with the national healthcare program. maceutical exporters. The closest are the UAE (14th, US$
Currently, the use of phytopharmaceuticals in 0.96 billion), Türkiye (17th, US$ 0.81 billion), and Saudi Arabia
Indonesia remains limited. As of September 2024, (21st, US$ 0.50 billion). If OIC countries can further local-
there are 15,000 registered as jamu, 77 as standardized ize and expand exports, it could help build a more robust
herbal medicines, and 20 as phytopharmaceuticals.496 halal-certified ecosystem in the pharmaceutical sector.

Chapter 9: Halal Pharmaceuticals 183

Halal Pharmaceuticals Trade
US$ BILLION (2023)

EXPORTS IMPORTS

Medicines for treatment

or prevention
68.82%
8.15
Trade Balance Blood,
(Export - Import) vaccines, 49.40
-41.25 and medical
biology
products
23.12%

Pharmaceutical Combined medicines for Medical dressings Extracts from glands

products treatment or prevention and bandages for medical use
3.41% 2.80% 1.43% 0.42%

TOP EXPORTERS TO OIC TOP OIC IMPORTERS

US$ BILLION (2023) US$ BILLION (2023)

Germany 6.24 Saudi Arabia 7.85

United States of America 5.36 United Arab Emirates 6.17
France 4.55 Türkiye 4.99
India 3.46 Egypt 3.62
Switzerland 3.15 Malaysia 2.30
Belgium 2.54 Kazakhstan 1.95
Italy 2.44 Kuwait 1.88
Ireland 2.29 Uzbekistan 1.63
China 1.48 Iraq 1.61
United Kingdom 1.41 Algeria 1.53

Non-OIC countries in Southeast Asia are building their Standard to promote the halal economy and tap into
capabilities to tap into the global halal export market, global halal market potential. The initiative includes
including in the pharmaceutical sector. At the same five cooperation agreements with key partners: the
time, the UAE is actively establishing trade capability to GCC Certification Center, the Korea Halal Organization,
strengthen its position as one of the most active trade the European Halal Certification Center, the Halal
hubs in the global pharmaceutical industry. Academy under GAE Ltd (Malaysia), and the Quang
Ninh Tourism Association.
The Philippines, Vietnam, and Thailand are non-OIC coun- •  Thailand is supporting halal certification as part of
tries in Southeast Asia that recognize the opportunities its strategy to develop the country as a medical and
in the halal export market. They are building capabilities wellness hub. The Department of Thai Traditional and
in halal certification, training, and standards. Alternative Medicine is providing training to massage
•  The Department of Trade and Industry (DTI) of practitioners and herbal product makers to prepare
the Philippines has established the National Halal for the Saudi Arabian market. The department also
Industry Development Office (NHIDO). It aims to plans to showcase its offerings to Hajj pilgrims in
position the Philippines at the forefront of the global Saudi Arabia.
halal industry by boosting the domestic halal market
and export potential including medicine. The UAE is actively building partnerships and enhancing
•  Vietnam has launched the National Halal Certification its ambition to become a trade hub, including in the
Center (HALCERT) and introduced the Vietnam Halal pharmaceutical sector

184 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK
•  In November 2024, the UAE and Australia signed the supplies or insulin have been entering Gaza.501
Comprehensive Economic Partnership Agreement •  The UAE, Saudi Arabia, and other Gulf states have
(CEPA). The tariff on Australian pharmaceutical increased aid to Gaza, including the delivery of medical
exports to the UAE will be locked at zero, giving support. Facilities have also been developed, including
Australian firms a competitive edge in the UAE market. internal medicine, dentistry, obstetrics, and family
•  On Dec 29, the UAE introduced a new law aimed at medicine.502
regulating medical products, pharmacies, and the •  Indonesia’s BPOM supports the Sudan crisis with
pharmaceutical industry. It establishes a compre- pharmaceutical aid and capacity development. As a
hensive framework that include licensing, ownership, fellow member of the National Medicines Regulatory
and the export and import of medical products.498 Authorities (NMRAs) under the Organization of Islamic
•  DUPHAT 2025 (Dubai International Pharmaceuticals Cooperation (OIC), BPOM extends its support in solidar-
and Technologies Conference and Exhibition) con- ity through medicine assistance, learning initiatives,
cluded with AED 9.35 billion (approximately USD 2.55 and knowledge transfer to regulators in Sudan.503
billion) in direct and indirect trade deals over the •  The Pharmacist Defence Association (PDA) has part-
past three days.499 The event, highlighted as one of nered with Salam Charity to begin fundraising efforts
the world’s largest pharmaceutical and technology for the “Medicine to Gaza” initiative in the UK. This
markets, served as a platform for both global and local campaign has been launched in response to a request
companies, fostering innovation and creating busi- for help from pharmacists in Palestine who are work-
ness opportunities. It attracted 31,000 visitors from ing in a healthcare system that is completely over-
101 countries and featured participation from 1,400 whelmed. Besides the PDA, the Egyptian Organization
global companies in the pharmaceutical sector. 500 of Pharmacy, the Jordan Pharmacists Association, the
Malaysian Pharmacists Society, the Medicine to Africa
Campaign (South Africa), and the Order of Pharmacists
SOCIAL IMPACT DEVELOPMENTS of Lebanon have also joined the campaign.504

OIC countries are delivering medical support for the ongo- With many OIC countries having rural areas with lim-
ing conflict in MENA, highlighting the importance of real ited access, telehealth can help improve accessibility to
medical resilience and solidarity among Muslim countries. pharmaceutical products.
Rising digital technology is also promoting more inclusive •  The North Kazakhstan Region has launched new tele-
pharmaceutical access, especially in rural areas of OIC medicine complexes to improve the rural population’s
countries through telehealth. access to consultations with specialized medical pro-
fessionals. These complexes facilitate connections
With ongoing conflicts in MENA, the Muslim solidarity between patients in rural areas and specialists from
movement plays a crucial role in humanitarian medical six interdistrict hospitals, eight outpatient clinics, and
support. two medical centers in the region. Specialized doctors
•  Insulin is one of the medicines in ‘acute shortage’ in from two regional multidisciplinary hospitals offer
Gaza, according to the WHO. Since the invasion of consultations in various fields, including dermatology,
Rafah and the closure of the crossing, no diabetes obstetrics, gynecology, and virology.505

Chapter 9: Halal Pharmaceuticals 185

CREDIT/SHUTTERSTOCK

•  The Islamic Development Bank (IsDB), to facilitate organization Bairosu to support global healthcare
the Afghanistan Humanitarian Trust Fund (AHTF), startups expanding in Southeast Asia. The program
has announced an agreement with Educators for will use AI tools to shorten drug development time-
Enhancement to enhance telemedicine capabilities lines, analyze extensive datasets, and offer faster
across Afghanistan. The pilot intervention has intro- insights to benefit emerging healthcare companies.510
duced telehealth in six key regional hospitals in Kabul,
Jalalabad, Kandahar, Zabul, Mazar, and Khost.506 OIC countries are developing their Regulatory Sandbox
•  Rural broadband service provider MEASAT and local to support digital health innovation while keeping reg-
health IT company Mudah HealthTech have signed an ulatory risk.
MoU to enable the delivery of digital health services •  Six digital health innovation platforms with tele-
in rural and remote communities. The initiative aims health services received recommendations from
to deploy 2,000 telehealth kiosks in rural Malaysia.507 the Ministry of Health via the Regulatory Sandbox.511
These include Good Doctor, Halodoc, Alodokter, SIRKA,
Sehati TeleCTG, and Naluri. The recommendation was
INNOVATION DEVELOPMENT obtained after a testing process conducted in the
Regulatory Sandbox program or the Telemedicine
Artificial intelligence has become one of the major inno- Cluster.512
vation drivers impacting the pharmaceutical industry, •  Saudi Arabia launched a “Regulatory Healthcare
especially in drug discovery and development. OIC countries Sandbox” to boost digital innovation. It offers support
are also making progress in regulatory sandboxes that in AI, 3D printing, IoT, and biotechnology.513 According
balance innovation with regulatory frameworks. to the announcement, the sandbox provides a secure
AI is leveraged to speed up drug discovery and devel- platform for innovators to experiment and refine their
opment. ideas – a move that marks a significant milestone in
•  UAE-based Insilico Medicine advances the world’s boosting investment and modernizing Saudi Arabia’s
first fully AI-generated drug to clinical trials. AI is healthcare system.514
leveraged from the treatment target to the drug’s •  Abu Dhabi launches HealthX to advance Abu Dhabi
unique structure.508 as a global biotech and life sciences hub.515 Successful
•  MERCK launched an AI solution to integrate drug applicants will benefit from access to the DoH reg-
discovery and synthesis. It recommends chemicals, ulatory sandbox and UAE de-identified data to help
reagents, and building blocks for synthesis.509 refine their product, along with admittance to labs
•  Nvidia has announced a strategic partnership with and opportunities to collaborate with research
American biopharma firm Pfizer and Singaporean academic institutions.516

186 State of the Global Islamic Economy Report 2024/25

SIGNALS OF OPPORTUNITIES
IMPACT: Low Moderate High MATURITY: Early Intermediate Mature

Progress in the
development of halal standards
and guidelines for pharmaceuticals
Although halal standards in the
pharmaceutical sector have been adopted
by only a limited number of countries,

1 there has been some progress. Examples

include the Azerbaijan Institute of
Standardization (AZSTAND) adopting the
SMIIC Standard and Indonesia’s Ministry
of Health introducing halal manufacturing Growing halal supplement
requirements for drugs. These are the products to tap into the Muslim market
initial and critical steps in building halal Vitamins remain one of the major
compliance in the pharmaceutical industry. categories in halal adoption, driven by
the rising trend of healthy and preventive
Impact Maturity
lifestyles. Global brands are building the
halal compliance of their products to
tap into the Muslim market. One notable
2
OIC countries are initiative is how Blackmores secured halal
progressing in local drug certification, becoming the first Australia-
manufacturing made finished goods brand to achieve this
Major OIC countries, including Saudi certification in Malaysia.
Arabia, Malaysia, Egypt, Indonesia, UAE,
Impact Maturity
and Egypt, have launched initiatives

3 to localize medicine production and

develop halal-certified alternatives. OIC
countries collaborate with global leading
MNCs for knowledge transfer to enhance Global Muslim humanitarian
credibility and reliability. Collaboration efforts in medical support
with universities for R&D and talent Global Muslim humanitarian efforts,
development has also been executed. including those in Palestine, Sudan, and
Somalia, highlight the importance of
Impact Maturity
Muslim medical solidarity and OIC medical
resilience. Organizations, governments,
local companies, pharmaceutical
professionals, and the wider Muslim
4
Investment to develop AI community collaborate to provide medical
for drug discovery support, ensuring access to essential
OIC countries are progressing towards medicines and healthcare facilities.
making long-term investments in AI
for the pharmaceutical industry, which Impact Maturity

can accelerate drug discovery and

5 development. The UAE is one of the leading

Muslim-majority countries adopting AI for
healthcare, with its progress in regulatory
sandbox and companies such as Insilico
Medicine. Insilico advanced the world’s
first fully AI-generated drug to clinical
trials.

Impact Maturity

Chapter 9: Halal Pharmaceuticals 187

Strategic Considerations
by Stakeholders
With emerging technology and global trade dynamics,
pharmaceutical localization is progressing, including in OIC countries.
This localization is critical for the adoption and growth of halal
pharmaceuticals. Some progress has also been tracked in industry-
academia collaboration and regulatory innovation. Supvplements
and insulin products are two examples gaining momentum in halal
pharmaceutical development.

INVESTORS

O P P O R T U N I T I E S

1 Tailor investment strategy to align

with long-term government localiza-
tion efforts
the country.
•  The number of Egyptian pharmaceutical factories
has increased by 37%, and production lines have
Investments that are aware of localization strategies grown by 60%.
can better map opportunities, especially in countries •  The Kazakhstani government is working with investors
such as Malaysia, UAE, Saudi Arabia, Türkiye, Egypt, to localize 29 new projects for medicine and medical
and Indonesia. Insulin and vaccines are valuable areas device production.
worth exploring for long-term strategic investment. Potential outcomes by 2035:
Relevant developments & precedents: •  OIC countries will have more capacity in nurturing
•  Saudi Arabia has identified approximately 200 local pharmaceutical capability, positively impacting
medicines prioritized for localization projects in medicine resilience and the local economy.

2 Explore investment in telemedicine in •  The Islamic Development Bank (IsDB), to facilitate

emerging countries to improve access the Afghanistan Humanitarian Trust Fund (AHTF),
With limited healthcare infrastructure, has announced an agreement with Educators for
economic challenges, and ongoing conflicts, many Enhancement to enhance telemedicine capabilities
countries with major Muslim populations still struggle across Afghanistan.
to access medicine. This presents a strategic impact •  Rural broadband service provider MEASAT and local
investment opportunity in building more inclusive health IT company Mudah HealthTech have signed
pharmaceutical products. There is also significant an MoU to deploy 2,000 telehealth kiosks in rural
potential due to the vast population and rising health Malaysia.
awareness in some segments. Potential outcomes by 2035:
Relevant Developments & Precedents: •  More accessible medicine in Muslim communities.
•  The North Kazakhstan Region has launched new New emerging telemedicine companies are creating
telemedicine complexes to improve the rural pop- more effective and efficient supply chain channels.
ulation’s access to consultations with specialized Collaboration is also happening between emerging
medical professionals. tech companies and big corporations.

188 State of the Global Islamic Economy Report 2024/25

 C H A L L E N G E S

1 Ensure value creation in the invest-

ment portfolio by focusing not only
on halal aspects but also on delivering
edge-intensive industry, real innovation is needed to be
sustainable. It helps expand the wider target market also.
Risk:
real innovation •  Halal compliance has become a minor value, with the
Some companies might focus solely on high halal compli- public viewing it as mere branding for under-quality
ance as a value proposition. In this growing and knowl- products.

GOVERNMENTS

O P P O R T U N I T I E S

1 Foster collaboration between halal phar-

maceutical education and the industry
for joint R&D initiatives and curriculum
collaborate on halal testing and health technology.
•  Biofarma and Padjajaran University accept 10 research-
ers from eight OIC countries to learn about vaccines
development through the COMSTECH OIC Fellowship Program, Center
The government could lead the integration between of Excellence for Halal Vaccine and Biotechnology.
educational institutions and the industry. This can start •  National University of Medical Science (NUMS) to man-
with public higher education and state-owned enterprise ufacture Halal Vaccine in collaboration with Saudi
collaboration. This will not only develop talent and exper- Vax in Pakistan.
tise but also raise awareness of halal pharmaceuticals Potential outcomes by 2035:
Relevant developments & precedents: •  A more integrated link between industry and educa-
•  Duopharma Biotech and Universiti Kebangsaan Malay- tional institutions ensures greater innovation by local
sia partner to elevate halal standards in healthcare. universities. It also helps build a quality talent pipeline
•  Universitas Gadjah Mada from Indonesia and UDST Qatar relevant to industry needs.

2 Build a more robust digital health inno- •  Saudi Arabia launched a “Regulatory Healthcare Sand-
vation ecosystem with a regulatory box” to boost digital innovation. It offers support in
sandbox. AI, 3D printing, IoT, and biotechnology.
Rapid tech advances, especially in AI, challenge tra- •  Abu Dhabi launches HealthX to advance Abu Dhabi
ditional regulations. Agile frameworks like regulatory as a global biotech and life sciences hub. Successful
sandboxes that balance risk and flexibility are key to applicants will benefit from access to the DoH reg-
fostering digital health innovation in a country. ulatory sandbox and UAE de-identified data to help
Relevant Developments & Precedents: refine their products.
•  Six digital health innovation platforms with tele- Potential outcomes by 2035:
health services received recommendations •  Regulatory sandboxes allow industries to test innovations
from the Indonesia Ministry of Health via the early, helping startups refine products and enabling new
Regulatory Sandbox. companies to thrive using digital technologies like AI.

C H A L L E N G E S

1 Fast-growing digital innovation pushes

regulators to stay relevant
With its bureaucratic nature, keeping up
Risk:
•  Bureaucratic regulations cannot keep up with the
fast-growing digital health innovation. The lack of
with digital health innovation is not easy. Especially clear regulations creates unmitigated risks for public
with emerging AI, which accelerates development and healthcare. Current regulations do not provide special
is a game-changer for the current digital ecosystem. support for new emerging innovations.

Chapter 9: Halal Pharmaceuticals 189

BUSINESSES

O P P O R T U N I T I E S

1 Strategize the halal value chain by inte- •  Nestlé Health Science has launched a new range of
grating it with the company’s strategy halal-certified Garden of Life microbiome supple-
from the early days ments, available for the first time in all 600+ Holland
Integrating halal value chains early on will help min- & Barrett stores, marking a significant expansion of
imize higher costs later. It also aligns with the spirit the brand in the UK and Ireland.
of delivering ethical and quality values. Potential outcomes by 2035:
Relevant Developments & Precedents: •  More companies are integrating halal compliance, at
•  Blackmores attained AKIM halal certification, becom- least for some of their products, to target the vast
ing the first Australian manufacturer of finished goods Muslim market in countries like Saudi Arabia and
with this certification. Indonesia.

Don’t treat Halal as an add-on feature—build it into your

foundation. That’s ‘Halal Built-in’: a top-down strategy embedding
integrity enterprisewide—far beyond just production compliance. The
result? A reputation authentically earned: unshakeable, enduring.”
ROZI OSMAN, HALAL INDUSTRY STRATEGIST

2 Explore halal supplement product offer-

ings amid rising health awareness
Supplements have a higher degree of
Korean Cosmax Group, announced that it will enter
the Indonesian market in the first half of 2024 after
receiving halal certification
halal adoption compared to complex medicine. Many •  Haleon Pakistan is set to start manufacturing the
global brands are aware of this and have certified multivitamin brand Centrum. The brand is targeted
their portfolios to tap into the Muslim market. The to launch in the first quarter of 2025.
market is growing as health concerns rise, especially Potential outcomes by 2035:
among urban consumers who cannot get sufficient •  Supplements contribute a significant portion of halal
vitamins from natural food, making supplements a pharmaceutical consumption, with rising demand,
preferred option. especially for products leveraging natural ingredients.
Relevant Developments & Precedents: Leading supplement-producing countries, such as
•  Cosmax NBT, a health supplement original devel- Australia, will remain top players in capturing the
opment manufacturing (ODM) affiliate of the South Southeast Asian halal supplement market.

C H A L L E N G E S

1 Competition to attract top talent in

building halal-quality medicine
As the pharmaceutical industry is knowl-
technical expertise in pharmaceuticals but also
managerial skills and halal compliance expertise.
Risk:
edge-intensive, securing or developing top talent is •  Companies with halal positioning may strug-
crucial for the growth of the local pharmaceutical gle to attract top talent, leaving them behind
and biotechnology sectors. This includes not only in innovation.

190 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK

Chapter 9: Halal Pharma 191

10
C H A P T E R

HALAL
COSMETICS
194 State of the Global Islamic Economy Report 2024/25
Chapter 10: Halal Cosmetics 195
 HALAL COSMETICS
ALL FIGURES IN US$ BILLIONS, UNLESS STATED OTHERWISE

CONSUMER OPPORTUNITY
Represented by US$ 86.66 billion of consumer spending by 2 billion Muslims on halal cosmetics (2023).
Reaching US$ 117.81 billion by 2028 (6.3% CAGR).

a
7.07
Indi

5. iye
US$ 86.7 US$ 117.8

77
rk
Tü
2023 2028

sia
one .74
Ind 5

Russia
Rest of countries 4.32
42.91
Bang
lade
sh
4.24
Ma
lay
s
4.0 ia
2
Ka

Eg 3.74
zak

yp
t
hs .37
tan
3
Iraq

6.3%
3.04
Iran
2.43

CAGR

GOVERNMENT LEADERSHIP Financial Governance Awareness Social Innovation

HALAL COSMETICS – GLOBAL ISLAMIC ECONOMY INDICATOR (GIEI) RANKING (2024)

61 51 41 31 21 11 1

1 Malaysia

2 Indonesia

3 UAE

4 Singapore

5 Türkiye
72

61 51 41 31 21 11 1

196 State of the Global Islamic Economy Report 2024/25

INVESTMENT & TRADE DRIVERS
Halal cosmetics imports are set to grow to US$ 32.5 billion US$ BILLION (2023)

by 2028, at a CAGR of 9.5%

Italy
Thickness is proportional to the value 1.2 UAE
Germany 1.7
1.2
USA France
TOP 5 OIC 3.9 TOP 5 EXPORTERS
1.3
IMPORTERS TO OIC
5

US$ 20.6 1
4 3
US$ 11.4
Total of imports by OIC 2
1 2 Total of exports from OIC
countries countries
3

5
4

Türkiye UAE
2.0 4.6
Saudi Arabia
2.5
Malaysia
1.3 Indonesia
1.4
INVESTMENTS

US$ 10.1 Top countries by total deal value and number of deals
US$ MILLION (2023/24)

million = 1 deal
1 2 3
Disclosed value for
all 8 deals
9.41 0.35 0.25
Indonesia Saudi Arabia Türkiye

KEY DEVELOPMENTS SIGNALS OF OPPORTUNITIES

IMPACT: Low Moderate High

1 Al Majed for Oud’s US $188 million IPO

sells out in hours.

The Rise of Chinese

Mature

Skincare and Cosmetics

2 Consumer activism propels local
beauty labels into e-commerce
top-ten sales in Indonesia.

The Rising Threat

3 Korea-GCC FTA and MFDS training fast- Saudi Arabia’s
of Counterfeit
Cosmetics as Fake
track Korean halal-cosmetics exports. How the Israel
Beauty Products
Intermediate

Expanding Beauty Boycott is

and Fragrance Reshaping the
Industry Beauty Industry
4 Watsons grows GCC sales 53% and
targets Bahrain and Kuwait next.
The Shift Toward
Sustainable Beauty
5 Abu Dhabi’s HealthX initiative with Upcycled and
Circular Cosmetics
positions the emirate as a
Early

life-science hub.

*All estimates by DinarStandard except for Islamic Finance sector provided by LSEG Data & Analytics Islamic Finance Development Indicator 2024 data. Muslim consumer spend
estimates & analysis by DinarStandard leveraging World Bank’s ICP 2017 consumer data as baseline reference. Halal and related product exports are based on ITC Trademap 2023
data. Projections are baselined on data from IMF Outlook from October 2024. Investments (figures and individual deals) are based on a detailed scan of databases from CapitalIQ,
Crunchbase and DinarStandard analysis from August 2023 to July 2024. See appendix for detailed methodology.
OIC Organization of Islamic Cooperation, 57 mostly Muslim-majority member countries.

Chapter 10: Halal Cosmetics 197

 The continued growth of Muslim consumer spending on
cosmetics, which reached US$ 87 billion in 2023, underscores
the sustained global interest in halal-certified beauty products,
driven by rising awareness among both Muslim-majority and
non-majority countries. This reflects an increase of 2.9% from US$
84 billion in 2022, with India maintaining its lead position, Türkiye
moving up to second, and Indonesia occupying third place. By
2028, the market is projected to reach US$ 118 billion, growing at
a CAGR of 6.3%.

In parallel with market growth, East Asian cosmetics intensified regulatory actions and enforcement to coun-
brands, particularly from China and South Korea, signifi- teract the proliferation of counterfeit cosmetics. Notable
cantly influence the global halal cosmetics market. Chinese seizures in the UAE, Saudi Arabia, Nigeria, and Indonesia
brands like SHEGLAM and retavil giants such as KKV Group demonstrate increased vigilance against illicit products,
have rapidly expanded their presence in Muslim markets, safeguarding consumer health and market integrity.
benefiting from affordability and appealing packaging. Meanwhile, updated regulatory frameworks in countries
Concurrently, South Korean companies are enhancing like Malaysia, Indonesia, Thailand, and the EU are enhancing
their halal credentials through strategic partnerships and transparency, quality, and safety standards for cosmetics.
certifications to strengthen their foothold in the Muslim Social impacts, such as consumer boycotts, partic-
market, supported by recent free trade agreements with ularly related to geopolitical issues, continue shaping
the GCC. purchasing behavior within Muslim markets. Brands such
Complementing East Asia’s influence, Saudi Arabia is as UAE-based Magically Holistic have seen significant
emerging as a prominent hub for beauty and fragrance sales increases as consumers seek ethical alternatives.
investments, highlighted by successful IPOs such as Al Furthermore, the growing trend towards inclusive beauty,
Majed for Oud and online cosmetics retailer Nice One. This reflected in rising demand for gender-neutral and unisex
investment activity, including strategic stakes acquired products, presents significant market opportunities for
by Jadwa Investment and the Public Investment Fund’s halal brands.
backing of halal cosmetics companies, illustrates Saudi Driving further innovation in the sector, advanced
Arabia’s robust growth and strategic focus on the halal technologies, notably AI, enhance personalization and prod-
cosmetics sector. uct differentiation. Companies like Cosmax and Unilever
Supporting this expansion, the industry continues to are developing AI-based solutions to improve consumer
move towards sustainability, with companies investing experience, while brands such as Wardah leverage AI for
in circular beauty practices. Indonesia’s ERHA introduced personalized beauty recommendations, highlighting tech-
the country’s first Cosmetics Reverse Vending Machine to nology’s expanding role in shaping the halal cosmetics
tackle packaging waste. Major global players like L’Oréal industry.
and Kiehl’s are enhancing their supply chains and sus- Overall, the continued evolution in consumer prefer-
tainability initiatives, aiming to significantly reduce their ences, investment dynamics, regulatory enhancements,
environmental impact and meet rising consumer demand and technological advancements positions the halal cos-
for sustainable practices. metics sector for sustained growth and increased global
Addressing another critical issue, OIC nations have integration.

198 State of the Global Islamic Economy Report 2024/25

Sector Developments (2023/24)

REVENUE DEVELOPMENTS •  Chinese retail giant KKV Group plans to expand

with 10 new stores in Malaysia, targeting 200 across
Chinese skincare and cosmetics brands are gaining growing Southeast Asia in the next three years.518 KKV’s
demand among the younger generation. Meanwhile, Saudi approach offers an extensive collection of over
Arabia’s beauty industry is also expanding, supported by a 20,000 SKUs, including food, stationery, clothing,
growing demand and strong funding ecosystem. skincare, makeup, and beauty tools.519
•  China’s cosmetics firms are featured in Beauty West
Latest projections Africa 2024, Africa’s largest trade show in the beauty
industry. Over 50 Chinese companies will showcase
In 2023, Muslim consumer spending on cosmetics reached thousands of beauty and personal care products.520
US$ 87 billion, growing by 2.9% from US$ 84 billion in •  The Chinese cosmetics brand SHEGLAM has strong
2022. India remains the country with the largest Muslim traction in the Middle East, with 140 stores across
consumer spending on cosmetics. Türkiye has moved up the GCC. Its top markets include the UAE, Oman,
to the second position, with Indonesia moving down to Qatar, and Kuwait.521
the third position. By 2028, Muslim consumer spending
on cosmetics is set to reach US$ 118 billion, growing at a Saudi beauty and fragrance investment is growing,
CAGR of 6.3%. with notable IPOs shaping a growing market.
Note: This does not represent the actual value of •  Leading Saudi perfume brand Arabian Oud, which
‘halal-certified’ cosmetics consumption. Rather, it represents holds an 11% market share, plans to go public in
the core addressable Muslim consumer market spending in Saudi Arabia in 2025.522
the cosmetics category. •  Al Majed for Oud sold out its US$ 188 million IPO
within a few hours.523
Updates on revenue developments •  Saudi Arabia’s Jadwa Investment acquired a 35%
equity stake in Kuwait’s Gissah Perfumes, with
Despite lacking halal certification, rising Chinese skincare plans for a listing on the Saudi Arabian bourse.524
and cosmetics brands are gaining traction in Muslim •  PIF’s Halal Product Development Company invested
markets. Their affordability and visually appealing pack- in Believe, a Singapore-based halal cosmetics firm,
aging appeal particularly to Gen Z consumers. to localize the Kingdom’s cosmetics industry.525
•  The Institute for Development of Economics and •  Online cosmetics retailer Nice One, based in
Finance (INDEF) reports that 50% of products in Saudi Arabia, soared 30% in its debut US$ 320
Indonesia’s marketplace are imported from China.517 million IPO.526

Investment summary
COUNTRY DEAL TYPE ORGANIZATION NAME DEAL VALUE (US$ 000s)

Indonesia VC Rose All day 5,410

Indonesia VC EQSA 4,000

Saudi Arabia VC Glamera 350

Türkiye PE Joseph Shining 250

Chapter 10: Halal Cosmetics 199

OPERATIONAL DEVELOPMENT
Companies have integrated sustainability into their supply
chain ecosystems, including managing packaging waste.
Some major brands have also moved parts of their supply
chain to China due to lower costs and a large consumer
market.

Upcycled and circular beauty are developing trends. More

progress is being made in sustainable supply chains,
adding value for consumers.
•  ERHA released Indonesia’s first cosmetics recycling
machine, claimed to be the first Cosmetics Reverse
Vending Machine in the country, aimed at reducing
plastic waste from cosmetics packaging.527
•  In collaboration with Chenavari Investment Managers,
L’Oréal launched a fund to help suppliers transition
towards sustainability. The initial EUR 50 million
fund will provide SMEs with easier financial access
to become more sustainable.528
•  Kiehl’s, Sephora, and Ulta are laying further ground-
work to reduce the beauty industry’s massive plastic
footprint 529

CREDIT/SHUTTERSTOCK
Companies are expanding their supply chains to China
for greater resilience and to tap into China’s domestic
market.
•  L’Oréal is strengthening its supply chain in China
to build resilience and reduce disruption risks. The
company has projects in Suzhou and Yichang and has
started using Guangzhou as a port after previously
relying too much on Shanghai, which experienced OIC HALAL COSMETICS IMPORTS AND GROWTH
severe slowdowns during COVID-19 lockdowns.530 (2023-2028)
•  Global leading cosmetics manufacturer Cosmax has
US$ BILLION
completed Asia’s largest cosmetic plant in China.
The company’s initial plan is to produce five million
units of cosmetics per month, gradually increasing 20.62
production to 30 million units monthly.531 2023 CAGR
9.51% 32.47
•  U.S. multilevel marketing company NU Skin has 2028 (F)
opened a US$ 55 million manufacturing facility
in China.532
*(F): FORECASTED VALUE

NATIONAL/TRADE DEVELOPMENT
import volume reflects its key role as a re-export hub,
Total OIC cosmetics imports amounted to US$ 20.62 billion distributing cosmetics to other OIC countries. Notably,
in 2023, marking an 11.31% increase from US$ 18.29 billion imports of fragrance and perfume products are increasing
in 2022. The largest imported products were skincare and to meet rising consumer demand, especially in the Gulf
makeup (30.90%), followed by fragrance blends (23.78%) region. Major MENA e-commerce platforms specializing
and perfumes and body sprays (17.64%). Rising women’s in perfumes, such as Golden Scent, are expanding local
economic participation in MENA, growth in digital com- consumer access to a wide range of fragrance products.
merce, and increasing awareness of personal care have all France was the top supplying market in 2023, with
contributed to higher demand in OIC countries. Over the exports worth US$ 3.88 billion. The UAE and the U.S. fol-
next five years, imports are projected to reach US$ 32.47 lowed with US$ 1.70 billion and US$ 1.32 billion, respectively.
billion by 2028, with a CAGR of 9.51%. France benefits from strong branding, R&D, and manu-
The United Arab Emirates, Saudi Arabia, and Türkiye facturing capabilities. It is home to many global perfume
led OIC cosmetics imports with US$ 4.62 billion, US$ 2.52 and cosmetics brands, with notable exports to the UAE,
billion, and US$ 2.01 billion, respectively. The UAE’s high Türkiye, and several North African countries.

200 State of the Global Islamic Economy Report 2024/25

Halal Cosmetics Trade
US$ BILLION (2023)

EXPORTS IMPORTS

Fragrance
blends
23.78% Skincare
and makeup
Trade Balance Perfumes 30.90%
11.43 (Export - Import) and body 20.62
-9.19 sprays
17.64%

Hair care Shaving and deodorant Oral care Essential oils and extracts
12.04% 8.84% 4.63% 2.17%

TOP EXPORTERS TO OIC TOP OIC IMPORTERS

US$ BILLION (2023) US$ BILLION (2023)

France 3.88 United Arab Emirates 4.62

United Arab Emirates 1.70 Saudi Arabia 2.52
United States of America 1.32 Türkiye 2.01
Italy 1.20 Indonesia 1.38
Germany 1.19 Malaysia 1.30
China 1.17 Iraq 0.92
Spain 0.93 Kuwait 0.84
India 0.73 Kazakhstan 0.75
Singapore 0.66 Morocco 0.50
Türkiye 0.65 Oman 0.42

OIC countries

The GCC has become an attractive region for expansion Global outreach for bigger brands
due to the rising demand for beauty products. South Korea should expand the market
is active in halal by building halal policies to unlock the
global Muslim trade potential.
including the GCC and beyond.
We see that consumers globally
The vibrant GCC cosmetics industry is growing, providing are more open to Islam. Many
new emerging market opportunities. public figures raising awareness
•  Watsons, Asia’s largest beauty and health retailer,
plans to launch in two more GCC markets after secur-
about it which impacts the halal-
ing 53% sales growth in the region in 2023. Already conscious markets.”
present in the UAE, Saudi Arabia, and Qatar through AKMAL DAFFARI, CHANNEL DEVELOPMENT
a franchise deal with Al-Futtaim Group, Watsons MANAGER, PARAGONCORP
targets expansion into Bahrain and Kuwait.533
•  Flormar seeks to expand its footprint in Saudi Arabia
to meet the growing beauty market demand. The Korea’s cosmetics brands are building their capacity and
company plans to triple the number of its stores in partnerships to certify their brands and tap deeper into
Saudi Arabia over the next four to five years.534 the Muslim market.
•  Beautyworld Middle East set a record for visitor num- •  South Korea’s Ministry of Food and Drug Safety
bers, welcoming over 70,000 people over three days. (MFDS) is strengthening collaboration with the Korean
It has become the region’s most significant trade Institute of Halal Industry. MFDS will provide online
show for local and international beauty networks.535 training on halal cosmetics certification and licensing

Chapter 10: Halal Cosmetics 201

 procedures for businesses seeking to enter the halal New bodies and harmonization launched in OIC countries
market.536 to enhance customer value and protection.
•  Indonesia’s Ministry of Religious Affairs signed an •  The UAE cabinet established the Emirates Drug
MoU on halal product assurance with the Ministry of Corporation (EDC) in September 2023, replacing the
Agriculture, Rural Affairs, and Food.537 Ministry of Health and Prevention (MOHAP) as the
•  South Korea has struck a free trade agreement with independent regulator for pharmaceuticals, medical
the GCC, paving the way for increased trade. Under the devices, cosmetics, dietary supplements, and agri-
agreement, Korea will eliminate tariffs on 89.9% of cultural products.546
GCC-imported items, while the GCC will remove tariffs •  Malaysia revised its cosmetics regulations to comply
on 76.4% of Korean products, including 4.1% of goods with the ASEAN Cosmetics Directive (ACD), adding
traded. Korea expects significant growth in defense, 19 prohibited substances, including Vinyl Acetate,
biotech, healthcare, cosmetics, and food industries.538 2-Chloroacetamide, and Acetaldehyde.547
•  The Pakistan government is exploring a plan to con-
solidate food, pesticides, and cosmetics to ensure
ECOSYSTEM DEVELOPMENT compliance with global quality and safety bench-
marks. The initiative will replace the Drug Regulatory
Countries are updating their regulations to protect con- Authority of Pakistan (DRAP).548
sumers and the environment in sustainable and transpar-
ent ways. Local authorities are also launching campaigns
against counterfeit cosmetics. SOCIAL IMPACT DEVELOPMENT
Regulatory updates to the refill cosmetic regulation ensure Amid ongoing conflict, Muslim consumers continue to boy-
real, sustainable progress. cott products from global beauty brands. This movement
•  Indonesia has proposed amendments to cosmetics is especially driven by social media campaigns among the
labeling requirements. The amended draft specifies younger generation. Meanwhile, inclusive beauty is also
mandatory labeling for refillable cosmetics, extending growing, with brands launching product lines to cater to
the scope to cover additional details for enhanced a more diverse and wider range of consumers.
labeling standards.539
•  Thailand’s Food and Drug Administration (FDA) has Despite declining sentiment, boycotts continue to influ-
issued regulations for cosmetics refill stations. ence Muslim purchasing decisions in beauty products.
Manufacturers and importers looking to set up refill •  Following Starbucks and McDonald’s, Asia’s anti-Israel
stations must obtain pre-approval from the FDA. Bulk boycott has expanded to Western beauty products.
and refillable cosmetics must have labels with specific In Indonesia, French cosmetics giant L’Oréal and The
information and comply with current cosmetic labeling Body Shop are experiencing boycotts, with rising
regulations.540 demand for Chinese and local alternatives 549
•  The European Union has published an amendment to •  The Gaza boycott has also increased sales for beauty
its Classification, Labeling, and Packaging (CLP) regu- brands, including UAE-based Magically Holistic, which
lations. Major updates include product transparency saw a 23% rise in sales over the past two quarters.550
in digital labeling and e-commerce.541 •  The “All Eyes on Rafah” campaign has further fueled
boycott effects, impacting fast-moving consumer
OIC local authorities execute campaigns against coun- goods, including beauty products, on e-commerce
terfeit cosmetics, strengthening customer protection. platforms in Indonesia. Data shows that six out of 10
•  Authorities seized 65,000 fake cosmetics and other top-selling beauty brands are now local products. 551
items worth Dh 23 million in the UAE.542
•  Saudi FDA confiscated 365,000 unregistered cosmetics Inclusive beauty for skin, and also unisex, is growing.
and food items from a facility in Qatif after tracing unli- •  Sephora and TikTok are partnering to help beauty
censed products sold online to a residential property. marketers create more inclusive branded content.
Under Article 34 of the Cosmetics Law, manufacturers This year, the initiative focuses on matching brands
and distributors of illegal goods face fines of up to SR with musical artists to produce popular songs that
5 million or five years in prison.543 can be used in TikTok videos. This marks the second
•  Nigeria’s NAFDAC seized counterfeit cosmetics worth year of collaboration aimed at helping beauty brands
₦ 37 million in Abuja. The agency has intensified its develop better and more inclusive branded content
campaign against counterfeit cosmetics, conducting with creators.552
investigations at supermarkets and open markets, •  Google’s report shows that search interest for “unisex
including Wuse and Garki.544 perfume” has increased by 53% in MENA.553
•  Indonesia’s BPOM found 51,000 illegal cosmetics in 751 •  L’Oréal USA has launched the second edition of its
beauty clinics and blocked over 100,000 links selling Inclusive Beauty Fund, helping small beauty busi-
illegal cosmetics from 2023 to February 2024. 545 nesses across the United States to grow.554

202 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK
INNOVATION DEVELOPMENT nology for personal color analysis using AI. This
technology assesses three major parameters: hue
Leveraging AI, beauty brands create more personalized color (warm and cool undertones), saturation (vivid and
options. Artificial intelligence also boosts fragrance product muted), and brightness (light and deep). Wardah
development, helping build more authentic scents. Colourverse is supported by Wardah Color Intelligence,
Beauty brands innovate by using emerging technologies an AI-powered personal color analysis tool, making
to create personalized and more varied color options. it the first Beauty AI in Southeast Asia.557
•  Cosmax, South Korea’s largest e-commerce manufac-
turer specializing in Original Design Manufacturing Innovation leveraging AI for fragrance product devel-
(ODM), developed a smart color-matching AI system. It opment, experience, and authentication.
uses deep learning technology to convert all human-per- •  Global gifting marketplace Flowwow launched the
ceivable colors into data. By quantifying differences in first AI-created “UAE Scents” collection to celebrate
color, researchers can predict the color of new formu- UAE National Day. It leverages ChatGPT to generate
lations without conducting direct experiments. The ways to capture the individuality of each Emirate.558
new AI color-matching system will first be applied to •  Bath & Body Works launched a generative AI fragrance
color-sensitive products like eyeshadow and blush.555 finder called Gingham Genius. The fragrance finder
•  Unilever unveiled consumer AI tools for differentiation features a conversational interface where customers
in beauty brands. This technology helps consumers can describe scents or candles, and the tool will pro-
personalize products, drive differentiation, and boost vide personalized recommendations.559
sales of its beauty brands, resulting in a 43% increase •  US startup Osmo has launched an AI-powered scent
in purchase completions.556 sensor to authenticate products differently from
•  Wardah launched the Colourverse event, which inte- barcodes and RFID tags. The technology can be used
grates beauty innovation with art, science, and tech- to spot fake products.560

Chapter 10: Halal Cosmetics 203

SIGNALS OF OPPORTUNITIES
IMPACT: Low Moderate High MATURITY: Early Intermediate Mature

The rise of Chinese skincare and

cosmetics
With its robust supply chain and

1 affordable pricing, Chinese beauty brands

are expanding their global presence. They
are penetrating markets aggressively,
especially through e-commerce in
Southeast Asia and the GCC.

Impact Maturity
Saudi Arabia’s expanding beauty and
fragrance industry
Saudi Arabia is experiencing a surge in
beauty and fragrance investments. A
recent IPO for a Saudi perfume maker
raised USD 188 million within hours,
2
while acquisitions such as Jadwa’s stake
The progress towards in Gissah Perfumes highlight increased
sustainable beauty with investor interest.
upcycled and circular cosmetics
Impact Maturity
Leading beauty companies are developing
eco-friendly packaging and investing

3 in sustainability programs to reduce

environmental impact. This eco-friendly
approach works effectively with the
positioning of products that are natural,
ethical, and halal, resonating well with
conscious consumers. The rising threat of
counterfeit cosmetics
Impact Maturity
Counterfeit beauty products are a growing
concern, with authorities in the UAE
seizing fake cosmetics worth millions of
dollars and Nigeria’s NAFDAC intercepting
counterfeit products. These products pose
4
risks not only to consumer health but also
to the broader ecosystem that supports
How the Israel boycott is original and innovative product launches.
reshaping the beauty industry
Impact Maturity
The ongoing boycott of Israeli-linked
brands in Asia and the Middle East has

5 led to shifts in consumer preferences,

with growing demand for beauty products
from alternative sources. Consumers are
increasingly aligning their values with the
products they choose to purchase.

Impact Maturity

204 State of the Global Islamic Economy Report 2024/25

Strategic Considerations
by Stakeholders
China’s products are becoming an increasingly important part
of the global supply chain for cosmetics in OIC countries. Amid
rising competition, halal certification alone is no longer sufficient,
as consumers increasingly seek tangible value beyond halal.
Sustainability and inclusivity are also becoming key factors to
integrate into halal cosmetic strategies. Robust regulations on halal
standards, sustainability, and fair competition are essential for building
an ethical and sustainable ecosystem.

INVESTORS

O P P O R T U N I T I E S

1 Establish joint ventures with Chinese

brands looking for halal certification
to manufacture within OIC countries
Relevant developments & precedents:
•  SHEGLAM, a leading Chinese beauty brand, has expe-
rienced rapid growth in the GCC, signaling rising
Joint ventures between Chinese beauty brands and demand for Chinese-made halal-certified cosmetics.
OIC-based manufacturers present a strategic opportu- •  Chinese manufacturers have been actively seeking
nity to combine China’s advanced cosmetics expertise halal certification from Malaysia’s JAKIM and Indo-
with OIC countries’ halal certification capabilities. As nesia’s MUI, two of the most recognized halal certi-
Chinese brands expand globally, they face increasing fication bodies in the beauty industry.
demand for halal-certified beauty products, particularly •  Saudi Arabia’s Public Investment Fund (PIF) acquired
in Southeast Asia, the Middle East, and North Africa. stakes in a Singaporean beauty company to localize
By setting up manufacturing hubs within OIC nations, beauty manufacturing for the Kingdom.
Chinese brands can streamline halal certification, Potential outcomes by 2035:
reduce trade barriers, and benefit from localized incen- •  Countries like Malaysia, Saudi Arabia, UAE, and Indo-
tives. Meanwhile, OIC countries can strengthen their nesia will become leading production centers for halal
domestic beauty industries, create jobs, and establish beauty, attracting FDI from Chinese brands and other
themselves as global halal beauty hubs. global investors. Setting up manufacturing plants
within OIC countries could generate tens of thousands
of jobs, supporting economic diversification efforts.

2 Back blockchain-based halal authen-

tication and traceability solutions
to safeguard market integrity from
ical. Fake cosmetics not only violate halal compliance
but also contain harmful ingredients that damage
consumer trust in halal-certified brands. Blockchain-
counterfeits products based halal authentication and traceability solutions
Counterfeit beauty products pose a serious threat to offer a powerful way to protect market integrity by
consumer health and brand integrity, particularly in enabling transparent, tamper-proof tracking of beauty
the halal cosmetics market, where authenticity is crit- products from manufacturing to retail.

Chapter 10: Halal Cosmetics 205

 Relevant Developments & Precedents: Potential outcomes by 2035:
•  Authorities in the UAE have seized millions of dollars •  A global blockchain network for halal cosmetics could
worth of counterfeit beauty products, leading to calls reduce counterfeit halal products, safeguarding con-
for advanced digital tracking solutions to combat sumer health and trust. Every halal beauty product
the illicit market. will have a scannable QR code linked to blockchain
•  Estée Lauder’, the global beauty giant, implemented records, allowing instant verification of halal certifi-
blockchain to track the origins of key ingredients, cation and ingredient sourcing. A shared blockchain
setting a precedent for halal cosmetics brands to do system among halal certifiers like JAKIM (Malaysia),
the same for halal compliance. BPJPH (Indonesia), ESMA (UAE), SFDA (Saudi Arabia),
and GAC (China) will create a unified halal beauty
certification framework.

C H A L L E N G E S

1 Deteriorating investment portfolio amid

geopolitical concerns and unclear regu-
lations, especially in IP protection.
As a result, investing in brands carries certain risks.
Risk:
•  Limited returns to investment due to risks of coun-
Some Muslim countries are still struggling with geopo- terfeiting and constrained market potential stemming
litical instability and immature regulatory frameworks, from geopolitical concerns.
particularly in intellectual property (IP) protection.

GOVERNMENTS

O P P O R T U N I T I E S

1 Establish a unified halal beauty stan-

dard across OIC countries to ease market
access and facilitate global exports
for halal beauty products.
Relevant Developments & Precedents:
•  The OIC established SMIIC to harmonize halal stan-
The lack of a unified halal beauty standard across OIC dards across member states, but its implementation
countries is a major barrier to market access, regulatory in the beauty sector remains fragmented.
compliance, and global exports. Currently, different •  ASEAN countries, led by Malaysia and Indonesia, are
halal certification bodies each have varying require- working on a regional halal framework, which could
ments and procedures, making it complex and costly serve as a blueprint for broader OIC implementation.
for beauty brands to obtain certification for multiple Potential outcomes by 2035:
markets. By establishing a single, standardized halal •  A single halal beauty certification process will allow
beauty framework across OIC nations, businesses can brands to enter multiple OIC markets simultaneously,
reduce compliance costs, accelerate time-to-market, reducing approval times from months to weeks. With
and strengthen the credibility of halal-certified cos- a streamlined certification process, OIC countries will
metics worldwide. A unified standard will also facili- attract more halal beauty manufacturers, position-
tate trade among OIC countries, attract more foreign ing themselves as global leaders in halal cosmetics
investment, and position the OIC as the global hub production and exports.

2 Offer tax incentives and subsidies for

foreign beauty brands to set up manu-
facturing in OIC nations
and subsidies that attract foreign beauty brands to set
up production facilities within their markets. Many
international brands, including Chinese, Korean, and
To position OIC countries as global halal beauty manu- Western beauty companies, are looking to expand into
facturing hubs, governments must offer tax incentives the rapidly growing halal beauty segment but face high

206 State of the Global Islamic Economy Report 2024/25

 operational costs, regulatory complexities, and supply •  The UAE’s Jebel Ali Free Zone (JAFZA) and Dubai
chain challenges. By reducing corporate taxes, offering Industrial City provide corporate tax breaks, duty-free
investment grants, and subsidizing halal certification imports, and business-friendly regulations, attracting
fees, OIC nations can lower entry barriers and create a beauty manufacturers looking to serve the GCC.
competitive advantage for international beauty brands. Potential outcomes by 2035:
Relevant Developments & Precedents: •  With lower production costs and stronger infrastruc-
•  Malaysia offers tax breaks and incentives to halal-cer- ture, OIC nations could export halal beauty products
tified manufacturers, with dedicated halal industrial to Western, Asian, and African markets, capturing a
parks, such as Halmas Halal Park, that reduce oper- significant share of the halal beauty industry.
ational costs for foreign investors.

3 Incentivize eco-friendly packaging &

upcycled ingredients with grants or tax
reductions
Relevant Developments & Precedents:
•  Indonesia’s ERHA launched a cosmetic packaging
recycling program, demonstrating how govern-
As sustainability becomes a key driver of consumer ment-backed sustainability initiatives can integrate
preferences, the beauty industry is rapidly shifting with the beauty sector.
toward eco-friendly packaging and upcycled ingre- •  Global beauty giants (Estee Lauder, L’oreal, Unilever)
dients. OIC countries have an opportunity to lead in have committed to 100% recyclable or refillable pack-
halal-certified sustainable beauty by offering grants, aging by 2030, indicating that regulatory incentives
tax reductions, and investment incentives to encour- in OIC nations could attract large-scale sustainable
age brands to adopt biodegradable packaging, reduce investments.
plastic waste, and incorporate upcycled natural ingre- Potential outcomes by 2035:
dients. These incentives will lower production costs •  Expansion of halal-certified upcycled ingredients from
for sustainable beauty brands, accelerate innovation local date palms, coconut waste, argan oil byprod-
in halal-certified green cosmetics, and position OIC ucts, and rice bran, boosting agriculture-driven halal
countries as global leaders in ethical and environmen- cosmetics. Additionally, OIC-certified halal beauty
tally responsible beauty products. brands will become the preferred choice for ethical
consumers worldwide, driving higher exports and
premium pricing.

C H A L L E N G E S

1 Greenwashing and ethical-washing with-

out genuine commitment to sustainable
and ethical beauty.
absence of clear standards in the industry, this could
undermine not only consumer protection but also
the overall growth and healthy competition in the
As sustainability and ethical practices become grow- beauty sector.
ing consumer concerns, many brands are jumping on Risk:
the trend to win consumer loyalty—and even to gain •  Ethical and sustainable beauty risks becoming a
government incentives and support. However, in the marketing jargon with no real substance.

Chapter 10: Halal Cosmetics 207

BUSINESSES

O P P O R T U N I T I E S

1 Work with Chinese skincare and cos-

metics brands to develop co-branded
halal-certified products for OIC markets
and Skintific) is a co-brand of a Chinese manufacturer
•  SHEGLAM, a leading Chinese beauty brand, has expe-
rienced rapid growth in the GCC, signaling rising
Collaborating with Chinese skincare and cosmetics demand for Chinese-made halal-certified cosmetics.
brands to develop co-branded halal-certified beauty •  Chinese manufacturers have been actively seeking
products presents a significant opportunity for OIC halal certification from Malaysia’s JAKIM and Indo-
nations to expand their halal beauty market while lever- nesia’s MUI, two of the most recognized halal certi-
aging China’s advanced R&D capabilities, production fication bodies in the beauty industry.
efficiency, and global distribution networks. Chinese Potential outcomes by 2035:
brands are actively seeking entry into halal-conscious •  Co-branding with Chinese firms will accelerate
markets such as Southeast Asia, the Middle East, and halal beauty sales, tapping into China’s manufac-
North Africa, but many lack the expertise and certifi- turing power and OIC’s halal expertise. With OIC
cation to fully comply with halal beauty standards. By collaboration, China could become one of the largest
forming joint ventures or co-branding initiatives, OIC manufacturers of halal beauty products, supplying
beauty brands can help Chinese companies integrate halal-certified skincare and cosmetics globally. Chi-
halal certification into their supply chains, ensuring nese firms’ investment in biotech skincare and OIC
compliance with Islamic principles while expanding halal compliance expertise will lead to the develop-
their presence in the booming global halal beauty sector. ment of cutting-edge halal-certified beauty products,
Relevant Developments & Precedents: such as anti-aging halal serums, plant-based collagen,
•  Among major Indonesian cosmetics (i.e. Glad2glow and halal biotech skincare.

2 Develop inclusive halal beauty lines tar-

geting both men and women, as demand
grows for unisex skincare and fragrances
generations, and compete with Western brands that
are leading in the gender-neutral space.
Relevant Developments & Precedents:
The demand for gender-neutral beauty products is •  Google Trends data shows a significant 53% increase
growing rapidly, with consumers increasingly favoring in interest for gender-neutral fragrances, indicating
inclusive, unisex skincare and fragrances. In halal strong market demand
beauty markets, this presents a unique opportunity to •  South Korea has seen a surge in male skincare adop-
develop halal-certified unisex beauty lines that cater tion, leading to a crossover trend where both men and
to both men and women while maintaining compliance women use the same beauty products.
with Islamic principles. Traditionally, beauty brands Potential outcomes by 2035:
have focused on gender-segregated marketing, but •  Simplified skincare routines with multi-functional,
shifts in consumer behavior—driven by minimalist gender-neutral products will become the norm, driving
skincare trends, shared grooming products, and ethical higher product adoption in urban and emerging mar-
formulations—are changing the landscape. By devel- kets. Inclusive beauty products streamline product lines,
oping inclusive halal beauty lines, OIC beauty brands reducing waste, excess packaging, and overall consumer
can expand their consumer base, appeal to younger spending, making halal beauty more accessible.

C H A L L E N G E S

1 Local players struggle to grow amid rapid

competition from imported products.
With the rise of Korean, Chinese, and other
market. Joint ventures should be structured fairly
to complement each party’s strengths and enhance
mutual competitiveness.
international skincare brands, local players may find it Risk:
difficult to unlock their full growth potential without a •  Local halal brands fail to scale, leading to the domi-
strong value proposition. Halal brands should not rely nance of foreign brands and limited contribution to
solely on halal compliance as their differentiator but the growth of the local economy.
must also offer real, competitive value in a crowded

208 State of the Global Islamic Economy Report 2024/25

 2 The halal cosmetics business community
is limited in Muslim-minority markets.
As halal cosmetics are still in the early
Especially in Muslim-minority markets, access to this
kind of community remains limited.
Risk:
stages of development, entrepreneurs need strong •  ·Halal entrepreneurs are difficult to scale and have
support in networking and capacity building to align low capacity to leverage halal values to consumers.
their strategy and execution with a halal perspective.

In countries where Muslims are a minority like Japan, the halal

business community is still limited. I’ve participated in several
entrepreneurship events, but most are general and not specifically
tailored to halal.”
SELLY SEPTIANI, FOUNDER OF HAJIME SKINCARE

CREDIT/SHUTTERSTOCK

Chapter 10: Halal Cosmetics 209

 11
C H A P T E R

MEDIA
AND RECREATION
212 State of the Global Islamic Economy Report 2024/25
Chapter 12: Media and Recreation 213
 MEDIA AND RECREATION
ALL FIGURES IN US$ BILLIONS, UNLESS STATED OTHERWISE

SIZE OPPORTUNITY
Represented by US$ 259.7 billion in Islamic finance assets globally (2023).

e
kiy
31.7
Tür
US$ 259.7 US$ 336.5
2023 2028
A
US
0
2 .
6

Rest of countries
100.8 Indonesia
24.5

Sa
ud
iA
rab
i
15. a
2
Pa
kis 13.6
7.9 ance

tan
Ger
Malaysia
Fr

man .9

5.3%
UAE

CAGR
8.3

11
10.0
UK

y
9.9

GOVERNMENT LEADERSHIP
MEDIA AND RECREATION - GLOBAL ISLAMIC ECONOMY INDICATOR (GIEI) RANKING (2024)
61 51 41 31 21 11 1

1 Malaysia

2 UK

3 Qatar

4 UAE

5 Bahrain

61 51 41 31 21 11 1

*All estimates by DinarStandard except for Islamic Finance sector provided by LSEG Data & Analytics Islamic Finance Development Indicator 2024 data. Muslim consumer spend
estimates & analysis by DinarStandard leveraging World Bank’s ICP 2017 consumer data as baseline reference. Halal and related product exports are based on ITC Trademap 2023

214 State of the Global Islamic Economy Report 2024/25

INVESTMENTS
US$ MILLION (2023/24)

US$ 451.3 Top countries by total deal value and number of deals

million = 1 deal
Disclosed value for 1 2 3 4 5
all 87 deals

147.1 102.8 65.0 57.3 47.1

UAE Saudi Arabia Malaysia Türkiye Indonesia

KEY DEVELOPMENTS SIGNALS OF OPPORTUNITIES

IMPACT: Low Moderate High

1 HyperSpace secures US $55 million

to build immersive family
entertainment venues.

Mature
2 Saudi’s US $100 billion
“Project Transcendence” seeks global
AI-media leadership. AI Tools Are
Islamic Children’s Enabling Rapid Collaborative media
Streaming Adaptation of ecosystem across
Platforms Gain Mainstream OIC countries is
3 Saudi Arabia opens an AI Centre for Traction in Non- Content for a strong signal to
Media to automate Islamic OIC Markets Islamic Audiences growth of islamic-
Intermediate

content creation. themed media.

Cross-Border Media Advancing Educational

4 Qalbox partnerships lift its
Collaborations are Driving and Edutainment
library beyond 10,000 hours Demand for Islamic Initiatives for Islamic
of Islamic content. Cultural Narratives. Youth

5 Kuwait publishes a five-volume

encyclopedia to weave Islamic
principles into curricula.

Financial Awareness Social Innovation

61 51 41 31 21 11 1

6 Singapore

7 Indonesia

8 China

9 Saudi Arabia

10 Canada

61 51 41 31 21 11 1

data. Projections are baselined on data from IMF Outlook from October 2024. Investments (figures and individual deals) are based on a detailed scan of databases from CapitalIQ,
Crunchbase and DinarStandard analysis from August 2023 to July 2024. See appendix for detailed methodology.
OIC Organization of Islamic Cooperation, 57 mostly Muslim-majority member countries.

Chapter 11: Media and Recreation 215

 The halal media and recreation sector witnessed substantial
growth in 2023, driven by significant investments, innovative
content, and expanding consumer demand. Muslim consumer
spending on media and recreation rose by 5.2%, reaching US$
260 billion, with Türkiye, the USA, and Indonesia leading the
market. This growth is forecasted to continue, reaching US$ 337
billion by 2028 at a CAGR of 5.3%.

Major investments highlighted the sector’s momentum. Media Council partnered with Google for advanced media
Notable deals included UAE-based HyperSpace securing US$ training, while Qatar Insurance Company’s edutainment
55 million, Türkiye’s Spyke Games raising US$ 50 million, project at KidzMondo Doha combined education with
and Malaysia’s Adilmart attracting US$ 39 million. These entertainment to promote financial literacy among young
investments reflect heightened investor confidence and audiences. Cross-border collaborations, such as those
the sector’s potential to scale significantly. between Azerbaijan and Türkiye’s media agencies, are
Content innovation has flourished, particularly through promoting Islamic cultural narratives widely.
strategic partnerships, enhancing educational and enter- National strategies and trade developments have
tainment offerings for Muslim audiences. StarTimes intro- further bolstered the sector. Malaysia expressed intent to
duced tailored Ramadan programming, resulting in a 15% collaborate with Nigeria on Islamic media content, while
subscriber increase, while Majid TV collaborated with Afghanistan significantly expanded its Islamic education
TwelveP Animation to broadcast family-friendly Islamic- infrastructure. Saudi Arabia launched the AI Centre for
themed animated content. Additionally, Qalbox partnered Media, and the UAE signed an MoU with Korea’s Arte
with platforms like NoorKids, Durioo+, and Astro to sig- Museum, underscoring strategic international cooperation
nificantly expand its educational offerings, resulting in aimed at enriching Islamic-themed content.
a 30% growth in subscriptions and amassing a content The ecosystem has also been strengthened through
library exceeding 10,000 hours. policy and regulatory measures. Kuwait launched an
Innovative products like Muslim Blocks, launched by extensive Islamic education encyclopedia, and Nigeria
UAE entrepreneur Abdellah Zejli, have successfully blended introduced digital regulatory reforms. Saudi Arabia’s media
educational play with Islamic culture, gaining interna- strategy emphasized diversification of its non-oil econ-
tional popularity. Additionally, Saudi Arabia’s ambitious omy, and the UAE enacted new media regulations to attract
“Project Transcendence,” with a US$ 100 billion invest- foreign investment while maintaining cultural integrity.
ment, is set to position the nation as a global leader in Social impact remains integral, exemplified by
AI and data analytics, including significant applications UNESCO’s educational investment in Cameroon and
in the media sector. AI adoption is also accelerating in Sharjah’s Holy Quran TV launching multilingual content.
this sector. Media City Qatar’s collaboration with Fadaat The Islamic Development Bank’s digital preservation
Media and Saudi Arabia’s partnership with Qualcomm have projects for Islamic manuscripts further reinforce the
introduced AI-driven content and advertising innovations. sector’s role in cultural conservation.
King Abdulaziz City for Science and Technology’s partner- Overall, sustained investment, content innovation,
ship with Ericsson has established cutting-edge gaming and supportive regulatory frameworks are positioning
research and development infrastructure. the halal media and recreation sector for significant
Operationally, collaborations and initiatives are bolster- long-term growth, catering effectively to a global audi-
ing media capabilities and skills across regions. The UAE ence of Muslims.

216 State of the Global Islamic Economy Report 2024/25

Sector Developments (2023/24)

REVENUE DEVELOPMENTS an agreement with TwelveP Animation to broadcast

animated series and films such as ‘The Bananas,’
Major investments and new content offerings drive revenue ‘Space Cadets,’ and ‘Detective Chirp & the Golden
growth in the Islamic-themed media sector, supported by Beehive,’ enriching family entertainment options. The
innovative approaches to audience engagement. initiative aims to capture younger audiences while
promoting positive Islamic values.562
Latest projections •  Qalbox, a platform by the team behind Muslim Pro,
partnered with NoorKids and Durioo+ to expand its
Spending on media and recreation by Muslim consum- educational and entertainment content for Muslim
ers increased by 5.2% in 2023, climbing to US$ 260 bil- children globally. Its subscription base has grown
lion from US$ 247 billion in 2022. Türkiye, the USA, and by 30% since the partnerships were announced.563
Indonesia remain as the leading markets in Muslim con- •  Qalbox also announced a strategic partnership with
sumer expenditure on media and recreation. By 2028, Astro to provide exclusive, culturally enriching con-
spending is expected to reach US$ 337 billion by 2028 at tent, enhancing its position in the streaming and
a CAGR of 5.3%. broadcast market. The platform’s content library now
Note: This does not represent the actual value of exceeds 10,000 hours of Islamic-themed program-
Islamic-themed or regulated media and recreation ming, including documentaries on Islamic history,
consumption. Rather, it represents the core address- animated series for children, lectures by renowned
able Muslim consumer market spending in the general scholars, and drama series that explore contempo-
media and recreation category. rary issues from an Islamic perspective. Notable
additions include a series on the contributions of
Updates on revenue developments Islamic scientists and an animated show designed
to teach Arabic to non-native speakers.564
•  StarTimes launched new content tailored for Muslims •  Abdellah Zejli, a UAE resident, launched Muslim
during Ramadan, including discounts on recharge Blocks, a line of interlocking brick toys resembling
options to attract and retain customers. The cam- Islamic landmarks such as the Kaaba and Masjid Al
paign resulted in a 15% increase in subscriptions.561 Nabawi, fostering meaningful family engagement.
•  Majid TV, part of the Abu Dhabi Media Network, signed The products are now distributed across 12 countries,

Investment summary
COUNTRY DEAL TYPE ORGANIZATION NAME DEAL VALUE (US$ 000S)

UAE VC HyperSpace 55,000

Türkiye VC Spyke Games 50,000

UAE VC True Games 45,000

Saudi Arabia VC Noon - The Social Learning Platform 40,800

Malaysia PE Adilmart 39,113

Chapter 11: Media and Recreation 217

 reflecting strong international demand.565 •  A collaborative media platform, launched by
•  Saudi Arabia unveiled the US$ 100 billion “Project Azerbaijan’s Trend News Agency and Türkiye’s
Transcendence” initiative to establish itself as a global Albayrak Media Group, expanded to include state
leader in AI and data analytics, including significant news agencies from Kazakhstan and Kyrgyzstan,
applications in the media industry. The project’s first promoting cross-border media collaboration. The
phase focuses on integrating AI into national broad- initiative enhances the dissemination of Islamic
casting systems.566 cultural narratives and shared values across Turkic-
•  Indonesia banned e-commerce on social media speaking regions.572
platforms to protect small businesses, highlighting •  The Saudi Media Forum announced a strategic partner-
the intersection of policy and digital commerce in ship with the International Broadcasting Convention
regional markets. This move impacts the distribution (IBC), supported by the European Broadcasting Union,
of Islamic-themed digital content, prompting local to enhance global communication and knowledge
platforms to innovate alternative delivery methods.567 exchange. This collaboration includes the establish-
•  NEOM Media has launched the ‘Publishing Partner ment of a Saudi Broadcasting Authority pavilion at IBC
Network’ as part of its ‘Level Up’ accelerator program events in Amsterdam, aimed at fostering innovative
to boost Saudi Arabia’s gaming ecosystem. The net- broadcasting solutions.573
work includes partners Kwalee, Sandsoft, Tamatem •  The National Media Office and TRENDS Research
Games, and Black Smoke Studios. This initiative launched a study, “The Role of Media Regulatory
aims to enhance NEOM Media’s startup portfolio by Institutions in the Age of Artificial Intelligence:
connecting them with global publishing companies. Opportunities and Challenges,” at the 2024 Global
Collaborations with international publishers will help Media Congress. It analyses AI’s significant impact
increase the visibility of these startups, attracting on the media, focusing on opportunities and the reg-
investors and talent to the region. This initiative aims ulatory challenges faced by Arab media institutions.
to position NEOM Media as a leading force in the Chairman Abdulla Al Hamed emphasized the UAE’s
game development industry in Saudi Arabia and the dedication to scientific research and the integration
broader MENA region.568 of media and research entities to tackle future chal-
lenges. Dr. Mohammed Al-Ali of TRENDS noted that
the study aims to improve Arab media using AI while
OPERATIONAL DEVELOPMENTS adhering to ethical standards.574

Key initiatives and partnerships underscore the rapid evo-

lution of Islamic-themed media and entertainment. These NATIONAL/TRADE DEVELOPMENTS
developments showcase the sector’s growing emphasis
on capacity building, innovative content, and inclusivity. Islamic-themed media and entertainment are gaining
•  The UAE Media Council, in collaboration with Google, traction through strategic collaborations and policy
concluded the first phase of the “Media Leadership initiatives across various countries, demonstrating an
Training Programme” at Google’s regional headquar- increased focus on cultural and educational content.
ters in Dubai Media City. The event, featuring over •  Malaysia expressed interest in collaborating with
50 media leaders and content creators, emphasized Nigeria on religion and Islamic education, strengthen-
enhancing the skills of media professionals to keep ing bilateral ties and fostering cultural exchange. The
pace with global trends. This initiative represents a initiative includes potential joint ventures in media
significant investment in human capital and is set to content production focused on Islamic teachings.575
expand into subsequent phases to address emerging •  Over 21,200 Islamic education centers were estab-
challenges in media technology.569 lished in Afghanistan, with 617,000 textbooks dis-
•  Qatar Insurance Company inaugurated its edutain- tributed, highlighting a commitment to advancing
ment facility at KidzMondo Doha, introducing chil- Islamic education. This development also underscores
dren to the insurance world in an engaging manner. the role of education in combating misinformation
By combining education with entertainment, this and fostering community resilience.576
project enhances financial literacy among younger •  The UAE Media Council signed an MoU with Korea’s
generations, fostering a culture of informed deci- Arte Museum to enhance collaboration in media arts
sion-making early on.570 and digital media training. This partnership aims to
•  Miral, in partnership with Creative Lab – Creative blend traditional Islamic art themes with modern
Media Authority, hosted a Media Camp at SeaWorld® digital interpretations, creating immersive experiences
Yas Island, Abu Dhabi, reinforcing its commitment for global audiences.577
to community engagement and environmental stew- •  Saudi Arabia launched the AI Centre for Media, inte-
ardship. This program included hands-on workshops grating cutting-edge technology to position itself as
on content creation and conservation storytelling, a leader in AI-driven media innovation. The center’s
attracting a diverse audience of aspiring creators.571 initial projects include automated content creation

218 State of the Global Islamic Economy Report 2024/25

 CREDIT/SHUTTERSTOCK
tools and AI-enhanced translation services to broaden practices. This measure reflects a broader effort to
access to Islamic-themed media.578 standardize religious instruction and prevent exploita-
•  Egypt and Saudi Arabia deepened media cooperation tion.582
through high-level meetings involving Prime Minister •  India’s Allahabad High Court declared the Uttar
Mustafa Madbouly and Media Minister Salman bin Pradesh Board of Madarsa Education Act uncon-
Yousef Al-Dossary. These efforts aim to create joint stitutional, reaffirming secularism principles and
ventures in media production that celebrate shared ensuring equitable access to education. This ruling has
Islamic heritage.579 sparked nationwide debates on the role of religious
education within public frameworks.583
•  Saudi Arabia’s General Authority of Media Regulation
ECOSYSTEM DEVELOPMENTS unveiled a strategic vision to enhance the media
sector’s contributions to the economy while diversi-
Foundational developments in Islamic media ecosystems fying the nation’s non-oil GDP. The strategy includes
emphasize education, legislative reforms, and infra- launching training programs to upskill local talent in
structure enhancements to foster sustainable growth. digital media production.584
•  The Ministry of Awqaf and Islamic Affairs in Kuwait •  The UAE issued a federal decree regulating media
launched a five-volume encyclopedia on Islamic edu- activities, allowing ownership of media outlets under
cation, funded by the Endowment Fund for Scientific specific regulations, covering diverse areas such as
and Cultural Development. The encyclopedia serves digital broadcasting and publishing. This legislation
as a comprehensive resource for educators and poli- aims to attract foreign investment while ensuring
cymakers to integrate Islamic principles into modern cultural sensitivity in media content.585
curricula.580 •  The “Abu Dhabi Government Digital Strategy 2025-
•  The Nigerian government, under President Bola 2027” is designed to transform the emirate into an
Tinubu, has introduced a bill to regulate digital plat- AI-powered government leader. Coordinated by the
forms, targeting social media oversight. This legisla- Department of Government Enablement, it plans to
tion, presented to the National Assembly, proposes invest AED 13.00 billion in technology and innovation.
to repeal and reenact the National Broadcasting Key objectives include achieving 100% adoption of
Commission (NBC) Act. The Director-General of NBC, cloud computing for government operations, automat-
Balarabe Ilelah, labeled social media as a “monster” ing all processes, and enhancing productivity through
and stressed the necessity of new regulatory powers a unified ERP platform. The strategy features an “AI
for the NBC, as current laws don’t cover social media for All” program for citizen training and plans over
oversight.581 200 AI solutions in government services, emphasizing
•  Uzbekistan’s Legislative Chamber reviewed a draft high cybersecurity standards. It aims to contribute
law introducing fines for involving children in illegal AED 24.00 billion to the GDP and create over 5,000
religious education, aiming to regulate educational jobs by 2027.586

Chapter 11: Media and Recreation 219

SOCIAL IMPACT DEVELOPMENTS is part of their Garage incubator and accelerator for
deep technologies. The lab will feature a private 5G
Efforts in Islamic-themed media and education highlight network and serve as a testbed for gaming solutions,
a commitment to social welfare and cultural preservation. training, and research, integrating Ericsson’s latest
•  UNESCO mobilized US$ 44.50 million for education 5G and cloud native technologies.593
in Cameroon, modernizing curricula and training
28,000 professionals while providing school meals
to underprivileged children. This initiative includes
modules on Islamic heritage, promoting interfaith
understanding.587
•  UAE’s Sharjah Broadcasting Authority launched the
Holy Quran TV channel, enriching Islamic teachings
and culture under the guidance of Sheikh Dr. Sultan
bin Muhammad Al Qasimi. The channel’s program-
ming now includes multilingual translations to reach
non-Arabic-speaking audiences globally.588
•  The Islamic Development Bank’s initiatives in under-
served regions focus on enhancing access to Islamic
education and media, aligning with broader goals of
social impact. Recent projects include the digitization
of Islamic manuscripts, such as rare copies of the
Qur’an and medieval Islamic treatises on science and
philosophy, and their distribution through open-ac-
cess platforms. These efforts aim to preserve cultural
heritage and make these invaluable resources acces-
sible to scholars and the public worldwide.

INNOVATION DEVELOPMENT
Innovative collaborations and technological advance-
ments are shaping the future of Islamic-themed media
and entertainment, with a focus on AI, digital platforms,
and new content formats.
•  Media City Qatar signed an MoU with Fadaat Media
Group to enhance local media infrastructure and
production capabilities. The agreement includes the
development of an AI-driven content recommendation
engine tailored for Islamic audiences.589
•  Qualcomm partnered with Saudi Arabia’s RDIA and
Aramco to launch an incubator program supporting
CREDIT/PEXELS

AI and IoT-driven startups. The program has already

attracted 15 startups working on smart broadcasting
solutions.590
•  Panda Saudi, in collaboration with SCAI and Faden
Media, introduced AI-powered advertising in retail
stores, transforming customer engagement. The new
system uses sentiment analysis to tailor advertise-
ments to shoppers in real-time.591
•  Saudi Arabia’s Future Camp for Generative AI in Media
was launched to explore cutting-edge applications
of AI in content creation. The initiative has already
produced a pilot series featuring AI-generated his-
torical reconstructions of Islamic events.592
•  King Abdulaziz City for Science and Technology
(KACST) has partnered with Ericsson to advance
gaming innovation in Saudi Arabia. They are setting
up the “Blink Lab,” a joint lab at KACST’s facility, which

220 State of the Global Islamic Economy Report 2024/25

SIGNALS OF OPPORTUNITIES
IMPACT: Low Moderate High MATURITY: Early Intermediate Mature

Islamic children’s streaming platforms

gain traction in non-OIC markets
Platforms offering Islamic-focused
educational and entertainment content for
children, such as Qalbox and Durioo+, are
experiencing significant growth beyond
traditional Muslim-majority countries, AI tools are enabling rapid

1 reflecting rising demand in non-OIC

markets. This highlights an expanding
global audience and underscores the
adaptation of mainstream
content for Islamic audiences
With the establishment of initiatives
potential for Islamic children’s content like Saudi Arabia’s AI Centre for Media,
to appeal to diverse cultural segments AI-driven technologies are emerging
seeking educational values aligned with that enable media organizations to
ethical and family-centric principles. adapt mainstream content efficiently
to suit Islamic values and preferences.
Impact Maturity
AI-powered translation, automated

Cross-border media collaborations are

content modification, and analytics-driven
customization make it easier for content
creators to “Islamify” entertainment,
2
driving demand for Islamic cultural educational materials, and digital media,
narratives significantly broadening accessibility and
Collaborations like the UAE-South Korea relevance to Muslim audiences globally.
partnership on documentaries exploring
Impact Maturity
Islamic architecture, Egypt-Saudi Arabia
joint ventures, and media alliances like

3 Azerbaijan’s Trend News Agency with

Türkiye’s Albayrak Media Group indicate
rising global interest in Islamic cultural
storytelling. These collaborations
amplify cultural awareness and provide Advancing educational and
opportunities for media companies to edutainment initiatives for Islamic youth
produce diverse, cross-cultural content The convergence of education and
that appeals to international audiences. entertainment is emerging as a
significant growth driver, opening up vast
Impact Maturity opportunities to merge cultural enrichment
with interactive learning. Initiatives
such as Qatar Insurance Company’s
4
Collaborative media ecosystem across edutainment facility at KidzMondo Doha
OIC countries is a strong signal to and Qalbox’s expanded educational
growth of Islamic-themed media offerings for Muslim children illustrate
Qatar’s Media City partnership with Fadaat how compelling educational media can
Media has established state-of-the-art enhance financial literacy and deepen
studios for Islamic-themed films, alongside cultural awareness from an early age.

5 training programs for Arab filmmakers.

Similarly, Saudi Arabia’s Neom Media Hub
and Sharjah Media City are attracting
Impact Maturity

international studios to produce content

aligned with Vision 2030’s cultural goals,
such as a multilingual animated series on
the Hajj pilgrimage.

Impact Maturity

Chapter 11: Media and Recreation 221

Strategic Considerations
by Stakeholders
The Islamic-themed media and entertainment sector presents
significant opportunities for investors, governments, and businesses.
AI-driven tools are reshaping Islamic content creation, enabling
automated translation, personalized engagement, and culturally
sensitive moderation. Investors should support ethical AI ventures and
incubators connecting developers with Islamic scholars. Similarly, the
edutainment sector remains underdeveloped, with strong potential in
Islamic-themed toys and interactive learning products. Governments
play a crucial role in fostering secure media ecosystems by investing
in AI infrastructure, regulatory sandboxes, and tax incentives for
Islamic content production.

INVESTORS

O P P O R T U N I T I E S

1 AI tools are transforming Islamic media

production through automated content
creation, multilingual translation, and
Relevant developments & precedents:
•  Saudi Arabia’s AI Centre for Media launched projects
like AI-generated historical reconstructions and real-
personalized engagement strategies time translation services.
Investors should fund ethical AI startups focused •  Abu Dhabi’s “AI for All” program plans to deploy 200+
on tools for moderating culturally sensitive content AI solutions in government services, including media.
or preserving Islamic heritage (e.g., digitizing manu- •  Future Camp for Generative AI produced a pilot series
scripts). Prioritize ventures developing AI translation using AI to visualize Islamic historical events.
for underrepresented languages (e.g., Swahili, Bengali) Potential outcomes by 2035:
to broaden access. Support incubators that bridge AI •  AI-driven dubbing, sentiment analysis, and automated
developers and Islamic scholars to ensure alignment content generation become standard, enabling small stu-
with ethical guidelines. dios to produce high-quality, multilingual Islamic media.

The edutainment market, a sub-sector of the media and

entertainment industry, remains largely underexploited. The
opportunities for both entrepreneurs and investors are immense.
A true Eldorado awaits the boldest.”
FATEH KIMOUCHE, AL KANZ, FRANCE

222 State of the Global Islamic Economy Report 2024/25

 2 Culturally rooted educational toys are
bridging play and faith-based learning,
addressing gaps in Islamic early child-
Masjid Al Nabawi, gained traction in 12 countries.
•  Startups like Halal Toys Ltd. are expanding into Euro-
pean and North American diaspora markets.
hood development tools •  Animated series like Omar & Hana integrate Quranic
Investors should target startups producing Islamic edu- stories into engaging formats.
cational toys, such as Arabic alphabet puzzles or robotics Potential outcomes by 2035:
kits inspired by historical Muslim inventions. Prioritize •  Faith-based toys become mainstream, with modu-
companies using sustainable materials and ethical supply lar designs and storytelling kits fostering cultural
chains. Support marketing campaigns targeting parents identity among young Muslims. Faith-based toys
seeking culturally affirming educational tools. with modular designs and storytelling kits are going
Relevant developments & precedents: mainstream. These toys encourage cultural identity
•  Muslim Blocks, featuring designs like the Kaaba and in young Muslims.

Islamic-themed media has significant growth potential, but the lack

of investment limits its ability to compete with mainstream media.
With proper support, it can scale rapidly and capture the expanding
Muslim market.”
TEMI SUMARLIN, SCARF MEDIA, INDONESIA

C H A L L E N G E S

1 AI can help make Islamic media faster

and more inclusive, but several prob-
lems stand in the way. First, there are
one is sure who owns the rights to images or scripts
the AI creates. All of this makes investors careful and
delays real-world use.
not enough well-labeled texts and videos that Risk:
reflect Islamic values, so training good models is •  A single erroneous AI output, be it a mistranslated
hard. Scholars have to check the results to avoid Qur’anic verse or an inadvertently biased image—
mistakes, which slows everything down and costs could severely undermine stakeholder trust and
more money. Rules about deepfakes, data privacy, provoke public censure. Jurisdictional disparities in
and using foreign cloud servers change from one dataprivacy and deep‑fake legislation further expose
country to another, creating legal confusion. Powerful developers to regulatory sanctions, including fines
computers and expert engineers are expensive, and no or platform suspensions.

2 Companies that design Muslim-friendly

learning toys face high costs because eco-
friendly materials and small production
Risk:
•   In countries where intellectual‑property enforcement
is lax, counterfeit or lookalike toys can enter the market
runs are costly. Before a toy can be sold, it must pass almost as soon as the genuine product launches, lever-
strict safety tests—and sometimes even get halal aging lower production costs and circumventing the
approval—which adds time and money. Big toy stores research, design, and compliance expenses borne by the
often give little shelf space to niche brands, so start- originator. These imitations often retail at significantly
ups rely on online ads where they compete with huge reduced prices, eroding the premium positioning of the
companies that spend more authentic brand and forcing the original manufacturer
either to discount—thus compressing already narrow
margins—or to absorb declining volumes.

Chapter 11: Media and Recreation 223

GOVERNMENTS

O P P O R T U N I T Y

1 Building secure, technology-driven

media ecosystems is essential to posi-
tion Islamic-themed content as a global
cross-border media partnerships.
Relevant developments & precedents:
•  Qatar’s Media City developed AI-driven content
competitor while ensuring compliance with cultural engines tailored for Islamic audiences.
norms •  NEOM Media Hub and Sharjah Media City attracted
Governments should invest in digital infrastructure studios to produce Vision 2030-aligned projects.
(e.g., secure cloud systems, cybersecurity frameworks) •  Abu Dhabi’s AED 13.00 billion investment in AI infra-
and create regulatory sandboxes for ethical AI projects. structure includes secure cloud systems for media.
Offer tax incentives for studios producing Islamic- Potential outcomes by 2035:
themed content and establish certification programs •  MENA emerges as a hub for Islamic media innovation,
for cultural compliance. Partner with OIC nations to with standardized data laws enabling cross-border
harmonize content distribution laws and promote collaboration.

C H A L L E N G E S

1 Turning places like NEOM or Sharjah

into world-class media centers takes
billions of dollars for new data centers,
Risk:
•  Multibillion‑dollar infrastructure projects carry heavy
financial risk if oil prices fall or government priorities
safe cloud systems, and cyber-security tools. shift. A major data breach could scare away interna-
Yet there are not enough skilled engineers in the region, tional partners and viewers alike, erasing the hub’s
so salaries rise and projects slow. Privacy and content competitive edge. Furthermore, uneven or tightening
rules differ across Muslim countries, so moving videos, content rules across countries might restrict the
user data, or ad money across borders is complicated. very crossborder collaborations the hubs are meant
to attract.

BUSINESSES

O P P O R T U N I T I E S

1 Islamic edutainment platforms are

primed for expansion as global demand
grows for interactive, culturally enriched
financial literacy for children.
•  Qalbox’s strategic partnerships, which expanded its
educational content for Muslim children, have sig-
learning experiences nificantly boosted its subscription base.
Businesses should invest in developing comprehensive •  UNESCO’s investments in modernizing curricula and
educational content that fuses engaging storytelling the widespread establishment of Islamic education
with interactive learning elements, such as animated centers underscore the growing emphasis on culturally
series that bring Qu’ranic stories to life, digital learning sensitive education.
tools, and interactive edutainment centers. Partner Potential outcomes by 2035:
with educators, cultural institutions, and media orga- •  By 2035, advanced Islamic edutainment platforms
nizations to ensure content aligns with educational could dominate global markets, fostering early
curricula and preserves Islamic heritage. engagement with Islamic heritage and ensuring that
Relevant developments & precedents: culturally resonant educational experiences become
•  Qatar Insurance Company’s edutainment facility at a cornerstone of learning for young audiences around
KidzMondo Doha has effectively combined fun with the world.

224 State of the Global Islamic Economy Report 2024/25

 2 Expanding libraries of Islamic-themed
content in diverse formats and lan-
guages are critical to meeting rising
Relevant Developments & Precedents:
•  Qalbox’s library now exceeds 10,000 hours of program-
ming, including documentaries on Islamic history
global demand for culturally relevant media and Arabic-learning animated series.
Media companies must diversify formats and lan- •  Sharjah’s Holy Quran TV channel added multilingual
guages, such as producing mini-documentaries on translations to reach non-Arabic speakers.
Muslim scientists or short films about Ramadan tra- •  Partnerships with Astro and independent filmmakers
ditions. Crowdsource subtitling for underrepresented enriched content diversity.
languages and collaborate with influencers to amplify Potential outcomes by 2035:
reach. Bundle subscriptions with educational platforms •  Platforms offer podcasts, short films, and documen-
(e.g., Islamic online courses) to increase retention. taries in 20+ languages, driven by collaborations with
regional creators and scholars.

C H A L L E N G E S

1 Making shows that are both fun and edu-

cational needs teams of teachers, story-
tellers, game makers, and scholars—people
Risk:
•  Multi‑billiondollar infrastructure projects carry heavy
financial risk if oil prices fall or government priorities
who are hard to find and expensive to hire. Parents, shift. A major data breach could scare away interna-
especially in developing markets, may not want another tional partners and viewers alike, erasing the hub’s
paid app, so earning steady subscription income is an competitive edge. Furthermore, uneven or tightening
obstacle. High-quality interactive lessons need fast content rules across countries might restrict the
internet, but many regions still have slow or costly very cross‑border collaborations the hubs are meant
connections. to attract.

2 Building a huge library of Islamic shows

and films starts with clearing rights, but
old programs often have unclear or split
Risk:
•  Unclear or disputed rights for older shows can lead to
costly lawsuits or sudden takedowns, disrupting the
ownership, leading to long processes with many parties. library’s lineup. Poorquality subtitles or dubbing risk
Big streaming platforms, niche faith-based content alienating viewers and sparking social‑media back-
may remain unknown unless companies spend heavily lash. Heavy marketing spend is needed for discovery;
on marketing. if audience growth lags, the library may never recoup
escalating contentacquisition and translation costs.

There are very few media platforms dedicated to halal lifestyles,

despite rising consumer demand. Strategic investment can bridge
this gap and create a dominant presence in the industry.”
TEMI SUMARLIN, SCARF MEDIA, INDONESIA

Chapter 11: Media and Recreation 225

Acknowledgements
PRODUCED BY IN PARTNERSHIP WITH

DinarStandard™ is a growth strategy research and exe- Launched in October 2015, Salaam Gateway (SG) is the
cution management firm, empowering organizations for world’s leading news and insights platform on the global
profitable and responsible global impact. DinarStandard Islamic economy. It covers Islamic finance, halal, and
specializes in the global halal/ethical economy, gov- Islamic lifestyle sectors, with an eye on the key producer
ernment innovation, and the social impact space. Since and consumer markets. It is for professionals, business
2008, DinarStandard has supported over 30 government owners, decision-makers, and policymakers who operate
entities, investment institutions, industry leaders, and in fast-changing socio-economic environments and want
multilaterals from over 12 countries worldwide. Its unique reliable and accurate news, insights, data, and intelligence
value proposition is rooted in delivering original facts and to inform their next moves.
foresight-driven client impact grounded in excellence salaamgateway.com
and ethics.
dinarstandard.com

THOUGHT LEADERSHIP PARTNER STRATEGIC PARTNER

The Islamic Development Bank Institute (IsDBI) is the IFANCA (Islamic Food and Nutrition Council of America)
knowledge beacon for the IsDB Group, leading the explo- is a not-for-profit organization committed to helping con-
ration of innovative solutions for the economic challenges sumers and industry source authentic halal products since
facing Member Countries and Muslim communities within 1982. Our registered Crescent-M halal service mark assures
the framework of Islamic economics and finance. consumers the product is halal without a doubt! IFANCA
Established in 1981 as the Islamic Research and halal certification means your products meet the dietary
Training Institute (IRTI), the Institute was rebranded in requirements of over 1.8 billion consumers.
2021 as IsDB Institute to better align with the strategic ifanca.org
priorities of the IsDB.
isdbinstitute.org

228 State of the Global Islamic Economy Report 2024/25

 CREDIT/UNSPLASH
ISLAMIC FINANCE DATA PARTNER

Serving more than 40,000 institutions in approximately

190 countries, LSEG Data & Analytics provides informa-
tion, insights, and technology that drive innovation and
performance in global financial markets. Our history of
integrity enables our customers to make critical deci-
sions with confidence, while our best-in-class data and
cutting-edge technologies enable greater opportunity. We
allow the financial community to trade smarter and faster,
overcome regulatory challenges, and scale intelligently.
lseg.com

Acknowledgments 229
Report Team

Report Strategic Advisor Rafi-uddin Shikoh

CEO & Managing Partner, DinarStandard

Report Senior Advisors Dr. Sayd Farook

Senior Partner, DinarStandard

Conor Clifford Murphy

Partner, DinarStandard

Ebrahim Vahed
Consulting Manager, DinarStandard

Report Lead Author and Islamic Finance Analyst Najmul Haque Kawsar
Senior Consultant, DinarStandard

Report Coordinator and Travel Analyst Reem El Shafaki

Partner, DinarStandard

Modest Fashion Analyst, Indicator, and Sizing Lead Aaliya Mia

Senior Associate, DinarStandard

Halal Food Analyst Ebrahim Vahed

Consulting Manager, DinarStandard
Zainab Mansoor
Editor, SalaamGateway

Investments Lead Rianovel Mare

Senior Consultant, DinarStandard

Halal Pharmaceuticals and Cosmetics Sector Mohammed Ali Alghofiqi

Research Analyst, DinarStandard

Rianovel Mare
Senior Consultant, DinarStandard

Rozi Osman
Halal Industry Strategist

Media and Recreation Sector Kamil Echchihab

Research Analyst, DinarStandard

Islamic Economy Drivers Iman Ali

Consultant, DinarStandard

Social Media Listening Ahmed Abdallah

Junior Research Analyst, DinarStandard

Trade Analysis Mohammed Ali Alghofiqi

Research Analyst, DinarStandard

Ahmed Abdallah
Junior Research Analyst, DinarStandard

Islamic Finance Data LSEG Islamic Finance Team

Proofreading & Formatting Fareeha Ali

Junior Researcher

Marketing Waleed Yazdani

People & Ops, DinarStandard

Zainab Rehman
Marketing Assistant, DinarStandard

Delmar Zakaria Firdaus

Research Analyst

Creative Direction Ángel Monroy

@theangelmonroy

230 State of the Global Islamic Economy Report 2024/25

 DISCLAIMER
The data of this report is believed to be correct at the
time of publication but cannot be guaranteed. Please note
that the findings, conclusions, and recommendations that
DinarStandard has delivered are based on information
gathered in good faith from both primary and secondary
sources, whose accuracy we are not always in a position
to guarantee. The findings, interpretations, and conclu-
sions expressed in this report do not necessarily reflect
the views of DinarStandard. As such, the information
contained in this report is intended to provide general
information only and, as such, should not be considered
as legal or professional advice or a substitute for advice
covering any specific situation. DinarStandard specifically
disclaims all liability arising out of any reliance placed on
this material. DinarStandard makes no representations
or warranties of any kind, express or implied, about the
completeness, accuracy, reliability, or suitability of this
material for your purposes. The following companies that
have been referenced in the report are current clients of
DinarStandard: ICDT, ICIEC, Halal Product Development
Company (HPDC).

COPYRIGHT
DinarStandard 2025 All Rights Reserved. The material in
this report is subject to copyright. Given that DinarStandard
encourages dissemination of this report, this work may
be reproduced, in whole or in part, for non-commercial
purposes as long as full attribution to this work is given.
The attribution should clearly state that the report is
produced by DinarStandard.
CREDIT/UNSPLASH

Acknowledgments 231
Report Purpose
and Methodology

CONTEXT PURPOSE
The 57 OIC (Organization of Islamic Cooperation) countries The purpose of the State of the Global Islamic Economy
of the world represent close to 15% of global GDP (PPP). Report is to inspire and empower government officials,
Furthermore, the Muslim population exceeds 2 billion, rep- business leaders, entrepreneurs, and industry bodies to
resenting more than 25% of the global population, growing evaluate and develop an actionable, practical, and high-im-
at a faster pace than the overall global population, and pact market strategy focused on the global Islamic econ-
containing some of the fastest-growing global economies. omy. The 2024/25 State of the Global Islamic Economy
The influence of the Islamic economy stretches beyond the report presents the continued momentum of the global
OIC countries, as more than 500 million Muslims reside Islamic economy, highlighting progress during the past
as minorities in many non-Islamic countries. All over the year, taking the pulse of its fast-growing and young demo-
world, this fast-growing and relatively young population of graphic, related global trade flow, and, most importantly,
Muslims is increasingly asserting its Islamic sensitivities looking to future growth challenges and opportunities.
in the marketplace across lifestyle products.

232 State of the Global Islamic Economy Report 2024/25

CREDIT/UNSPLASH

Report Purpose and Methodology 233

Report Methodology

APPROACH region and gathering insights from 19 expert interviews

(shared below).
In addressing its purpose, the report incorporates a top-
down and bottom-up approach. This includes: SECONDARY RESEARCH AND PROPRIETARY
FRAMEWORKS
1. Primary research and frameworks used A range of sources have been used for evaluating related
to ensure a comprehensive understanding sector developments, including but not limited to
of developments, issues, and opportunities, SalaamGateway.com, international news sites (over 450
supplemented by extensive secondary stories analyzed and referenced in the report), multi-lateral
research. agency databases (UN, World Bank, IMF), and company
websites, supplemented by the extensive project-based
sector knowledge developed by DinarStandard.
PRIMARY RESEARCH The report provides a detailed analysis of opportu-
Original research of halal products, lifestyle, and Islamic nities and challenges across various sectors, drawing on
finance market developments was conducted by leveraging DinarStandard’s extensive consulting expertise and con-
the services of on-the-ground analysts from each global tinuous research in these industries.

Interviews

Halal Food Islamic Finance

İhsan Övüt, Rafe Haneef,
Secretary General, Group CEO,
OIC Standards and Metrology Institute for MBSB Holdings, Malaysia
Islamic Countries (SMIIC)

Muhammad Abbas Khan Prof. Dr Razali Haron,

Chief Strategy Officer, Head of Research & Innovation, Institute of
Tanmiah Islamic Banking and Finance, International
Islamic University Malaysia, Malaysia

Dr AbdulLatif Bello,
Member of Board of Directors,
Jaiz Bank, Nigeria

Madina Tukulova,
Head of Islamic Finance,
Astana International Financial Centre,
Kazakhstan

Mustafa Abdi Ali,

Chairman,
KIMS Microfinance, Somalia

234 State of the Global Islamic Economy Report 2024/25

 Interviews

Muslim-Friendly Travel Modest Fashion

Didem Zeynep Celebi,
Ruhat Ülgen Cengiz
Fashion Show Backstage Director, Fashion
General Manager,
Designer, and Founder,
Bera Alanya Hotel
The Celebi, Belgium

Basrie Kamba,
Abd Elmohaimen Mansi
RTL Chairman, and President Director,
Co-Founder,
PT Asia Pacific Rayon, Indonesia
Seeru

Min Luna,
Dr. Jens Thraenhart
Fashion Stylist, Creative Director,
Co-Founder,
Min Luna Creative Agency, Malaysia
High-Yield Tourism

Gary Bowerman
Founder & Managing Director,
Asia Travel Re:Set

Halal Pharmaceuticals Halal Cosmetics

Rozi Osman, Akmal Daffari,
Halal Industry Strategist, Channel Development Manager,
Rozi Osman International Paragoncorp

Selly Septiani,
Founder,
Hajime Skincare

Media and Recreation

Fateh Kimouche,
Founder,
Al Kanz

Temi Sumarlin,
Scarf Media,
Indonesia

Report Purpose and Methodology 235

2. Trade data analysis

The global halal trade analysis was retrieved and synthe-

sized by DinarStandard from the ITC Trade Map database,
using data downloaded in January 2025. The OIC imports
and their exporting markets are retrieved and synthesized
by DinarStandard from the ITC Trademap database, 2023.
The OIC import projections for 2023-2028 were forecast
using one of the following three methods: 1) Correlating GDP
with OIC imports 2) Using GDP CAGR, or 3) Forecasting using
historic import CAGR. The trade projections are assumed
to account for the impact of COVID-19, using the latest
IMF GDP growth projections released in October 2024.
Around 28 HS codes (2-digit) were analyzed. Food
product codes exclude the codes identified as haram (not
permissible to consume in Islam). Trade data on phar-
maceuticals and cosmetics is based on codes 30 and 33,
respectively. Fashion product codes include only apparel
and footwear trade codes. The categorization of products
for each sector is a result of DinarStandard’s proprietary
trade database and analysis.
CREDIT/USNPLASH

236 State of the Global Islamic Economy Report 2024/25

3. Universe market sizing: The value the LSEG Islamic Finance Development Indicator (IFDI),
of Muslim consumer spending across with banking estimates baselined from central bank data,
lifestyle sectors by country was developed and assumes full regulatory support in the core Islamic
by applying proprietary Muslim socio- finance markets (OIC countries) and 100% Muslim demo-
demographic multiplier to global sector- graphic penetration.
level market sizing data. Global Muslim market estimates are applied based on
DinarStandard’s Muslim population estimates per country,
Overall, the Islamic economy sector estimates are based which are adjusted for income disparities. Projections
on the potential universe of opportunity and focused were determined primarily by regressing historical annual
on its core audience of Muslim consumers globally. This growth of the relevant industry metrics on GDP growth
number does not represent the actual value of the global for each country, in many cases showing high correlation
Islamic or halal-certified products economy, but more while also comparing to external estimates by national
broadly, the total spend value that Muslims provide to the statistics agencies and global industry forecasts to tri-
referenced sectors. Islamic finance estimates are based on angulate historic and projected growth.

Universe Market Sizing Methodology Overview

Key Steps in Calculation (Summary) Key External Sources

1. Global lifestyle spend by sector (excl. Finance), US$ B

Comprises: (by country) National databases:

•  Food & beverage, •  International Comparison Programs (2021 baseline),
•  Footwear & Clothing, •  UN World Trade Organisation,
•  Pharma & Cosmetics, •  World Bank,
•  Media & Recreation, •  IMF,
•  DS Analysis and estimations

2. Muslim multiplier

Based broadly on: (by country) Census data:

•  Muslim % of population, DS Analysis and estimations,
•  Relative income levels,
•  Average family size,

Metrics Used To Calculate Muslim Spend For Individual Sectors

Muslim market Global spend metric, by country Sources used

•  Muslim spend on food and beverage •  Spend on food and non-alcoholic Baselined from the latest International
•  Muslim spend on apparel and footwear beverages Comparison Program values (2021),
•  Muslim spend on media and recreation •  Spend on clothing and footwear adjusted to more recent values from
•  Spend on culture and recreation national statistics agencies and GDP
evolution

UNWTO Tourism expenditure in

Muslim travel spend Spend on outbound travel
other countries

Muslim spend on pharmaceutical and Spend on pharmaceuticals and National statistics agencies; industry
personal care products cosmetics associations

Report Purpose and Methodology 237

CREDIT/UNSPLASH

Calculation of Number of Muslim Tourist Arrivals: Investments analyzed include mergers/acquisitions

The number of Muslim tourist arrivals was derived by (M&A), private equity (PE), and venture capital (VC) trans-
calculating the proportion of Muslims within the total actions. Where the nature of investment wasn’t clear, deal
inbound tourist arrivals to a specific country. values above US$ 15 million were assumed to be private
The total number of tourist arrivals per country in equity transactions based on trends observed in previous
2023 was obtained from UNWTO. The breakdown of the years’ data, while those with deal values between US$
tourist arrivals based on their country of origin was 500,000 and US$ 15 million were assumed to be venture
obtained from WTTO and applied to the total number capital transactions. We exclude VC angel investment
of tourist arrivals. To obtain the number of Muslim tour- rounds, initial public offerings (IPOs), and post-IPO debt
ists amongst these arrivals was derived by applying the from the analysis to focus on the core investment types
Muslim multiplier of the tourist country of origin. The relevant to the scope of this report.
top 5 source countries were provided. For the remaining Financial services companies operating in both con-
inbound tourists, a 5% Muslim proportion was applied ventional and Islamic finance were also assumed to belong
for non-OIC destination countries, and 55% was applied to the Islamic finance category.
for OIC destination countries. The scope of comparison has been altered from the
previous year’s report to widen the net and capture all
4. Investment Research relevant sector transactions to gain a more nuanced view
of investments in the broader sector. All charts and visu-
An extensive list of investments made in the OIC and alizations are organized based on the number of transac-
Islamic economy-specific investments outside the OIC tions rather than their value, prioritizing the frequency of
over the period August 2023 to July 2024, covering the activity. Transaction values, where presented, reflect the
food, pharmaceuticals, cosmetics, Islamic finance, media “Disclosed Value” as reported. However, it is important
and recreation, modest fashion, and travel sectors was to note that not all transactions have a disclosed value,
compiled based on research carried out across multiple which may lead to potentially misleading interpretations
databases including CapitalIQ, Crunchbase and vari- if not considered carefully.
ous other sources relevant to the investment transac- The content of this investment chapter is provided
tion information. This research was supplemented by for informational purposes only and should not be con-
DinarStandard’s own research and a scan of subsequent strued as investment advice. We assume no liability for
transactions identified by Salaam Gateway and other any actions or decisions taken based on the information
news publications in August 2024. contained in this report.

238 State of the Global Islamic Economy Report 2024/25

5. Global Islamic Economy Indicator •  Inform current and potential Islamic economy stake-
holders and investors about the industry’s performance

METHODOLOGY Country indicator level

In its eleventh year, the purpose of the GIEI is to benchmark •  Assess the current state of the Islamic economy in
the leading national ecosystems best able to support the each country
development of Islamic economy business activity relative •  Track changes over time and make comparisons
to their size. The GIEI is a composite weighted index that between regions and countries
measures the overall development of the Islamic economic
sectors across 81 key countries by assessing the perfor- Specific sector level
mance of its parts in line with its broader social obligations. •  Measure the sector’s health and development from
It comprises 52 metrics organized into five dimensions various perspectives
(financial, regulatory, awareness, social, innovation) for •  Enhance the sector’s market transparency and effi-
each of the seven sectors of the Islamic economy (Islamic ciency
finance, halal food, Muslim-friendly travel, modest fash-
ion, media/recreation, halal pharmaceuticals/cosmetics). The sector indicator score is a product of numerous key
sub-indicators underlining the industry. All components
Introduction are fundamental to the development of the industry as a
The GIEI is a global-level composite indicator with selected global business.
country and industry component-level indicators with the
following objectives:

Global indicator level

•  Present a single indicator to provide a pulse of the
global Islamic economy’s health and development
•  Provide an indicator that is reliable and unbiased
•  Provide a global view of the Islamic economic land-
scape

Global Indicator

Country Indicator

Sector Level

Halal Islamic Halal Modest Halal Pharma Halal Media

Food Finance Travel Fashion & Cosmetics & Recreation

Dimension
Level

Financial Financial Financial Financial Financial Financial

Governance Governance Governance Awareness Governance Awareness
Awareness Awareness Awareness Social Awareness Social
Social Social Social Innovation Social Innovation
Innovation Innovation Innovation Innovation

Report Purpose and Methodology 239

 The GIEI is calculated by applying a weightage to each
of the sector indicators. The weightage is fixed to give a
proportional importance to each sector. The weighting
is as follows:

SECTOR WEIGHTING

Media
and
Recreation
Halal 10%
Pharmaceuticals
and Cosmetics Halal Food
10% 30%

Modest
Fashion
10%

Muslim-
Friendly Travel
Islamic Finance
10%
30%

The different components that make up the indicator

are selected based on an outline of the industry’s key
constituents as a whole and are based on critical contem-
porary issues including financial, governance, awareness
& social developments. All are fundamentally important
for the development of the industry as a global business.

Data Collection
The data employed in the Global Islamic Economy Indicator
when aggregating data and computing indicator values
includes information that is publicly disclosed only. The
employment of disclosed information ensures the reliability
and consistency of the results.
CREDIT/USNPLASH

240 State of the Global Islamic Economy Report 2024/25

Indicator Calculation Methodology •  The Country Indicators are based on the arithmetic
The methodology for calculating the Indicator values has means of their individual Indicators
been developed based on the following key characteristics: •  The Individual sectors are based on the arithmetic
•  The absolute values should be adjusted or rationalized means of their Sub-indicators
based on the overall size of the country/economy to •  The Sub-Sectors are based on the sum of the metric
ensure comparability among countries values of their individual Metrics
•  The methodology should have minimal subjectivity •  The Metric Value is designed to be aggregated to
and be based on a consistent formula across metrics provide the Sub-Indicator Values
•  The Global Indicator is based on the arithmetic mean
of the individual Country Indicators

For numerical values (US$ amounts) and numbers (e.g., number of seminars or conferences):
Metric Absolute Value Metric Weight
= X
Value (Scale Value x Rationalizing Coefficient) 2

For percentage values (e.g., return on equity):

Metric Absolute Value Metric Weight
= X
Value Scale Value 2

For yes/no values (e.g., if there are regulations for Islamic banks):
Metric Value = Metric Weight if yes, 0 if no

Scale Value is the average for all absolute values for that The Metric Weight is designed to ensure that a particular
metric (not including zeros). This value forms the basis sub-indicators metrics are weighted to ensure that all
of our scale for that metric and will remain unchanged sub-indicators are comparable, regardless of the number
for future years. of metrics used to derive each.
This will ensure the development of the metric is not
restricted to a particular range, and the first year will
form the base year against which relative growth in the
metric is measured.

The Metric Weight is calculated as follows:

100
Metric Weight =
Total metrics within the Sub-Indicator

The Rationalizing Coefficient is specific to each country We have designed the Rationalizing Coefficient for
and is designed to adjust the scale based on the size of comparing the relevant country size based on their GDP
the country. This is designed to ensure the comparability and population. These are compared to the median value
of the indicator values across countries. for all countries so as not to be skewed by extreme values
at both ends of the scale.

GDP-Median GDP Population-Median Population

Rationalizing
= 1+
Average ( Median GDP
,
Median Population
)
Coefficient
4

Report Purpose and Methodology 241

Universe
All OIC countries are included along with non-OIC countries
that have a strong halal industry presence. A total of 81
countries are included.

GCC (Gulf Corporation Council) •  Netherlands •  Guinea-Bissau

•  Bahrain •  Bosnia and Herzegovina •  Ivory Coast
•  Kuwait •  Spain •  Kenya
•  Oman •  Russia •  Mali
•  Qatar •  Mauritania
•  Saudi Arabia Other MENA (Middle East & North •  Mozambique
•  United Arab Emirates Africa, Excluding GCC) •  Niger
•  Algeria •  Nigeria
Southeast Asia •  Egypt •  Senegal
•  Brunei Darussalam •  Iran •  Sierra Leone
•  Indonesia •  Iraq •  Somalia
•  Malaysia •  Jordan •  South Africa
•  Singapore •  Lebanon •  Togo
•  Thailand •  Libya •  Uganda
•  Mauritania
South Asia •  Morocco Others
•  Afghanistan •  Palestine •  Australia
•  Turkmenistan •  Sudan •  Azerbaijan
•  Bangladesh •  Syria •  China
•  India •  Tunisia •  Guyana
•  Maldives •  Yemen •  Kazakhstan
•  Pakistan •  Kyrgyzstan
•  Sri Lanka Sub-Saharan Africa •  Suriname
•  Benin •  Tajikistan
Europe •  Burkina Faso •  United States
•  Albania •  Cameroon •  Uzbekistan
•  France •  Chad •  Canada
•  Germany •  Comoros •  Philippines
•  Italy •  Djibouti •  Japan
•  Türkiye •  Gabon •  South Korea
•  United Kingdom •  Gambia •  Taiwan
•  Belgium •  Guinea

242 State of the Global Islamic Economy Report 2024/25

 Special Features: Social Media Listening

OBJECTIVE AND APPROACH

The analysis aimed to capture and quantify shifts in
Muslim-consumer purchasing conversations between
October 2023 and March 2025, as influenced by major
global events.
A combined top-down/bottom-up approach guided
the study, framing broad questions about sectoral and
behavioral shifts while iteratively refining the data pipeline
based on emerging hashtags, brand names, and multilin-
gual terms for alternatives.

Primary research – social-media corpus

Two sequential Twitter data pulls were conducted using
the Academic API:
•  A baseline scan (855 tweets) covering general pur-
chasing and ethical consumption discourse.
•  An expanded scan (4,551 tweets) focused on multi-
lingual terms related to “alternatives” and specific
brands.

Data spanned Arabic, Bahasa, English, and French, serving

as linguistic proxies for global Muslim audiences. After
cleaning (removal of retweets, duplicates, spam, and off-
topic posts), the dataset was reduced to 3,263 tweets,
normalized for consistency.
Feature engineering and clustering
The raw dataset (175 columns) was streamlined to 22 ana-
lytic features, capturing sentiment scores (via VADER,
ARBERT, IndoBERT-lite), keyword frequencies (TF-IDF),
engagement metrics, and rule-based sector tags. Topic
validation was performed using UMAP and k-medoids
clustering, supporting industry-level labeling across cat-
egories like food & beverage, fashion, cosmetics, and tech.

Secondary research – contextual enrichment

Relevant financial headlines, company filings, and macro-
economic indicators were aligned with sentiment shifts
for reference only – no causal modeling was performed.
Supplementary brand-sector dictionaries supported accu-
rate labeling.
CREDIT/SHUTTERSTOCK

Limitations
Language detection provides a useful but imperfect proxy
for audience variety distribution, and sentiment tools
may vary in accuracy across languages. Nevertheless, the
methodology offers a reliable and reproducible framework
for understanding how global events shaped Muslim-
consumer conversations over the study period.

Report Purpose and Methodology 243

CREDIT/PEXELS

244 State of the Global Islamic Economy Report 2024/25

State of the Global Islamic Economy Report 2024/25 245
Endnotes
1 Pew Research Center, “The Future of World Religions: Population Growth Projections, 2010-2050”, April 2, 2015
2 IMF World Economic Outlook (October 2024)
3 https://www.comcec.org/wp-content/uploads/2024/05/3-Summary-report-on-trade.pdf
4 https://www.comcec.org/wp-content/uploads/2024/05/3-Summary-report-on-trade.pdf
5 IMF World Economic Outlook (October 2024)
6 https://www.pewresearch.org/short-reads/2024/08/09/where-is-the-most-religious-place-in-the-world/#the-complexities-of-measuring-religiosity-globally
7 https://www.pewresearch.org/short-reads/2024/08/09/where-is-the-most-religious-place-in-the-world/#the-complexities-of-measuring-religiosity-globally
8 Digital 2024: Global Overview Report
9 https://www.mobiloud.com/blog/ecommerce-market-size-by-country
10 https://hbr.org/2019/07/the-elusive-green-consumer
11 https://www.smiic.org/mysql/upload/files/202412/676a735936b52-1735029593.pdf
12 https://spa.gov.sa/en/N2231016
13 https://www.reuters.com/world/middle-east/saudi-arabia-taps-state-funds-anchor-foreign-investment-kingdom-2024-11-01
14 https://www.ft.com/content/f0babafc-57e6-434f-9d94-013c312dc0f9
15 https://www.reuters.com/world/middle-east/saudi-arabian-fdi-stalls-52-bln-second-quarter-despite-reform-drive-2024-09-30/
16 https://unctad.org/publication/world-investment-report-2024/
17 https://www.comcec.org/wp-content/uploads/2024/05/3-Summary-report-on-trade.pdf
18 https://www.forbes.com/sites/sarwantsingh/2025/01/22/top-15-global-trends-for-2025/
19 https://www.statista.com/statistics/1412425/gdp-ppp-share-world-gdp-g7-brics/
20 https://www.cambridge.org/core/elements/can-brics-dedollarize-the-global-financial-system/0AEF98D2F232072409E9556620AE09B0
21 Jaax, A., S. Miroudot and E. van Lieshout (2023), “Deglobalisation? The reorganisation of global value chains in a changing world”, OECD Trade Policy Papers, No. 272,
OECD Publishing, Paris, https://doi.org/10.1787/b15b74fe-en.
22 https://www.bloomberg.com/news/articles/2019-01-08/world-s-biggest-economies-seen-dominated-by-asian-ems-by-2030
23 https://www.imf.org/en/Publications/WEO/Issues/2025/01/17/world-economic-outlook-update-january-2025
24 https://www.imf.org/en/Publications/WEO/Issues/2024/04/16/world-economic-outlook-april-2024
25 https://hbr.org/2024/12/2024-was-a-bad-year-for-sustainability?ab=at_art_art_pb_1x4_s01
26 https://www.worldbank.org/en/news/press-release/2024/10/31/1-2-billion-people-at-high-risk-from-climate-change-worldwide
27 https://wmo.int/media/news/climate-change-impacts-grip-globe-2024
28 https://www.macrotrends.net/global-metrics/countries/wld/world/fertility-rate
29 https://www.prb.org/articles/highlights-from-the-2024-world-population-data-sheet/
30 https://www.prb.org/articles/highlights-from-the-2024-world-population-data-sheet/
31 https://www.pewresearch.org/religion/2011/01/27/future-of-the-global-muslim-population-main-factors/
32 https://www.ft.com/content/0491811a-4884-48f0-bd1e-255aaf5e9332
33 https://www.forbes.com/sites/bernardmarr/2023/07/24/the-difference-between-generative-ai-and-traditional-ai-an-easy-explanation-for-anyone/
34 https://www.bloomberg.com/professional/insights/data/generative-ai-races-toward-1-3-trillion-in-revenue-by-2032/
35 https://www.pwc.com/m1/en/media-centre/articles/why-the-middle-east-is-betting-big-on-ai.html
36 How Can AI Help the Global Halal Industry? - The Halal Times
37 https://www.weforum.org/stories/2024/01/artificial-intelligence-ai-innovation-technology-davos-2024/
38 https://www.amnesty.org/en/latest/news/2024/12/amnesty-international-concludes-israel-is-committing-genocide-against-palestinians-in-gaza/
39 https://www.theguardian.com/us-news/article/2024/jul/30/mcdonalds-same-store-sales-fall-worldwide-for-first-time-since-2020
40 https://investor.starbucks.com/news/financial-releases/news-details/2024/Starbucks-Reports-Q2-Fiscal-2024-Results/default.aspx
41 https://www.channelnewsasia.com/asia/malaysia-kfc-closures-boycott-gaza-conflict-4302296
42 https://www.aa.com.tr/en/economy/yum-brands-terminates-franchise-deals-in-turkiye-for-kfc-pizza-hut/3445267
43 https://economictimes.indiatimes.com/news/international/business/coca-cola-and-pepsico-lose-popularity-to-local-cola-brands-due-to-boycott-over-gaza-in-
muslim-countries/articleshow/113064771.cms?
44 https://www.reuters.com/business/retail-consumer/coke-pepsi-boycott-over-gaza-lifts-muslim-countries-local-sodas-2024-09-04/
45 ibid
46 ibid
47 https://www.aa.com.tr/en/middle-east/facing-boycott-over-support-for-israel-carrefour-shutters-stores-in-jordan/3384128
48 https://www.thenationalnews.com/business/economy/2025/01/10/why-has-majid-al-futtaim-closed-its-carrefour-stores-in-oman-and-jordan/
49 ibid
50 https://www.techinasia.com/news/malaysias-coffee-chain-add-200-sea-stores-dethrones-starbucks
51 https://www.nst.com.my/business/corporate/2024/10/1127084/starbucks-malaysia-denies-shutting-more-100-outlets-following
52 https://theedgemalaysia.com/node/739342
53 https://www.thenationalnews.com/news/uae/2025/02/19/coca-cola-boycott-2025-palestine-gaza/
54 https://economictimes.indiatimes.com/news/international/business/coca-cola-and-pepsico-lose-popularity-to-local-cola-brands-due-to-boycott-over-gaza-in-
muslim-countries/articleshow/113064771.cms
55 https://www.arabnews.com/node/2570049/pakistan
56 https://www.thenationalnews.com/news/uae/2025/02/19/coca-cola-boycott-2025-palestine-gaza/
57 https://www.aa.com.tr/en/world/palestine-cola-takes-off-amid-global-boycott-of-pro-israel-western-companies/3175163
58 https://www.aljazeera.com/features/2024/11/23/genocide-free-cola-makes-a-splash-in-the-united-kingdom
59 https://www.halaltimes.com/boycott-boost-how-indonesian-and-malaysian-brands-are-benefiting/#:~:text=collective%20action%2C%20and%20a%20
boost,consumers%20actively%20choosing%20local%20alternatives
60 https://www.marketing-interactive.com/study-local-my-brands-thrive-amid-consumer-led-brand-boycotts
61 https://www.tbsnews.net/economy/mojos-gaza-aid-also-rockets-its-sales-807686
62 https://www.arabnews.com/node/2570049/pakistan
63 https://www.elcompanies.com/en/news-and-media/newsroom/press-releases/2023/02-02-2023-114522448
64 SAPMENA-SSA South Asia Pacific, Middle East, North Africa, Sub-Saharan Africa.
65 https://www.loreal-finance.com/eng/2024-universal-registration-document/en/article/36/
66 https://www.theguardian.com/fashion/2025/jun/15/modest-fashion-headed-for-mainstream-despite-political-hostility-say-experts
67 https://play.google.com/store/apps/details?id=com.boycat.app&hl=en

246 State of the Global Islamic Economy Report 2024/25

68 https://play.google.com/store/apps/details?id=com.bashsoftware.boycott&hl=en&pli=1
69 https://play.google.com/store/apps/details?id=com.boycat.app&hl=en&pli=1
70 https://www.buycat.shop/
71 https://www.pwc.com/m1/en/publications/voice-of-the-consumer-2024-survey-saudi-arabia-findings.html
72 https://www.moj.gov.ae/en/artificial-intelligence.aspx
73 https://www.csis.org/analysis/united-arab-emirates-ai-ambitions
74 https://strategyopt.com/articles/food-security-in-the-kingdom-of-bahrain-opportunities-and-challenges
75 https://www.bahrain.bh/wps/portal/en/BNP/ExploreBahrain/FoodSafetyAndSecurity
76 https://www.mumtalakat.bh/news-media/press-releases/supporting-national-food-security-priority-initiatives-mumtalakat-establishes-bahrain-food-holding-
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77 https://energynews.pro/en/senegal-sangomar-exceeds-oil-production-targets-for-2024
78 https://www.bloomberg.com/news/articles/2024-12-30/senegal-s-economic-growth-jumps-spurred-by-oil-production
79 https://www.reuters.com/business/energy/senegals-2024-oil-output-sangomar-beat-target-ministry-says-2025-01-07
80 https://www.capmad.com/energy-en/senegal-oil-production-exceeds-forecasts-in-2024
81 https://www.africa-newsroom.com/press/islamic-corporation-for-the-insurance-of-investment-and-export-credits-iciec-supported-highway-and-road-program-in-
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82 https://icdt-cidc.org/wp-content/uploads/ICDT-OIC-Halal-Economy-Report.pdf
83 https://www.sucden.com/en/news-and-reports/sucden-completes-acquisition-of-a-minority-stake-in-moroccan-sugar-business-cosumar/
84 https://www.businesstimes.com.sg/companies-markets/banking-finance/australias-anz-exits-malaysian-lender-ammb-us149-million-stake-sale/
85 https://www.ifc.org/en/pressroom/2023/ifc-mediterrania-capital-fmo-invest-in-cashplus-to-boost-financial-inclusion-in-morocco#:~:text=Marrakech%2C%20
Morocco%2C%20October%2010%2C,global%20remittances%2C%20digital%20transfers%2C%20bill
86 https://www.fdiintelligence.com/content/opinion/global-fdi-prospects-for-2025-84338
87 https://mediaroom.jbs.com.br/noticia/jbs-to-quadruple-production-in-saudi-arabia-with-new-plant
88 https://www.brecorder.com/news/40310322/pakistans-ismail-industries-to-set-up-subsidiary-in-uae
89 https://www.nestle-mena.com/en/media/pressreleases/allpressreleases/nestle-signs-agreement-modon-establish-its-first-food-factory-saudi-arabia-270
90 https://www.zawya.com/en/press-release/companies-news/al-ghurair-foods-breaks-ground-on-poultry-processing-plant-at-kezad-in-abu-dhabi-wvckqpcb
91 https://www.tamimimarkets.com/News
92 https://www.isdb.org/news/isdb-approves-us-57563-million-in-financing-to-accelerate-job-creation-food-security-quality-education-energy-access-and-regional-
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93 https://www.isdb.org/news/isdb-approves-us418-million-to-boost-clean-energy-food-security-and-transport-in-tajikistan-benin-cote-d-ivoire-and-turkiye
94 https://www.isdb.org/news/islamic-development-bank-and-kazakhstan-launch-132-billion-climate-resilient-water-project
95 https://www.afdb.org/en/news-and-events/press-releases/african-development-bank-approves-50-million-loan-support-climate-change-resilience-improve-
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96 https://www.adb.org/news/adb-city-group-partner-to-build-energy-efficient-oilseed-crushing-plant-support-food-security-bangladesh
97 https://www.afdb.org/en/news-and-events/press-releases/chad-african-development-fund-approves-grant-usd-11-million-increase-rice-production-through-
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98 https://www.afdb.org/en/news-and-events/press-releases/togo-african-development-bank-grants-loan-over-usd-26-million-develop-key-agricultural-sectors-
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99 https://www.pureingredients.eu/en/news/goodlife-foods-to-acquire-pure-ingredients/
100 https://www.foodnavigator.com/Article/2025/01/27/isla-delice-buys-german-halal-brand-to-become-industry-giant/
101 https://www.perwyn.com/isla-delice-launches-in-the-uk/
102 https://www.bna.bh/en/MumtalakatestablishesBahrainFoodHoldingCompany.aspx?cms=q8FmFJgiscL2fwIzON1%2BDvOHtYoLvowd6KFVJ4X%2FJRM%3D
103 https://www.neom.com/en-us/newsroom/neom-announces-topian
104 https://www.afdb.org/en/news-and-events/burkina-faso-government-african-development-bank-launch-project-bolster-food-security-68614
105 https://www.businessincameroon.com/agriculture/1812-13570-cameroon-invests-cfa10-5bn-to-boost-rural-food-security
106 https://invest.gov.kz/media-center/press-releases/domestic-producer-embarks-on-poultry-farm-construction-project-in-almaty-region/
107 https://www.baladna.com/storage/uploads/Baladna_ALgeria%20Press%20Release%202024%20Eng.pdf
108 https://nigerfoods.com/2024/09/18/niger-state-government-signs-multi-billion-dollar-soya-beans-off-take-with-turkish-company/
109 https://www.bloomberg.com/news/articles/2024-07-07/algeria-italian-firm-sign-455-million-deal-for-farming-project
110 https://www.wamda.com/en/2024/05/grubtech-raises-15-million-series-b-led-jahez
111 https://www.wamda.com/2024/09/io-kitchens-secures-2-8-million-seed-round
112 https://www.wamda.com/2024/08/MealPlanet-raises-6-million-seed-english
113 https://www.wamda.com/2024/09/entlaq-acquires-stake-egypt-brotinni
114 https://www.wamda.com/2024/05/morocco-yola-fresh-closes-7-million-pre-series-a-round
115 https://www.wamda.com/2024/12/calo-raises-25-million-series-b-eying-saudi-ipo-2027
116 https://www.bernama.com/en/news.php?id=2388512
117 https://trade57.ai/
118 https://www.nst.com.my/business/corporate/2024/11/1131399/serunai-commerce-unveils-scan-halal-logo-feature-ai-powered-app
119 https://www.cnnindonesia.com/nasional/20241114081837-20-1166421/bpjh-ingin-bikin-super-apps-genjot-sertifikasi-halal
120 https://www.mdpi.com/2076-3417/14/19/8944
121 https://www.zawya.com/en/press-release/companies-news/uae-based-pure-food-technology-unveils-game-changing-innovation-in-vertical-farming-to-offer-food-
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122 https://www.zawya.com/en/press-release/companies-news/edamah-and-badia-farms-partner-on-innovative-new-agricultural-project-in-bahrain-f202t98i
123 https://masdarcity.ae/news-and-media/news/2024/02/21/masdar-city-and-alesca-join-forces-to-launch-vertical-smart-farm-project
124 https://www.azernews.az/business/216457.html
125 https://en.antaranews.com/news/329282/indonesias-bpjph-signs-52-halal-certification-deals-with-24-countries?utm_source=antaranews&utm_
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126 https://thesun.my/malaysia-news/jakim-recognises-five-additional-foreign-halal-certification-bodies-MG13159126
127 https://www.mafra.go.kr/bbs/english/25/573673/download.do
128 https://www.moec.gov.ae/documents/20121/1347101/UAE+-+Turkey+CEPA-+English+version+%28004%29.pdf/fc3cb5bc-e677-af67-756d-
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129 https://www.wam.ae/en/article/b4dfd0u-uae-morocco-finalise-terms-comprehensive-economic
130 https://www.wam.ae/en/article/b5m2urq-uae-malaysia-conclude-negotiations-towards-cepa
131 https://astanatimes.com/2024/08/kazakhstan-turkiye-sign-2-billion-investment-agreements-in-agriculture/
132 https://jakartaglobe.id/business/indonesia-pushes-for-halal-value-chain-among-d8-economies
133 https://www.brecorder.com/news/40300241/the-organic-meat-company-secures-another-4mn-export-contract-to-uae-firm#:~:text=Pakistani%20meat%20
processor%20The%20Organic,Exchange%20(PSX)%20on%20Thursday.
134 https://www.reuters.com/article/brazil-algeria-poultry/brazil-agrees-chicken-export-deal-with-algeria-in-latest-halal-market-push-idINL1N3BI2KH/
135 https://www.zawya.com/en/economy/north-africa/egypt-to-import-livestock-from-somalia-djibouti-to-curb-meat-prices-sz9k47qk
136 https://www.thestar.com.my/news/nation/2024/10/03/malaysia-inks-deal-pakistan-to-import-halal-meat-and-basmati-rice#:~:text=ISLAMABAD%3A%20

Endnotes 247
 Following%20a%20successful%20bilateral,and%20Basmati%20rice%20from%20Pakistan.
137 https://www.bernama.com/en/news.php/?id=2338980
138 https://www.arabnews.com/node/2460926/business-economy
139 https://imprensa.brf-global.com/en/news/brf-and-hpdc-announce-strategic-investment-in-saudi-company-to-boost-halal-chicken-market-in-the-middle-east/
140 https://www.halaltimes.com/hpdc-boosts-saudi-halal-food-production-with-aldella-investment/
141 https://saudigazette.com.sa/article/649698/SAUDI-ARABIA/Makkah-Halal-Forum-focuses-on-sustainability-of-halal-economy-and-global-market-challenges
142 https://www.wattagnet.com/regions/middle-east/article/15546783/tanmiah-mhp-strengthen-poultry-production-partnership
143 https://www.spa.gov.sa/en/N2113097
144 https://www.moroccoworldnews.com/2024/11/366579/morocco-tightens-rules-on-imported-red-meat-with-strict-halal-standards
145 https://halalfocus.net/bangladesh-first-ever-policy-on-halal-certification-comes-to-light/
146 https://www.pmo.gov.bh/en/article/hrh-crown-prince-and-prime-minister-issues-edict-61-of-2024
147 https://economictimes.indiatimes.com/news/economy/foreign-trade/india-sets-new-guidelines-for-halal-meat-exports-effective-october-16/articleshow/113856527.
cms?from=mdr
148 https://senatedemocrats.wa.gov/wilson/2024/03/26/wilson-bill-to-safeguard-integrity-of-halal-foods-signed-into-law/
149 https://www.foodnavigator-asia.com/Article/2024/07/31/indonesia-s-new-halal-certification-system-for-international-companies-expected-to-boost-food-and-
beverage-trade/#:~:text=%C2%A9Getty%20Images-,The%20Indonesian%20government%20has%20launched%20a%20new%20halal%20certification%20
system,including%20for%20foods%20and%20beverages.
150 https://www.pna.gov.ph/articles/1240109
151 https://www.bernama.com/en/news.php?id=2293706
152 https://www.kemendag.go.id/berita/foto/rapat-koordinasi-kementerian-perdagangan-dengan-komite-nasional-ekonomi-dan-keuangan-syariah
153 https://vietnamnews.vn/economy/1654538/viet-nam-launches-national-halal-certification-authority.html
154 https://bpjph.halal.go.id/en/detail/phasing-period-ends-halal-certification-obligation-takes-effect-starting-october-18-2024
155 https://www.scmp.com/news/hong-kong/society/article/3283089/top-muslim-body-hong-kong-aims-certify-500-halal-restaurants-amid-tourism-push
156 https://timesofindia.indiatimes.com/etimes/trending/yogi-government-bans-halal-certified-products-what-is-halal/articleshow/105386049.cms
157 https://timesofindia.indiatimes.com/india/now-only-muslim-meal-to-have-halal-certificate-air-india/articleshow/115188507.cms#:~:text=Air%20India%2C%20
after%20merging%20with,all%20meals%20will%20be%20halal.
158 https://www.gaia.be/en/news/slaughter-without-stunning-european-court-upholds-ruling
159 https://albatros-expeditions.com/sites/default/files/files/Launch_Halal_Cruise_2026.pdf
160 https://www.muis.gov.sg/Media/Media-Releases/2024/2/3-Feb-24-Fatwa-on-Cultivated-Meat
161 https://www.ift.org/news-and-publications/food-technology-magazine/issues/2024/october/columns/technology-driven-flavors
162 https://ift.onlinelibrary.wiley.com/doi/10.1111/1541-4337.70068
163 https://www.wam.ae/en/article/b3h9y4r-technical-group-launched-support-implementation
164 https://unfccc.int/sites/default/files/resource/Summary_GCA_COP28.pdf
165 https://www.wfp.org/news/egypts-ministry-planning-economic-development-and-international-cooperation-wfp-announce
166 https://www.un-pageindonesia.org/en/publication/read/circular-economy-roadmap-and-national-action-plan-for-2025-2045
167 https://www.halaltimes.com/canadas-first-halal-food-bank-opens-in-ontario-to-support-local-communities/
168 https://www.tastingtable.com/1779939/costco-dubai-chocolate-box/
169 https://www.theenvironmentalblog.org/2024/12/milaf-cola/?
170 https://elpais.com/gastronomia/2024-09-24/los-agricultores-de-murcia-que-se-reinventaron-creando-un-jamon-halal-para-todo-tipo-de-consumidores.html
171 https://www.reuters.com/business/retail-consumer/coke-pepsi-boycott-over-gaza-lifts-muslim-countries-local-sodas-2024-09-04/
172 https://www.reuters.com/business/retail-consumer/coke-pepsi-boycott-over-gaza-lifts-muslim-countries-local-sodas-2024-09-04/
173 https://www.arabnews.com/node/2514896/saudi-arabia
174 https://www.ynetnews.com/business/article/sj98rrj2r?
175 https://www.foodnavigator-usa.com/Article/2024/10/14/consumers-turn-to-mood-elevating-zero-proof-beverages-as-product-launches-slowdown-spins-finds/
176 https://www.bevindustry.com/articles/97136-functional-beverage-market-expands-to-meet-consumer-expectations
177 https://cosmeticsbusiness.com/pepsico-backs-prebiotics-with-poppi-purchase
178 https://nielseniq.com/global/en/insights/analysis/2024/wellness-trends-influencing-consumers- in-2024
179 https://www.nutritionnews.abbott/healthy-living/diet-wellness/a-look-at-2024-nutrition-trends/
180 https://www.isdb.org/news/icma-isdb-and-lseg-publish-guidance-on-green-social-and-sustainability-sukuk
181 https://www.ifsb.org/press-releases/ifsb-and-bangko-sentral-ng-pilipinas-successfully-delivered-two-industry-consultation-sessions-for-local-regulators/
182 https://www.isdb.org/news/islamic-development-bank-and-kazakhstan-launch-132-billion-climate-resilient-water-project
183 https://www.isdb.org/news/isdb-issues-us-2-billion-sukuk-in-first-benchmark-of-the-year
184 https://www.isdb.org/news/isdb-raises-us-125-billion-through-second-public-sukuk-of-2024
185 https://www.isdb.org/news/isdb-taps-capital-markets-for-eur-500-million-sukuk
186 https://icd-ps.org/en/news/icd-returns-to-the-dollar-market-with-tight-five-year-print
187 https://www.brecorder.com/news/40322721/non-bank-financial-sector-secp-drafts-strategic-action-plan-for-islamic-finance-development
188 https://www.brecorder.com/news/40324059
189 https://www.islamicfinancenews.com/kuwait-cma-begins-roadmap-development.html
190 https://www.zawya.com/en/business/m-a/kuwaits-gulf-bank-boubyan-bank-call-off-merger-plans-opyzvp0y
191 https://theedgemalaysia.com/node/727368
192 https://www.digitalnewsasia.com/business/aeon-bank-launches-first-islamic-digital-bank-malaysia
193 https://globalexchanges.com/latest-news/indonesia-ojk-issues-rules-on-issuance-and-reporting-of-regional-bonds-and-sukuk/139440/
194 https://www.fitchratings.com/research/insurance/indonesia-takaful-dashboard-2024-20-02-2024
195 https://www.islamicfinancenews.com/daily-cover-story-podcast-philippines-looks-to-operate-around-10-islamic-banks-over-next-four-years-government-official-
says.html
196 https://business.inquirer.net/479214/bangsamoro-govt-to-buy-80-of-islamic-bank-from-dbp
197 https://www.mifc.com/-/maybank-philippines-inaugurates-zamboanga-islamic-banking-unit
198 https://www.saudiexchange.sa/wps/wcm/connect/tadawul_en/sa-tadawul/sa-pricesandindeces/sa-news/sa-marketnews/ct-marketnews-+cma1+13-11-2024
199 https://www.spa.gov.sa/en/N2078704
200 https://www.zawya.com/en/economy/islamic-economy/nasdaq-dubai-welcomes-500mlnn-sustainability-sukuk-by-kuwaits-warba-bank-yjniii7z
201 https://www.djppr.kemenkeu.go.id/en/republicofindonesiasuccessfullypricedaus$2.35billionglobalsukuk
202 https://www.tanzaniainvest.com/finance/capitalmarkets/tanzanias-first-sukuk-issued-by-non-financial-entity
203 ibid
204 https://www.bakhtarnews.af/en/agriculture-ministry-launches-two-new-islamic-financial-contracts-for-agricultural-development/
205 https://www.kfh.com/en/home/Personal/news/2024/KFH-Signs-Global-Takaful-Alliance-Agreement-with-UNDP.html
206 https://www.islamicfinancenews.com/aub-egypts-conversion-completed.html
207 https://www.kfh.com.my/malaysia/personal/announcements/Kuwait-Finance-House-Announces-Strategic-Transition-in-Malaysian-Market0.html
208 https://www.zawya.com/en/business/banking-and-insurance/kuwait-finance-house-sells-entire-stake-in-sharjah-islamic-bank-for-351mln-w1ntqgc8

248 State of the Global Islamic Economy Report 2024/25

209 https://astanatimes.com/2024/10/qatars-lesha-bank-finalizes-acquisition-of-kazakhstans-bereke-bank/
210 https://www.islamicfinancenews.com/us-bank-launches-islamic-banking-division-prepares-for-expansion.html
211 https://www.fitchratings.com/research/islamic-finance/indonesian-islamic-banks-dashboard-2024-07-02-2024
212 https://www.reuters.com/business/finance/salaam-bank-launches-ugandas-first-islamic-bank-2024-03-27/
213 https://www.islamicfinancenews.com/daily-cover-story-islamic-financial-services-provider-launches-russias-first-digital-sukuk.html
214 https://www.argaam.com/en/article/articledetail/id/1757370
215 https://www.aramco.com/en/news-media/news/2024/aramco-announces-completion-of-a-$3-billion-international-sukuk-issuance
216 https://www.argaam.com/en/article/articledetail/id/1771851
217 https://www.zawya.com/en/economy/islamic-economy/saudis-pif-to-issue-benchmark-sukuk-green-bond-issuances-gpqyc2fd
218 https://www.bernama.com/en/news.php/news.php?id=2344802
219 https://www.islamicfinancenews.com/daily-cover-story-zambian-property-developer-secures-regulatory-approval-for-sukuk-issuance.html
220 https://www.tvf.com.tr/en/contact/disclosures/2024/en-contact-disclosures-2024-turkiye-wealth-fund-sukuk-issuance-draws-record-demand-1729266668029
221 https://citywire.com/za/news/satrix-launches-sa-s-first-shariah-compliant-etf-with-offshore-exposure/a2453670
222 https://www.gibcapital.com/newsroom/gib-capital-launches-a-sharia-compliant-saudi-fund-to-invest-in-the-indian-equity-markets/gold-ba
223 https://www.zawya.com/en/markets/equities/saudi-regulator-approves-public-offering-of-gib-opportunistic-indian-equity-fund-ik4bwebz
224 https://www.islamicfinancenews.com/daily-cover-story-wealth-management-firm-in-uk-launches-shariah-compliant-fund-for-global-investors.html
225 https://kun.uz/en/news/2024/10/21/alif-uzbekistan-secures-5-million-credit-line-from-cur8-capital-to-expand-nasiya-retail-financing
226 https://www.egypttoday.com/Article/3/132928/EGX-launches-first-Sharia-compliant-index-during-Wednesday-trading
227 https://www.wamda.com/2024/10/gii-adds-100-million-capital-boost-growth-plans
228 https://salaamgateway.com/story/uaes-gii-acquires-160m-stake-in-saudis-abeer-medical-company
229 https://www.prweb.com/releases/fintactics-announces-new-strategic-partnership-with-ethos-invest-and-arbah-capital-to-invest-in-early-stage-fintech-
businesses-302237688.html
230 https://www.islamicfinancenews.com/bokra-closes-pre-seed-round.html
231 https://www.islamicfinancenews.com/mamun-ventures-allocates-funding.html
232 https://www.zawya.com/en/press-release/companies-news/gold-backed-stablecoin-deenar-expands-global-access-with-onramp-money-listing-lraiijm0
233 https://fintechnews.my/43761/wealthtech-malaysia/kapital-dx-debuts-rm150-million-tokenised-shariah-compliant-offering/
234 https://kldx.com/news/kldx-and-kopetro-forge-strategic-partnership-to-democratize-private-market-investments-promoting-financial-inclusion-wealth-
generation/
235 https://www.thoughtmachine.net/press-releases/ethos
236 https://tech.eu/2024/07/12/sharia-compliant-digital-bank-ethos-looks-to-shake-up-industry/
237 https://cma.org.sa/en/Market/News/pages/CMA_N_3553.aspx
238 https://www.islamicfinancenews.com/hala-receives-license.html
239 https://www.islamicfinancenews.com/daily-cover-story-singapore-based-agribusiness-returns-to-market-with-first-listed-islamic-profit-participating-notes-
issuance.html
240 https://www.argaam.com/en/article/articledetail/id/1702816
241 https://www.argaam.com/en/article/articledetail/id/1694823
242 https://www.argaam.com/en/article/articledetail/id/1753464
243 https://shariyah.net/al-mamoon-insurance-broker-company-ltd-receives-sharia-certification/
244 https://www.bnm.gov.my/-/ed-taawun
245 https://theedgemalaysia.com/node/733255
246 https://www.islamicfinancenews.com/launch-of-maqasid-shariah-scorecard-north-star-for-takaful-industry.html
247 https://www.bernama.com/en/news.php?id=2311927
248 https://www.fitchratings.com/research/insurance/indonesia-takaful-dashboard-2024-20-02-2024
249 https://www.fitchratings.com/research/insurance/indonesia-takaful-sectors-new-capital-requirements-to-shape-sector-dynamics-20-02-2024
250 https://www.bernama.com/en/news.php?id=2353610
251 https://www.prnewswire.com/news-releases/near-east-foundation-launches-siraj-financial-services-to-expand-micro-and-small-enterprise-financing-in-northern-
syria-302063458.html https://www.prnewswire.com/news-releases/near-east-foundation-launches-siraj-financial-services-to-expand-micro-and-small-enterprise-
financing-in-northern-syria-302063458.html
252 https://akhuwat.org.pk/akhuwat-islamic-microfinance/
253 https://www.thestar.com.my/business/business-news/2024/12/11/worlds-first-waqf-linked-etf-debuts-on-bursa
254 https://www.islamicfinancenews.com/daily-cover-story-islamic-financial-services-provider-launches-russias-first-digital-sukuk.html
255 https://itweb.africa/content/xA9PO7NEyJJvo4J8
256 https://www.tehrantimes.com/news/500254/Iran-s-central-bank-unveils-CryptoRial
257 https://mugglehead.com/pakistani-policy-proposal-could-lead-to-central-bank-digital-currency-adoption/
258 https://www.digitalnewsasia.com/business/aeon-bank-launches-first-islamic-digital-bank-malaysia
259 https://www.spa.gov.sa/en/N2078704
260 https://fintechnews.my/43761/wealthtech-malaysia/kapital-dx-debuts-rm150-million-tokenised-shariah-compliant-offering/
261 https://amlwatcher.com/news/the-central-bank-of-iran-approves-policy-and-regulatory-framework-for-cryptocurrencies/
262 https://www.argaam.com/en/article/articledetail/id/1769108
263 https://www.bnm.gov.my/-/pd-ibw-en
264 https://www.islamicfinancenews.com/daily-cover-story-uzbekistan-discusses-introduction-of-green-sukuk-regulations-and-issuances-with-partners.html
265 https://skift.com/2024/07/18/dubais-mohamed-alabbar-to-develop-tourism-projects-in-indonesia-worth-3-billion/?utm_campaign=Newsletter%20
%7C%20RSS%20-%20Wanderlust&utm_medium=email&_hsenc=p2ANqtz-_4NM-gtReHZ15oWIRMtOCH1ZIl305Ptrk9lvnvSBSE0Y4Bs4jF-J4yoXyvCA57Be-1-
o3kCWZ4ekLZJ9NX8wiGUN0P5WMwI1W-fRFTTQtqzYlp0LE&_hsmi=316357875&utm_content=316357875&utm_source=hs_email
266 https://www.zawya.com/en/world/middle-east/philippines-seeks-qatar-backing-for-halal-tourism-boost-f0mm95k9
267 https://dailythedestination.com/saudia-arabia-keen-to-invest-in-pakistans-tourism-sector/
268
269 https://www.zawya.com/en/business/travel-and-tourism/saudi-aseer-investment-company-to-develop-world-class-tourism-destination-dme3lofd
270 https://skift.com/2024/08/01/saudi-arabias-world-cup-bid-reveals-new-plans-for-hotels-stadiums-airports/
271 https://english.alarabiya.net/News/gulf/2024/09/09/saudi-arabia-exceeds-vision-2030-target-of-attracting-100-mln-tourists-imf-report
272 https://skift.com/2024/12/31/saudi-arabias-push-for-affordable-tourism-projects/
273 https://www.arabnews.com/node/2581415/corporate-news
274 https://www.arabnews.com/node/2502621/business-economy
275 https://www.arabnews.com/node/2588824/business-economy
276 https://www.reuters.com/world/middle-east/saudi-arabia-allows-foreigners-invest-firms-with-property-mecca-medina-2025-01-27/
277 https://www.travelandtourworld.com/news/article/aroya-cruises-by-cruise-saudi-redefining-arabian-luxury-travel-with-the-first-cruise-line-of-its-kind-debuting-
december-16-from-jeddah/
278 https://albatros-expeditions.com/expeditions/antarctica/halal-cruise-south-shetland-islands-and-antarctic-peninsula-2026

Endnotes 249
279 https://www.travelweekly-asia.com/Cruise-Travel/What-to-expect-on-Resorts-World-Cruises-halal-friendly-sailings
280 https://www.reuters.com/markets/deals/ihh-healthcare-acquire-malaysias-island-hospital-901-mln-2024-09-04/
281 https://www.zawya.com/en/press-release/companies-news/nbo-muzn-launches-shariah-compliant-medical-finance-solution-qrygq45v
282 https://salaamgateway.com/story/how-iran-is-doubling-down-on-medical-tourism
283 https://medtrip.id/tentang-kami-2/
284 https://blooloop.com/theme-park/news/land-of-legends-theme-park-qatar/#:~:text=Land%20of%20Legends%20Qatar%20is,than%208%20million%20
square%20metres.
285 https://qiddiya.com/qiddiya-city/progress/
286 https://qiddiya.com/qiddiya-city/dragon-ball/
287 https://qiddiya.com/qiddiya-city/dragon-ball/
288 https://traveltomorrow.com/worlds-first-real-madrid-theme-park-officially-inaugurated-in-dubai/
289 Source: Ufuk Secgin, CMO and Co-Founder of HalalBooking
290 https://www.linkedin.com/pulse/seeru-secures-pre-seed-from-nabtah-transform-travel-market-seeru-ai-lgk7f/
291 https://www.mgholidaygroup.com/post/creador-acquires-mg-group-to-accelerate-global-growth-of-southeast-asia-s-leading-b2b-hospitality-ma
292 https://thecommonwealth.org/news/commonwealth-secretariat-celebrates-launch-gambias-new-digital-trade-and-tourism-platforms
293 https://www.qatartourism.com/en/news-and-media/press-releases/qt-awards-winners-revealed-2024#:~:text=Developed%20in%20partnership%20with%20
the,excellence%20in%20customer%20service%20delivery.
294 https://www.pmldaily.com/features/tours-travel/2024/05/uganda-tourism-board-emirates-sign-deal-to-promote-destination-uganda.html#google_vignette
295 https://salaamgateway.com/story/taiwan-rolls-out-promotional-video-to-beckons-malaysian-muslims
296 https://www.arabnews.pk/node/2519326/world
297 https://www.gulf-times.com/article/691461/business/halal-friendly-philippines-campaign-looks-to-tap-asean-gcc-countries
298 https://newsroom.airasia.com/stories/2024/8/14/airasia-philippines-partners-with-universal-islamic-center-to-position-philippines-as-halal-friendly-
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299 https://www.travelandtourworld.com/news/article/thailand-sets-a-new-standard-in-halal-tourism-boosting-traveler-experience-with-halal-route-app/
300 https://www.nationthailand.com/business/corporate/40040756
301 https://salaamgateway.com/story/tourism-australia-launches-consortium-in-indonesia-to-draw-muslim-travellers
302 https://www.travelandtourworld.com/news/article/zambia-to-showcase-its-rich-natural-beauty-and-halal-tourism-at-aitex-2024-strengthening-its-position-in-
the-global-islamic-tourism-market/
303 https://katakenya.org/beyond-the-headlines-delving-deeper-into-the-kenya-jordan-tourism-partnership/
304 https://daryo.uz/en/2024/01/23/uzbekistan-and-kazakhstan-strengthen-pilgrimage-tourism-ties-with-trilateral-agreement
305 https://www.zawya.com/en/press-release/companies-news/he-chairman-of-qatar-tourism-engages-in-fruitful-and-collaborative-discussions-to-strengthen-ties-
with-he-minister-of-commerce-and-tourism-of-djibouti-ol7wxotz
306 https://www.travelandtourworld.com/news/article/baghdad-to-lead-arab-tourism-in-2025-a-new-chapter-for-iraqs-tourism-sector-strengthening-its-position-in-
the-middle-east-and-beyond/
307 https://sarajevotimes.com/bosnia-and-herzegovina-records-increase-in-number-of-tourists/
308 https://www.thenationalnews.com/lifestyle/2025/01/24/etihad-rail-fastest-train-bullet/
309 https://www.travelandtourworld.com/news/article/saudi-arabia-unveils-new-design-of-the-luxury-train-a-five-star-rail-experience-redefining-middle-eastern-
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310 https://www.gulf-times.com/article/682636/qatar/unified-visa-to-augur-well-for-tourism-in-gcc-double-the-discovery-to-gain-traction
311 https://www.timesaerospace.aero/features/air-transport/saudi-marketing-deal-can-boost-bahrain-tourism
312 https://www.businesstraveller.com/business-travel/2024/03/15/ras-al-khaimah-tourism-development-authority-and-oman-ministry-of-heritage-and-tourism-
come-together-for-unified-summer-travel-campaign/
313 https://gccgrandtoursvisa.com/
314 https://www.unwto.org/technical-cooperation/un-tourism-outlines-vision-on-how-to-develop-halal-tourism?utm_source=UNTN&utm_medium=crm
315 https://www.smiic.org/en/standards-under-development
316 https://mindanaotimes.com.ph/solons-laud-dots-efforts-to-boost-halal-tourism/
317 https://malaysia.news.yahoo.com/oyo-add-200-syariah-compliant-092241331.html?guccounter=1&guce_
referrer=aHR0cHM6Ly9uZXdzLmdvb2dsZS5jb20v&guce_referrer_sig=AQAAAIjCByii2ModypPrP5RL8CkAZTx-uxbd8lKESqfHEuk7O1_
wOLE0DTUA8Ms80TPkXV9yeBRGNvaYwLtID97WdvEAhyjMyjJwd76hycOCKAEkQ4OTL8UkYPjWQ8vcRkgqOh4m1HB_dDUsVY-uAVZodtzmdMTGmSIDe5ZEhAEKZFbJ
318 https://www.bernama.com/en/news.php/?id=2312380
319 https://daryo.uz/en/2023/07/19/uzbekistan-boosts-halal-tourism-focus
320 https://azon.global/en/posts/International-Life/licensing-of-hotels-according-to-the-muslim-friendly-standard-has-begun-in-russia
321 https://www.siasat.com/dubai-set-to-open-worlds-first-floating-mosque-2702135/
322 https://www.argophilia.com/news/zanzibar-advances-halal-tourism-initiative/238888/
323 https://www.zawya.com/en/business/travel-and-tourism/oman-bisya-rustaq-fort-added-to-islamic-heritage-list-bcdn27h7
324 https://skift.com/2025/01/10/new-uae-law-requires-emissions-reporting-what-travel-businesses-need-to-know/
325 https://www.tbsnews.net/economy/corporates/brac-lauches-new-product-otithi-bangladesh-tourism-board-938796
326 https://www.travelandtourworld.com/news/article/ajlouns-cable-car-boosts-eco-tourism-prospects-in-jordan/
327 https://www.travelandtourworld.com/news/article/how-riyadh-air-artificial-intelligence-integration-boost-saudi-arabia-tourism-with-vision-2030-targeting-150-
million-tourists-arrival/
328 https://www.webintravel.com/mdec-zeroes-in-on-malaysias-tourism-scene-through-the-digital-tourism-innovation-lab/
329 https://jordantimes.com/news/local/jordan-tourism-board-integrate-artificial-intelligence-2024-strategy
330 https://www.arabnews.com/node/2531286/saudi-arabia
331 https://www.travelmole.com/presszone/saudi-tourism-authority-launches-beta-version-of-sara-ai-a-virtual-travel-companion-na/
332 https://www.travelandtourworld.com/news/article/how-sama-2-0-the-worlds-first-ai-attendant-is-redefining-airline-assistance-for-qatar-airways-passengers/
333 https://www.travelpulse.com/news/airlines-airports/qatar-airways-debuts-worlds-first-ai-crew-member-influencer-on-instagram
334 https://www.ausleisure.com.au/news/uae-theme-park-operator-using-artificial-intelligence-to-drive-growth/
335 https://www.globalvillagespace.com/saudi-arabia-to-launch-flying-taxi-for-hajj-umrah/
336 https://www.itp.net/edge/digital-culture/a-digital-oasis-alulas-heritage-driven-digital-transformation
337 https://www.undp.org/tanzania/blog/using-crowd-mapping-and-mobile-survey-unravel-unfrequented-tourist-attractions
338 https://www.spa.gov.sa/en/N2115875
339 https://www.tourism-review.com/phuket-introduced-crypto-payments-to-boost-tourism-news14746
340 https://www.phocuswire.com/phocuswright-analyst-travel-predictions-2025
341 https://news.delta.com/delta-unveils-ai-powered-travel-journey-new-multi-modal-transportation-options
342 https://globetrender.com/2025/01/22/qatar-airways-resumes-flights-to-syria/
343 https://theconversation.com/assads-fall-opens-window-for-syrian-refugees-to-head-home-but-for-many-it-wont-be-an-easy-decision-247051
344 https://www.hospitalityinvestor.com/sponsored/saudi-arabias-tourism-revolution-vision-2030-unveiled
345 https://skift.com/2024/12/31/saudi-arabias-push-for-affordable-tourism-projects/
346 https://www.bloomberg.com/news/articles/2025-01-27/saudi-tourism-seeing-more-private-investment-minister-says?embedded-checkout=true
347 https://skift.com/2024/07/18/dubais-mohamed-alabbar-to-develop-tourism-projects-in-indonesia-worth-3-billion/?utm_campaign=Newsletter%20

250 State of the Global Islamic Economy Report 2024/25

 %7C%20RSS%20-%20Wanderlust&utm_medium=email&_hsenc=p2ANqtz-_4NM-gtReHZ15oWIRMtOCH1ZIl305Ptrk9lvnvSBSE0Y4Bs4jF-J4yoXyvCA57Be-1-
o3kCWZ4ekLZJ9NX8wiGUN0P5WMwI1W-fRFTTQtqzYlp0LE&_hsmi=316357875&utm_content=316357875&utm_source=hs_email
348 https://www.zawya.com/en/world/middle-east/philippines-seeks-qatar-backing-for-halal-tourism-boost-f0mm95k9
349 https://dailythedestination.com/saudia-arabia-keen-to-invest-in-pakistans-tourism-sector/
350 https://www.arabnews.com/node/2582511/%7B%7B
351 Danielle Wightman-Stone. https://fashionunited.uk/news/retail/leem-opens-first-permanent-uk-store/2024120378912. Fashion United.
352 Ayman Anika. https://www.thedailystar.net/life-living/fashion-beauty/news/elaf-al-dubai-launched-sheraton-dhaka-3551591. The Daily Star.
353 Nigel Taylor. https://ww.fashionnetwork.com/news/Club-l-london-launches-dedicated-webstore-for-uae,1643691.html. Fashion Network.
354 . https://www.instagram.com/p/DCbl4SISsog/?igsh=dGNkcHp1bnIyOHhr. Instagram.
355 . https://salaamgateway.com/story/alshaya-group-announces-strategic-partnership-to-explore-bringing-primark-to-the-middle-east. Salaam Gateway.
356 Sophie Prideaux. https://www.cntravellerme.com/story/dolce-and-gabbana-is-opening-a-cafe-in-riyadhs-historic-diriyah. Conde Nast Traveller
357 Online Desk. https://www.kalerkantho.com/english/online/lifestyle/2023/07/25/54909. kalerkantho.
358 . https://www.instagram.com/p/CteqK2fvdV5/?igsh=ZG96aDk4czYxcGRq. Taj Crown.
359 Chaunie Brusie. https://nurse.org/articles/nurse-develops-modest-scrub-line/. nurse.org.
360 Feven Gerezgiher. https://www.mprnews.org/story/2023/08/17/new-partnership-offers-worksafe-hijabs-for-amazon-employees-in-brooklyn-park. MPR News.
361 Gary Roethanbaugh. https://endurance.biz/2024/industry-news/rapha-women-cycling-collection-includes-first-modest-wear-range/. endurance.biz.
362 Niloufar Haidari. https://hyphenonline.com/2024/06/26/a-summer-of-sport-promises-more-options-for-modest-wear-rapha-cycle-sisters-hijab-muslim-women/.
Hyphen.
363 Maia Williams. https://www.pghcitypaper.com/arts-entertainment/a-duquesne-basketball-players-activewear-line-is-changing-the-game-for-modest-
dressers-25593878. Pittsburgh City Paper.
364 Hasan AlMatrouk. https://finance.yahoo.com/news/beauty-modesty-qyndas-modest-activewear-201500764.
html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_
sig=AQAAALvlHvomB7rzPCGTfFCDajqrCIky3Cq9OnKroo1kg1D5SEzrYQj9UmFZ0MQMguNWaeVCScIwkNVfeZ87GUHGojfdlJqtQHa1ONfJ6Tek0Ww_
b18f01Yu3kVsjHpY9BiXIOUtd7V0KPVKdr2VFKyfo1h8y7GQMNfQDJOamw4qBxQC. Yahoo Finance.
365 Navi Ahluwahlia. https://hypebae.com/2024/5/gymshark-new-sportswear-activewear-hijab-release-date. Hypebae.
366 Alexandria Dale. https://www.womenshealthmag.com/uk/gym-wear/a60043354/sweaty-betty-sports-hijab-international-womens-day/. Women’s Health.
367 Majda Bouzaroita. https://www.moroccoworldnews.com/2024/07/363664/emile-samory-fofana-amp-adidas-drop-pitch-perfect-qamis. MWN Lifestyle.
368 Faizan Hashmi. https://www.urdupoint.com/en/world/fashion-commission-signs-mou-with-adidas-to-e-1864555.html. Urdu Point.
369 Isabelle Crossley. https://in.fashionnetwork.com/news/Papa-don-t-preach-launches-modest-wear-line-in-london-uk,1622652.html. Fashion Network.
370 . https://www.abouther.com/node/64961/fashion/fashion-news/farfetch-unveils-modest-wear-capsule-collections-ramadan. abouther.com.
371 Siham El Yandouzi. https://ww.fashionnetwork.com/news/These-special-ramadan-capsule-collections-redefine-modest-fashion,1606265.html. Fashion Network.
372 Dana Sharawneh. https://www.harpersbazaararabia.com/fashion/fashion-now/mcm-ramadan-capsule-collection. Harper’s Bazaar Arabia.
373 Lauren Ramsay. https://www.hellomagazine.com/hfm/fashion-trends/516911/modest-fashion-collections-for-ramadan-eid/. Hello! Fashion.
374 Rohma Theunissen. https://www.businessoffashion.com/articles/global-markets/luxurys-new-ramadan-playbook-for-the-middle-east/. Business of Fashion.
375 . https://www.media-outreach.com/news/malaysia/2024/09/11/325789/malaysian-shopee-live-sellers-achieve-6-5x-sales-uplift-on-9-9-super-shopping-day/. Media
Outreach Newswire.
376 Nadica Naceva. https://influencermarketinghub.com/tiktok-shop-stats. Influencer Marketing Hub.
377 Meaghan Tobin and Hasya Nindita. https://www.nytimes.com/2024/10/30/business/tiktok-bytedance-tokopedia-indonesia.html. The New York Times.
378 https://www.instagram.com/reel/C9kWAN-BnFa/?igsh=MW80eTZzdnJxeWM0MA==. ButtonScarves.
379 Buttonscarves. https://en.prnasia.com/lightnews/lightnews-0-101-70556.shtml. PR Newswire.
380 Merrachi, https://vm.tiktok.com/ZMkN8L1Sg/, TikTok
381 Staff Reporter. https://retailasia.com/co-written-partner/event-news/zalora-secures-win-retail-asia-awards-2024-zaloraya-fashion-show. Retail Asia.
382 Aqraa Sagir. https://asianews.network/pre-loved-is-the-new-new-a-tale-of-style-sustainability-and-luxury/. The Jakarta Post.
383 Aqraa Sagir. https://asianews.network/pre-loved-is-the-new-new-a-tale-of-style-sustainability-and-luxury/. The Jakarta Post.
384 AFP. https://tribune.com.pk/story/2472194/senegalese-shoppers-turn-to-second-hand-fashion-for-eid-in-west-africa. The Express Tribune.
385 Javeria Khalid. https://www.fastcompany.com/90956788/pakistan-economy-swag-kicks-secondhand?utm_source=newsletters&utm_medium=email&utm_
campaign=FC+-+Compass+Newsletter.Newsletter+-+FC+-+Compass+9-26-23&leadId=783810&mkt_tok=NjEwLUxFRS04NzIAAAGOcH8wjHEsSSyOJF5Hw0G9Jiz6qwDuD
_2WJe8eWqc-vlsnEcoj0Pdtt6RcRitj7yScZize-2_-pVysFpKQp-9VWMziL83SwNQaKmPOx-c. Fast Company
386 Bill Peters. https://www.marketwatch.com/story/tariff-man-trump-returns-next-year-how-nervous-are-retailers-this-time-around-64505a75?utm. Market Watch
387 Ben Unglesbee. https://www.retaildive.com/news/Fashion-reducing-sourcing-China-USFIA/690625/?utm. Retail Dive
388 Megan Tatum. https://www.voguebusiness.com/story/sustainability/delays-and-damp-demand-fashions-mid-year-supply-chain-outlook?. Vogue Business
389 https://www.yicaiglobal.com/news/most-keffiyehs-imported-to-arab-countries-are-made-in-china-zhenze
390 Mariam Sarhan. https://scoopempire.com/saudi-set-to-make-history-at-its-first-official-fashion-week-in-riyadh/. Scoop Empire.
391 https://www.instagram.com/p/C_gxR1XyU5R/?igsh=MWUwdDh4dnY2ODNvZg==. Irnamutiara.
392 The Modest clothing Week Belgium Instagram, https://www.instagram.com/reel/DD7gyNxt3H2/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==,
Instagram
393 Starpicks. https://www.thestar.com.my/starpicks/2024/07/25/cultural-couture-in-the-spotlight. The Star.
394 https://www.tehrantimes.com/news/493951/Fajr-fashion-clothing-festival-kicks-off-in-Tehran. Tehran Times.
395 https://www.tehrantimes.com/news/487731/Tehran-Fashion-Week-to-be-held-in-January. Tehran Times.
396 VNA. https://en.vietnamplus.vn/malaysia-promotes-modest-fashion-halal-industry-post296933.vnp. Vietnam +.
397 Hubert Vaz. https://www.muscatdaily.com/2024/05/07/istanbul-modest-fashion-week-showcases-more-than-stolls-scarves/. Muscat Daily.
398 Shayma Salah. https://www.voguebusiness.com/story/fashion/why-modest-fashion-week-went-back-to-istanbul-and-whats-next?status=verified. Vogue Business.
399 https://islamabadpost.com.pk/russia-islamic-world-to-open-the-14th-international-economic-forum-in-kazan/. Islamabad Post.
400 https://www.travelandtourworld.com/news/article/malaysia-tourism-agency-association-partners-with-indonesia-halal-lifestyle-center-for-international-minang-
food-fashion-festival-2024/. Travel and Tour World.
401 “https://businesspostbd.com/economy/Corporate/bilateral-trade-between-malaysia-bangladesh-will-enhance-says-haznah. https://thefinancialexpress.com.bd/
trade/bmcci-to-organise-6th-showcase-malaysia-on-september-5-6. The Business Post.”
402 Petir Garda Bhwana. https://en.tempo.co/read/1928050/jakarta-muslim-fashion-week-2025-achieves-transactions-of-rp317-8-billion. Tempo.co.
403 Anton Santoso. https://en.antaranews.com/news/319059/collaboration-key-to-make-indonesia-muslim-fashion-hub-trade-minister. Antara.
404 Indonesian Fashion Chamber (IFC). https://www.prnewswire.com/news-releases/indonesian-handcrafted-textileswastra-are-once-again-making-a-global-impact-
through-refined-modest-fashion-302251710.html. PR Newswire.
405 Editorial Team. https://voi.id/en/economy/424206. VOI.
406 IFC. https://www.prnewswire.co.uk/news-releases/bank-indonesia-together-with-the-ministryagencies-promotes-indonesian-modest-fashion-on-the-global-
stage-301923329.html. PR Newswire.
407 Indonesian Fashion Chamber (IFC). https://www.prnewswire.com/news-releases/indonesian-handcrafted-textileswastra-are-once-again-making-a-global-impact-
through-refined-modest-fashion-302251710.html. PR Newswire.
408 Indonesian Fashion Chamber (IFC). https://www.prnewswire.com/apac/news-releases/in2mf-in-kuala-lumpur-presented-by-bank-indonesia-302139518.html. PR
Newswire.
409 Sri Dean. https://www.sbs.com.au/language/indonesian/en/podcast-episode/apa-yang-perlu-diketahui-tentang-indonesian-modest-fashion-week-2024/b495gerq5.
SBS Indonesian.
410 Sheany Yasuko Lai. https://www.arabnews.com/node/2573110/amp. Arab News.

Endnotes 251
411 Azis Kurmala. https://en.antaranews.com/news/309624/religious-affairs-ministry-launches-indonesia-global-halal-fashion. Antara.
412 https://salaamgateway.com/story/bpjph-collaborates-with-industry-and-associations-to-develop-ecosystem-and-promote-halal-modest-fash. Salaam Gateway.
413 Azis Kurmala. https://en.antaranews.com/amp/news/320959/ministry-launches-campaign-to-boost-footwear-industry. Antara.
414 The Jakarta Globe. https://jakartaglobe.id/special-updates/apr-teams-up-with-six-fashion-brands-at-muslim-fashion-festival-muffest. Jakarta Globe.ID.
415 Rahmat F Kenzu. https://en.antaranews.com/news/329737/president-widodo-launches-youth-creative-hub-in-aceh. Antara.
416 Press Release. https://salaamgateway.com/story/bpjph-ighf-brings-indonesian-halal-fashion-competitive-in-the-world. Salaam Gateway.
417 Julienna Law. https://jingdaily.com/posts/saudi-designers-london-fashion-week-debut. Jing Daily.
418 Editorial Team. https://voi.id/en/lifestyle/417525. VOI.
419 Laila Afifa. https://en.tempo.co/read/1766636/indonesian-local-brand-buttonscarves-penetrates-malaysian-market. Tempo.co.
420 Shahrizal. https://www.businesstoday.com.my/2024/10/08/malaysia-eyes-global-fashion-market-at-brics-summit/. Business Today.
421 Ann Reinhold. https://www.zawya.com/en/press-release/events-and-conferences/middle-eastern-designers-set-to-shine-at-moscow-fashion-week-sqti7kpo. Zawya.
422 https://newsghana.com.gh/latin-american-elegance-grace-the-runway-at-moscow-fashion-week/. NewsGhana.
423 Sandhya D’Mello. https://www.khaleejtimes.com/lifestyle/lara-fawzy-is-taking-the-burkini-from-dubai-to-new-york-fashion-week. Khaleej Times.
424 Maggie Zhou. https://harpersbazaar.com.au/asiyam-afw-2024/. Harper’s Bazaar.
425 IANS. https://www.socialnews.xyz/2024/03/10/russian-fashion-brand-measure-to-take-the-stage-at-lakme-fashion-week/. Social News XYZ.
426 Danielle Wightman-Stone. https://fashionunited.com/news/fashion/deborah-latouche-places-spotlight-on-modest-fashion-at-lfw/2024022358561. Fashion United.
427 https://pmnewsnigeria.com/2023/09/19/nigerian-fashion-brand-dwl-earns-qatar-govts-support/. PM News.
428 https://themalaysianreserve.com/2023/12/20/modest-fashion-womenpreneur-summit-2024-to-be-held-in-malaysia/. The Malaysian Reserve.
429 https://www.zawya.com/en/press-release/companies-news/alhuda-centre-of-modest-fashion-launches-online-executive-program-in-modest-fashion-su3im5lt.
Zawya.
430 Josa Lukman. https://www.thejakartapost.com/adv/2024/08/21/pintu-incubator-bridges-indonesian-talent-with-french-know-how-at-jf3-fashion-festival.html. The
Jakarta Post.
431 Faizan Hashmi. https://www.urdupoint.com/en/pakistan/hina-tayyaba-meets-commerce-minister-discuss-1864641.html. Urdu Point.
432 Reem Makari. https://www.performancemarketingworld.com/article/1874356/social-media-ads-overtake-tv-search-engines-consumer-discovery. Performance
Marketing World
433 Aisha Rimi. https://hyphenonline.com/2024/10/14/modest-fashion-abaya-style-inside-the-burgeoning-industry/. Hyphen.
434 James K Meyer. https://www.newsbreak.com/news/3679192628052-the-rising-trend-of-young-muslim-men-wearing-thobes-in-the-uk. Newsbreak
435 Victoria Vouloumanos. https://www.buzzfeed.com/victoriavouloumanos/saaedah-haque-hoodie-abaya. Buzzfeed.
436 Malay Mail. https://www.malaymail.com/news/life/2024/09/23/gofluence-launches-malaysias-first-and-largest-influencer-marketing-platform-at-malaysia-
modest-fashion-showcase/151423. Malay Mail.
437 Bernama. https://www.nst.com.my/business/feature/2024/02/1017469/booming-demand-hijab-stylists-leads-flourishing-career-options. Business Times.
438 Sakina Fatima. https://www.siasat.com/saudi-arabia-sets-new-conditions-for-fashion-show-permits-3070517/. The Siasat Daily.
439 Chas Newkey Burden. https://theweek.com/religion/the-95-muslim-country-that-has-banned-the-hijab. The Week.
440 Corina Pons. https://insideretail.co.nz/2024/10/11/major-fast-fashion-brands-launch-trial-to-collect-clothes-waste-next-year/. Inside Retail.
441 https://www.instagram.com/reel/DA5Iy4ayjef/?igsh=N2tlNWt6ODBuajAy. Collective Fashion Justice.
442 https://www.fibre2fashion.com/news/apparel-sustainability-news/60-out-of-top-100-leed-certified-factories-across-world-in-bangladesh-297413-newsdetails.htm.
Fibre2Fashion.
443 https://www.fibre2fashion.com/news/sustainability-news/ilo-turkiye-ekodoku-launch-initiative-to-boost-eco-friendly-textiles-297395-newsdetails.htm.
Fibre2Fashion.
444 https://www.fibre2fashion.com/news/sustainability-news/vietnam-s-textile-garment-logistics-firms-try-to-go-green-297442-newsdetails.htm. Fibre2Fashion.
445 Alexandria Dale. https://www.womenshealthmag.com/uk/gym-wear/a60043354/sweaty-betty-sports-hijab-international-womens-day/. Women’s Health.
446 Ruman Baig. https://emirateswoman.com/moroccan-footballer-makes-history-by-wearing-a-hijab-at-a-world-cup/. Emirates Woman.
447 Dilshad D Ali. https://www.interfaithamerica.org/article/secularism-hijab-olympics/. Interfaith America.
448 Sam Eagan. https://www.teenvogue.com/story/jamilah-mcbryde-a-muslim-wrestler-couldnt-go-to-the-olympic-trials-because-of-her-hijab-and-uniform. Teen
Vogue.
449 Doug Feinberg. https://apnews.com/article/march-madness-nc-state-hijab-9bd5b9b4ce306eb34ba202f2ec9a26c9. AP.
450 https://newsd.in/dubais-abaya-rally-returns-on-august-26-revving-up-again/. Newsd.
451 Aqasha Nalani. https://says.com/my/lifestyle/sisters-open-first-hijab-friendly-pilates-studio. SAYS.
452 Farah Khalfe. https://www.harpersbazaararabia.com/fashion/modest-fashion-cannes. Harper’s Bazaar Arabia.
453 Hanadi Merchant-Habib. https://en.vogue.me/fashion/modest-fashion-takes-over-international-runways/. Vogue Arabia.
454 Kelly Ng & Silvano Hajid Maulana. https://www.bbc.com/news/articles/cz473vr2qvro. BBC.
455 Aadrika Sominder. https://www.hindustantimes.com/htcity/htcity-showstoppers/meet-hijab-clad-kenza-layli-the-worlds-first-ai-influencer-who-won-miss-
ai-2024-101720676033530.html. Hindustan Times.
456 Moohita Kaur Garg. https://www.wionews.com/trending/uk-to-install-first-of-its-kind-sculpture-honouring-the-strength-of-hijab-637949. Wion.
457 Furvah Shah. https://www.cosmopolitan.com/uk/reports/a46597986/why-muslim-women-wear-the-hijab/. Cosmopolitan.
458 Ismail Allison. https://www.cair.com/press_releases/cair-ny-welcomes-arrest-of-suspect-who-allegedly-ripped-off-teens-hijab/. CAIR.
459 Clare Carlile. https://www.ethicalconsumer.org/fashion-clothing/puma-drops-sponsorship-israeli-football-association. Ethical Consumer.
460 Sanjeeva Suresh. https://www.luxuo.com/business/zaras-marketing-nightmare-and-the-power-of-the-boycott.html. Luxuo
461 Aisha Malik. https://techcrunch.com/2024/05/22/tiktok-turns-to-generative-ai-to-boost-its-ads-business/. TechCrunch
462 Andrew Hutchinson. https://www.socialmediatoday.com/news/google-adds-ai-tools-retailers-agents-chatbots/737204/. Social Media Today
463 Veishnawi Nehru. https://www.sinardaily.my/article/211669/culture/personality/neelofas-ai-image-without-niqab-to-showcase-headscarves-collection-in-tokyo.
Sinar Daily
464 Nota Prensa. https://www.mangofashiongroup.com/en/w/mango-crea-la-primera-campa%C3%B1a-generada-con-inteligencia-artificial-para-su-l%C3%ADnea-
teen. Mango
465 Amy Miles. https://goodonyou.eco/more-sustainable-fabric-innovations-in-2024/. Good on You
466 Amy Miles. https://goodonyou.eco/more-sustainable-fabric-innovations-in-2024/. Good on You
467 https://www.technologynetworks.com/applied-sciences/news/new-fabric-makes-urban-heat-islands-more-bearable-387779. Technology Networks
468 Reuters. https://www.reuters.com/business/retail-consumer/steven-madden-cut-sourcing-china-tariff-worries-under-trump-2024-11-07. Reuters
469 https://www.dmu.ac.uk/about-dmu/news/2024/july/dmu-unveils-innovation-at-worlds-biggest-showcase.aspx. De Montfort University
470 Manoj Kumar. https://www.reuters.com/world/india/india-plans-expand-production-linked-incentives-small-textile-firms-minister-2024-06-25. Reuters
471 Melissa Cyrill. https://www.india-briefing.com/news/india-pli-scheme-for-textiles-full-list-of-beneficiaries-24948.html/. India Briefing
472 Nik Martin. https://www.dw.com/en/how-norway-became-the-trailblazer-for-electric-vehicles/a-71208744. DW
473 Jessica Hullinger. https://time.com/7172489/christina-bu. Time
474 Sarah Butler. https://www.theguardian.com/business/article/2024/sep/05/m-and-s-using-ai-to-advise-shoppers-body-shape-style-preferences. The Guardian
475 Dominique Muret. https://ww.fashionnetwork.com/news/Brunello-cucinelli-creates-a-disruptive-new-website-combining-human-and-artificial-intelligence,1650601.
html. Fashion Network
476 https://www.borneonews.co.id/berita/358941-kalbe-luncurkan-insulin-ezelin-halal-pertama-di-indonesia
477 https://www.zawya.com/en/business/healthcare/lifera-to-localize-over-50-of-saudi-arabias-insulin-needs-with-novo-nordisk-saudi-arabia-cbml1cbh
478 https://www.julphar.net/en/gulf-pharmaceutical-industries--julphar--signs-landmark-agreement-with-sunshine-lake-pharma-to-pioneer-insulin-biosimilar-
manufacturing-in-mena-2

252 State of the Global Islamic Economy Report 2024/25

479 https://www.zawya.com/en/economy/north-africa/egypt-launches-1st-batch-of-locally-made-insulin-guvn4jzb
480 https://www.kedglobal.com/food-beverage/newsView/ked202403150004
481 https://www.arabnews.com/node/2582778/business-economy
482 https://sme.asia/blackmores-malaysia-achieves-halal-cert-first-for-australian-made-finished-goods/
483 https://www.nestle.co.uk/en-gb/media/pressreleases/allpressreleases/nestl%C3%A9-health-science-garden-life-probiotics-uk-ireland
484 https://www.businesswire.com/news/home/20231220875928/en/ChromaDex-Supports-the-US-Military-with-its-Industry-Leading-NAD-Supplement-Tru-
Niagen%C2%AE
485 https://www.zawya.com/en/economy/gcc/al-khorayef-saudi-arabia-to-localize-production-of-about-200-medicines-ai933mpl
486 https://www.egypttoday.com/Article/1/135693/Head-of-Egyptian-Drug-Authority-37-increase-in-number-of
487 https://shafaq.com/en/Iraq/PM-Al-Sudani-champions-Made-in-Iraq-initiative-with-inauguration-of-pharmaceutical-plants
488 https://primeminister.kz/en/news/government-working-with-investors-to-localise-29-new-projects-for-medicines-and-medical-devices-production-28519
489 https://duopharmabiotech.com/duopharma-biotech-and-universiti-kebangsaan-malaysia-partner-to-elevate-halal-standards-in-healthcare/
490 https://ugm.ac.id/en/news/ugm-and-udst-qatar-collaborate-on-halal-product-testing-and-health-technology/
491 https://www.biofarma.co.id/id/announcement/detail/peneliti-dari-8-negara-oki-ikut-pelatihan-vaksin-di-bio-farma-unpad
492 https://www.azernews.az/business/216881.html
493 https://pro.hukumonline.com/a/lt66399c306dd2d/govt-se
ts-halal-manufacturing-guidelines-for-drugs--biological-products-and-medical-equipment
494 https://daryo.uz/en/2023/09/08/afghanistan-set-to-export-medicines-worldwide
495 https://www.nst.com.my/news/nation/2024/04/1035140/malaysia-strengthens-natural-product-regulation-new-guidelines-effective
496 https://www.kompas.id/artikel/fitofarmaka-masuk-prioritas-pembahasan-formularium-nasional-jkn
497 https://punchng.com/nantmp-seeks-regulatory-council-to-boost-herbal-product-industry/#google_vignette
498 https://emiratitimes.com/uae-new-law-to-regulate-medical-products/
499 https://www.wam.ae/en/article/15d15ht-duphat-2025-concludes-with-aed935-billion-deals.
500 ibid
501 https://www.newsweek.com/2024/08/09/israel-hamas-war-gaza-insulin-diabetes-health-1928439.html
502 https://www.fdd.org/analysis/2023/11/13/uae-saudi-arabia-gulf-states-increase-aid-to-gaza/
503 https://www.pom.go.id/berita/dukung-sudan-hadapi-krisis-bpom-ri-sepakati-bantuan-farmasi-dan-peningkatan-kapasitas
504 eutical-journal.com/article/news/pda-begins-fundraising-for-international-campaign-to-send-medicines-to-gaza
505 https://astanatimes.com/2024/01/north-kazakhstan-region-launches-new-telemedicine-complexes/
506 https://www.isdb.org/news/ahtfs-telehealth-services-expansion-to-benefit-over-11-million-people-in-afghanistan
507 https://www.healthcareitnews.com/news/asia/2000-telehealth-kiosks-be-deployed-rural-malaysia
508 https://www.wam.ae/en/article/b35d9pu-uae-based-insilico-medicine-advances-world%E2%80%99s-first
509 https://www.prnewswire.com/in/news-releases/merck-launches-first-ever-ai-solution-to-integrate-drug-discovery-and-synthesis-302003351.html
510 https://www.techinasia.com/news/nvidia-pfizer-push-aidriven-drug-discovery-se-asia
511 https://www.kompas.id/baca/english/2024/05/03/en-sebanyak-6-platform-digital-kesehatan-peroleh-rekomendasi-penuh-dari-kementerian-kesehatan
512 ibid
513 https://healthcareasiamagazine.com/healthcare/news/saudi-arabia-launches-regulatory-healthcare-sandbox-boost-digital-innovation
514 https://dharab.com/saudi-moh-launches-the-regulatory-healthcare-sandbox-program/
515 https://www.doh.gov.ae/en/news/startad-and-doh-launch-healthx-to-advance-abu-dhabi-as-global-biotech-and-life-sciences-hub
516 ibid
517 https://www.cnnindonesia.com/ekonomi/20230814150010-92-985858/indef-50-persen-produk-skincare-di-marketplace-ri-dari-china
518 https://www.zawya.com/en/press-release/companies-news/sheglam-celebrates-stunning-growth-in-the-gcc-ap6o266t
519 ibid
520 https://www.zawya.com/en/press-release/companies-news/sheglam-celebrates-stunning-growth-in-the-gcc-ap6o266thttps://guardian.ng/saturday-magazine/
weekend-beats/chinas-cosmetics-firms-to-feature-at-beauty-west-africa-2024/
521
522 https://www.argaam.com/en/article/articledetail/id/1780129
523 https://www.businesstimes.com.sg/companies-markets/consumer-healthcare/saudi-perfume-makers-us188-million-ipo-sells-out-hours
524 https://www.agbi.com/finance/2023/08/jadwa-acquires-stake-in-gissah-perfumes/
525 https://www.arabnews.com/node/2518646/business-economy
526 https://finance.yahoo.com/news/saudi-arabia-nice-one-soars-072859879.html
527 Ibid
528 https://www.cosmeticsdesign-europe.com/Article/2024/11/20/l-oreal-new-fund-to-help-suppliers-with-sustainability-transition/
529 https://sustainablebrands.com/read/circular-economy/beauty-retailers-circular-economy-packaging
530 https://www.cosmeticsdesign-europe.com/Article/2024/11/20/l-oreal-new-fund-to-help-suppliers-with-sustainability-transition/
531 https://m.theinvestor.co.kr/view.php?ud=20230816000145
532 https://cosmeticsbusiness.com/nu-skin-opens-first-china-manufacturing-facility
533 https://www.agbi.com/retail/2024/02/asias-largest-beauty-retailer-plans-gcc-expansion/#:~:text=Watsons%2C%20Asia’s%20largest%20health%20and,deal%20
with%20AI%20Futtaim%20Group.
534 https://www.arabnews.com/node/2579885/lifestyle
535 https://www.premiumbeautynews.com/en/beautyworld-middle-east-breaks,24763
536 https://www.cosmeticsdesign-asia.com/Article/2024/07/23/south-korea-s-mfds-to-strengthen-support-for-local-cosmetics-companies-in-obtaining-halal-
certification/
537 https://bpjph.halal.go.id/detail/indonesia-korea-selatan-jalin-kerjasama-jaminan-produk-halal
538 https://www.kedglobal.com/business-politics/newsView/ked202312280012
539 https://cosmetic.chemlinked.com/news/cosmetic-news/indonesia-proposes-to-amend-cosmetic-labeling-requirements
540 https://www.globalcompliancenews.com/2023/09/09/https-insightplus-bakermckenzie-com-bm-healthcare-life-sciences-thailand-fda-issues-regulation-for-
cosmetic-refill-stations_09062023/
541 https://www.cosmeticsdesign-europe.com/Article/2024/11/27/eu-clp-updates-for-cosmetics-companies/
542 https://gulfnews.com/uae/crime/watch-650000-fake-cosmetics-other-items-worth-dh23-million-seized-in-uae-1.103890134
543 https://www.globalcosmeticsnews.com/saudi-fda-seizes-huge-counterfeit-haul/
544 https://punchng.com/nafdac-seizes-counterfeit-cosmetics-worth-%E2%82%A637m-in-abuja/
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593 https://www.arabnews.com/node/2575582/corporate-news

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Endnotes
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