State of the Global Islamic Economy Report 2025/26

The 12th edition of the State of the Global Islamic Economy Report (SGIE) 2025/26, produced by DinarStandard, examines the multi-trillion-dollar global Islamic economy across seven key sectors: halal food, pharmaceuticals, cosmetics, modest fashion, travel, media & recreation, and Islamic finance. This year’s report highlights a new growth phase shaped by halal economy sovereignty, Islamic finance expansion, and values-driven consumer behavior.

Overview

The Islamic economy is shifting from demand growth to sovereignty building. Governments and investors are industrializing halal value chains, digitizing trust infrastructure, and scaling Islamic finance rails. Consumer activism is no longer episodic: alternative brands sustain engagement beyond the boycott peak, turning values into market power.

Across the six consumer sectors, the Islamic economy reached US$ 2.60 trillion in 2024 and is projected to grow to US$ 3.56 trillion by 2029, reflecting the scale of halal-related consumer demand across global markets. Islamic finance assets are also expected to continue expanding, reaching US$ 9.72 trillion over the same period.

The Global Islamic Economy Indicator (GIEI) ranked national Islamic economy ecosystems, with Malaysia retaining the top position, followed by the UAE, Saudi Arabia, Indonesia, and Bahrain. 

Investment activity accelerated to 346 transactions with approximately US$13.11 billion in disclosed deal value, reflecting strong momentum across Islamic economy sectors and enabling infrastructure.

Against a backdrop of shifting trade dynamics, rising consumer awareness, and geopolitical realignment, SGIE 2025/26 identifies a broader transition from demand growth toward halal economy sovereignty — marked by stronger halal value chains, digital trust infrastructure, Islamic finance rails, and more resilient ecosystem development. OIC economies recorded US$421.5 billion in halal-related imports, reinforcing both the scale of market demand and the opportunity for deeper intra-OIC production and trade integration.

Key Findings

• Malaysia retained the top position in the Global Islamic Economy Indicator (GIEI), followed by the UAE, Saudi Arabia, Indonesia, and Bahrain

• Islamic economy-relevant investment activity reached approximately US$13.11 billion across 346 transactions in 2024/25

• Islamic finance attracted the largest share of investment capital, followed by halal food, media & recreation, and Muslim-friendly travel

• OIC economies recorded US$421.5 billion in halal-related imports, underscoring opportunities for stronger domestic production, regional industrial strategies, and deeper intra-OIC trade integration

• DinarStandard’s consumer sentiment analysis tracked 26,809 Instagram and Facebook posts, 86+ million social media engagements, and 9,300+ X posts, highlighting sustained consumer preference for ethical, local, and alternative brands

• The report identifies a growing shift from demand growth toward sovereignty-building, driven by stronger halal value chains, digital trust systems, localized production, and enabling Islamic finance infrastructure

Sector-Specific Data

• Halal Food: US$1.53 trillion in 2024, projected to reach US$2.06 trillion by 2029

• Islamic Finance: US$5.99 trillion in assets in 2024, expected to grow to US$9.72 trillion by 2029

• Modest Fashion: US$347 billion in 2024, projected to reach US$444 billion by 2029

• Muslim-Friendly Travel: Fastest-growing consumer sector, rising from US$249 billion in 2024 to US$424 billion by 2029

• Halal Pharmaceuticals: US$112 billion in 2024, forecast to grow to US$146 billion by 2029

• Halal Cosmetics: US$92 billion in 2024, projected to reach US$124 billion by 2029

• Media & Recreation: US$276 billion in 2024, expected to grow to US$364 billion by 2029

Emerging Opportunity Signals Across the Islamic Economy

SGIE 2025/26 highlights a new generation of growth and innovation opportunities reshaping the Islamic economy ecosystem, including:

• AI-enabled halal certification

• Blockchain-enabled traceability

• Shariah-compliant digital finance

• Pilgrimage digitization and sovereign travel platforms

• Localized halal production and halal pharmaceuticals

• Clean-label cosmetics

• Digital-native modest fashion

• Culturally aligned media & recreation

Together, these trends signal an Islamic economy increasingly driven not only by expanding Muslim demand, but by investment in the systems, standards, technologies, and trust infrastructure needed to support long-term growth at scale.