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Report
Economy
Islamic
the Global
State of
2023/24
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2023/24
State of
the Global
Islamic
Economy
Report
Contents
08 14 26
Executive Chapter 1: Chapter 2:
Summary The Islamic 10 Years of
Economy and Tracking the
Drivers of Global Islamic
Opportunity Economy
92 116 140
Chapter 6: Chapter 7: Chapter 8:
Halal Food Islamic Finance Muslim-Friendly
Travel
222 240 244

Chapter 12: Acknowledgments Report Purpose
Media & and Methodology
Recreation
4 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

44 60 74
Consumer The Global Trade,
Profiles Islamic Economy Investments &
Indicator (GIEI) FDI
160 184 204

Modest Fashion Halal Pharma Halal Cosmetics
254
Endnotes
EXECUTIVE SUMMARY 5
PEXELS

EXECUTIVE SUMMARY 7
Executive
Summary
Welcome to the 10th edition of the State of the

Global Islamic Economy (SGIE) Report. In the ten
years of covering this space, the global Islamic
economy – also referred to as the Halal lifestyle
market – has grown from a US$1.62 trillion consumer
spending market, as estimated in 2012, to US$2.29
trillion in 2022. It has been driven by a young and
fast-growing global population that extends beyond
the core 2 billion Muslim consumers to include a
wider global ethical consumer market.
W
e now have sovereign wealth funds led by Saudi Arabia’s PIF that are actively
engaged in this space. Economic policies in Malaysia, Indonesia and Saudi Arabia
continue to incorporate the Islamic economy as part of their national strategies.
VCs and PE funds continue to back exciting entrepreneurship, from Fintechs
such as Wahed, to the modest fashion e-commerce platform Modanisa. Global
conglomerates, from BRF or Nestlé to Nike, also continue to invest and develop
solutions for the large and growing Islamic markets. The OIC (Organization of
Islamic Cooperation, which includes 57 member countries) ecosystem, from
the IsDB Group to the ICDT, is now also focusing on Islamic/ Halal economy
opportunities as a developmental priority. Meanwhile, global development
agencies, from the UNHCR to the World Bank, are looking at Islamic social
finance as a significant source of funding.
This 2023 edition is being presented amidst a global crisis around the
Palestinian-Israeli conflict, which has significant socio-economic relevance to
core Islamic markets. Additional global challenges, including continued conflict

in Ukraine, the worsening climate crisis, and uncertain- Halal food growth: With the climate crisis, lingering
ties from the digital AI revolution, are all at the top of supply chain disruptions due to the pandemic, and the
investment and economic growth agendas. Amidst these conflict in Ukraine causing a spike in food prices worldwide,
challenges, multiple developments have been sustaining ensuring food security continues to be a critical priority
the growth of the global Islamic economy, including the for core Islamic markets. While the total deal value of
BRICS emerging economies expansion that has added four investments in the Halal food sector decreased by 44% in
core Islamic markets, the UAE hosting COP28 success- 2022, food tech continues to be at the forefront of invest-
fully, and Saudi Arabia’s Vision 2030 massive development ment in the food sector, with companies investing in areas
investments. such as cultivated meat production and locally adapted
Consumer spending growth: This year’s report esti- high-performing hybrid seeds. Muslim spending on food
mates that the world’s 2 billion Muslim consumers spent increased by 9.6% in 2022, reaching US$1.4 trillion, an
an estimated US$2.29 trillion in 2022 across the food, increase from US$1.28 trillion in 2021, and is forecasted to
pharmaceutical, cosmetics, fashion, travel, and media/ reach US$1.89 trillion by 2027, growing at a CAGR of 6.1%.
recreation sectors, all of whose core products/services are Islamic finance growth: Against a backdrop of
impacted by Islamic faith-inspired ethical consumption post-pandemic recovery and geopolitical uncertainty,
needs. This figure represents a 9.5% year-on-year growth the landscape of Islamic finance has been dynamic and
in Muslim spending from US$2 trillion in 2021. While this evolving, attracting higher levels of investments. The
represents the core Islamic economy market, its appeal total deal value in Islamic finance-related transactions
continues to grow as non-Muslim consumers align with increased more than fivefold, from US$2.19 billion in 2021/22
the underlying ethical economy values. Moreover, Islamic to US$14.4 billion in 2022/23. There is an increased interest
finance assets are estimated to have reached US$3.96 in Islamic Fintech startups. The industry is developing
trillion in 2021/2022, a rise of 17% from US$3.37 trillion towards greater digitalization, sustainability, and financial
in 2020/2021. inclusion. The issuance of sustainable and green sukuk is
Malaysia’s leadership: Meanwhile, in this year’s Global expanding across several countries, including Indonesia,
Islamic Economy Indicator (GIEI), Malaysia retained the the UAE, Saudi Arabia, Bahrain, and Malaysia. Islamic
top spot for the 10th consecutive year, followed by Saudi finance assets were valued at US$3.96 trillion in 2021/2022,
Arabia, Indonesia, and and the UAE. Indonesia moved up an increase of 17% from the US$3.3 trillion valuation in
the ranking to #3. Bahrain has returned to the top 5 for the 2020/2021 period, and are expected to reach US$5.94
the first time since 2019/20, and South Africa has entered trillion by 2025/2026 at a CAGR of 9%.
the top 15 countries for the first time. Kazakhstan’s stay Travel growth: The travel and tourism industry con-
was short-lived as the country moved out of the top 15 in tinued its recovery in the aftermath of the pandemic, with
the current ranking. The biggest gains within the top 15 a surge in new hotel developments across OIC countries
were achieved by Iran, Qatar, Pakistan, and South Africa. following consolidations and a reduced focus on developing
Trade decline: The import of halal-related products new hotels during the pandemic. Saudi Arabia’s Public
by OIC member countries fell slightly, decreasing by 2.91% Investment Fund (PIF) continues to ramp up and diversify
from US$370 billion in 2021 to US$359 billion in 2022. its investments in tourism, alongside creating co-invest-
Pharmaceuticals became the largest contributor to this ment opportunities with the private sector. The use of
decline due to the reduction of vaccine import demand travel technology is expanding, from facial recognition
to pre-pandemic levels. China, India, Brazil, and the USA for airport security clearance to leveraging AI to analyze
were the top exporters of Halal products to OIC member data and facilitate travel bookings. Muslim spending on
countries. It is projected that the import of halal-related travel in 2022 reached US$133 billion, up 17% from US$114
products by OIC will bounce back by 2027, reaching US$492 billion in 2021, and is forecasted to reach US$174 billion in
billion with a 7.6% CAGR. 2027 at a CAGR of 5.5% between 2022 and 2027.
Investments growth: Investments related to the Modest fashion growth: Omnichannel marketing and
Islamic economy continued their upward trend, showing e-commerce continue to gain ground, with social media
a 128% growth in investment value from US$11.4 billion emerging as a valuable marketing and sales tool for the
in 2021/22 to US$25.9 billion in 2022/23. The number of fashion industry. Modest fashion brands have appeared
relevant mergers and acquisitions (M&A), private equity more at mainstream fashion events around the world. Both
(PE), and venture capital (VC) transactions increased from modest and mainstream fashion companies are actively
199 in 2021/22 to 220 in 2022/23. Indonesia and the UAE tapping into the modest sportswear market opportunity.
maintained their 1st and 2nd positions, respectively, in the Muslim spending on fashion reached US$318 billion in 2022,
number of their Islamic economy-related investments, up by 8.4% from US$293 billion in 2021, and is forecasted
with Türkiye and Malaysia sharing the 3rd position, Malaysia to reach US$428 billion by 2027, growing at a CAGR of 6.1%.
moving down to the 4th position, and Egypt in 5th place. Pharmaceuticals growth: Inflation continues to pose
The top 5 countries accounted for 64% of all recorded a challenge for the Halal pharmaceutical industry, espe-
Islamic economy-related transactions. In terms of sectors, cially for import-dependent OIC countries, which suffered
Islamic finance as well as media and recreation accounted previously from drug price spikes and shortages during
for 75% of the total deal value. the pandemic. Inflation and supply chain disruptions
EXECUTIVE SUMMARY 9
have resulted in a surge of regionalization and localiza-
tion initiatives across OIC countries. In the aftermath of
the pandemic, several initiatives were also launched to
strengthen vaccine and biopharmaceutical production
in OIC countries, such as Indovax and Saudivax. Muslim
spending on pharmaceuticals reached US$108 billion in
2022, up by 7.8% from US$100 billion in 2021, and is fore-
casted to reach US$142 billion in 2027 at a CAGR of 5.7%.
Cosmetics growth: The beauty industry is bouncing
back in the aftermath of the pandemic, especially lipstick
sales, with the relaxation of mask-wearing regulations.
Brands are working towards making their supply chains
more resilient and sustainable. AI and AR have emerged
as the two hottest technological innovations in the beauty
industry, enabling virtual makeup try-ons. Korea is actively
working to establish a global network to capture a larger
share of the Halal cosmetics market, while India and
Indonesia remain the top 2 largest markets by Muslim
consumer spending on cosmetics. Muslim consumer
spending on cosmetics reached US$84 billion in 2022,
up by 14.3% from US$74 billion in 2021, and is forecasted
to reach US$129 billion by 2027 at a CAGR of 8.9%.
Media & recreation growth: The media sector is
attracting higher levels of investment and regulatory
attention, with the total value of deals related to media
and entertainment doubling from US$2.4 billion in 2021/22
to US$4.98 billion in 2022/2023. Regulatory overhauls are
spreading across Asia and the MENA region, with countries
issuing new licensing requirements for social media and
streaming services regulatory guidelines. Mainstream
media production companies are joining the bandwagon of
creating content that showcases Muslim characters, such
as the Muslim Pakistani “Ms. Marvel.” Muslim spending on
media and recreation reached US$247 billion in 2022, up
by 6.4% from US$233 billion in 2021, and is forecasted to
reach US$344 billion in 2027 at a CAGR of 6.8%.
Recommendations: This report presents its annual
analysis highlighting sector-specific signals of opportuni-
ties and recommendations for governments, businesses,
and investors to enable them to navigate this opportunity
landscape.
The Report features a special 10th-anniversary section
that explores the evolving state of investments, national
policies, lifestyle trends, and the social impact that has
shaped the past decade of the global Islamic economy. As
we head towards the next 10 years, the SGIE Report edito-
rial team presents an aspirational vision for the Islamic
values-anchored ethical economy to become a significant
enabler of global socio-economic prosperity. This vision
builds on the successes of the past decade and leverages
the potential anchored by a fast-growing core ethical con-
sumer market, estimated at 25% of the world’s population
and economy, to contribute to solving the world’s major
challenges and realizing its opportunities sustainably.

PEXELS
EXECUTIVE SUMMARY 11
The Global Islamic Economy
2023/24 Overview
ALL FIGURES IN US DOLLARS BILLIONS UNLESS OTHERWISE STATED
CONSUMER
OPPORTUNITY
Represented by $2.29 trillion of consumer spending
by 2 billion Muslims across six real-economy sectors (2022).
Reaching $3.1 trillion by 2027 (4.8% CAGR).
KEY 2022 2027 CAGR%
MEDIA & RECREATION
HALAL FOOD
$247
Plus
6.8%
$1,403
$3.96 trillion of Islamic
Finance Assets (2021/22 est.)
$344
6.1%
ISLAMIC FINANCE
HALAL PHARMA
$108 5.7% $3,958 $5,955

2021/22 2025/26
$1,887
$142
MODEST FASHION
$318
6.1%
HALAL
COSMETICS
$428
$84
8.9%
MUSLIM-
FRIENDLY TRAVEL $129
$133
9%
5.5%
$174
*All estimates by DinarStandard except for Islamic Finance sector provided by LSEG Data & Analytics Islamic Finance Development Indicator 2021/22 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
2022 data. Projections are baselined on data from IMF Outlook from April 2023. Investments (figures and individual deals) are based on a detailed scan of databases from
CapitalIQ, Crunchbase and DinarStandard analysis from 1st August 2022 to 31st July 2023. See appendix for detailed methodology.
OIC Organization of Islamic Cooperation, 57 mostly Muslim-majority member countries.

TRADE OPPORTUNITY
OIC imports are set to grow at 7.6% CAGR in 5 years, reaching $492 billion in 2027.
US$ BILLION (2022)
Top 5 OIC Importers Top 5 Exporters to OIC
UAE 32.2 China 31.8
Saudi Arabia 31.7 India 26.4
Türkiye 31.5 Brazil 20.9
Indonesia 30.3 US 20.8
Malaysia 29 Türkiye 16.3
$359 billion OIC imports Top 5 represents 34% of exports to OIC
GOVERNMENT LEADERSHIP
Malaysia, Saudi Arabia and Indonesia lead the index of 81 countries with strongest Islamic economy ecosystem.
(SEE CHAPTER FOR DETAIL)
Global Islamic Economy Indicator Ranking 2023
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Malaysia Saudi Indonesia UAE Bahrain Iran Türkiye Singapore Kuwait Qatar Jordan Oman Pakistan South UK
Arabia Africa
55.6%
Islamic
INVESTMENTS Finance
Investments in the Islamic Economy reached $25.9 billion in 2022/23, at 128% YOY growth.
Countries with more than 10 investment Share by sector

transactions in 2022/23
19.2%
Indonesia 48 Egypt 14 Media
UAE 40 Saudi Arabia 11 13.1%
Travel
Türkiye 17 Nigeria 11 8.5%
Halal Food
Malaysia 17 3.6%
Others
10 YEARS OF IMPACT (SEE CHAPTER FOR DETAIL)
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SDG Economic equity Environment Gender equity

IMPACT Halal ethical products; Islamic Green sukuks; AAOIFI ESG Women entrepreneurship in
ethical finance assets; Social standard; Organic, ethical, halal media, design, modest fashion,
finance (Zakat, waqf, microfinance) brands travel
EXECUTIVE SUMMARY 13
CHAPTER
The Islamic
1
Economy and
Drivers of
Opportunity
SHUTTERSTOCK

CHAPTER 1: THE ISLAMIC ECONOMY AND DRIVERS OF OPPORTUNITY 17
Defining the Islamic
Economy
M
uslims around the globe, irrespec-
tive of their ethnic origin, are bound
together by religious beliefs and
practices that influence their con-
sumption patterns across various
economic sectors, driving a US$2.29
trillion opportunity for a range of
products and services. Add to that Islamic financial assets
amounting to US$3.96 trillion, and you get a complete
picture of the Islamic economy being worth a staggering
US$6.25 trillion. In its 10th edition, the State of Global
Islamic Economy (SGIE) annual report provides an over-
view 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 permis-
sible or lawful under Islamic law. The halal economy, also
referred to as the “Islamic economy,” consists of a number
of 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 as ‘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.
UNSPLASH

Islamic Economy
Sectors
HALAL PRODUCTS ETHICAL & SOCIAL FINANCE

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

Islamic Economy Growth Drivers
Demand-Side Drivers
Islamic
Values-Driven
Lifestyle and
Consumption
Affluence Digital
Patterns
of Muslim Connectivity
Consumers and the Rise
of E-Commerce
Modest Halal Intersection

Growing Fashion Food of Islamic
Youthful Values with
Population Sustainable
and Ethical
Halal Halal Consumerism
Cosmetics Pharma
Islamic
Economy
Sectors
Islamic Muslim-Friendly
Finance Travel
Government
Bodies Rise in Trade
Functioning Agreements
as Enablers and Intra-OIC
Media & Recreation Trade
National Islamic
Islamic Economy
Economy Global Investment
Strategies Brand Activity
Involvement
Supply-Side Drivers
ISLAMIC VALUES
JUSTICE AND SOCIAL FAMILY

MODESTY MODERATION
EQUITY RESPONSIBILITY VALUES

Islamic Economy
Growth Drivers
The demand for halal products has increased significantly composition of the Muslim population is poised to play a
over the past decades, with Muslim spending increasing critical role in the future expansion of the halal economy.
from US$1.62 trillion in 2012 to US$2.29 trillion in 2022.
Muslim spending on halal product sectors is forecasted The Affluence of Muslim Consumers
to reach US$3.1 trillion in 2027, a growth of 4.8% CAGR
over the 5 year period. According to the IMF, the overall GDP of OIC member coun-
The main drivers for the growth of the Islamic econ- tries is forecasted to increase by 21.7% to reach US$25.4
omy on the demand side include: trillion in 2023.6 The latest World Bank data (2021-2022)
• A sizeable Muslim youth population also shows that GDP per capita for several Muslim-majority
• The affluence of Muslim consumers countries is above the global average, including all GCC
• The centrality of Islamic values for Muslim consumers countries, Brunei Darussalam, and Guyana.7 The growth of
• The increase of digital connectivity and e-commerce Islamic economies and the affluence of the Muslim popu-
in Muslim-majority countries lation, coupled with their youthful nature, are important
• The intersection of Islamic values with sustainable stimulants for the growth of the Islamic economy.
and ethical consumerism
On the supply side, governments of member countries in GDP PER CAPITA, CURRENT PRICES
the Organization of Islamic Cooperation (OIC) have played
US$ (2022)
a prominent role in the growth of the Islamic economy
by requiring halal certification for imported products, Qatar 88,046
providing support for halal producers, and entering into United Arab Emirates 53,758
regional agreements supporting intra-OIC trade. Islamic Kuwait 43,233
finance has played an important role in supporting the Brunei Darussalam 37,152
Islamic economy ecosystem, while the involvement of Saudi Arabia 30,436
international brands has contributed to the expansion Bahrain 30,152
of choice for Muslim consumers. Oman 25,057
Guyana 18,990
World 12,647
DEMAND-SIDE DRIVERS Malaysia 11,972
Maldives 11,818
A Growing Youthful Muslim Population Kazakhstan 11,244
Türkiye 10,616
One of the strongest demand drivers in the Islamic econ-
omy is the growing youthful Muslim population. In 2023,
the Muslim population exceeded two billion, as per a careful The Centrality of Islamic Values to Muslim
estimate, representing more than 25% of the global pop- Lifestyle and Consumption Patterns
ulation.1 Over the next decade, it is anticipated that the
Muslim population will continue to grow at about twice According to the latest Pew Research Center study, there is a
the rate of the non-Muslim population. It is forecasted belief that religiosity has increased significantly compared
to reach 2.8 billion by 2050, representing 30% of the to two decades earlier.8 Furthermore, the study showed that
world’s population.2 a large percentage of Muslims in Asia-Pacific and the MENA
In 2023, Muslim youth and young adults (ages 15-29) region (70-90%) have rated religion as “very important” in
represented 27.8% of the world’s youth and young adults.3 their lives.9 Hence, it is reasonable to expect that Muslim
By 2030, nearly three in ten of the world’s youth and consumers would consider Islamic values central to both
young adults are projected to be Muslim.4 With Gen Z their lifestyle and consumption patterns, which is already
and Millennials being the largest spenders,5 the youthful evident in the continued growth of the Islamic economy.

Digital Connectivity and the Rise of OIC member countries, such as Saudi Arabia, the UAE,
E-Commerce Nigeria, Indonesia, and more, have proactively imple-
mented various programs with the Islamic Organization
The growth in digital connectivity is spurred by increased for Food Security (IOFS) to acquire security for halal foods.
accessibility to digital devices, investments in technology, Depending on the industry, most OIC governments provide
and developed digital infrastructure. The Middle East and various types of support to ensure economic growth is
Africa are expected to have significant growth in internet fulfilled. One opportunity major stakeholders look for
penetration, with the number of internet users expected is increased support from global governments to unify
to rise from 572.4 million in 2023 to 653.7 million in 2027.10 halal standards and accreditation processes to reduce the
The increased digital connectivity represents an important certification requirements to be able to promote halal
enabler for various Islamic economy sectors. commerce on a global scale.13
E-commerce revenue in the GCC is projected to
increase by 11% annually between 2023 and 2027, reach- Global Brand Involvement
ing around US$50 billion annually by 2027. The number
of users in the GCC e-commerce market is estimated to The halal economy has been a multi-trillion-dollar global
reach 44.27 million by 2027, with around US$820 in average industry, and it will benefit from the involvement of top
revenue per user.11 global brands such as Nestlé, Unilever, H&M, and more.
As major players, they have become part of the growing
The Intersection of Islamic Values with halal economy, providing various innovative products
Sustainable and Ethical Consumerism and services to the Islamic economy sectors. The contri-
bution of these global multinational brands emphasizes
Research shows that more consumers are prepared to the growing consumer demand for halal products. As
spend on sustainable products now than two years ago. the halal industry continues to expand worldwide, more
While Gen Z seems to be at the forefront of that trend, multinational players are being drawn to the opportunity
this increase holds across the “generational divide.”12 Many the Islamic economy offers.14
Islamic values underlying various sectors of the Islamic
economy have a wider appeal, resonating with universal Islamic Economy Investment Activity
principles such as sustainability and ethical consumption.
Halal products are increasingly associated with Islamic finance continues to set benchmarks, augmenting
food safety, hygiene, and health. Many halal brands have the development of the overall Islamic economy ecosys-
succeeded in attracting non-Muslim ethical consumers, tem. According to this year’s report estimates, the total
including brands such as Saffron Road and Iba Cosmetics. value of Islamic finance-related deals increased more than
fivefold, from US$2.19 billion in 2021/22 to US$14.4 billion
in 2022/23. During the pandemic, private sector companies
SUPPLY-SIDE DRIVERS across OIC member countries have managed to endure
with support from government grants and public-private
Government Bodies Functioning as Enablers partnerships, as well as mergers and acquisitions (M&A).
S&P Global Ratings estimated that global sukuk issuance
The governments of OIC member countries are actively reached US$174 billion in 2022, up from US$148.4 billion
regulating the imports of products to ensure adherence to in 2020.15 There is heightened interest in eco-friendly and
halal certification requirements and guidelines. Various OIC green/sustainable sukuk globally, with support from the
national bodies monitor and provide accreditation to halal Islamic Development Bank (IsDB) and OIC member coun-
certification bodies, including the UAE’s Emirates Authority tries, including Indonesia.
for Standardization and Metrology (ESMA), the Emirates
International Accreditation Centre (EIAC), Saudi Arabia’s Rise in Trade Agreements and Intra-OIC Trade
Saudi Food and Drug Authority (SFDS), and Malaysia’s
Department of Islamic Development Malaysia (JAKIM). With supply chain disruptions due to the pandemic, OIC
The efforts of these national bodies led to an increase in member countries have become increasingly aware of
awareness of halal product requirements and compliance the importance of collaboration. OIC member countries
by manufacturing companies, enabling the growth of have entered into several regional trade agreements, such
various Islamic economy sectors. as the African Continental Trade Agreement (27 African
OIC member countries) and the Regional Comprehensive
National Islamic Economy Strategies Economic Partnership (three Asia-Pacific OIC member
countries). The Organization of Islamic Cooperation (OIC)
The Islamic economy is becoming a central focus for has declared that it aims to increase intra-OIC trade from
many countries, including non-Muslim majority coun- 18% in 2021 to 25% by 2025 through cooperation between
tries, as economic growth through economic diversifi- its trade promotion agencies and OIC member states.16 In
cation is being identified and given due importance. The 2022, the Islamic Centre for Development of Trade (ICDT), a

PEXELS

Automation is expected
Key Trends and

to disrupt labor markets
in all economic sectors,
with transportation and
manufacturing jobs being
more at risk.
Disruptive Innovations
Affecting the Halal
Economy
subsidiary organ of the OIC, organized various workshops GEOPOLITICAL INSTABILITY

for investment promotion agencies in OIC countries and
published a number of industry and investment reports, Amidst the ongoing crisis in Palestine and the Ukraine
including the launch of its first joint annual report with conflict, which is now in its second year, geopolitical insta-
the Islamic Development Bank (IsDB) and the ICDT on bility continues to be a major risk to the global economy.
OIC countries’ investment climate and opportunities.17 The Ukraine conflict has escalated beyond reshaping the
The Standards and Metrology Institute for the Islamic world order to causing shortages of raw materials and
Countries (SMIIC), a subsidiary organ of the OIC, continues increasing food insecurity.18 According to the World Food
to play an important role in the harmonization of stan- Programme (WFP), 345 million people in almost 80 coun-
dards and the elimination of technical barriers to trade tries will face acute food insecurity in 2023 (more than
among OIC countries. double the number in 2020). The conflict has affected
UNSPLASH

the food supply chain for halal markets, especially for due to their higher vulnerability to weather events. These
countries across Africa and the Middle East that depended include countries in the Middle East and North Africa
on wheat supplies from Ukraine and Russia, with greater (MENA), Sub-Saharan Africa, as well as Central Asia, East
effects on politically fragile countries with a weak food Asia, and Pacific countries, which are all expected to suffer
sector, including Lebanon, Sudan, and Yemen.19 considerable losses.30
DEGLOBALIZATION THE FERTILITY SLUMP

With COVID-19 disruptions to international supply chains, The downward trajectory of the world’s fertility rate, cur-
trade flows have become increasingly regionalized.20 The rently at 2.3 in 2023, down from 2.7 in 2020, raises con-
conflict in Ukraine and climate change have also been cerns over population decline. The UN’s World Population
instrumental in effecting this change, with governments Prospects predict a global fertility rate of 1.9 births per
and global companies seeking resilience over the benefits woman by the year 2100 (lower than the 2.1 replacement
of global value chains.21 There is a considerable shift toward rate).31 The “fertility slump” is expected to cause a labor
a multi-polar world with increased influence for economic shortage by 2050 as a result of the declining working-age
alliances, such as the BRICS association, especially with the population.32 Fertility rates across Muslim-majority coun-
BRICS GDP surpassing the G7 GDP in 2021.22 The effects of tries as a whole are expected to decline less sharply than in
the shift extend beyond the trade sphere to the financial the rest of the world. Four Muslim-majority countries are
sphere, with initiatives toward de-dollarization.23 The effect projected to be in the world’s top 10 countries by popula-
of deglobalization on reshoring, a trend toward a higher tion by the year 2100, namely Nigeria, Pakistan, Indonesia,
number of domestic production stages, is evident in a and Egypt.33 While the lower fertility rate is considered a
number of OIC countries such as Malaysia and Indonesia.24 threat to productivity, the higher fertility rate in coun-
It is worth noting that Indonesia is expected to be the 4th tries with an existing high rate of unemployment, such
largest economy in the world by 2030.25 as Nigeria and Egypt, is expected to increase pressure on
their labor markets.
INFLATION AND ENERGY PRICES

VOLATILITY ARTIFICIAL INTELLIGENCE (AI) AND
AUTOMATION
With the COVID-19 pandemic no longer representing a
global health crisis and the easing of supply chain pressures AI is considered highly disruptive, with the potential to
following a protracted period of unprecedented stress, increase efficiency and productivity through the intro-
the IMF updated in July 2023 its projections for global duction of innovations and automation. It is predicted to
growth to 3% in both 2023 and 2024, up 0.2% from its contribute up to US$15.7 trillion to the global economy in
earlier estimate but still lower than pre-pandemic levels. 2030, with developing countries having more modest gains
However, inflation, which remains persistently high, is in comparison to developed countries. The impact of AI on
attributed to various other factors such as volatile energy the Middle East is expected to be US$320 billion in 2030,
and food commodity markets, expansionary monetary or around 2% of the total global benefits of AI, with the
policies, the protracted conflict in Ukraine, and extreme UAE and Saudi Arabia being the largest beneficiaries.34 AI
weather-related events.26 Across the MENA region, the is expected to improve the efficiency and productivity of
impact on growth is expected to be slower as a result of the halal supply chain as well as ensure halal compliance.35
tight monetary policies to fight inflation. Additionally, Automation is expected to disrupt labor markets in
agreed-upon cuts in oil production are expected to curb all economic sectors. However, the level of disruption
growth in oil-exporting countries.27 is expected to vary across sectors, with transportation
and manufacturing jobs being more at risk in the long
term while jobs in financial services are more at risk in
THE CLIMATE CRISIS the short term. The level of disruption is also expected
to vary across countries, with jobs in economies focus-
With July 2023 being the world’s hottest month on record, ing on industrial production being more exposed to job
the UN Secretary-General announced that the world has losses from automation than jobs in economies that are
entered “the era of global boiling.”28 According to the World service-dominated.36
Bank, climate change could cut crop yields, especially in
the world’s most food-insecure regions, as well as drive
216 million people to migrate within their own countries
by 2050.29 It is also estimated that it will cause a loss of
4% in global annual economic output by 2050, with some
countries expected to be affected disproportionately harder

CHAPTER
10 Years of
2
Tracking
the Global
Islamic
Economy
UNSPLASH

CHAPTER 2: 10 YEARS OF TRACKING THE GLOBAL ISLAMIC ECONOMY 29
This is now the 10th edition of the State of the Global
Islamic Economy (SGIE) Report, which was first
initiated in 2013 as part of the vision of H.H. Sheikh
Mohammed bin Rashid Al Maktoum, Vice President
and Prime Minister of the UAE and Ruler of Dubai,
of making Dubai the Capital of the Islamic Economy.
By 2013, Malaysia had already established a strong
baseline of the global Islamic finance and halal
economy ecosystem, and Dubai’s leadership ignited
a new level of energy under the umbrella of the
‘global Islamic economy’ that has indeed propelled
this ecosystem to new heights.
T
here is a lot to reflect on and learn
from this past decade’s global
Islamic/halal ethical economy
developments — its successes and
failures, both financially and socially
in this fast-growing market oppor-
tunity. This chapter looks at the 10
years of key developments across the Islamic economy
sectors globally, with their key milestones achieved and
their impact. We also look at this Report’s own unique
contributions to this journey. Finally, the authors present
a collective view of the outlook for the next 10 years and
an aspirational vision of the Islamic economy’s global
role through 2033.

SHUTTERSTOCK

10 Years of Impact
Macro-Context Islamic Lifestyle ‘Zeitgeist’ National/Multilateral Enablers Industry/ Investments
2013 2014 2015 2016 2017 2018 2019
10 years of highlights...
• China’s Belt and • 17 Global • Global climate • VC investment • Starlink, satellite

Road Initiative Sustainable change in blockchain internet
(BRI) initiated Development agreement - tech surpasses constellation,
Goals (SDGs) limit warming US$1 billion launched
• Syrian Refugee
launched to 2°C
• Maher Crisis (started
Zain’s song 2011) now • Yemen’s Civil • Fourth Industrial
“Insha Allah” has highest War began Revolution tech
(Awakening numbers conceptualized • First London
• Rohingya
Media) globally Modest Fashion
Refugee Crisis • Saudi Vision
mainstreamed Week (LMFW)
over 200 2030 launched
• Dubai Modest
million YouTube • Brexit Fashion Week
views happened
• Yaqeen Institute • Omar &
- Online Islamic Hana - Islamic
• Malaysia VBI
education trend values-themed
(Values-Based
cartoons for
Intermediation)
kids takes off
• 42 SMIIC Strategy Paper
(currently 2.3
members
• “Omar” TV billion views)
(OIC Halal
series (MC
standardization
Group and
body)/ 38
Qatar TV) • Indonesia
standards
major global hit issues largest
published • American Halal • “Resurrection: • Muslim Pro
sovereign
Company, Inc. Ertuğrul” started app at 10
• Malaysia and green sukuk
(US$6.65 million streaming on million users
Thailand (best (US$6.9 billion)
investment; Netflix globally (acquired) - • International
practice) Halal
Saffron Roads, Islamic-themed Space Station
compliance
US) apps trend (ISS) offers halal
national
food for Emirati
ecosystem; • Modanisa • Ecotrail
astronaut, Hazza
Halal (US$5.5 million Personal Care/
Al Mansoori
certification investment; Iba Halal
• Banvit (US$470 • Isla Délice
ecosystem STC Ventures, Care (GVFL
million; BRF (Perwyn Private
300+ Aslanoba investment,
& QIA joint Equity funding,
Capital) India)
• IILM (Inaugural venture) France)
sukuk issuance) • Hijup (Seed • DagangHalal
• “The Halal • Janan Meat • Al Islami Foods • 1st Indonesia
funding; Fenox (US$4 million
• SGIE Summit/1st Guys” (US$30 million (Mitsubishi Co. Halal Economy
Venture Capital, investment,
report phenomenon investment; funding, UAE) Masterplan
500 Startups, Investors,
launched in the USA gets Kingsley (KNEKS)
Skystar Capital) Bull Wealth • Wardah (invests
franchised to Capital, UK)
• ISEF Indonesia Management in Malaysia • AAOIFI Sharia
over 100 outlets • Alchemia
(Indonesia • AJ Pharma Ltd.) expansion) Standard 59
today
Sharia Holding
• Wahed (US$7+ • Serunai
Economic • Zilzar, (US$100 million
million raised in Commerce
Festival) by Malaysia-based investment;
Seed funding; launches Verify
Central Bank of e-commerce Aljomaih Group,
Cue Ball Halal App
Indonesia Muslim-lifestyle Saudi Arabia) • OneAgrix,
Capital, BECO (Private funds)
marketplace B2B supply
• Aladdin Capital)
(Private • Modist (US$15 chain/halal
Street halal
investors) million funding; traceability
e-commerce
Vaultier7) (angel funding)
(US$100 million
committed) • HolidayME • Modanisa
• Nestlé’s Halal
(US$16 million; (US$14.5
Centre of • Modanisa
Accel Partners, million, EBRD
Excellence (US$1.8 million,
Algebra investment)
STC Ventures;
• LaunchGood Ventures, Gobi
Wamda Capital) • Beehive (US$4
Partners, others)
million; Riyad
• HalalBooking.
• Muzmatch TAQNIA Fund
com (US$1
(US$7 million; FJ (RTF))
million funding;
Labs, Hambro
Undisclosed) • Muzmatch
Perks, Y
(US$7 million,
• Awakening Combinator)
Luxor Capital)

2020 2021 2022 2023
Towards next
10 years
ASPIRATIONAL VISION:
• COVID-19, • Russia-Ukraine • Israel-Palestine
WHO declares Conflict Crisis A significant enabler of
pandemic socio-economic prosperity
• OpenAI • BRICS Expansion
• Global launched (Saudi Arabia, of the world while
e-commerce ChatGPT UAE, Iran, Egypt, addressing global inequities
boosted to 18% and more)
of global retail and sustainability innovations.
• COP28 Dubai
• Dubai Expo 2020
• Black Lives
marks the first • Global climate
Matter (BLM)
time this world target <2°C on
movement
event is held in track (IPR)
MENA and in a
Muslim-majority
nation
Summary of SDG* impact
• Qatar World ECONOMIC EQUITY
Cup prides
• Khabib
itself on Islamic
Nurmagomedov,
values US$2.29 trillion Halal ethical universe
UFC lightweight
championship
inspires millions US$3.9 trillion Islamic ethical
• Arabian Oud, • France bans finance assets
specialty Abaya in state
perfumery, schools (earlier
flourishes with • New Malaysia bans on Hijab Social finance (Zakat, waqf, microfinance)
900 outlets in Halal Industry and Niqab)
35 countries Master Plan Financial inclusion, poverty
• Social media
• European Court
of Justice
• PIF (KSA “Muslim alleviation, other gaps
sovereign fund) Influencers”
permits states
launches Halal 125+ million
to prohibit halal
Product Dev views on TikTok
and kosher
slaughter
Co. (HPDC) ENVIRONMENT
• Fake halal meat
scandal in Green sukuks
Malaysia
• Nigeria Halal
Economy Report AAOIFI ESG standard
• Kitopi, UAE- • BRF SA & HPDC
launched
based cloud joint venture
kitchen investment • Malaysia Malaysia shariah-compliant carbon credit
(US$60 million • IsDB Halal Center (Saudi Arabia) Securities
Knollwood, of Excellence • Manzil, Canada- Commission (SC) Organic, ethical, halal brands
Lumia Capital) launched based Islamic - Cryptocurrency
fintech startup as a digital
• LinkAja (US$100 • Bangladesh
asset; shariah- Limited adoption of SDG mapping
million; BRI inaugural (Raised US$1.9
million Seed compliant across Halal standards
Ventures, sovereign sukuk
funding; Private carbon credit
Telkomsel, issued
investors) trading
others)
• Bank Syariah
• Wahed (US$25 Indonesia (BSI), • Insha GENDER EQUITY
million; Saudi after merger of • Almosafer Travel
Aramco 3 banks & Tourism Co.
Entrepreneur (US$412 million; • Evermos, Women entrepreneurship in media,
ship Ventures) PIF, Saudi Arabia) Indonesia- design, modest fashion, travel
• WahedX based social
• Modern Halal
• MRHB commerce Yet, major gender equity gap
Valley, first • Innate Capital platform (US$39
industrial zone • Durioo
• Tyson Foods million Series C in leadership
in Indonesia
• HalalBooking. investment led by the IFC)
to receive the
com (US$5 in Tanmiah
Halal Industrial *SDG: Sustainable Development Goals
million funding; subsidiaries
Zone certificate
undisclosed) (Saudi Arabia)

10 Years Of The
Islamic Economy’s
Sustained Growth,
Impact, And Evolution
GLOBAL MACRO CONTEXT Finally, OIC37 level macro developments led by KSA’s
Vision 2030 launched in 2016, China’s Belt and Road
The Islamic economy’s development over the past decade Initiative (BRI) (2013), Dubai Expo (2022), Qatar’s FIFA
has been significantly shaped by social, political, and World Cup hosting (2022), and BRICS expansion are all
technological global developments. Some key observations significant developments in the core halal Islamic econ-
are as follows: omy markets, driving confidence in domestic economic
• The global social agenda, through the 17 global Sus empowerment and the Islamic economy’s role.
tainable Development Goals (SDGs) launched by the
UN in 2015 and the Paris Agreement on global climate
change of 2016, has certainly found close alignment ISLAMIC LIFESTYLE GLOBAL
with the underlying Islamic ethical and economic ‘ZEITGEIST’
principles of human equity and environmental con-
sciousness. The growth of halal products and Islamic The global Islamic or halal or Muslim lifestyle economy
financial institutions in the past decade inherently in the past decade has also been shaped by the cultural
aligns with these measures through related halal zeitgeist, “the spirit of the time,” reflecting the prevailing
product certification standards and Islamic finance cultural icons, moods, and attitudes of a certain timeframe.
standards. However, global-level leadership is yet to Select observations are as follows:
be realized by Islamic economy players today, driving Islamic culturally themed entertainment icons, Omar
this global social agenda. Series (2014), Ertugrul (2016), Maher Zain “InshaAllah”/
• The COVID-19 pandemic of 2020 also played a sig- Awakening Media (2013), Omar and Hana (2019), and a whole
nificant role in the acceleration of various Islamic related genre has been developing cross-border Islamic
economy development trends. In particular, food and lifestyle identities, especially amongst the youth, which
medicinal security considerations are forcing halal is driving a stronger affinity toward the Islamic economy.
markets to seek nearshoring or domestic production. Further supplementing this Islamic economy affinity
Also, the acceleration of digital transformation globally is the global growth of the modest fashion space with the
also accelerated Islamic fintech, social commerce, introduction of the Nike Pro Hijab (2017) to a series of
and cross-border halal/Islamic lifestyle proliferation. mainstream modest fashion shows from London and Dubai
• Various political crises this past decade - Syrian to Jakarta. Women’s empowerment has been championed
refugees, the South Sudan crisis, Yemen’s civil war, by young, modestly, and beautifully dressed women who
and the recent Russia-Ukraine and Israel-Palestine are defying discriminatory hijab ban practices and are
crises have all been shaping many aspects of the leading as successful entrepreneurs and fully engaged
Islamic economy. In particular, Islamic social financ- members of society.
ing instruments of zakat, sadaqah, and waqf have Digital media proliferation with apps such as
expanded, including engagement by global multilat- MuslimPro (10 million active users, 2017), a series of new
erals such as the UNHCR, World Bank, UNICEF, and media Islamic education formats led by Yaqeen Institute
others. The political crises have also put pressure on (300 million minutes of video content watched in 2022),
related supply chains, further driving domestic halal or Muslim social media influencers (125+ million views on
production investments. TikTok) are all strengthening their faith-based identities
• Global technological developments have also been and enabling innovations and entrepreneurship.
a key driver of the Islamic economy’s global growth
and development. In particular, a proliferation of
digital entrepreneurship is being propelled by the EVOLUTION OF GOVERNMENT
internet/smartphone’s continued expansion and POLICIES AND REGULATIONS
fourth industrial revolution technologies, enabling
innovations across Islamic fintech, including social This past decade, various government policymakers have
fintech, media, social retail, and food-tech. been engaged for two key purposes. First is the support of

regulatory and compliance integrity and the enablement investment activity in this space. The Western halal domes-
of halal products and Islamic finance. The second has tic markets have also seen regular VC and PE funding, with
been to drive economic value through trade facilitation American Halal Co. (USA), Janan Halal Meats (UK), and Isla
and the widening of financial inclusion coverage. Select Delice (France) showing a positive trajectory. HalalGuys
observations of government engagement through the past (USA) represents a successful QSR franchise model that
decade are as follows: now has almost 100 branches.
• The market and trade of halal products has been a truly Halal product tech: While the promise of technol-
global supply chain. The USA, Brazil, France, Germany, ogy-based halal products such as e-commerce, e-trade,
the UK, Thailand, and Australia have, for over a decade, and supply chain transparency is strong and has attracted
been the leading exporters and continue efforts to investments, success stories have been challenging.
strengthen the halal export markets. Meanwhile, in the Zilzar, DagangHalal, AladdinStreet, Serunai Commerce,
past decade, major OIC countries have also begun to and OneAgrix have had mixed successes so far, but select
engage in halal trade. This has been due to economic business models represent future areas of innovation.
diversification, food security, and domestic job cre- Modest fashion: Modest fashion has shown strong,
ation goals. Saudi Arabia and Indonesia, in particular, successful investment activity driven by global e-com-
are coupling their halal compliance regulations with merce sales. Modanisa (Türkiye), FashionValet (Malaysia),
economic development and investment agencies to Haute Hijab (USA), and Hijup (Indonesia) investments are
drive the economic opportunity agenda. indicating these growing segment opportunities. A cau-
• Halal products compliance has been the second key tionary note was the shutting down of Modist, a modest
concern of government policymakers, especially from luxury brand (US$15 million) investment that faced some
the 57 OIC member countries, for more than a decade structural challenges.
now, with SMIIC (the multilateral body responsible Islamic fintech: The Islamic fintech startup ecosys-
for halal standards for OIC countries) struggling to tem has become the most vibrant investment segment
get alignment toward a single halal standard for var- across the Islamic economy. With 375 Islamic fintechs
ious reasons. The result is that halal compliance is tracked,38 the opportunity to serve the largely unbanked
currently inefficient in facilitating competitive trade population of Islamic markets is ripe. Investments in
globally. The largest halal markets, however, are now Wahed (multiple rounds USA/UAE), Beehive (UAE), Insha
developing various bilateral and multilateral mutual (Germany), Manzil (Canada), and MRHB Defi (Australia) are
recognitions, with some coordinating with SMIIC, all strong indicators.
which should better facilitate trade. Muslim-friendly travel: The past decade has seen the
• The Islamic Finance space, which has been active young, fast-growing Muslim-lifestyle-driven middle class
since the last decade with an established regula- enable the growth of Muslim-friendly, heritage-driven,
tory ecosystem and enablers in the form of AAOIFI, and religious tourism. Turkish resorts, coupled with the
IFSB, and IILM, has been addressing some key gover- online booking platform Halalbooking.com (multiple rounds
nance, innovation, and social impact areas. AAOIFI’s of funding), have led this trend, culminating in religious
Waqf governance standards, Sharia Standard 59, and travel sector investments being driven by Saudi Arabia’s
Crowdfunding standards are a reflection of these Vision 2030 expansion-related investments in HolidayME
developments. Meanwhile, Malaysian regulators and Almosafer.
maintain their leadership with their Values-Based Media and recreation: Successful Islamic-values-
Intermediation framework (2017), shariah-compliant themed content and media investments have been seen
carbon trading, as well as addressing cryptocurrency in digital platforms/apps (MuslimPro, MuzMatch, Durioo+)
and other fintech regulations. and select mainstream TV series investments. New media
investments in digital gaming, VR/AR immersive experi-
ences, and storytelling are also emerging.
EVOLUTION OF INVESTMENTS
Significant investment activity across the Islamic economy EVOLUTION OF SOCIO-ECONOMIC
this past decade has been captured by the SGIE Reports. IMPACT OF THE ISLAMIC ECONOMY
Given a 10-year timeframe, there have been multiple cycles
of investments and exits, as well as failures. It is instruc- The core and anchor principles of the Islamic economy are
tive to see the VCs, PE funds, and corporate investors who to enable a just and equitable economic system. Given this
have invested in this space and across geographies. Select underpinning, it is important to gauge the socio-economic
observations across the sectors are as follows: impact of the past decade of the Islamic economy. The key
Halal products: The establishment in 2022 of the Halal global challenges for the past decade have been anchored
Product Development Company (HPDC), an investment in socio-economic justice, as captured by the 17 Sustainable
company fully owned by the Public Investment Fund (PIF) Development Goals (SDGs), as well as our shared planet’s
of Saudi Arabia, is the largest investment indicator and climate crisis. Given the Islamic economy’s scale and
development that will further ignite the overall global size, it indeed has significant leverage to be a force for

SHUTTERSTOCK

good in driving original solutions. The impact and reach
of the Islamic economy in this regard have been limited, SGIE Reports
but there are some promising signs of impact and scale.
Select observations are as follows: Impact and Evolution
Reducing economic inequities: While it has not
been directly measured, the growth of Islamic finance
this past decade underpins economic equity. Currently,
its reach is limited, even within the core Islamic markets,
with significant populations still unbanked. At the same
time, Islamic fintech and social fintechs are bringing
innovations that are filling this gap.
Clean energy: The Islamic finance sector, in particular,
has started to support clean energy investments with The SGIE Report has been developed with compre-
the issuances of multiple green sukuks globally. AAOIFI hensive research and editorial independence, initially
has also issued its ESG standard for the industry, while by ThomsonReuters (now LSEG Data & Analytics) and
Malaysia has issued shariah-compliant carbon credit trad- DinarStandard and fully by DinarStandard since 2019, with
ing policies. On the other hand, halal product production the goal of developing a global benchmark and outlook
and trade have yet to incorporate this significantly into reference to propel the fast-developing Islamic economy.
their regulatory agenda. In its 10th year, with the grace of God Almighty, the
Poverty: For immediate crises, Islamic social finance Report has become a global reference point to evaluate
mechanisms such as zakat, waqf, and sadaqah, espe- its annual developments globally across the seven sectors
cially those supported by social fintech platforms like covered and present an original outlook on its developing
LaunchGood.com and global engagement by multilat- opportunities. The Report has reached over 101,000 readers39
erals such as the UNHCR and others, are contributing to across 85 countries, with over 14,150 report downloads and
poverty alleviation. At the same time, more sustainable over 1,570 media mentions. The following is a summary of
solutions such as Islamic microfinancing, P2P, crowd- its impact across government policymakers, investment
funding, and social commerce platforms for SMEs such companies, and industry players based on tracking by
as Ethis, Evermos, and others are enabling job creation DinarStandard:
and economic empowerment.
Health and well-being: The compliance of halal prod- Investments:
ucts inherently covers a high level of healthy ingredient
considerations, including animal feed and welfare. The • PE funds/investments: Multiple PE firms have exe-
growth of halal standards can universally contribute to cuted related investments or investment funds with
healthy food practices. credit to the Reports’ business case.
Education: Education levels are some of the lowest • Social Wealth Funds: At least two social wealth funds
globally in core Islamic markets that are less developed. have leveraged the Reports’ business case for Islamic
Utilization of Islamic endowments (waqf) for developing economy investments.
comprehensive education institutions is developing. • VC investments: 40+ startup investments and multi-
Gender equity: The global Islamic economy has had ple VCs anecdotally linked to Reports’ business case.
some positive developments in contributing toward gen-
der equity in its core markets. Entrepreneurship across Government policymaking:
Islamic-themed media, design, modest fashion, and travel
sectors, in particular, has seen a high number of women • National Strategies: Over four governments are known
leaders. Job opportunities among Islamic finance and to be leveraging the overall Islamic economy national
halal product companies are also growing. strategy framework and benchmarking.
Partnerships: The Islamic Development Bank (IsDB
Group), in line with its vision of developmental impact Industry strategies:
across its 56 member countries, has been driving signif-
icant social impact and related global partnerships. It has • Corporates: Halal industry companies leveraging the
formed partnerships with the World Food Program, FAO, Reports for expansion strategies.
UNDP, WHO, and ILO, among others. • Multilaterals: UNHCR, World Food Program, others
leveraging the Reports’ findings for Islamic social
finance initiatives.
Academic citations:
• There have been 645 citations of SGIE Reports data

and insights in academic journals up to September

Islamic Economy market size original estimations
Consumer spending estimate for all sectors, except Islamic finance represented as
Assets under management, in US$
$3,637
$2,880
$2,202 $2,438 $2,500
$1,658 $1,814 $2,004
FINANCE $1,354
SHARE OF GLOBAL
SECTOR EDITION 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2022/23
3.0% DATA YEAR 2012 2013 2014 2015 2016 2017 2018 2019 2021
$1,292 $1,173 $1,245 $1,303 $1,369 $1,170 $1,267

FOOD $1,088 $1,128
SHARE OF
GLOBAL SECTOR EDITION 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2022/23
16.6% DATA YEAR 2012 2013 2014 2015 2016 2017 2018 2019 2021
$266 $254 $270 $283 $277 $295

$224 $230 $243
FASHION
SHARE OF GLOBAL
SECTOR EDITION 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2022/23
10.6% DATA YEAR 2012 2013 2014 2015 2016 2017 2018 2019 2021
$169 $177 $189 $198

TOURISM $137 $140 $142 $151
$102
SHARE OF
12.5% DATA YEAR 2012 2013 2014 2015 2016 2017 2018 2019 2021

$209 $220 $222 $231
$185 $179 $189 $198
MEDIA & $151
RECREATION
SHARE OF
4.60% DATA YEAR 2012 2013 2014 2015 2016 2017 2018 2019 2021
$87 $92 $94 $100

$70 $72 $75 $78 $83
PHARMA
SHARE OF GLOBAL
SECTOR EDITION 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2022/23
6.60% DATA YEAR 2012 2013 2014 2015 2016 2017 2018 2019 2021
$57 $61 $64 $66 $70

COSMETICS & $54 $56
$46
PERSONAL CARE $26
EDITION 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2022/23
SHARE OF GLOBAL
SECTOR DATA YEAR 2012 2013 2014 2015 2016 2017 2018 2019 2021
6.60%
2023 for academic publications that are indexed in affected by Islamic ethics/laws.” With this introduced
Google Scholar (database). Other citations that are definition, global sectors of Islamic finance, halal prod-
not indexed are not included but are still part of the ucts (food, pharma, cosmetics), Muslim-lifestyle/religious
impact of the State of Global Islamic Economy reports tourism, modest fashion, Islamic-values-themed media,
as a source of authentic data and information. Selected and digital applications were covered.
journals are British Food, Journal of Islamic Marketing, Over the last 10 years or so, the growth and potential
Journal of Consumer Marketing, Emerging Markets of growth have been depicted with careful estimation of
Review, Journal of Knowledge Economy, New Political these sectors with clear methodology, as visualized below.
Economy, International Journal of Emerging Markets. The sectors are broad and distinctive and can embrace
newer developments easily. For instance, the Media and
Recreation sector can include the developments and influ-
DEFINING AND SIZING THE GLOBAL ence of Muslim content creators on the global Islamic
ISLAMIC ECONOMY: A ROBUST economy. The broad definition of the sector allows for
ARTICULATION covering any groundbreaking developments in the realms
of the metaverse, AR, and VR.
While ‘Islamic Economy’ has varied definitions, this Report This is the first knowledge contribution of the State
focused on consolidating the global trends around “those of Global Islamic Economy Reports that has stood the
sectors whose core products and services are structurally test of time.

PEXELS
GLOBAL ISLAMIC ECONOMIC and adjusting for sector weightings in the calculation.
INDICATOR (GIEI): A GOVERNMENT Over the years, countries have moved in these rankings.
BENCHMARKING REFERENCE A careful review of any individual country’s move in the
ranking depicts its internal dynamics as well as its growth
The consistent articulation of the global Islamic econ- potential. Such longitudinal analysis of the market can be
omy in different sectors is based on economic terms and, useful for policymakers and investors alike.
therefore, transcends geographic and political boundaries. Other key original features of the Report have included:
At the same time, the State of Global Islamic Economy Business cases: Articulation of the Global Islamic
(SGIE) reports have analyzed the individual markets or Economy’s factual business case as a practical reference for
countries through a carefully developed Global Islamic investors, industry players, and government policymakers.
Economy Indicator (GIEI). Consumer pulse: Covering all customer segments
The GIEI ranking is completely data-driven and offers with a special focus on Millennials and Gen-Z.
insights into different countries ranked across every sector Signals of opportunity recommendations: An annual
as well as in aggregate. The ranking methodology, as pre- outlook of key emerging opportunity areas for investors,
sented in each Report, has been updated once, incorporat- industry players, and government policymakers.
ing additional technology-related evaluation parameters

The Next
10 Years
A VIEW FROM THE SGIE REPORT Vision: In the next 10 years, the Islamic values-an-
EDITORIAL TEAM: chored, universal, ethical economy will be a significant
enabler of global socio-economic prosperity while address-
We are humbled by the impact this Report has had in this ing unique solutions to global inequities and sustainability
past decade of consolidating and presenting opportunities innovations.
across this unique faith-based ethical and economic global It will do so by achieving exemplary global successes
trend. We have witnessed in this past decade a fast-paced in the following areas:
evolution and maturity of this ‘Islamic economy’ that already • Global food production and supply chain that practices
had its beginnings in the previous decade by early pioneers. halal ethical labor and animal welfare practices, is
We have seen the evolution of its positioning as the halal environmentally sustainable, enables equitable global
industry, Muslim lifestyle, Islamic economy, faith-based, or SME participation, and champions healthy consump-
many other forms, yet it has consistently been anchored in tion innovations.
an Islamic ethical value-based economic trend that is uni- • A financial ecosystem that enables equitable financ-
versal and globally inclusive in its impact and participation. ing across large to SME enterprises and significantly
This past decade has seen many successes and failures, increases financial inclusion and literacy globally.
as highlighted earlier; we indeed see this ‘Islamic economy’ • Lifestyle sectors anchored in digital media services,
space having a higher level of reach and impact today. fashion, and tourism to champion family-friendly
While we see select government-level strategies continuing content and destination innovations.
to leverage this trend as part of their national economic • Partnering with other faith-based and other commu-
development strategies, or investors and corporates invest- nities that share these universal values to together
ing in its growth areas, and entrepreneurs globally being solve the greatest socio-economic challenges globally.
inspired by its vast and culturally authentic opportunities,
we see the next major evolution of this Islamic ethical This vision builds on the successes of the past decade
economy, the purpose, attributes, and socio-economic and leverages the potential anchored by a universally rel-
impact of which have yet to be fully realized. evant ethical economic values system and an estimated
We humbly present an aspirational next 10-year vision 25% of the world’s population and economy to contribute
of this Islamic values-anchored ethical economy that to solving the world’s collective major challenges and real-
reflects the full intent of its reach and impact. izing its opportunities sustainably.
PEXELS

Stakeholder
Quotes
The Report is a gold mine of research not only on halal

but on all the segments of Islamic enterprise in the MENA
region. It was the first of its kind, and not even Bain nor
McKinsey could match it. As the largest national brand
in supermarkets in the US, it was the first time we had
an objective, fact-based, and compelling analysis and
insights into the MENA region and the huge long-term
global opportunities of the halal market.”
Adnan Durrani, Founder and CEO, Saffron Road Foods
“The SGIE report has been our way of finding out data
about Muslim consumers. There just hasn’t been anything
else out there. So, the fact that you’re 10 years in is a
testimony to the fact that we need it. Most of the startup
ideas for the Spark competition referenced data from the
SGIE report. A lot of organizations, both Muslim and non-
Muslim, benefit from the Report.”
Nabeel Shariff, Director, GMW Network
“The Report was literally the only source to show modest

fashion’s economic potential. We referred to it and are
still referring to it in every presentation when we talk
about the potential of the Islamic economy. Thank you,
guys, and happy anniversary!”
Kerim Ture, Founder & Chairman, Modanisa.com

The Report has been quoted by the President and Vice
President of the Republic of Indonesia.”
Assoc. Prof. Sutan Emir Hidayat, Ph.D., Director, National Committee
for Islamic Economy and Finance, Indonesia (KNEKS)
“Thank you for this fundamentally important report. We

at Innate Capital Partners come across the report very
frequently. The GIES Report is the main source of market
data on the Islamic economy, including market size data,
trends, and more.
The section on investment transactions is especially

important for us and for other private equity and venture
capital institutions globally.
We see your GIES data in nearly every pitch deck

that comes across our desks. Congratulations on the
tremendous impact you have, both on operators and
on investors.”
Aamir A. Rehman, Chair, Innate Capital Partners
“I salute this initiative, considering the challenges in

obtaining the data for this sector of the global economy.
The Report can influence the next action plans of a country
if they really analyze the scoring of the GIE Ranking.”
Rozi Osman, Principal Partner & Halal Industry Strategist, Rozi Osman
International PLT
“We studied all the editions of the State of the Global

Islamic Economy report then decided to bridge the
gap between the UK and Global Halal Economy, by
organizing a B2B and consumer show around ‘halal’. We
use the insights of this wonderful report to educate our
events visitors.”
Aatif Majid, Founder & CEO, Halal Expo London

CHAPTER
Consumer
3
Profiles
PEXELS

CHAPTER 3: CONSUMER PROFILES 47
Interviews conducted with select Muslim consumers
from around the globe, from various backgrounds
and age groups, revealed a high level of observance
of Islamic law and ethics in their daily lives and
consumption patterns. The following consumer
profiles provide valuable insights into the choices
made by Muslim consumers in various Islamic
economy sectors.
Halal Products
(Food, Pharmaceuticals
and Cosmetics)
USA/Millennial
1 specifically for me, I’m always looking for organic or

grass-fed halal meat with no antibiotics or steroids.
• Crescent is a halal meat brand that I buy. What I
Name: miss, or what I’m not seeing enough offerings of,
• Laura Hassan especially locally, is that I could do the crescent order
Country: online, and I know that they don’t include antibiotics,
• USA so it’s a more natural option for halal, but in the
Bio: butcher shops and locally, we don’t really see that
• Recent convert, mom of 7 (blended family) they’re paying attention to steroids, antibiotics, and
Interests: organic/grass-fed.
• Participating in events to help converts, PTA activities, • For my kids, in their diets, I’m constantly looking
shopping with kids for products without gelatin and in our medications
Age/Generation: and supplements. It’s really difficult to find capsules
• 38 that don’t have gelatin in them. For me, it’s always a
Observance of Islamic Values: question of if I absolutely cannot find it somewhere
• Shariah courses helped me understand shariah else without a capsule, then I have to find out the
compliance rulings. So, you try to the best of your source of the gelatin, whether it is bovine or perhaps
ability to follow the restrictions that shariah requires. sometimes they make it from fish. So we pay attention
We have a local Sheikh, so we can have a Q&A with to that kind of stuff.
him any time. For a convert, it is kind of a relief to • For perfume sprays, I think a lot of them are alco-
know that you have somebody trustworthy instead hol-based, but we just try to use all-natural essential
of trusting the internet. oil sprays. Just water and essential oils are better.
Halal Products: • I have the halal scanner app, but I found it very lim-
• There are plenty of halal stores in my city within a ited and it doesn’t cover everything. We need food
5-mile radius of where I live that I can access, but brands and halal alternatives to our favorite foods.

FRANCE/Gen Z AZERBAIJAN/Millennial
2 3
Name Name
• Ismail Bennani • Fuad Akbarov
Country Country
• France • Azerbaijan
Bio Bio
• Student of medicine (French resident with Moroc- • Data Analyst
can-Canadian nationality) Interests
Interests • Reading books, playing chess, running, gym
• Playing sports, reading, playing chess training
Age/Generation Age/Generation
• 22 • 34
Observance of Islamic Values Observance of Islamic Values
• Shariah applies to everything. Everything we buy • Shariah compliance is of high importance to me.
needs to be shariah-compliant. I avoid products I try to be within the framework of halal. For
that I doubt may have forbidden ingredients, as information on halal, I use books and online
it’s important to be sure that the product is halal. I sources. I do sometimes watch scholars to get
also tell my sister and parents not to buy products more information and learn their viewpoints.
that they are uncertain of because they have some Halal Products
ingredients that may not be halal, such as gelatin. • I think there are enough halal products. Of course,
Halal Products the more halal companies grow, the better. Usu-
• There are halal logos on some food products, ally, I check the ingredients of foods or drinks.
but in big markets or companies, which are not There are meat producers who have halal certi-
everywhere, you would need to walk or drive far or fication, and I choose the best one according to
take a long time to get there. The prices in these feedback from friends because they have worked
places are always more expensive than products for those companies and they can verify the prod-
without the halal logo. ucts. Otherwise, it is very easy to find halal food
• You need to search a little bit harder. For example, options in the market, including those that are
if I wanted to buy candy or chewing gum, I always halal-certified.
needed to look at the ingredients, I remember • There is no halal certification for pharmaceu-
one time it was written gelatin, but I didn’t know tical products. When I buy medicine, I look at
if it was vegetable or animal gelatin. For candy the ingredients to make sure. In terms of drugs,
products, some companies use “veggie” logos people are not so sensitive about whether it’s
instead of halal. One specific company that does halal because it’s a medicine they need, but for
that is “Haribo.” me, it’s important to check. The main problem is
• It would be great if, for Muslims in France, there when a medicine includes gelatin ingredients in
was an app that could tell us if something is halal its products. When I buy capsules, I open them
or not by scanning a product, or it could tell us and use the inside material of the capsule. Usu-
about each ingredient within a product to see if ally, I order drugs imported from Türkiye because
it’s halal or not. they have halal certification.

Halal Lifestyle
(Fashion, Travel, Media
and Entertainment)
INDONESIA/Millennial
4 my family. For my other family members, my parents

and siblings, I always advise them and let them know
if something is halal or not.
Name Halal Lifestyle
• Abdullah Maftuh Al Ikhsani • I watch Indonesian content mostly, and I rarely watch
Country western animated movies. I also avoid watching con-
• Indonesia tent that is haram and non-Islamic, and I usually watch
Bio the trailer before deciding whether to watch it or not.
• CEO of an Islamic social and educational foundation I also watch and listen to Islamic speakers on YouTube
Interests and some podcasts; it’s part of my daily schedule.
• Playing badminton, shopping with family, watching • Movies should include Islamic characters or some-
movies, travel thing that includes Islamic stories that educate.
Age/Generation • I try to avoid any place of entertainment that sells
• 28 alcohol, even if it’s a cinema.
Observance of Islamic Values • The government should launch an official website, as
• Shariah is not only about worship, praying, fasting, well as on social media such as Instagram. It should
or sadaqah. It’s a matter of how we apply it in every not be just focused on halal food but also on other
single part of our lives. It’s a lifestyle, and it’s a pride products and services.
to have Islam in my life, and I am trying to apply it to
LEBANON/Gen Z
5 and what I’m using is halal is essential for me. It’s

very important that I see the sign of halal or examine
the ingredients. I would ask the clerk of the store
Name first, if possible; if not, I would check the ingredients
• Fatima Awali myself. I look for halal alternatives for any product
Country or service that is not halal.
• Lebanon Halal Lifestyle
Bio • There is a huge variety of Islamic fashion and modest
• Pharmaceutical sciences student clothing; it’s not very difficult to find at all. But some
Interests stores do not follow the modest fashion for clothing,
• Reading, drawing, basketball but I would go for very baggy clothes and would be
Age/Generation very mindful about how I look in public. For leather
• 19 imported from other countries, it is important to
Observance of Islamic Values know if it’s halal or not.
• Shariah compliance, to me personally, is very impor- • I do try to find and watch series or movies that are
tant. I would want to practice my religion 100% not obscene. I usually watch series, and if there is
completely; that’s why knowing what I’m consuming an obscene part, I skip it.

PEXELS

PAKISTAN/Gen X
6 his lectures about Islam are very interesting. He is

also my role model. Sometimes, I watch movies and
dramas, including Pakistani dramas, European dra-
Name mas, and Western dramas and movies. I love the
• Sadia Kashif movie genres of thriller and mystery. When watching
Country movies or dramas, I only watch positive things that
• Pakistan don’t include any vulgarity.
Bio • I play with my children a lot and try to spend a lot of
• Former teacher, mom of two aged 9 and 12 time with them. As a parent, I feel my first priority
Interests is to spend time with them and educate them about
• Arts and crafts different things. My children like to play mobile games
Age/Generation and watch TV. My daughter loves to sketch and write
• 43 stories.
Observance of Islamic Values • I always pay attention to them because I should know
• Halal does not only cover food; it is a matter of our what they are watching, as they should know and
practical life – what is wrong and what is right. We care about Islamic ethics and their Islamic values. I
should try to spread all of our concepts in a posi- always teach my children what the Holy Qur’an says
tive way. we should and shouldn’t do. I never scold them, as I
Halal Lifestyle know this is wrong; rather, I speak to them in a gentle
• I watch Islamic scholars such as Zakir Naik because way so they can understand.
SAUDI ARABIA/Millennial
7 Halal Lifestyle
• The entertainment scene is much richer in Saudi
Arabia than it used to be. I went to City Walk in Jed-
Name dah; they have restaurants, coffee shops, and a horror
• Amr Aledrisi house. My wife likes to go to the cinema.
Country • I like to watch drama movies and try to avoid whatever
• Saudi Arabia is not consistent with Islamic values. I think we still
Bio need more entertainment activities. We need more
• Engineer, soon-to-be father beach activities and theme parks.
Interests • When I travel, I choose hotels based on price, loca-
• Reading, gym training tion, and quality. I went to the UK twice last year. I
Age/Generation found food and restaurants with halal logos, even in
• 38 Kentucky. There are also Indian restaurants; they are
Observance of Islamic Values really good there, and they serve halal food. I also
• In my country, it’s kind of easy for us. We are blessed. prefer organic meat because they say they treat the
I know that if a product is in my country, then it’s animals well.
halal. Even if there is something that doesn’t have the • I also traveled to Malaysia recently, like a few months
halal logo in the supermarket, I am still comfortable ago. It’s an Islamic country, but they also have
buying it because it is processed by the government. non-halal food products, so I try to avoid that.

Islamic Finance
NIGERIA/Millennial EGYPT/Gen X
8 9
Name Name
• Aisha Yakubu • Lamia Al Sawa
Country Country
• Nigeria • Egypt
Bio Bio
• Works in EdTech, passionate about community • School Administrator, aspiring writer, and mom
development and social impact of four
Interests Interests
• Volunteering, cooking, socializing with friends • Reading
Age/Generation Age/Generation
• 39 • 43
Observance of Islamic Values Observance of Islamic Values
• I see shariah compliance first as duty as a Muslim, • I feel I can do whatever I want but within the
and it also gives me so much peace of mind. I try to boundaries of what God tells us. I feel that every-
apply it as much as I can. I apply it in every aspect thing is okay unless it’s forbidden, like drinking
of my life, from my food to my hair care products. wine or wearing something that is not suitable for
Islamic Finance Muslim women. Because I am living in a Muslim
• About 10 years ago, commercial banks were the country, I think it’s somehow the government’s
only banks we had in Nigeria. Where I invest my role to ensure that products are halal. Otherwise,
money is in a halal financial institution called Lotus there should be something to declare that this
Capital. I found they are halal as they have boldly is not halal.
written on their documents that they are halal and Islamic Finance
I have also received so many recommendations • I was looking for a loan to buy my car and found
for this institution from many Muslim people. an Islamic bank offering the loan. Even though
• For the halal financial institution that I invest in, I a friend working in a bank told me all the banks
wouldn’t invest in anything that has to do with the do business the same way, I chose the Islamic
lottery, alcohol, etc. These are the two prominent bank because I wanted to feel comfortable and
ones. And they have also listed all these things on the safe side. Also, the conditions of this bank
they don’t invest in. They are very transparent in were suitable, and I had to pay the loan back in
sharing information via email (yearly), and they also installments for five years.
have annual general meetings that you can attend • I use Google to look for information about whether
both in person and virtually. All these things are products and services are shariah-compliant. I
discussed, and people offer to voice their concerns. also check for information on the website Islam
• I chose Lotus Capital because it is a halal financial Way. I also ask a scholar I follow on his Facebook
institution, has a track record of integrity, and is page because I trust him.
highly dependable. There are also many non-Mus-
lims who have invested in this company because of
their level of integrity and dependability. Someone
recommended this halal financial institution to
me while I was in a training workshop, and I’ve
been with them for over 10 years.
• I think it will be a good thing to have a halal body
certification in Nigeria so that we, the Muslims,
will get to know the certified halal products so
we don’t keep guessing and just winging it when
it comes to products.

Marketing to Halal
Lifestyle Consumers
The Halal Lifestyle Consumer is an influential and steadily MARKET SEGMENTATION

growing demographic segment. Representing over a quar-
ter of the world’s eight billion population, the Muslim Before delving into DinarStandard’s Halal Lifestyle Marketing
consumer base is not homogeneous; in fact, it exhibits Mix Framework (HLMM)© and the four Ps of the marketing
diverse preferences, needs, and values that span across mix, a crucial initial step involves market segmentation as
continents, cultures, and socio-economic backgrounds — it influences how the elements of the marketing mix are
represented by 2 billion Muslims in various countries across developed and executed.
four continents, from Indonesia to Nigeria to Australia
and South Korea. Yet, they are connected by faith and a Diverse Markets Unified by Shared Core Values
core set of values and principles.
By understanding the unique nuances and underlying The global Muslim population of 2 billion is not a homog-
shared values of this group, brands can carve out a dis- enous segment. The Muslim market is incredibly diverse,
tinctive edge in the market. In this section, we present encompassing a wide range of geographical locations,
DinarStandard’s Halal Lifestyle Marketing Mix Framework cultural preferences, socio-economic statuses, food tastes,
(HLMM)©, offering insights and strategies to effectively languages spoken, and levels of adherence to religious
engage and resonate with this vital consumer segment. requirements.
However, amidst this diversity, Muslims share common
values that deeply influence their way of life and consumer
choices. Another common thread that unites Muslims
worldwide is the celebration of the same holidays, namely
Ramadan, Eid al-Fitr, Eid al-Adha, and the new Islamic year.
Diverse Markets Unified by Shared Core Values
FOR MANY... ...TOUCHES ...VALUES WITH

"ISLAM IS MANY UNIVERSAL
A WAY OF LIFE" SECTORS APPEAL
• God Consciousness • Food & Food Services • Just & Equitable

• Family Values • House Financing Business
• Modesty • Recreation • Zakat-Charity
• Dietary Law/Healthy • Clothing • Family Values
• Just and Equitable • Service • Fasting/Self Control
Financing • Education • Wholesome Food
• Education • Charity • Education
• Spirituality • Personal Care
• Social Responsibility • Business-to-
business (B2B)
Infrastructure
Source:
DinarStandard

SHADES OF AWARENESS AND
ADOPTION
While Islam is a way of life for many, there is a range of
awareness and adoption of its teachings. This diversity in
practice and understanding has led to distinct consumer
behaviors, preferences, and needs. The following frame-
work breaks down Muslim consumers into four primary
segments, each highlighting a unique level of adherence
and engagement with Islamic principles in their daily
consumption decisions.
SHADES OF AWARENESS & ADOPTION AMONG

MUSLIM CONSUMERS
SELECTIVE OBSERVERS
1 Aware of religious requirements but

selective in what to follow (e.g. avoid
pork and alcohol).
CONSCIOUS CONSUMERS
2 Make a conscious effort to consume

halal. Watch local & international
media content.
COMPLETE OBSERVERS
PEXELS
3 Seek halal beyond food products (e.g.

pharma and cosmetics). Use Islamic
finance. Dress modestly. Observers” have a rigorous approach to halal, insisting on
halal certifications for relevant products. Women in this
DEDICATED OBSERVERS segment lean toward full-length, modest clothing and
wear the hijab (head covering). Their media consumption
4 Strict in requiring halal certification

of products. Females wear full length
loose clothing and head covering.
is predominantly Islamic-centric. As part of segmenting
Muslim consumers, it is worth considering segmenting
and targeting based on their religious adherence.
Watches mostly Islamic media.
OIC VERSUS NON-OIC CONSUMERS
In addition to the general segmentation, it is important to
differentiate between OIC and non-OIC. For example, in
SHADES OF AWARENESS & ADOPTION AMONG MUSLIM OIC countries, the government regulates the halal sector,
CONSUMERS whereas in non-OIC countries, the onus is on the consumer.
“Selective Observers” are aware of core religious tenets but Furthermore, it is essential to recognize the demand-side
follow them selectively based on personal convenience driver of the Islamic economy: a burgeoning young Muslim
and preferences. They typically avoid obvious non-halal population that is not only digitally adept but also seeks
items like pork and alcohol but may not adhere to modest a holistic omnichannel experience.
dressing or strictly follow zabihah halal (meat slaughtered Beyond these shades of awareness and adoption
according to Islamic law). “Conscious Consumers” actively segmentation, it is also important to segment halal life-
seek halal in food but may overlook its significance in style consumers based on conventional demographic and
areas like cosmetics or pharmaceuticals. Their choices psychographic characteristics. Examples of demographic
blend religious obligations and cultural norms. “Complete segmentation include age, gender, income level, and marital
Observers” expand their halal compliance to areas beyond status. Examples of psychographic segmentation include
just food, including cosmetics, pharmaceuticals, and personality traits, interests, and ethical and social impact
Islamic finance, and dress modestly. Lastly, “Dedicated preferences.

Marketing Mix
Considerations for
Islamic Economy
Companies
While most marketers are well-acquainted with Philip These fundamental principles, based on DinarStandard’s
Kotler’s classic 4Ps of marketing — product, price, place, Halal Lifestyle Marketing Mix Framework (HLMM), include:
and promotion — which were later expanded to the 7Ps by 1. Taqwa/Conscientiousness: Upholding a commitment
incorporating people, process, and physical evidence, it’s to serve consumers and the communities in which
vital to recognize that when targeting Muslim consumers, companies operate with conscientiousness and care.
a foundational layer of Islamic value-based guiding prin- 2. Ihsan/Excellence: Providing high-quality standards
ciples shapes the marketing mix. and professionalism at every touch-point.
DinarStandard’s Halal Lifestyle Marketing Mix Framework (HLMM)©
Taqwa
(Conscientiousness)
Place Product
(distribution)
• Halal certification
• Physical/online (if relevant)
• Geographic reach • Values-driven (tayyeb/
ethical, positive social
impact)
• Cultural relevance
Amanah Ihsan
(Sacred Trust) (Excellence)
Promotion Price
• Consider targeted • Pricing strategy
segments to match product
• Islamic/ethical values positioning
• Cultural relevance • Discounts tied to
•
Storytelling relevant events
•
Testimonials • Charitable giving
•
Islamic holidays as portion of
authenticity proceeds
Adl
(Socio-Economic
Justice)

3. Amanah/Sacred Trust: Delivering products and services
to customers, engaging with partners, and interacting
with employees, all grounded in integrity.
4. Adl/Socio-Economic Justice: Striving to provide tan-
gible benefits to the community while conducting
business.
By adhering to these guiding principles, marketers can

create campaigns and strategies that resonate deeply with
Muslim consumers, aligning with their values and expecta-
tions while fostering meaningful and ethical relationships.
Samples of companies with a

brand embodying Islamic values
ISLAMIC FINANCE
HALAL FOOD
MUSLIM-FRIENDLY TRAVEL
MODEST FASHION
HALAL PHARMA
HALAL COSMETICS
ISLAMIC MEDIA & ENTERTAINMENT
MISSING LOGO
NIM
PEXELS

SHUTTERSTOCK

Marketing
Expert Tips
OMAR DACOSTA- MARUF

SHAHID YUSUF
Co-Founder CEO
M.I.N. Halal.Ad
(Muslim influencer agency)
You need to dig deep and understand what group of While marketing to Muslims, the messaging should be
Muslims you want to speak to. It comes down to the fun- adjusted to the core values of Islam, whether you are
damental business principle: understand your customer. targeting a Muslim majority or a Muslim minority country.
One thing that is worth noting is that Muslims are still The main challenge is actually targeting Muslims
a relatively religious community, and faith is important to in Muslim minority countries since early 2022 on meta
them. One poll by Ogilvy Noor found that 90% of Muslims platforms such as Facebook and Instagram. Now, even
say their faith affects their consumption. Google or TikTok have started removing targeting options
So, broadly speaking, you do want to speak to Muslims, related to Muslim interests.
knowing that their religion is important to them. The main reason why Meta removed those targeting
options is due to what happened with elections and privacy
If you run paid ads, you can test various messages issues. While we understand why Meta did what they did,
across various channels and see what is landing. The easiest it was not good for our clients since almost all of them
way to do this is to go to Facebook Ads Manager and see need to target Muslim clients online. We had to come up
what other brands are doing and what ads are performing with a solution. It had to be fast as well.
well with what messages. This will give an indication of We reached out to all our clients and offered a solu-
best practices across your industry. tion, which was to share their audiences with each other.
As Halal.Ad was their marketing agency, we already had
Finally, think about using Muslim influencers. If you access to their audience. All we needed was their permission
work with a variety of influencers from different back- to create a unified audience and share with each other.
grounds, you will naturally tap into different Muslim seg- Alhamdulillah, each of our clients agreed. This is how
ments because they will all authentically be speaking to we started our Muslim audience with around 30 million
their own audiences. profiles in early 2022.
Since then, it has grown to over 400 million Muslim
audiences worldwide, alhamdulillah. Other Islamic economy
companies can also do something similar if they can join
forces with other Muslim businesses.

CHAPTER
The Global
4
Islamic
Economy
Indicator
(GIEI)
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CHAPTER 4: THE GLOBAL ISLAMIC ECONOMY INDICATOR (GIEI) 63
The Global Islamic Economy Indicator (GIEI) offers
a comprehensive picture of countries currently best
positioned to address the multi-trillion-dollar global
halal economy opportunity.
urpose and
P
Methodology
In its tenth year, the purpose of the GIEI is to benchmark

the leading national ecosystems best able to support the
development of Islamic economy business activity relative
to their population size and GDP. Since its inception, the
GIEI has been a key measurement for those countries
looking to develop their Islamic economy offerings. It
has allowed them to pinpoint the areas for development
and address those directly for improvement.
The GIEI is a composite weighted index that measures
the overall development of a country’s Islamic economic
sectors by assessing their performance in line with broader
social obligations. It comprises 52 metrics organized into
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five components for each of the seven sectors of the Islamic

economy (Islamic finance, halal food, Muslim-friendly
travel, modest fashion, media and recreation, and halal
pharmaceuticals/cosmetics). The different components
that make up the indicator are as follows:
• Financial sub-indicators: Metrics that gauge the the extent of awareness the sector has built through
size of the sector. the press as well as through related events.
• Governance sub-indicators: Metrics to realize the • Social sub-indicators: Metrics to measure social
halal certification and shariah regulatory landscape impact.
(as applicable). • Innovation sub-indicators: Metrics to assess inno-
• Awareness sub-indicators: Metrics to understand vation landscape.

Scores/Analysis
GLOBAL ISLAMIC ECONOMY

INDICATOR 2023 SCORE
TOP 15
Islamic Finance
TOP 10
1 Malaysia
01 02 03 2 Saudi Arabia
Malaysia Saudi Arabia Indonesia 3 Iran
4 Bahrain
5 Kuwait
6 United Arab Emirates
7 Indonesia
8 Oman
9 Qatar
04 05 06 10 Maldives
United Arab Bahrain Iran
Emirates
07 08 09
Türkiye Singapore Kuwait
Halal Food
TOP 10
1 Malaysia
10 11 12 2 Indonesia
Qatar Jordan Oman
3 Türkiye
4 Singapore
5 Thailand
6 Australia
7 United Arab Emirates
8 Brazil
13 14 15 9 Kazakhstan
Pakistan South Africa United Kingdom 10 Bahrain

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Muslim-Friendly Travel Media & Recreation

TOP 10 TOP 10
1 Türkiye 1 Malaysia
2 United Arab Emirates 2 Singapore
3 Tunisia 3 China
4 Saudi Arabia 4 Qatar
5 Malaysia 5 United Kingdom
6 Morocco 6 Indonesia
7 Jordan 7 Bahrain
8 Bahrain 8 Netherlands
9 Kazakhstan 9 Canada
10 Uzbekistan 10 Türkiye
Modest Fashion Halal Pharma & Cosmetics

TOP 10 TOP 10
1 Türkiye 1 Singapore
2 Malaysia 2 Belgium
3 Indonesia 3 Malaysia
4 Singapore 4 France
5 Italy 5 Indonesia
6 Spain 6 Türkiye
7 China 7 Egypt
8 United Arab Emirates 8 Thailand
9 United Kingdom 9 United Kingdom
10 Germany 10 Tunisia

Indicator Scores Breakdown for Top 15 Ranking Countries
Islamic Halal Muslim- Modest Media & Halal Pharma
GIEI
Finance Food Friendly Travel Fashion Recreation & Cosmetics
1 Malaysia 193.2 408.7 128.0 99.4 73.6 74.4 73.9

2 Saudi Arabia 93.6 194.9 48.5 99.7 34.3 37.5 34.3
3 Indonesia 80.1 93.2 94.4 60.7 66.3 52.4 58.6
4 United Arab Emirates 79.8 115.7 59.2 136.2 51.3 44.5 41.3
5 Bahrain 75.0 125.1 55.0 88.1 33.4 49.6 38.5
6 Iran 74.6 159.8 41.2 65.7 20.5 24.2 33.1
7 Türkiye 74.0 46.1 85.1 161.8 86.2 46.0 52.6
8 Singapore 62.7 52.2 67.7 50.3 64.3 72.6 79.9
9 Kuwait 60.2 123.6 42.2 28.7 20.0 26.8 29.2
10 Qatar 57.1 74.4 49.7 60.4 37.4 63.3 37.2
11 Jordan 52.2 65.6 49.4 88.3 22.1 26.3 39.9
12 Oman 50.0 78.7 48.3 48.0 20.1 24.4 26.3
13 Pakistan 47.5 69.6 51.4 38.4 27.5 17.2 28.6
14 South Africa 44.7 51.1 53.8 25.3 32.4 31.9 43.2
15 United Kingdom 44.7 46.0 43.7 28.1 47.7 54.4 48.2
Leaders
and Movers
For the 10th consecutive year, Malaysia has taken the

top rank. Indonesia moved up to the third position and
Bahrain has returned to the top five for the first time since
2019/20. South Africa has entered the top 15 countries for
the first time, while Kazakhstan has moved out of the top
15. The biggest gains within the top 15 were achieved by
Iran, Qatar, Pakistan, and South Africa.
MALAYSIA
Since the inception of the GIEI, Malaysia has claimed
first position. Malaysia achieved a first-place ranking in
Islamic Finance, Halal Food, and Media and Recreation,
with a second-place ranking in Modest Fashion.
The Malaysian Islamic finance sector has shown con-
tinued growth, with a 9% increase in Islamic finance
assets and a 20% growth in the value of Islamic funds.
UNSPLASH
The Malaysian Islamic economy has demonstrated

strength across halal products, Islamic lifestyle, and

In the next 10 years,
the Saudi government
aims to spend over
US$800 billion on
tourism
UNSPLASH

Islamic finance sectors. Malaysia’s Department of Islamic unique product offerings from the Saudi market for local
Development (JAKIM) has been central to developing the consumption as well as export.
Malaysian halal industry and is actively working with Saudi Arabia continues to have a strong presence in
international halal bodies, such as Indonesia’s Halal the Islamic finance sector as well. The number of Islamic
Product Assurance Agency (BPJPH) and KSA’s Saudi Food Financial Institutions (IFIs) increased by 51%, with assets
and Drug Authority, to strengthen the global halal prod- increasing by 19%. The Tadawul All Share Islamic Index
uct assurance and ecosystem. The Halal Industry Master (TASI Islamic Index), which includes only shariah-com-
Plan 2030 (HIMP 2030) was launched by the Ministry of pliant companies listed on the Tadawul exchange, was
International Trade and Industry (MITI) in collaboration launched. This move aims to cater to the growing demand
with the Halal Development Corporation (HDC) to drive the from investors seeking investment opportunities aligned
holistic expansion of Malaysia’s halal industry, promoting with Islamic principles in the Saudi market. The Saudi
inclusivity and comprehensive growth. Electricity Company’s (SEC) US$2 billion sukuk issuance
The Malaysian government issued sukuk under the attracted a remarkable oversubscription of 7.7 times, gar-
Malaysian Government Investment Issue (MGII) program nering a total order book of US$15.4 billion. This indicates
in local currency used to finance or refinance qualified strong investor interest in the Saudi Arabian sukuk and
social and green projects as specified by the Government the attractiveness of the country’s Islamic capital market.
of Malaysia’s SDG Sukuk Framework. The Securities Muslim-friendly travel, media and recreation, and
Commission Malaysia (SC) released consolidated guide- modest fashion are significant areas of focus for Saudi
lines pertaining to Islamic capital market products and Arabia. The Saudi Fashion Commission hosted an exhibition
services. The guidelines are expected to streamline and to showcase the Saudi 100 Brands in New York. Saudi 100
enhance the offerings of Islamic financial products, such Brands is an initiative of the Saudi Fashion Commission,
as sukuk, Islamic funds, and Islamic investment services. where selected designers and brands work with an
6 VC, PE, and M&A transactions related to Islamic finance international team of fashion consultants to develop
in Malaysia were recorded. These were worth US$60.8 their businesses.
million and mostly in the fintech space.
Malaysia Digital Economy Corporation (MDEC) part-
nered with travel tech startup Tourplus to accredit accom- INDONESIA
modations as suitable for digital nomads. Duopharma
became the first company in Malaysia to receive halal Indonesia moved up to the third position in the overall
certification for oncology products. GIEI ranking. It retained its second position in the Halal
Food Indicator and its third position in the Modest Fashion
Indicator. The country moved up 23 positions to rank sixth
SAUDI ARABIA in the Media and Recreation Indicator.
Indonesian exports to OIC member countries were
Saudi Arabia retains the second position in the overall GIEI valued at US$13.38 billion in 2022. It is one of only two OIC
ranking. It ranked second in Islamic Finance and moved member countries in the top 10 exporters to OIC, Türkiye
up three positions to reach the fourth rank in Muslim- being the other. Indonesia received the highest number
Friendly Travel.
Saudi Arabia’s strength lies in the strategic and diverse
investments being made by its Public Investment Fund
(PIF). With one of the main goals of Vision 2030 being
the creation of a non-oil-based economy, the PIF has
continued to make significant investments across the
Islamic economy sectors. In the next 10 years, the Saudi
government aims to spend over US$800 billion on tourism.
The PIF invested US$1 billion in the travel app AlMosafer
and US$900 million in Aman Resorts.
The halal food industry is also a key focus for the
PIF. The Halal Products Development Company (HPDC)
is a PIF initiative aimed at promoting the localization of
Saudi Arabia’s demand for halal products. The PIF also
established companies like the Sawani Company, which
focuses on the camel farming industry, and the Al Madinah
Heritage Company (MHC), which is engaged in the pro-
duction and distribution of Saudi Ajwa dates. They also
established Saudi Coffee Co., which will play a pivotal
UNSPLASH
role in advancing sustainable coffee cultivation in the

southern Jazan region. All these investments are creating

of Islamic economy-related investments in the 2022/23 ernment and private sector may help overcome this. The
period. Indonesia received the second-highest inflow of UAE-headquartered international conglomerate Ghassan
FDI amongst OIC member states and ranked 19th for FDI Aboud Group and Halal Quality Control (HQC) Group have
inflows globally. announced at Gulfood the introduction of halal certifi-
Indonesia is actively creating partnerships with sev- cation solutions for the UAE companies producing and
eral countries globally to provide halal assurance services. exporting halal goods.
Indonesia and the Islamic Republic of Iran have estab- Food security is a key issue that the UAE has been
lished cooperation in halal product assurance through the actively seeking solutions to. As the host of the 28th
signing of a memorandum of understanding (MoU). Five Convention on Climate Change (COP28), sustainable agri-
countries signed such MoUs with Indonesia earlier: Chile, culture has been set as one of the key items for discussion.
Argentina, Hungary, Belarus, and Türkiye. During its G20 The annual Gulfood and FutureFood Forum events create a
presidency, Indonesia formed The Halal 20 (H20) Forum, platform for Middle Eastern food manufacturers to show-
which is a significant milestone in the development of case their products and learn about new technologies to
the global halal ecosystem and industry, as well as global address food security through manufacturing technol-
halal partnerships. ogy. The UAE also became the new headquarters for the
The Islamic lifestyle industries have also seen sig- International Food Producers Association (IFPA), which
nificant development in Indonesia. The Indonesian Trade enables and promotes intra-OIC trade and investment
Ministry has set its sights on becoming the global hub of between agri-food private-sector businesses across the
modest fashion and has initiated several partnerships entire ecosystem and the supply chain from gene to fork
with other ministries and the private sector to achieve in the OIC/IOFS member states.
this. The Jakarta Muslim Fashion Week has become its The UAE ranked second in the number of Muslim
premier event. Indonesia is planning for a new regulation tourist arrivals. The UAE-based Azizi Development plans
that will permit media outlets to be compensated by digital to launch 50 luxury hotels and resorts with an estimated
platforms or aggregators displaying their material, a move investment of US$16 billion, which will add 20,000 hotel
that aims to balance profit generation between tech firms keys in Dubai in the next five years.
and content providers. The UAE continues to rank first amongst OIC mem-
The government has given great support to MSMEs ber states in the Innovation sub-indicator. Abu Dhabi’s
across sectors. They are targeting to support around 30 Mubadala and G42 launched M42, a “tech-enabled” health-
million MSMEs to enter digital platforms by 2024 and care company, to advance medical research and capabilities
encourage the development of the Islamic economy. in the UAE. The UAE also launched a national drug tracking
system named Tatmeen, which enables the traceability
of drugs throughout the entire supply chain on a single
UNITED ARAB EMIRATES digital platform.
The UAE moved down to fourth position in the overall

GIEI ranking. However, it has performed well through- BAHRAIN
out the sector indicators, ranking second in Muslim-
Friendly Travel and within the top 10 for Islamic Finance, Bahrain moved up one position to reach fifth place in
Halal Food, and Modest Fashion. The country continues to the overall GIE indicator. It continues to be amongst the
rank first amongst OIC member states in the innovation global leaders in Islamic Finance, ranking fourth in that
sub-indicator. indicator. The country has also made significant moves
The UAE continues to be an attractive destination up the other sector indicators, ranking within the top 10
for investors. It had the highest FDI inflows amongst OIC for Halal Food, Muslim-Friendly Travel, and Media and
member states. The UAE was the fourth largest recipient Recreation.
of greenfield projects globally in 2022, with Dubai being For Q2 of 2023, Bahrain recorded a 2% increase in GDP,
ranked the best destination city globally for greenfield fueled mostly by growth in non-oil sectors. The hotels and
FDI projects for the second year in a row.40 The city of restaurants segment of GDP increased by 9.6% for that
Dubai was among the top 25 global cities for the third period.41 Bahrain is actively working to grow its travel sector,
consecutive year, according to Kearney’s 2023 Global Cities with an agreement being signed between Emirates and
Index. The UAE’s Islamic Treasury sukuk issuance witnessed the Bahrain Tourism and Exhibition Authority to promote
significant demand, with bids worth US$22.6 billion and the country as a weekend getaway and Bahrain and Saudi
an oversubscription of 76 times the offering size. The Arabia signing an MoU to collaborate on tourism, including
Securities and Commodities Authority (SCA) in the UAE joint programs and marketing activities.
has announced that it will waive registration fees for Exports of Bahraini-origin goods increased by 24%
companies listing green and sustainability-linked bonds in 2022, with the total value of re-exports increasing by
and sukuk in 2023. 6% in the same period.42 This improved performance in
Although exports in almost all Islamic economy exports, mostly to OIC member states, has led to Bahrain’s
sectors decreased in 2022, several initiatives by the gov- good performance in the indicator.

UNSPLASH

Special Country
Profiles
IRAN
BIG Islamic Finance: +7
MOVES Muslim-Friendly Travel: +4
Iran’s IFI assets increased by 47%, and the value of Islamic

funds increased by 121% in the last period. Apart from the
Islamic finance industry, Iran’s tourism industry has also
seen significant growth since the pandemic, with inbound
tourists up 40% in 2021 and a further 39.2% in 2022. This
is three times the global average growth in tourism, which
contributed 4.6% to Iran’s overall economy.43 Iran plans to
establish a state-owned medical tourism agency in Oman
that will target patients from Oman, Qatar, and Kuwait.
With 220 hospitals with medical tourism licenses, the
country is pushing to further boost the medical tourism
sector.
Iran continues to have the highest Muslim consumer
spend on fashion and apparel. An Islamic Clothing Expo
was held in Iran, featuring designers from other Muslim
nations. The Fajr International Fashion and Clothing
Festival was also held in Iran and showcased both local
and international designers.
UNSPLASH

QATAR UNSPLASH
Modest Fashion: +18

BIG
MOVES Media & Recreation: +19
Halal Pharma & Cosmetics: +19
Qatar made history as the first Arab nation to host the on innovation across all sectors, such as in the modest
FIFA World Cup in 2022. The successful organization of fashion sector, where Qatar VCUarts fashion design stu-
the event was lauded globally. The tournament has helped dent, Noor Rashid Butt, created the Nanoabaya, which
increase awareness of Qatar as a tourist destination. Qatar uses nanotechnology to absorb vitamin D-rich light along
has expanded its Hayya visa processing platform, which it with thermal insulating properties that help to regulate
used during the FIFA World Cup, to be used for all tourist the body’s temperature. In the food sector, two students
and business visas, therefore streamlining the process for have created a 3D printer that can mass-print vegetables
tourists to enter the country. using artificially grown vegetable cells and UV light. In the
Qatar’s rank across the sectors covered in the GIE fintech space, Qatar Central Bank launched its Fintech
Indicator showed marked improvement, mostly driven Strategy 2023 to stimulate fintech solutions and establish
by strong exports across all Islamic Economy sectors, to Qatar as a fintech epicenter in the region.
OIC member countries. Qatar has placed great emphasis

CHAPTER
Trade,
5
Investments
& FDI
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CHAPTER 5: TRADE, INVESTMENTS & FDI 77
Islamic Economy
Trade Overview
T
he import of halal-related products
by OIC member countries fell slightly,
decreasing by 2.91% from US$370
billion in 2021 to US$359 billion in
2022. Pharmaceuticals became the
largest contributor to this decline
due to the normalization of vaccine
import demand to the pre-pandemic level. Additionally,
rising inflation, increased commodity prices, and geopo-
litical conflicts acted as barriers to OIC imports. However,
it is projected that the import of halal-related products by
OIC countries will experience growth, reaching US$492.4
billion by 2027 with a 7.6% CAGR.
Halal product trade encompasses various catego-
ries, including food and beverages, fashion (apparel and
footwear), pharmaceuticals, and cosmetics. Imports by
OIC member countries represent a significant portion of
the global halal product trade. Products imported by OIC
nations are presumed to be halal in nature or require some
degree of halal compliance, as these countries have large
Muslim consumer bases, and the majority of them have
implemented regulations for the trade in halal products.
NEED TO STRENGTHEN PRODUCTION

AND INTRA-OIC TRADE
Most OIC countries are import-dependent, with a US$47.2
billion trade deficit for halal products, most of which are
sourced from non-OIC member countries. Similar to the
previous SGIE report, only two OIC countries, Türkiye and
Indonesia, are included in the top 10 exporters to OIC
countries, contributing 53.7% of the total. BRIC nations
(Brazil, Russia, India, and China) have significant exports
to the OIC, with 27.6% of exports to OIC countries origi-
nating from BRIC. Addressing this phenomenon is urgent
and presents opportunities for OIC member countries to
increase self-sufficiency and strengthen intra-OIC trade.
HALAL PRODUCTS TRADE

OPPORTUNITY
Food and fashion have become halal product categories
that experienced an increase from 2021 to 2022. The 1.77%

slight increase in food is driven by some categories, includ-
ing palm oil, cereal, and sugar. However, soaring agricultural
input costs, geopolitical conflicts, and increasing climate
variability challenge global food trade. Fashion experienced
a growth of 11.97%, with women’s apparel leading the
major growth in the fashion category.
On the other hand, pharmaceutical imports normalized
at -30.92% in 2022 after a 40.25% jump in 2021 due to
soaring global vaccine import demand. In another category,
cosmetics experienced a slight decrease to 3.25%
TOP 10 OIC IMPORTERS

(ALL HALAL PRODUCT CATEGORIES)
Trade 2022
Country
(US$ billion)
United Arab Emirates 32.21
Saudi Arabia 31.69
Türkiye 31.45
Indonesia 30.29
Malaysia 28.99
Egypt 21.05
Iraq 13.68
Bangladesh 13.25
Algeria 12.56
Morocco 11.89
TOP 10 EXPORTERS TO OIC

(ALL HALAL PRODUCT CATEGORIES)
Trade 2022
Country
(US$ billion)
China 31.81
India 26.37
Brazil 20.85
United States of America 20.76
Türkiye 16.34
Russian Federation 15.21
France 15.02
Indonesia 13.38
Argentina 12.49
PEXELS
Australia 11.13

Islamic Economy Sector Import Growth
2021 2022 2023 (F)
US$ BILLION
Halal Food Halal Pharma Modest Fashion Halal Cosmetics
$60.8
300 60
$282.1
$260.5 $265.1
$46.8
$42.0
$39.6
200 40
$37.1
$33.1
100 20
$16.1 $15.6 $16.3
0 0
1.8% 6.4% -30.9% 11.4% -3.3% 4.8% 12% 6.9%
YOY, 2021- 2022% YOY, 2022- 2023%
ISLAMIC ECONOMY SECTOR TRADE BALANCE

(EXPORTS LESS IMPORTS)
Halal Food Modest Fashion Halal Pharma Halal Cosmetics
Aggregate Halal Products
US$ BILLION
85.6
80
60
40
20
-$10.5
-20
-40 -$36.8
-$47.2
-60
ADOBE STOCK
-80
-$85.5

Overall Islamic
Economy Investment
Activity
The global polycrisis has led to an overall slowdown in

investment. However, the effect on the Islamic economy
has not been as expected.
Unlike the global trend, investments related to the
Islamic economy or those which involved an OIC member
state as an investor or target showed a 128% growth in
value from US$11.4 billion in 2021/22 to US$25.9 billion in
2022/23. The number of relevant mergers and acquisitions
(M&A), private equity (PE), and venture capital (VC) trans-
actions increased from 199 in 2021/22 to 220 in 2022/23.
Indonesia and the UAE maintained their first and
second positions in the number of Islamic economy-re-
lated investments, respectively. Türkiye has moved up to
third from fourth in 2021/22, tying with Malaysia. Egypt
has moved into the fifth position, moving Saudi Arabia
down to sixth. 75% of the deal value was made up of
investments in media and recreation as well as Islamic
finance. In 2021/22, halal food-related investments made
up the largest proportion of deal value. This has decreased
from 34% to 9% in 2022/23.
Since the beginning of 2023, the global economy has
seen record inflation and rising interest rates in many
PEXELS
major economies, raising fears of recession. Geopolitical
uncertainty has further added to that. In times of great
Indonesia maintained its
economic uncertainty, dealmakers tend to slow down their first position in the number
of Islamic economy-related
activity.44 The first half of 2023 saw M&A deal volumes investments.
decrease by 4% from the first half of 2022; however, this
is still above volumes in pre-pandemic 2019. Deals larger
than US$1 billion have decreased by 56% since 2021, which
was a record year for M&A. This shows a greater propen-
sity for mid-market deals. Smaller deals are usually less in a single month since July 2022, when VC started to
vulnerable to market volatility.45 scale below US$30 billion per month. The decrease was
Private equity firms globally continue to hold a high across all funding stages, with seed funding down by 50%,
degree of dry powder. By the first half of 2022, their liquidity early-stage funding down by 48%, and late-stage funding
was valued at US$3.7 trillion.46 With high interest rates down by 62%.49 Given the current economic uncertainty
prevailing in most countries,47 PE firms have had to seek in the market, VC firms will become more selective about
out alternative forms of financing. In the first half of how they use their capital. Seed and Series A funding will be
2023, deals closed by buyout funds decreased by 29% in less favored as VCs will prioritize their existing portfolios.50
financial terms. Add-on acquisitions have become more During the period assessed, 108 VC, 9 PE, and 16
popular during this time. This refers to acquisitions of M&A disclosed deals related to the Islamic economy
smaller businesses with similar activity, usually without were recorded. While the number of disclosed M&A and
leverage, which are then incorporated into existing portfolio PE deals in the Islamic economy decreased by 58% and
companies to expand their market share or product lines.48 50%, respectively, during the same period assessed, the
Global venture capital funding decreased by 56% number of VC deals increased by 6%. Deal value in PE and
from US$47.8 billion to US$21 billion year on year in the VC decreased by 27% and 31%, respectively, while M&A
month of April 2023, the second-lowest amount recorded deal value increased by 453%, mainly due to add-on deals.

Investments in the
Islamic Economy
2022/23
METHODOLOGY
In a revision of the method used in the previous report,
we extended our analysis to look at all sector-relevant
OIC companies and Islamic-economy-focused companies
outside the OIC that were subject to mergers and acqui-
sitions (M&A) activities or raised funds through venture
capital or private equity funding during the past year
(August 1st, 2022, through July 31st, 2023). The same meth-
odology was applied to the previous year’s transactions
to allow like-for-like comparisons. The full details are in
the Methodology section
Investments Overview in 2022/23

Total Deal Values
Sector 22-23
(US$000s)
Halal Food 30 2,212,972
Islamic Finance 47 14,443,175
Media and Recreation 14 4,984,465
Muslim-Friendly Travel 9 3,412,640
Halal Pharma 22 702,961
Modest Fashion 4 129,708
Halal Cosmetics 7 99,202
Total Deal Values

Deal type 2022-2023
(US$000s)
M&A 16 20,512,339
PE 9 2,632,500
VC 108 2,840,283
Total 132
PEXELS

Top 10 M&A Transactions by Disclosed Value
Sector/ Deal Value,
Target Year Acquiror
Sub-Category US$000s
Islamic Finance Ahli United Bank 2022 10,900,000 Kuwait Finance House
Media & Recreation Scopely 2022 4,900,000 Savvy Gaming Group
Islamic Finance Ithmaar Bank 2022 2,200,000 Al Salam Bank
Muslim-Friendly Tamdeen Real Estate 2023 1,103,700 Tamdeen Investment

Travel Company - KPSC Company - KSCP
(KWSE:TAM) (KWSE:TAMINV)
Halal Food PT Garudafood Putra Putri 2022 410,600 Hormel Foods Corporation
Jaya Tbk (IDX:GOOD) (NYSE:HRL)
Halal Food Careem Technologies 2023 400,000 e&
Halal Food ChatFood 2023 244,799 Deliverect
Muslim-Friendly National Corporation 2023 198,800 Alpha Dhabi Holding PJSC

Travel for Tourism and Hotels (ADX:ALPHADHABI)
(ADX:NCTH)
Islamic Finance SABB Takafful 2022 54,300 Walaa Cooperative

Insurance
Halal Pharma Straits Orthopaedics 2023 35,000 Quadria Capital
Top 10 Private Equity Transactions by Disclosed Value

Sector/ Deal Value,
Muslim-Friendly Almosafer 2022 1,000,000 Saudi Arabia's Public

Travel Investment Fund
Muslim-Friendly Aman Resorts 2022 900,000 Saudi Arabia's Public

Travel Investment Fund, Cain
International
Halal Food Advanta Seeds 2022 300,000 Kohlberg Kravis Roberts
Islamic Finance Islamic Coin 2023 200,000 Futurecraft Ventures, ABO

Digital
Halal Pharma Recursion 2022 150,300 The Invus Group, LLC;

Pharmaceuticals, Inc. Kinnevik AB Platinum
(NasdaqGS:RXRX) Investment Management
Limited Mubadala Investment
Company PJSC
Halal Pharma Oncorad groupe 2023 45,358 CDG Invest, STOA
Modest Fashion Squatwolf 2023 30,000 ASCA Capital Limited
Islamic Finance Revenue Monster 2022 6,552 The Sea Capital
Media & Recreation XMAA 2023 290 Güney Güvel, Yusuf Karahan

Top 10 Venture Capital Transactions by Disclosed Value
Sector/ Deal Value,
Islamic Finance Akulaku 2022 200,000
Halal Food TNG Digital 2022 168,407 Innovative Startups

and SMEs Fund (ISSF)
Halal Food Floward 2023 156,000
Muslim-Friendly Yassir 2022 150,000 Bond, DN Capital, Dorsal Capital, George

Travel Godula, Y Combinator
Halal Food Nana 2023 133,269 Al-Jasser Holding, AlJammaz Group, Dallah
Albaraka Holding, Kingdom
Holding Company
Halal Pharma Kimia Farma Apotek 2022 119,235 Banque Misr, VentureSouq, National Bank
of Egypt, Arzan Venture Capital, Nclude
Halal Pharma Neumora Therapeutics, 2022 112,400 Arch Venture Partners, L.P.; The Invus
Inc. Group, LLC; Altitude Life Science Ventures;
Impresa Management LLC; Mubadala
Capital; Newpath Management, L.P.; Abu
Dhabi Growth Fund
Halal Food eFishery 2023 108,000 G42 Expansion Fund, Northstar Group,
SoftBank Vision Fund
Islamic Finance Tamara 2022 100,000 Coatue, Endeavor Catalyst, Sanabil,

Shorooq Partners
Islamic Finance Halodoc 2023 100,000 Astra Digital
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Investments
by Geography
Indonesia retained the first position with the greatest remain the same, albeit in different positions from 2021/22.
number of deals recorded for the 2022/23 period. The UAE The top five countries accounted for 64% of all
moved to the second position, and Malaysia and Türkiye recorded Islamic economy-related transactions, com-
both share the third position. Saudi Arabia moved down pared with the top five countries in 2021/22, which had
one position to sixth, which is shared with Nigeria. Egypt accumulated 66% of all transactions. Deals were recorded
moved up two positions to fifth. The top 10 countries in 33 countries this year, as opposed to 31 last year.
Top 20 countries by Number of M&A, VC, and PE Deals in 2022/23

2021-2022 2022-2023
48
41
40
30
23
19
18
17 17
14
11 11
10
8
7 7
6 6 6
5 5
4 4 4 4 4
3 3
2 2 2 2 2 2
1 1 1 1
Indonesia
United Arab Emirates
Malaysia
Türkiye
Egypt
Nigeria
Saudi Arabia
United States
Pakistan
Bangladesh
United Kingdom
Morocco
India
Kuwait
Bahrain
Oman
Singapore
Uganda
Iran
Jordan

Investments
by Sector
HALAL FOOD ISLAMIC FINANCE

In 2022/23, 44 deals related to halal food were recorded, 91 deals related to Islamic finance were recorded in 2022/23,
with 30 disclosed deals amounting to US$2.2 billion. The 47 of which were disclosed and valued at US$14.4 billion.
total deal value decreased by 44% from US$3.96 billion This is a six-fold increase from the US$2.19 billion in Islamic
in 2021/22. Deals related to halal food accounted for 8.5% finance-related deals recorded in 2021/22.
of all deals. This proportion has decreased from 34.7% • Kuwait Financial House (KFH) completed its acqui-
in 2021/22. Food technology companies specializing in sition of Ahli United Bank for US$10.9 billion. This
delivery services and agri-tech continue to receive the makes KFH one of the largest Islamic banks in the
most attention from investors. Gulf region, with a presence in 12 countries and assets
• US-based Hormel Foods purchased a 29% stake in worth US$118 billion.53
Indonesian GarudaFood. Hormel hopes to benefit • Switzerland-based Islamic Coin, a shariah-compliant,
from the local expertise and distribution network of ethics-first cryptocurrency, received US$200 million in
GarudaFood to grow its presence in the region.51 funding from Alpha Blue Ocean’s ABO Digital. Islamic
• UAE-based agri-tech company Advanta Seeds Coin was recognized as the Most Promising ESG Crypto
raised US$300 million from international investor at the Abu Dhabi Blockchain Awards. The funding will
KKR. Advanta provides farmers with locally adapted enable the development of innovative shariah-com-
high-performing hybrid seeds and boasts a portfolio of pliant financial products that could be used in the
over 900 hybrids across more than 40 crops, including digital asset space to raise alternative funding.54
corn, forages, grain sorghum, sunflower, canola, rice,
and vegetables. This investment has led to Advanta
being valued at US$2.25 billion.52
TOP 3 COUNTRIES BY NUMBER OF DEALS TOP 3 COUNTRIES BY NUMBER OF DEALS

IN HALAL FOOD IN 2022/23 IN ISLAMIC FINANCE IN 2020/21
Indonesia 10 Indonesia 9
United Arab Emirates 6 United Arab Emirates 8
Bangladesh 4 Malaysia 6
Outlook Outlook
With concerns about food security increasing, invest- Investors are increasingly focused on investing in
ments in agri-tech are set to increase. Environment-related AI-enabled solutions in the fintech industry. Strategic
investments will also increase as companies look to acquire acquisitions in this field will also prove popular.
businesses to help them address their carbon footprints.
Investments related to improving the supply chain may
also grow as the markets feel the effects of geopolitical
unpredictability.

MUSLIM-FRIENDLY TRAVEL
In 2022/23, 13 deals related to the Muslim-friendly travel
industry were recorded, nine of which were disclosed. This
is up from three disclosed deals recorded during 2021/22.
Most of the deals were related to digital travel-related
solutions such as booking apps. The value of deals related
to Muslim-friendly travel increased from US$7.8 million
in 2021/22 to US$3.4 billion in 2022/23.
• Saudi Arabia’s sovereign wealth fund, the Public
Investment Fund (PIF), purchased a 30% stake in
Almosafer, an omnichannel hotel and airline booking
platform. The investment will be used to scale up
Almosafer’s operations and position it as the leading
travel agency in the Kingdom.55
• The PIF also co-invested US$900 million together
with UK-based Cain International in the Aman Group.
This investment will support the brand’s international
expansion of luxury hotels and branded residences.
Aman Group is valued at US$3.5 billion, with 34 hotels
in 20 countries. The group includes Saudi Arabia in its
pipeline of planned locations for expansion.56
TOP COUNTRIES BY NUMBER OF DEALS

IN MUSLIM-FRIENDLY TRAVEL IN 2022/23
United Arab Emirates 1
Switzerland 1
Algeria 1
Bangladesh 1
Türkiye 1
Japan 1
Saudi Arabia 1
Kuwait 1
Malaysia 1
Outlook
The travel industry is currently experiencing a post-pan-

demic rebound. This may prompt more investments.57
While investors will continue to favor tech-based travel
products, particularly those using AI technology, acqui-
sitions of niche travel experience companies could also
become more prominent.
UNSPLASH

MODEST FASHION AND APPAREL HALAL PHARMACEUTICALS
A total of six deals related to the apparel and modest In 2022/23, 35 deals related to the halal pharmaceutical
fashion industry were recorded in 2022/23. Four of these industry were recorded. 22 of these deals were disclosed
deals were disclosed and valued at US$129 million. This is and valued at US$702 million. This is a 40% decrease
a 92% decrease from the five deals recorded in 2021/22 from the US$1.1 billion invested across 19 deals in 2021/22.
valued at US$1.5 billion. • Mubadala Investment Company, the sovereign investor
• The European Bank for Reconstruction and Develop for the Government of Abu Dhabi, was part of the
ment (EBRD) purchased a minority stake in Istanbul- group of investors who invested US$150 million in
based global clothing retailer DeFacto for US$59 mil- US-based Recursion Pharmaceuticals, a clinical-stage
lion. This is the first Turkish non-food brand the bank biotechnology company industrializing drug discovery.
has invested in. DeFacto will use the investment to The investment will be used for general corporate
increase growth and expand into economies where purposes, which may include strategic investments in
the EBRD is present.58 advancing existing clinical and preclinical programs.60
• Turkish e-commerce marketplace Modanisa received • Indonesia Investment Authority (INA) and Silk Road
a US$20 million investment from Re-Pie Asset Fund (SRF) invested US$119 million in Kimia Farma
Management. Through the investment, Modanisa Apotek, Kimia Farma’s (KAEF) pharmacy network sub-
will establish warehouses in Poland and Egypt to sidiary, which consists of more than 1,200 pharma-
address regional customers. It will also launch an cies and more than 450 clinics and labs. This is the
e-wallet service.59 first investment of the INA in Indonesia’s healthcare
industry.61
NUMBER OF DEALS IN MODEST FASHION AND TOP 3 COUNTRIES BY NUMBER OF DEALS IN HALAL
APPAREL IN 2022/23 PHARMA IN 2022/23
Türkiye 2 Indonesia 6
United Arab Emirates 1 Egypt 4
Indonesia 1 Malaysia 3
Outlook Outlook
As with the other sectors, investors continue to favor tech- Technology related investments continue to garner investor
nology companies within the modest fashion and apparel interest in the halal pharmaceutical sector. This includes
sector. Brands looking to expand geographically are also distribution companies offering online purchasing of med-
favored by investors. Within modest fashion specifically, ications. R&D companies in the space are also attractive
companies innovating new fabrics and specializing in the to investors. Since the pandemic, the healthcare sector
activewear niche are also set to see investor interest. has become more popular with investors.

HALAL COSMETICS MEDIA AND RECREATION
There were a total of 10 halal cosmetics-related deals in Total value for deals related to media and entertainment
2022/23. Seven of these were disclosed and valued at US$99 increased by 105% in 2022/23 to US$4.98 billion from
million. This is an increase of 10% from the US$90 million US$2.4 billion in 2021/22. However, the total number of dis-
invested in 2021/22, where three deals were disclosed. closed deals decreased from 16 in 2021/22 to 14 in 2022/23.
• Indonesian-based omnichannel beauty marketplace • Savvy Games Group, a wholly-owned subsidiary of
Sociolla has raised an additional US$65 million Saudi Arabia’s Public Investment Fund, acquired
through an investment round led by Temasek and Scopely, a US-based mobile games studio, for US$4.9
L Catterton. The company has raised US$225 mil- billion. This is the sixth largest acquisition in the his-
lion to date and has expanded from an e-commerce tory of video game companies by value. The acquisition
platform to 48 physical locations in Indonesia and will allow Savvy to apply Scopely’s cross-platform
13 in Vietnam.62 approach to extend its live services expertise to new
• India-based IBA Cosmetics, a halal-certified and segments like PC, console, and more.64
PETA-certified vegan cosmetics and personal care • Indonesian-based Migo, a digital content distributor,
brand, received US$10 million in Series B funding raised US$20 million in its Series C funding round from
from Singapore-based beauty brand house Believe. Indonesian media conglomerate MNC Group. Through
The investment is set to allow IBA to achieve four this tie-up, Migo gains access to MNC’s content library.
times growth in 12 months.63 Through the investment, Migo aims to expand its
coverage to half of Indonesia’s population, improve
technology, and expand beyond Indonesia.65
TOP 3 COUNTRIES BY NUMBER OF DEALS IN HALAL TOP 3 COUNTRIES BY NUMBER OF DEALS IN MEDIA
COSMETICS IN 2022/23 AND RECREATION IN 2022/23
Indonesia 5 Indonesia 4
Uganda 1 Türkiye 4
India 1 United Arab Emirate 3
Outlook Outlook
Ethically produced makeup and skincare products con- Gaming is becoming an increasingly popular area for inves-
tinue to increase in popularity with consumers, which tors, particularly those specializing in different mediums
would increase investor interest in this niche. Omnichannel of gaming. Acquisitions of content producers may increase
retailers are also increasing in popularity since the easing as streaming services continuously seek to expand their
of the pandemic. These platforms are also of interest to libraries.
investors. SHUTTERSTOCK

Foreign Direct
Investment (FDI)
Globally, FDI inflows decreased by 12% in 2022 to reach and sanitation, agrifood systems, and health and education
US$1.3 trillion. However, FDI to developing countries are also receiving low levels of investment. The investment
increased by 4% to reach US$916 billion. This is more gap across all SDG sectors has increased from US$2.5
than 70% of global flows. trillion in 2015 to more than US$4 trillion per year today.66
There are major imbalances in the flows of FDI, both In 2022, the UAE returned to the top-ranked OIC mem-
in terms of the countries and the sectors that receive it. ber state by FDI inflows, with Indonesia moving down to
In the developing world, mostly large emerging economies second. Globally, the UAE and Indonesia rank 18th and
have seen growth in their investments, while the least 19th, respectively. Both countries moved up in their global
developed countries have experienced stagnant investment rankings by four and one position(s), respectively. The UAE
flows, with investments decreasing by 16% from last year. was the fourth largest recipient of greenfield projects
Sectors that are important for the build-up of productive globally.67 Eight out of the top 10 OIC member states by
capacity in developing countries are also receiving low FDI inflows rank within the top 50 countries globally, with
levels of investment. SDG-investment sectors like water Türkiye and Malaysia falling within the top 30.
Top 10 OIC Member States by FDI inflow in 2022

US$ BILLION
25
United Arab Emirates
Indonesia
20
Malaysia
15
Türkiye
Egypt
10
Saudi Arabia
Kazakhstan
5
Guyana
Oman
Bangladesh
0
2018 2019 2020 2021 2022

ADOBE STOCK
FDI OUTLOOK
FDI project activity in Q1 2023 showed signs of investors
being more risk-averse, with a decrease in both the number
of international project finance deals and cross-border
M&A activity.68 Should the turbulent economic condi-
tions remain, investors will continue to invest in areas
of immediate concern, such as supply chain weaknesses.
Meeting ESG goals may also be addressed by investors,
specifically in renewable energy.

CHAPTER
Halal
6
Food
PEXELS

CHAPTER 6: HALAL FOOD 95
Halal Food
ALL FIGURES IN US DOLLARS BILLIONS, IF OTHERWISE STATED
CONSUMER
OPPORTUNITY
Represented by US$1.4 trillion of spending
by 2 billion Muslims on food & beverage (2022 est.)
Malaysia dominates most of the sub-
indicators of halal food GIE indicator,
$1.4 trillion showcasing a robust halal food ecosystem.
2022
HALAL FOOD – Financial

GIE INDICATOR RANKING Governance
(2023) Awareness
6.1% Social
CAGR Innovation
11
21
$1.89 trillion
2027
31
Consumer perspective 41
51
I have the halal scanner
app, but I found it very
limited and doesn’t cover 61
everything.”
Laura Hassan, US
71
81
It would be great if there

was an app for Muslims that 91
could tell us if a product,
or each ingredient within a
100
product, is halal or not by
scanning it.”
1. 2. 3. 4. 5.
Ismail Bennani, France MALAYSIA INDONESIA TÜRKIYE SINGAPORE THAILAND

SDG IMPACT Early Intermediate Mature
SIGNALS OF
Halal food sector initiatives OPPORTUNITIES
advance SDGs: hunger relief,
IMPACT
innovation, climate action,
Halal Low
global partnership. certification of
Moderate
novel foods
High
“1 Billion Meals Endowment”
campaign in Dubai, UAE.
Multilateral trade Blockchain OIC nations

accords open doors impact in halal continue tackling
Dubai’s autonomous food food traceability food insecurity
delivery robots, ‘talabots’.
New “loss and damage” climate fund Expanding Saudi

during COP27 in Egypt. halal opportunities
FAO, IsDB, IFAD collaboration to empower

smallholder farmers.
COP27 and COP28
boost Middle East’s clean
energy investments
SMIIC’s new halal standard for animal feed.
INVESTMENT & TRADE DRIVERS

Investor focus on food tech delivery and agri-tech remains prominent. BRIC countries play a
significant role in food exports to the OIC.
US$ BILLION (2022)
Top 5 halal food consumer markets Top 5 countries exporting to OIC
Indonesia 149.8 Brazil 27.9
Egypt 143 India 24.3
Bangladesh 137 US 15.4

Nigeria 87.4 Russia 14.4
Iran 87.4 Indonesia 13.1
$265.1 billion of food and beverage imports by OIC countries
Top countries by number of related deals (2022/23)

= 1 deal
Indonesia UAE Bangladesh Nigeria Türkiye $2.2 billion

in halal food related
investments
*All estimates by DinarStandard. Muslim consumer spend estimates & analysis by DinarStandard leveraging World Bank’s ICP 2017 consumer data as
baseline reference. Food exports are based on ITC Trademap 2022 data. Projections are baselined on data from IMF Outlook from April 2023. Investments
(figures and individual deals) are based on a detailed scan of databases from CapitalIQ, Crunchbase and DinarStandard analysis from 1st August 2022 to 31st
July 2023. See appendix for detailed methodology. OIC Organization of Islamic Cooperation, 57 mostly Muslim-majority member countries.

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

Muslim consumers’ food spend is on the rise again;
however, food prices remain significantly higher than
before the pandemic. With changing climate patterns
and supply chain risks threatening agricultural
output, investments in expanding food production
across the OIC have considerably increased.
A
s food security concerns persist regulations. Among these have been Russia, which adopted
across the major halal-food-im- the first nationwide halal standards in a bid to ramp up
porting countries, governments food exports to Muslim countries, and Belarus, which
have doubled their efforts to improve has obtained accreditation for certifying halal products.
self-sufficiency. This is particularly Meanwhile, Islamic scholars in Saudi Arabia have
evident in the Gulf Cooperation issued a groundbreaking ruling stating that cultivated
Council region, where substantial meat can be deemed halal, provided specific conditions are
investments are being made to localize farming, production, met. In line with this development, Malaysia’s Cell AgriTech
and food processing. In the past 12 months, Abu Dhabi’s aims to finish building the country’s first cultivated meat
Kezad group entered a US$272 million, 50-year land-lease production facility by the end of 2024.
deal with Al Ghurair Foods for three mega food processing Initiatives are also underway to improve halal certifi-
projects, while Saudi Arabia’s Agricultural Development cation processes and traceability. Notably, Saudi Arabia and
Fund signed financing contracts worth US$246.8 million Malaysia are harnessing blockchain technology to enable
in the feed industry, animal production, and dairy sectors. consumers to trace the origins of food and beverages. On
Halal trade is also expanding, with multiple agree- a private-sector level, OneAgrix and eight partners have
ments set to further boost the sector. These include an MoU developed a supply chain traceability solution that will
signed between Saudi Arabia’s Halal Products Development provide consumers with food origin information.
Co. and the Islamic Development Bank (IsDB) to develop
a halal product ecosystem in the IsDB Group’s 57 mem-
ber countries. Similarly, partnerships between non-OIC
countries and Muslim-majority countries, such as South
Korea and Malaysia, are expected to expand the market
for halal industry players.
There has been a surge in investment in halal-
food-related companies, with food delivery services and
agri-tech receiving the most attention from investors in
2022/23. Companies in Indonesia, the UAE, and Bangladesh
accounted for the largest number of investments. Overall,
44 deals related to halal food were recorded in 2022/23,
with 30 disclosed deals amounting to US$2.2 billion.
Non-OIC food companies continued to make forays
into OIC markets, signaling that the halal food sector
remains robust and thriving. The rising demand for halal
food also led several non-OIC countries to introduce halal

2022/23
Developments
REVENUE DEVELOPMENTS 34.7% in 2021/22. Food technology companies specializing

in delivery services and agri-tech continue to receive the
Food technology companies specializing in delivery services most attention from investors.
and agri-tech are currently receiving significant attention
from investors. The Middle East is witnessing increased Big brands are expanding into OIC.
investment in industrial capabilities, driven by a focus • BRF, a Brazilian poultry processor, established a
on food security. Additionally, there’s an emphasis on joint venture with the Halal Products Development
localizing production to foster trade and industrial growth. Company (HPDC), a subsidiary of Saudi Arabia’s Public
Investment Fund (PIF). BRF’s stake in the new com-
Latest Projections pany will be 70%, while HPDC will own 30%.69
• BRF unveiled its second-quarter results, disclosing
Muslim consumers’ spend on food increased by 9.6% in that it currently commands a 50% market share in
2022 to reach US$1.4 trillion, up from US$1.28 trillion in 2021. the export of halal poultry to Gulf Cooperation Council
Indonesia remains the largest market by spend. Egypt has (GCC) countries.70
moved up to second position, while Bangladesh has moved • Salic, state-owned Saudi Agricultural and Livestock
to third. By 2027, Muslim consumer spend on food is fore- Investment Co., acquired US$338.5 million (SAR1.27
casted to reach US$1.89 trillion, growing at a CAGR of 6.1%. billion) in new BRF shares, representing 10.7% of the
company’s outstanding shares.71
Note: This does not represent the value of spending on • Kerry, Ireland-based taste and nutrition company, has
‘halal-certified’ products. Rather, it represents how much officially opened a new 21,500-square-foot state-of-
Muslim consumers have spent on food and beverages. the-art facility at its Jeddah operation in the Kingdom
of Saudi Arabia.72
Investments Summary • Kraft Heinz, US-based taste and nutrition company,
reaffirms its commitment to Indonesia with facility
In 2022/23, 44 deals related to halal food were recorded, upgrades and sustainability pledges while also explor-
with 30 disclosed deals amounting to US$2.2 billion. The ing meat replacement opportunities.73
total deal value decreased by 44% from US$3.96 billion • Al Amir Food Industries (AAFI) is set to invest US$9.5
in 2021/22. Deals related to halal food accounted for 8.8% million (AED 35 million) into a new food production
of all transactions. This proportion has decreased from facility in Ras Al Khaimah. The 13,500-square-meter
Country Deal Type Sub-Vertical Organization Name Deal Value (US$000s)
Indonesia Mergers & Food Products (Primary) PT Garudafood 410,600

Acquisitions Putra Putri Jaya Tbk
(IDX:GOOD)
United Arab Private Equity Agriculture, AgTech, Biotechnology, Advanta Seeds 300,000
Emirates Farming
United Arab Mergers & Delivery Service, E-Commerce, Food ChatFood 244,799
Emirates Acquisitions Delivery, Internet, Restaurants
Malaysia Venture Capital Financial Services, Mobile, Payments, TNG Digital 168,407
Software
Saudi Arabia Venture Capital Delivery, E-Commerce, Nana 133,268

Grocery

space will focus on processing pulses and spices,
importing products from Canada, Australia, and Russia,
and exporting them across the GCC and East Africa.74

Saudi Arabia’s PIF is actively launching new food com-
panies.
• Saudi Arabia’s Public Investment Fund (PIF) has
unveiled the establishment of the Halal Products
Development Company (HPDC), which aims to promote
the localization of Saudi Arabia’s halal production
industry.
• PIF has launched a new company, Sawani Company,
to advance the growth of the country’s camel farming
industry with the aim of actively contributing to its
sustainable development.75
• PIF establishes Al Madinah Heritage Company (MHC)
to enhance production and distribution and promote
Saudi Ajwa dates both locally and internationally,
in addition to other date varieties, to meet growing
global demand.76

Strengthening intra-OIC halal product cooperation
through MoUs and expansions.
• UAE’s Al Islami reintroduces halal meat to Qatar with
its signature halal chicken griller and various cuts.77
• Pakistan’s The Organic Meat Company Limited (TOMCL),
a halal meat processor in Karachi, announced a US$4
million contract to export frozen boneless beef to
the UAE. They stress that the UAE’s ban on imported
Pakistani meat is solely on fresh, chilled meat exports
via sea and does not impact their shipments.78
• Halal Products Development Company (HPDC) and
the Islamic Development Bank (IsDB) have signed a
MoU to develop a high-quality halal product ecosys-
tem in Saudi Arabia and the IsDB Group’s 57 member
countries. They will collaborate in analyzing data
pertaining to effective halal models, markets, and
industry solutions.79
• Indonesia and the Islamic Republic of Iran have estab
lished cooperation in halal product assurance through
the signing of a MoU. Five countries that signed sim-
ilar MoUs with Indonesia earlier are Chile, Argentina,
Hungary, Belarus, and Türkiye.80

Cultivated meat ventures in Malaysia and Singapore.
• Malaysian company Cell AgriTech aims to complete
the country’s first cultivated meat production facility
in Penang by the end of 2024, where it will grow live
animal cells in bioreactors into meat products for
consumers.81
• Aleph Farms, a Rehovot-based startup, is seeking to
become the first halal-certified cultivated meat pro-
ducer in the world at its site in Singapore.82

Non-OIC companies add halal food aisles and expand
stores.
• Nohadra Food, a grocery store in Gurnee, Illinois, in
PEXELS
the US, introduced a halal meat section.83

• Hancock, a confectionery store in Bradford, UK, intro- • The Saudi Food and Drug Authority (SFDA) has coop-
duced a 50-foot-long aisle dedicated to over 200 vegan erated with the Digital Government Authority (DGA)
and halal confectionery options.84 to carry out the Proof of Concept experiment for the
• The Halal Guys, an American halal cuisine brand, is set use of blockchain. It will enable consumers to track
to open five new locations in the fall of 2023. It has a the sources of food and beverages through blockchain
strong presence in 17 US states and internationally in technology.94
Canada, the UK, Indonesia, and South Korea.85 • OneAgrix and eight partners have developed a viable
• Rebel Foods, an Indian foodtech company, has entered end-to-end supply chain traceability and transparency
Saudi Arabia with two cloud kitchens in Riyadh. It aims solution. This will provide consumers with clear food
to build a US$100 million food delivery business in origin information and verification of authenticity.95
Saudi Arabia over the next three years, leveraging their
cloud kitchen network, having already established a Ambitious plans to introduce halal food delivery services.
presence in the UAE.86 • Delivery Hero launches bekal by foodpanda, a service
that only provides food from halal-certified vendors
Food security is driving investment in industrial capa- on the foodpanda platform in Malaysia. It has plans
bilities in the Middle East. to expand halal delivery services to the Middle East
• UAE-based Kezad Group is adding more capacity to and South Asia.96
its food security program by entering a 50-year land-
lease deal with Al Ghurair Foods for three mega food The Philippines entered the halal economy with its inau-
processing projects. These investments will amount gural research center.
to more than US$272 million (AED 1 billion).87 • The Department of Science and Technology (DOST)
• The Kingdom’s Agricultural Development Fund signed in the Davao Region launched the first Research
financing contracts worth US$246.8 million (SR926 and Innovation Center for Halal Science (Riches) at
million) in the feed industry, animal production, and the Philippine Women’s College (PWC) of Davao. This
dairy sectors.88 The fund also approved development initiative aims to bolster the halal economy in the
loans worth US$400 million (SR1.5 billion) for small- Philippines.97
scale farmers in Saudi Arabia.89
• The Saudi Authority for Industrial Cities and Tech
nology Zones signed investment deals worth US$61.8 NATIONAL/TRADE DEVELOPMENTS
million (SR232 million) to support the food industry,
impacting chocolate, yogurt, and fish production.90 Trade cooperations, such as the ASEAN bilateral trade
agreement, open new opportunities for the halal products
Focus on localizing production for better trade and indus trade sector. Additionally, East Asian and South African
trial growth. halal-certified meat present promising prospects for halal
• The Halal Products Development Company (HPDC) trade expansion.
of Saudi Arabia has partnered with Tanmiah Food OIC imports of halal food-related products increased by
Company to strengthen and localize the halal prod- 1.77% from 2021 to 2022, reaching US$265.1 billion. However,
ucts industry in the Kingdom while supporting its soaring agricultural input costs, geopolitical conflicts, and
development within the region and globally.91 increasing climate variability are creating obstacles for
• The Halal Service of the Islamic Chamber (ICHS) and the OIC-importing countries. Over the next five years, it is
National Confederation of Entrepreneurs (Employers) estimated that this import figure will rise from US$265.1
Organizations of the Republic of Azerbaijan (ASK) signed billion to US$368.3 billion in 2027, with a 6.8% CAGR.
an MoU to develop the halal market in Azerbaijan,
increasing local production for export.92
• The headquarters of the International Islamic Food OIC HALAL FOOD IMPORTS AND GROWTH
Processing Association (IFPA) were officially inau- (2022-2027)
gurated in Dubai.93
US$ BILLION
OPERATIONAL DEVELOPMENTS
Various stakeholders are embracing innovation, particularly $368.3
$265.1
blockchain technology, to enhance the halal food sector’s 2027 (f)
2022 CAGR
efficiency and transparency.
6.80%
Blockchain technology continues to attract government

and industry players to provide consumers with a seam-
less experience. Source: DinarStandard synthesis and analysis

The food category continues to have the largest trade by animal or vegetable fats and oils and their derivatives at
gap among halal-related product categories, followed by US$32.3 billion. Egypt, Türkiye, Iran, Indonesia, and Saudi
pharmaceuticals and cosmetics. There is a US$85.5 billion Arabia are the five largest OIC importers of cereals. The top
trade deficit, with Indonesia, Malaysia, and Türkiye being supplier countries for cereals are India, Russia, Argentina,
the largest importers among OIC countries. Meanwhile, Brazil, and Australia. The Russian-Ukraine conflict has
BRIC countries play a significant role in food exports to impacted cereal imports, causing a decrease of about US$1.5
the OIC block, with Brazil, Russia, India, and China ranking billion in imports from Russia. Meanwhile, cereal exports
among the top 10 largest exporters to the OIC member to the OIC from India, Argentina, Brazil, and Australia are
countries, totaling more than US$77 billion. Brazil holds the increasing, with Brazil showing remarkable growth of
position of the largest exporter, with nearly US$27.9 billion more than 241%, increasing from US$1.6 billion in 2021 to
in exports to OIC countries. Brazil is particularly known for US$5.6 billion in 2022. As for animal or vegetable fats and
being the largest exporter of halal poultry to OIC countries, oils and their derivatives, palm oil and its allied products
with major companies like BRF contributing to this trade. continue to dominate, with the majority being imported
Cereals are the most imported goods by OIC countries, from Indonesia and Malaysia.
with a total of more than US$60 billion in 2022, followed
Halal Food Trade

US$ BILLION (2022)
Exports Imports
$179.6
$265.1
TOP EXPORTERS TO OIC TOP OIC IMPORTERS

US$ BILLION (2022) US$ BILLION (2022)
Brazil 27.90 Indonesia 25.82

India 24.31 Malaysia 22.74
United States of America 15.40 Türkiye 21.98
Russian Federation 14.37 Saudi Arabia 19.87
Indonesia 13.13 United Arab Emirates 17.74
Argentina 12.52 Egypt 17.06
Türkiye 12.21 Bangladesh 11.28
Australia 11.21 Algeria 10.22
China 10.46 Iraq 10.09
Malaysia 8.41 Morocco 9.80
OIC countries

The government is actively supporting farmers and MSMEs (JAKIM) and Indonesia’s Halal Product Assurance
through grants and promoting digitization. Agency (BPJPH).
• The Saudi Agricultural Development Fund approved • The Philippines and Malaysia continue to strengthen
US$400 million to improve farm productivity. Those political and economic cooperation, with a special
receiving loans range from small farmers and breeders focus on the halal industry, food security, and the
to large poultry projects.98 digital economy. Some examples include the devel-
• Saudi Arabia’s Ministry of Industry and Mineral opment of the Bangsamoro Autonomous Region in
Resources announced that it is targeting investments Muslim Mindanao (BARMM) and Zubair Food (Sabah)
worth US$20 billion in the food industry sector by Sdn Bhd in Malaysia partnering with the Philippine
2035. Sectors include dairy, bakery, sweets, and bev- importer Jay Sayang Enterprise to supply frozen halal
erages. The objective is to maximize the value of a chicken meat.107 108
number of agricultural crops and double the value of • The Halal Development Corporation Bhd (HDC) and the
exports from US$3.7 billion in 2022 to US$10.9 billion Korea Trade-Investment Promotion Agency (KOTRA)
by 2035.99 have signed an MoU to stimulate trade and investment,
• The government of Indonesia aims to support around facilitating market access in both nations.109
30 million MSMEs to enter digital platforms by 2024 • The Halal Product Assurance Agency (BPJPH) of
and encourage the development of the Islamic Indonesia invited the Indonesia-Malaysia-Thailand
economy. A number of ministries and institutions, Growth Triangle (IMT-GT) forum to increase cooperation
through similar programs, have enabled digitization and strengthen innovation and technology transfer in
for MSMEs.100 halal product assurance.110
• A bill passed the state legislature in the US that will
require state-funded institutions to provide halal and East Asian and South African halal-certified meat unlocks
kosher meals on request.101 new prospects for halal trade.
• Kobe beef, one of Japan’s most famous food products,
Intra-OIC collaborations strengthen regional trade. will be exported to Saudi Arabia with halal certifica
• Omani companies signed multiple contracts and mem- tion.111
oranda of understanding at the Saudi Food Show held • South Korean Hanwoo beef can get halal certification
in June 2023.102 to be exported to Malaysia. It is expected to boost
• Saudi Arabia and Morocco sign an MoU to recog- bilateral trade and pave the way for the Republic to
nize halal certificates for local products. This step is expand its exports to other predominantly Muslim-
expected to streamline halal certificate classification majority countries.112
procedures, acknowledge certificates from both coun- • The Saudi Food and Drug Authority (SFDA) will end
tries, and boost trade collaboration in halal products.103 the meat import ban from South Africa (in effect since
• The Saudi Food and Drug Authority (SFDA) and 2002) after successful inspections of South African
Malaysia’s Department of Islamic Development (JAKIM) abattoirs and feedlots. South African beef producers
signed an MoU for mutual recognition of the halal plan to export up to 1,000 tons of meat to Saudi Arabia
certification of locally manufactured products.104 starting next year.113

Trilateral cooperation among FAO, IsDB, and IFAD to
boost food security. ECOSYSTEM DEVELOPMENTS
• The Food and Agriculture Organization of the United
Nations (FAO), the Islamic Development Bank A growing emphasis on halal certification extends to
(IsDB), and the International Fund for Agricultural rebranding and compliance beyond products. Saudi Arabia
Development (IFAD) collaborate to boost global food sees increased acceptance of cultivated meat’s halal com-
security. Their partnership aims to empower small- pliance. Non-OIC countries are actively considering halal
holder farmers with affordable, adaptable technologies, labeling and regulations.
ensuring food security worldwide.105
• The 6th General Assembly of the Islamic Organization Growing emphasis on halal certification through rebrand-
for Food Security (IOFS) declared a grant of US$2 million ing and compliance beyond products.
from Qatar to IOFS as a contribution to strengthening • The Indonesian government has released a new halal
the programs of the organization.106 certification logo that came into force on March 1st,
2023, and will gradually replace the current mark by
ASEAN bilateral trade agreements are creating oppor- the Indonesian Ulema Council (MUI).114
tunities for halal trade. • FamilyMart Malaysia is the first convenience store café
• Malaysia and Indonesia have signed an agreement in Malaysia to receive halal certification from Malaysia’s
allowing the free flow of mutually certified halal Department of Islamic Development (JAKIM).115
products into each other’s markets. The pact recog- • The Bangladesh Standards and Testing Institution
nizes Malaysia’s Department of Islamic Development (BSTI) has started issuing halal certification alongside

the quality certification of the products and food items and fat industry enterprises have already submitted
it assesses and evaluates. applications.125
Cultivated meat gains halal compliance traction in Saudi
Arabia. A series of forums and training sessions are organized
• A group of Islamic scholars in Saudi Arabia have issued to facilitate halal certification for trade.
a groundbreaking ruling stating that lab-grown or • In November 2022, Indonesia’s Halal Product Assurance
cultivated meat can be deemed halal, provided spe- Organizing Agency (BPJPH) hosted the Halal 20 (H20)
cific conditions are met, including extracting cells Forum in Semarang, Indonesia. The forum addressed
from permissible animals. Eat Just, Inc.’s cultivated various halal-related topics and featured participation
meat division, GOOD Meat, sought guidance from from foreign embassies and 99 foreign halal certifying
three Islamic scholars to ascertain the halal status agencies (HCAs).126
of cultivated meat.116 • The World Halal Food Council Assembly 2023 was held
in Dubai, UAE, with 80 participants representing 30
SMIIC releases new standards in continued efforts to halal certification bodies from 25 countries.127
harmonize halal standards globally. • Egypt’s Food Export Council held a seminar introduc-
• The Standards and Metrology Institute for Islamic ing local companies to halal certification requirements
Countries (SMIIC) released a new standard for halal and its significance for increasing exports.128
food: “OIC/SMIIC 23:2022 Feeding Stuffs for Halal • “Halal do Brasil,” a joint initiative by the Arab Brazilian
Animals – General Requirements.” Chamber of Commerce (ABCC) and the Brazilian Trade
and Investment Promotion Agency (ApexBrasil), aims
Non-OIC countries are seriously considering halal labeling to promote the halal food sector and provide training
and regulations. for Brazilian companies seeking halal certification.129
• The UK government will review mandatory labeling • Thailand’s Halal Science Centre Chulalongkorn Uni
in 2023, including proposals to indicate if meat from versity Chiang Mai Office has launched a series of
animals was slaughtered without pre-stunning in training courses to empower farmers with innovative
halal or kosher methods.117 technology to stimulate the halal agricultural sector.130
• In the US, all kosher and halal food certifiers and
manufacturers must register with the New York State
Department of Agriculture and Markets. This registry SOCIAL IMPACT DEVELOPMENTS
will enable consumers to search for such foods in
the state.118 Climate action, along with food aid efforts by governments
• Alef Sausage Inc. in Mundelein, IL, is recalling 61,574 and industry players, is making a significant contribution
pounds of ready-to-eat (RTE) halal meat and poultry to food sustainability.
sausage products due to misbranding and potential
temperature issues, as per the U.S. Department of COP27 climate fund and Nestlé’s coffee sector sustain-
Agriculture’s Food Safety and Inspection Service (FSIS).119 ability efforts.
• The Australian Fatwa Council has ruled that the • During COP27 in Egypt, an accord was reached, includ-
method of controlled atmospheric stunning (CAS) in ing the establishment of a new “loss and damage”
its present form is not suitable for halal consumption fund to provide financial assistance to developing
under Islamic laws and principles.120 nations affected by climate disasters.131
• India recently established a government-regulated • Nestlé Malaysia aims to boost the local coffee sector
mandatory halal certification system. Meat products through its NESCAFÉ Grown Respectfully sustainabil-
for halal export must now come from facilities with ity strategy, focusing on local trends and crop yield
valid certificates issued by a Quality Council of India improvements.132
(QCI)-accredited body.121
• The Indonesian Ulema Council (MUI) has established Large-scale food distribution initiatives in the UAE and
a representative office in Japan with the purpose of Saudi Arabia.
providing rapid certification of Japanese products for • The Emirates Red Crescent (ERC) has benefited 500,000
compliance with Islamic law.122 individuals through its sacrificial meat project, which
• South Korea’s Ministry of SMEs has begun moving aimed to combat food scarcity in the UAE and in 48
to help SMEs planning to export to Indonesia obtain other countries.133
halal certification.123 • The “1 Billion Meals Endowment” campaign in Dubai,
• The Russian government has adopted the first nation- UAE, established a food endowment fund as a means
wide halal standards in a bid to ramp up food exports to achieve sustainable food aid.134 Saudi authorities
to Muslim countries.124 distributed over 751 million food items to Hajj pilgrims,
• Russia’s newly formed entity, Roskachestvo-Halal, including 406 million dairy products and juice bottles,
expects 100 companies to apply for the halal label by 207 million water bottles, 128 million breads, and over
the end of 2023. Major confectionery factories and oil seven million ready-to-eat meals.135

PEXELS

Innovations
Autonomous food delivery robots and cloud kitchens are

gaining traction. Plant-based meat markets have potential
in the APAC and Middle East regions.
Autonomous food delivery robots are piloted, while cloud

kitchens continue to gain prominence.
• The Roads and Transport Authority (RTA) in Dubai
has initiated a pilot program for autonomous food
delivery robots known as ‘talabots’. These robots are
being tested in Dubai Silicon Oasis (DSO) through a
partnership with the Dubai Integrated Economic Zones
Authority (DIEZ) and Talabat.136
• Talabat launches an experiential dine-in kitchen con-
cept in its tech headquarters at City Walk, Dubai.
Customers will be able to place their orders through
“SmartDine,” Talabat’s proprietary “Scan, Order & Pay”
dining solution, and pick up their meals from contact-
less smart lockers through unique QR codes.137
• FOODICS, a cloud-based restaurant technology and
payments platform in the MENA region, has partnered
HOUSE OF POPS
with SEA Ventures to empower entrepreneurs in the
F&B sector by offering technical solutions to support
startup projects in the industry. 138
House of Pops
3D food printers are an emerging global trend, and youth has tapped into the
popularity of Lebanese
in Qatar are pioneering in the region. cuisine in the UAE
• Two students in Qatar have created a 3D printer that through a collaboration
range that is infused
can mass-print vegetables using artificially grown with Levantine flavors.
vegetable cells and UV light to print a prototype of

an edible carrot.139
Plant-based meat markets may be lucrative in the APAC

and Middle East regions.
• Dutch plant-based meat and seafood firm PLNT believes
that its sodium-balanced, high-digestibility alternative
protein products are well-placed to gain entry into
APAC and Middle Eastern markets.140
• HPDC will offer guidance to help Eat Just Inc. acquire
halal certification and approvals for its operations in
Muslim-majority markets.141 industry. It aims to explore new ingredients and flavors
to create a revitalized and nutritious taste experience
New flavors are explored to provide a revitalizing expe- while prioritizing freshness.142
rience and adapt to local cultures. • Dubai-based ice cream brand House of Pops has tapped
• As part of the Foodtech Startup Challenge ASC2022, the into the popularity of Lebanese cuisine in the UAE
Drinks Innovation initiative, led by Hamoud Boualem, through a collaboration range that is infused with
focuses on pioneering developments in the beverage Levantine flavors.143

Signals
of Opportunity
Halal certification Expanding

of novel foods opportunities in Saudi
Novel food companies are ready Arabia’s halal economy
to capitalize on obtaining halal Saudi Arabia, through strategic
certification, exemplified by Beyond investments like HPDC, commits to
Meat, Impossible Foods, and Eat Just, advance the halal ecosystem and food
Inc. This will enable them to access security. Using government funds and
lucrative markets in Muslim-majority international collaborations, it aims
countries, such as Indonesia and to enhance farm productivity, attract
Malaysia, and facilitate broader investments, promote intra-OIC
distribution and heightened trade, and adopt blockchain
consumer trust. for food traceability.
OIC countries
continue to make efforts
to overcome food insecurity
IOFS is making striding efforts for
food security for Muslim nations.
The trilateral cooperation among
FAO, IsDB, and IFAD is empowering
smallholder farmers through
technology. While UAE and Saudi
Arabia are inking deals to bolster
food production in their
countries.
Blockchain COP27 and COP28

continues to revolutionize boost Middle East’s clean
halal food traceability energy investments
OneAgrix and partners’ digital Egypt’s COP27 (2022) and UAE’s COP28
solution allows consumers to trace (2023) drive clean energy initiatives
beef from its DNA origin to a QR code and attract global investments across
using a smartphone. The technology the region. Addressing food security,
enhances transparency, safety, COP28’s “Enhancing Food and Nature
and trust in the food industry, Linkages for Climate Action” event
signaling blockchain’s pivotal aligns climate, biodiversity, and food
role in the future of food initiatives, a pivotal opportunity
traceability. for the region.

SPECIAL CONTRIBUTION FROM IFANCA®
IFANCA’S MULTIFACETED APPROACH

TO FOOD SECURITY AND HEALTH EQUITY
PEXELS
A
efore the terms food and health they needed to navigate the thousands of products that
security were mainstream ideas, filled grocery tore shelves.
IFANCA made it its mission to Eventually, we were approached by companies that
address these concerns. Access to wanted help ensuring that their products were halal, includ-
halal foods is directly tied to food ing finding and sourcing halal ingredients. The more we
security, as many Muslims will forego were asked, the more we realized that halal consumers
nutrition security to adhere to reli- needed more than just a list of halal/haram ingredients;
gious dietary guidelines, regardless of their socio-eco- they needed halal-certified products to be available and
nomic class. easily accessible throughout their day-to-day lives.
When IFANCA started back in 1982, the goal was sim- This brings us to where we are today. As a leading halal
ple: make halal products more accessible for those who certifier for over forty years, IFANCA is made up of industry
want them. We did not set out to be a halal certifier. Our experts and thought leaders in Islamic jurisprudence. We
goal was to help consumers by giving them the resources have played a leadership role in establishing best practices

for halal compliance. Our standards have passed rigorous
vetting and are broadly accepted by Islamic scholars and
practicing Muslim consumers.
Halal is an institution and a comprehensive quality
management system with clear religious guidelines that
have been practiced for many centuries. These guidelines
span the supply chain from farm to point of delivery, which
includes—but is not limited to—procurement, preparation,
production, service, sanitation, storage, and handling.
Through certification, we advance our goal of mak-
ing halal products available for all. Consumers can find
PEXELS
halal-certified products with our Crescent-M logo at retail
outlets worldwide, like Abbott Nutrition medical nutritional
products, Organic Valley dairy products, Saffron Road frozen
meals, and Wonderful Pistachios. We pride ourselves on can’t find food that suits their religious beliefs. Earlier this
being the trusted authority on halal and are constantly year, we hosted food equity experts for the panel “Ensuring
striving to do our best for consumers. Equitable Access to Halal Foods for Kindergarten-12 and
Just as halal certification is crucial to our mission, College Students: Stories from Food Equity Advocates” at
so is the social impact work we do to support the global the Society for Nutrition Education and Behavior (SNEB)
community. As a not-for-profit organization, we strive to 2023 annual conference. The panelists included leadership
promote food security, health and nutrition equity, and from the United States Department of Agriculture, exec-
sustainability as well. utives from the foodservice industry, and representatives
Our work to promote food security encompasses many from the American Academy of Nutrition and Dietetics.
different initiatives. IFANCA provides scholarships and IFANCA’s social impact work also focuses on sustain-
grants to students and universities across the United ability. We believe in returning to the basics and preserv-
States. We want to help equip the next generation to solve ing the world in the best way that we can, which is why
today’s problems and give them the tools they need to we support the Zaytuna College Center for Ethical Living
advocate for their food-insecure peers. and Learning (ZCELL). ZCELL focuses on the tie between
One example of this work is at Texas A& M University Islam and sustainability and teaches students how to
in College Station, Texas. In 2016, we provided the uni- incorporate ethical living practices into their lifestyles.
versity with an endowment to create the Food Diversity At ZCELL, students learn about regenerative agricultural
Innovation Program. This program teaches students about practices like permaculture and become involved in pro-
food diversity in all its forms, from religious and ethnic- ducing their own food.
foods to allergen-friendly, organic, and more. Through this At IFANCA, we strive to live ethically and perform our
program, future food scientists gain an understanding of work in such a way that the benefits extend to the global
the different dietary needs of people worldwide. This type community. When you purchase an IFANCA halal-certified
of education is crucial to ensuring that all populations product, know that you support an organization with
have access to food that meets their individual needs. service at its core. We will continue to serve producers
IFANCA promotes equity by advocating for the needs who strive to create halal-certified products, as well as
of the community in all walks of life. This work extends the consumers who need these products. We will serve
beyond food and pharmaceuticals to vaccines and sup- the environment by being good stewards of the Earth we
porting efforts to eradicate polio. We support institutions have been given, and we will serve the global community
working to make the world a better place for everyone, by continuing to fund and assist with food security and
whether or not someone is a halal consumer. health equity programs worldwide.
As part of this commitment to equity, IFANCA works Whether it is in halal compliance, sustainability, food
with administrators to create halal-certified foodservice pro- security, or health and nutrition equity, we look forward
grams so that no student goes hungry simply because they to having the opportunity to work with you.
Just as halal certification is crucial to our mission, so is the social

impact work we do to support the global community. As a not-
for-profit organization, we strive to promote food security, health
and nutrition equity, and sustainability as well.”
SPECIAL CONTRIBUTION 111

Strategic
Considerations
by Stakeholder
The OIC member countries offer opportunities for

food security through sovereign wealth funds, rising
interest in foodtech, and tapping into halal markets.
However, challenges emerge from geopolitical
tensions, climate change, sustainability standards,
halal certification complexities, and surging food
prices. Addressing these concerns is vital for
sustainable growth.
INVESTORS
Opportunity for investors within foodtech; however, the rising geopolitical
tensions risk market volatility.
Opportunities
1 Channeling funds into food security ini-

tiatives, especially in conjunction with
sovereign wealth funds that prioritize
tayyab (wholesome) products, ultimately bolstering
food security and economic resilience.
Relevant Developments & Precedents:
local halal production. • BRF and HPDC (subsidiary of Saudi Arabia’s SWF: PIF)
These initiatives focus on activities such as enhancing introduced a joint venture to develop the halal meat
agricultural practices, increasing domestic food pro- industry in the region.
duction, and improving food distribution networks. Potential Outcomes by 2033:
They are often aligned with halal principles, which • Self-sufficiency can be attained, reducing a country’s
emphasize not only the permissibility of food but dependency on food imports and strengthening its
also its wholesomeness, safety, and ethical sourc- food security. A more resilient and sustainable food
ing. Through these coordinated efforts, governments ecosystem will result in ensuring the population has
can enhance food self-sufficiency, reduce reliance on access to safe, high-quality, and ethically sourced
imports, and promote the accessibility of halal and food in line with halal principles.
2 Invest in technologies that increase effi-

ciency, productivity, and traceability in
food production.
technologies such as blockchain and autonomous
delivery bots are being piloted in the region.
OIC countries are making efforts to be on par with • OneAgrix and partners have launched an inventive
global foodtech trends. As evident from earlier sections, halal product digitization solution. It allows consum-

ers to trace beef from its DNA source to a QR code blockchain and autonomous delivery bots are likely
via a smartphone, boosting transparency, safety, and to be fully implemented, enhancing food hygiene
trust in the food industry. and safety, convenience, and sustainability across
Potential Outcomes by 2033: the region.
• Demonstrated by ongoing initiatives, technologies like
Challenges
1 Geopolitical tensions risk market vol-

atility.
Investors in the OIC member countries
Risk:
• Failing to manage market volatility may lead to sub-
stantial financial losses for investors from OIC mem-
face geopolitical tensions, which disrupt global food ber countries. This not only erodes investor confidence
supply chains. This disruption leads to increased prices, but also hinders the long-term growth and sustain-
shortages, and food insecurity, especially affecting ability of investments in halal industries, making it
vulnerable populations. critical to address these challenges effectively.
There is a need for implementing a central system that

uses technology to improve halal integrity, compliance,
transparency, and trust. This promotes regulatory reforms
and enhances the relationships between halal services
and networks.”
Diana Sabrain, CEO & Co-Founder, OneAgrix (UK)
GOVERNMENTS
Sustainability is key for governments to consider while trying to promote
and grow the halal economy.
Opportunities
1 Opportunity to promote inclusivity of

halal products and services through COP
conferences.
US$10 billion in climate financing. Funding includes
grants, concessional finance, and a 100 million Euro
debt swap from Germany, backing various projects
Governments can utilize COP27 and COP28 confer- and building on the Just Energy Transition Partner-
ences to encourage investments in clean energy proj- ship (JETP) to reduce greenhouse gas emissions by
ects within the Middle East, aligning with halal and phasing out coal-generated power in South Africa
tayyab (wholesome) principles. This approach supports and Indonesia.
sustainable agriculture, enhances food security, and Potential Outcomes by 2033:
reflects the values of halal and tayyab in their strat- • COP or other sustainability-related conferences may
egies and agendas. facilitate the integration of halal and tayyab princi-
Relevant Developments & Precedents: ples, enhancing sustainable agriculture, food quality,
• The COP27 host country, Egypt, has secured nearly and local economies.

Challenges
1 Lack of clear sustainability standards

incorporated within the current halal
standards ecosystem.
Risk:
• Without clear sustainability standards within the halal
framework, there’s a risk of excluding environmentally
The concept of sustainability, promoted by the tayyab and socially responsible products from the halal
(wholesome) concept, is not clearly defined in the cur- market. This could hinder the industry’s adaptation
rent halal positioning. This is crucial to promoting the to global sustainability trends and consumer pref-
inclusivity of halal products and services. erences, potentially leading to a market share loss.
To decrease reliance on non-OIC exporters, OIC member

states should focus on improving the quality and
competitiveness of their products, invest in research and
development, enhance infrastructure and logistics, and
promote their products in international markets.”
Serunai Commerce (Malaysia)
BUSINESSES
Emerging opportunity for cultivated meat and plant-based markets for the
halal economy.
Opportunities
1 Cultivated meat producers can tap the

halal economy for growth.
Novel food producers, particularly in
• Islamic scholars in Saudi Arabia have issued a ruling
certifying cultivated meat as halal. HPDC will help Eat
the cultivated meat sector, have the opportunity to Just, Inc. acquire halal certification for its cultivated
obtain halal certification for their products. This cer- meat products and approvals for its operations in
tification opens doors to Muslim-majority markets, Muslim-majority markets.
such as Indonesia and Malaysia, and allows compa- Potential Outcomes by 2033:
nies to expand their distribution and gain the trust of • Cultivated meat producers may gain easy access to
halal-conscious consumers, driving growth and revenue. Muslim-majority markets through simpler halal com
pliance procedures.
Challenges
1 Halal certification challenges pose oper-

ational disruptions for cultivated meat
on their halal compliance.
Risk:
businesses. • Inadequate compliance can result in loss of market
Producers of cultivated meat may struggle with halal access, harm to brand reputation, and legal conse-
certification and compliance requirements, given they quences.
are in the very early stages with some disagreements

2 Food and energy prices have surged to
record highs since the start of the Ukraine
conflict.
Risk:
• With little coordination between governments in
fighting the pandemic, varying rates of recovery across
In 2022, global food prices surged due to extreme countries and regions, and the uncertainty surround-
weather, raw material scarcity, shipping disruptions, ing the pandemic, businesses may be forced to close
and pandemic-related restrictions. By June 2023, prices if the status quo remains.
had mostly reverted to pre-Ukraine conflict levels, but
they remained notably higher than pre-pandemic levels.
Ensuring halal integrity all along the food supply

chain from farm to table is the biggest challenge to
stakeholders and regulatory bodies.”
Dato’ Dr. Sirajuddin, Deputy Director General (Policy), Department
of Islamic Development Malaysia (JAKIM)
Your Guide
to the Global
Halal Market ®
ISA is the North American

pioneer and a global leader in
Halal certification since 1975.
We guide consumable and non-consumable product manufacturers to successfully
navigate the global Halal market through our Halal certification services.
We also serve consumers, educational institutions and the general public about
Halal standards and requirements.
Learn More
www.isahalal.com
CHAPTER
Islamic
7
Finance
PEXELS

CHAPTER 7: ISLAMIC FINANCE 119
Islamic Finance
CONSUMER
OPPORTUNITY
Represented by $3.96 trillion in Islamic finance
assets globally (2021/22 est.)
Malaysia, Indonesia, and the GCC
$3.96 trillion
2021/2022
countries dominate the Islamic finance
ecosystem.
ISLAMIC FINANCE – Financial

(2023) Awareness
Social
Innovation
CA 9%
GR
1
$5.95 trillion
2025/2026
11
Consumer perspective
21
I chose the halal financial I chose an Islamic bank 31

institution that I invest because I wanted to
in because it has a high feel comfortable and
track record of integrity, on the safe side.” 41
highly dependable, and Lamia El Sawa, Egypt

they are very transparent.” 51
Aisha Yakubu, Nigeria
61
1,679 71
Islamic financial institutions
globally
81
$238 billion 91
value of Islamic funds
100
$713 billion 1. 2. 3. 4. 5.
value of outstanding sukuk MALAYSIA SAUDI IRAN BAHRAIN KUWAIT
ARABIA

SIGNALS OF
Islamic Finance propels OPPORTUNITIES
SDGs: poverty alleviation,
IMPACT
innovation, climate action,
Low
global partnerships.
Moderate
Sustainable High
Waqf and zakat in Malaysia
Islamic finance
and Burkina Faso aim to
alleviate poverty and hunger. microfinance
Islamic capital
Automated sukuk platforms and market innovations
virtual reality-based services in Untapped region
Islamic finance. market entry
Green Islamic financing by banks

in the UAE, KSA, and the UK contribute DeFi and
to climate action. Blockchain Regulatory support
for Islamic finance
IsDB Group enhancing trade and

development in Uzbekistan, Bangladesh,
and Senegal.
INVESTMENT & FINANCIAL ASSETS

Sukuk issuance has been a major driver of global Islamic finance expansion. The sector witnessed
increased investments, mergers, expansions, and trade commitments.
US$ BILLION (2021/22)
Top 10 countries by Islamic finance assets
Iran 1,235 Kuwait 153
Saudi Arabia 896 Indonesia 139
Malaysia 650 Bahrain 106

UAE 252 Türkiye 71
Qatar 186 Bangladesh 58
$3.96 trillion worth of global Islamic finance assets in 2021/22

= 1 deal
Indonesia UAE Malaysia Pakistan Nigeria $14.4 billion

in islamic finance
related investments
*Islamic Finance sector provided by LSEG Data & Analytics Islamic Finance Development Indicator 2021/22 data. All other estimates including ‘signals’ by
DinarStandard Research & Advisory. Investments (figures and individual deals) are based on a detailed scan of databases from CapitalIQ, Crunchbase and
DinarStandard analysis from 1st August 2022 to 31st July 2023. See appendix for detailed methodology. OIC Organization of Islamic Cooperation, 57 mostly
Muslim-majority member countries.

In a period marked by global economic challenges,
Islamic finance is experiencing growth. This is driven
by increasing demand for shariah-compliant products,
strategic partnerships, and innovative initiatives.
In the past year, the sector has seen a new wave
of investments, mergers and acquisitions, market
expansions, and commitments in trade finance.
M
ultilateral institutions like Islamic Technological innovation is another growth driver,
Development Bank (IsDB) group with fintech playing a central role. Saudi Arabian market
have signed agreements to bolster introduced an automated sukuk issuance platform, and
trade and development in countries Pakistan has seen the launch of Electronic Warehouse
such as Uzbekistan, Bangladesh, and Receipt financing. Bursa Malaysia has rolled out ESG-
Senegal, primarily using Islamic themed indices, Warba Bank is offering VR-based financial
financial instruments like sukuk. services, and IBF Net has launched the first shariah-com-
Sukuk issuance has been a major driver of the sector’s pliant metaverse.
expansion. The Islamic Corporation for the Development These developments are propelling Islamic finance
of the Private Sector (ICD), a member of the IsDB group, towards greater digitalization, sustainability, and financial
assisted in launching Kazakhstan’s first local currency inclusion. By 2030, these priorities aim to not only serve
sukuk. Additionally, Pakistan’s fintech company Abhi Muslim consumers but also contribute to wider economic
became the first shariah-compliant fintech to issue sukuk and sustainable development goals. The Islamic finance
in the MENA region and Pakistan. industry, valued at US$3.96 trillion in 2021/2022, is forecast
The ethical framework of Islamic finance positions it to grow to US$5.95 trillion by 2025/26.
as a contributor to climate transition, with an increasing
focus on green finance. The UAE, hosting COP28 in 2023,
highlighted the role of sustainability-linked sukuk in cli-
mate action. The country’s decision to waive registration
fees for green sukuk listings has spurred private sector
involvement. Similarly, Tunisia has engaged in green-trade
financing agreements, and banks like Al-Rajhi, Dubai
Islamic Bank, and Gatehouse Bank are issuing sustain-
able sukuk for eco-friendly projects.
Islamic banking is also expanding into new markets,
including Russia, which is exploring Islamic banking to cater
to its significant Muslim population. Australia and Uganda
have licensed their first Islamic banks, and Mexico, the
Philippines, and France are considering Islamic financial
instruments.
Regulatory bodies are also strengthening the framework
of the industry. Nigeria’s Central Bank revised guidelines for
non-interest financial instruments, and Malaysia’s Securities
Commission introduced new digital-related regulations.

2022/23
Developments
Latest Projections Investments Summary
Global Islamic assets were valued at US$3.96 trillion for 67 deals related to Islamic finance were recorded in
the 2021/2022 period. This is a 17% increase from US$3.37 2022/23, 47 of which were disclosed and valued at US$14.4
trillion valuation in 2020/2021. Islamic banking accounts billion. This is a 559% increase from the US$2.19 billion in
for 70% of this value. By 2025/26, global Islamic assets Islamic finance-related deals recorded in 2021/22.
are forecasted to reach US$5.94 trillion, growing at a CAGR
of 9%.
Bahrain Mergers & Banking Ahli United Bank 10,900,000

Acquisitions
Bahrain Mergers & Banking Ithmaar Bank 2,200,000

Acquisitions
Indonesia Venture Capital Banking, Financial Services, FinTech, Akulaku 200,000

Insurance, Wealth Management
Switzerland Private Equity Cryptocurrency, Finance, Virtual Islamic Coin 200,000

Currency
Saudi Arabia Venture Capital E-commerce, FinTech, Payments, Tamara 100,000

Retail, Shopping
UNSPLASH

Sector
Developments
MULTILATERAL ISLAMIC FINANCE for the Insurance of Investment and Export Credit
DEVELOPMENTS (ICIEC) has received a substantial capital boost with
a 150% increase, bringing its authorized capital to
The Islamic Development Bank (IsDB) Group has outlined Islamic Dinars 1 billion (about US$1.35 billion).157 This
a new strategic direction for 2023-2025, emphasizing increase in capital is set to enhance ICIEC’s financial
resilience, green initiatives, and inclusive development strength, loss-bearing equity resources, and market
while increasing trade and investment endeavors across competitiveness.
the member countries.
• IsDB Group’s Strategic Direction (2023-2025): The MAJOR REGIONAL DEVELOPMENTS

IsDB Group is reorienting its strategy to address chal- FROM ISLAMIC FINANCE COUNTRIES
lenges from COVID-19 and to propel the Sustainable
Development Goals (SDGs). Key themes include devel- Countries are ramping up initiatives to integrate Islamic
oping green, resilient infrastructure and fostering finance principles into their broader financial ecosys-
inclusive human capital development.144 This realign- tems. This includes efforts to curtail or completely elim-
ment is crucial in guiding the bank’s activities and inate interest-based systems, establish financial centers
focus areas in the coming years. that emphasize Islamic finance, introduce liquidity
• Climate Action Commitment: IsDB has unveiled its solutions for Islamic banks, and debut Islamic banking
Paris Alignment Action Plan, aligning its activities with institutions.
the Paris Agreement.145 This initiative aims to foster
climate-resilient economies among member nations, Pakistan sets ambitious five-year plan to eliminate
underlining IsDB’s commitment to climate action. interest (Riba).
• Humanitarian Initiatives: The Islamic Solidarity Fund • Pakistan’s government is taking steps toward a
for Development (ISFD), a part of IsDB, is collaborating riba-free economy in the next five years, backed by
with the UN High Commission for Refugees (UNHCR) a Federal Shariat Court ruling. This is poised to bol-
to launch a global Islamic fund for refugees.146 ster the nation’s Islamic finance sector, drawing in
• Partnership with Uzbekistan: The IsDB Institute more shariah-compliant investments, and promoting
(IsDBI) is partnering with Uzbekistan to strengthen its economic growth.158
Islamic finance industry, aiming to enhance financial
stability and stimulate economic growth in the region.147 Türkiye launched the Istanbul Financial Centre and
• ITFC and Partners’ Initiatives: The International Islamic finance strategy.
Islamic Trade Finance Corporation (ITFC), in collabo- • President Erdogan inaugurated the Istanbul Financial
ration with the Islamic Corporation for the Insurance Centre,159 spotlighting participation finance and align-
of Investment and Export Credit (ICIEC) and the ing with macroeconomic goals for sustainable and
United Nations Conference on Trade and Development inclusive growth, as well as the UN’s sustainable
(UNCTAD), is championing sustainable investment development objectives.160
practices within Islamic finance.148 ITFC is also driving • To solidify its aspirations in the Islamic finance arena,
significant trade and investment initiatives across var- Türkiye rolled out a Participation Finance Strategy
ious countries, including Kazakhstan,149 Bangladesh,150 Document. This blueprint envisions Türkiye as a front-
Côte d’Ivoire, Uzbekistan, Saudi Arabia,151 Egypt,152 the runner in Islamic finance, emphasizing the creation
Maldives,153 Senegal,154 and Tunisia.155 These include of alternative financial instruments.161
landmark deals, financing plans, and agreements
focusing on enhancing energy security, infrastructure, Bangladesh strengthens Islamic banking with new
and trade. The US$5 million deal in Kazakhstan Tenge liquidity facility.
is the first local currency sukuk by ICD.156 • Bangladesh’s Central Bank introduced a unique short-
• ICIEC’s Capital Increase: The Islamic Corporation term liquidity facility for the nation’s Islamic banks.

This initiative ensures that Islamic banks can access • Islamic finance is also venturing into sustainable
funds with ease, manage liquidity proficiently, and investment. The Islamic Organization for Food Security
sustain their operations, solidifying confidence in plans to launch the IOFS Fund for agricultural sukuk.179
the Islamic banking framework and fostering its AmInvestment180 and Hong Leong Asset Management181
expansion.162 in Malaysia are introducing shariah-compliant ESG
Uganda embarks on Islamic banking journey. funds, with GreenPro Capital Corp. launching Green
• Marking a significant milestone, Uganda’s central X,182 a shariah-compliant ESG digital asset exchange.
bank issued its first-ever Islamic banking license to Bursa Malaysia initiated Islamic carbon credit trading,183
Salaam Bank Ltd., associated with Djibouti’s Salaam and Gulf Ventures introduced a shariah-compliant
African Bank. Following recent legislative approvals, food business investment platform.184
this moves into interest-free banking positions Uganda • Beyond financial instruments, there is a focus on
for potential growth, enhancing the prospects of East broader sustainability initiatives. Standard Chartered
Africa’s third-largest economy.163 Malaysia’s SC-WIN initiative supports female entre-
preneurs,185 and CIBAFI has launched a Sustainability
Guide for Islamic financial institutions to integrate
SOCIAL IMPACT DEVELOPMENTS sustainability into their operations.186
Islamic finance is merging with global sustainability

initiatives, particularly evident in the surge of green and ISLAMIC BANKING DEVELOPMENTS
sustainable sukuk for eco-projects. Regulatory enhance-
ments and major financial institutions are propelling this The financial landscape saw a shift toward Islamic banking
movement. in South Asia, with numerous institutions transitioning
to shariah-compliant models. Concurrently, the sector is
• Pre-COP28 discussions have highlighted Islamic witnessing consolidation through various mergers and
finance, especially sustainability-linked sukuk, as acquisitions (M&A).
crucial for funding eco-friendly initiatives.164 These
instruments, which tie financial returns to the issuer’s • In Pakistan, following a Federal Shariat Court ruling on
environmental performance, gained attention with Riba (interest), there is a notable move towards full-
IsDB’s landmark issuance in 2021, setting the stage fledged Islamic banking. Faysal Bank transitioned into
for their prominence at COP28 in Dubai.165 a fully-fledged Islamic bank, building on its position
• Significant advancements in green and sustainable as the second-largest Islamic window in the country.187
sukuk are evident worldwide. Indonesia issued its The Zarai Taraqiati Bank Limited (ZTBL) set its course
largest-ever global green sukuk of US$1.5 billion for to become a fully-fledged Islamic bank,188 focusing
renewable energy projects.166 Dubai Islamic Bank on serving farmers and rural communities. Security
debuted in sustainable finance with sukuk issuances Investment Bank Ltd. announced its shift to become
totalling US$1.75 billion,167 while Malaysia introduced shariah-compliant,189 while Summit Bank rebranded as
the Sustainability Malaysian Government Investment Bank Makramah Ltd., marking its complete transition
Issues (MGII) sukuk for green and social projects.168 into an Islamic entity.190
Bahrain’s Infracorp listed a US$900 million green • In the MENA region, mergers and acquisitions are
sukuk in London Stock Exchange,169 and Al Rajhi Bank reshaping the banking landscape. Oman’s Bank Dhofar
entered the international market with a US$1 billion proposed acquiring Ahli Bank to strengthen its market
sustainable sukuk.170 Malaysia’s SME Bank’s green position.191 Kuwait Finance House (KFH) completed
sukuk issuance exceeding its target reflects a growing the acquisition of Ahli United Bank,192 becoming the
interest in sustainable investments.171 world’s second-largest Islamic bank. However, Gulf
• The UAE is bolstering sustainable sukuk through regu- Bank and Ahli Bank of Kuwait discontinued their
latory incentives, with the Securities and Commodities merger discussions.193 Sohar International Bank and
Authority (SCA) waiving registration fees for green HSBC Oman merged,194 with potential further consol-
bonds and sukuk in 2023.172 idation with Bank Nizwa.195 In Bahrain, Al Salam Bank
• There is an expansion in sustainable finance frame- acquired assets from Ithmaar Bank,196 and First Abu
works and products. RHB Bank in Malaysia targets Dhabi Bank (FAB) Egypt integrated with Bank Audi
RM15 billion by 2024 with its green financing scheme Egypt, rebranding as FABMISR.197
for SMEs.173 Qatar introduced its first shariah-compli- • Islamic financial institutions are playing a signifi-
ant green deposit,174 Maybank,175 and HSBC Amanah cant role in remittances. In Bangladesh, banks like
Malaysia176 have stepped up with comprehensive Islami Bank Bangladesh Limited (IBBL) and Al-Arafah
sustainable product frameworks. Bursa Malaysia Islami Bank Limited were major remittance recipients
collaborated with FTSE Russell for ESG indices177 and for FY23.198
modified listings to support Islamic REITs and ETFs • There are also developments in financial expansion
with waqf features.178 and banking across various regions. In Bangladesh,

Tadawul, the Saudi
stock exchange, has
launched the Tadawul
All Share Islamic Index
(TASI Islamic Index)
for shariah-compliant
companies.
SHUTTERSTOCK
IDLC Finance199 and DBH Finance200 received approvals Islamic finance. Notably, sovereign sukuk issuances from
to start Islamic finance windows, and Ethiopia saw various regions are attracting considerable global investor
the opening of Rammis Bank’s headquarters as the interest.
fourth interest-free bank in the country.201
• In the corporate sukuk sector, Saudi Electricity
Company’s (SEC) issuance of a US$2 billion sukuk
SUKUK DEVELOPMENTS saw an overwhelming response, attracting US$15.4
billion in orders, 7.7 times the offer size, with a focus
The Gulf’s corporate sukuk market is experiencing strong on funding green projects.202 Additionally, Emirates
demand, with issuances seeing significant oversubscrip- Islamic marked a milestone in the UAE by issuing
tions. Globally, there is a surge in shariah-compliant ETFs, the first dirham-denominated sukuk, valued at AED
funds, and indices, highlighting the expanding reach of 500 million, 203 which is a significant step towards

bolstering the local currency sukuk market liquidity. ANGEL, VC, AND PRIVATE EQUITY
• On the sovereign front, several countries have reported DEVELOPMENTS
successful sukuk issuances with remarkable oversub-
scription rates. Nigeria increased its 2022 sovereign Numerous fintech platforms secured substantial invest-
sukuk from 100 billion Naira (approximately US$225.62 ments for expansion and growth. Concurrently, there have
million) to 130 billion Naira due to a 165% oversub- been a few developments in technology investments, with
scription.204 Egypt made a strong entry into the market the introduction of technology funds, innovative financing
with its debut sukuk offering of US$1.5 billion, which models, and initiatives aimed at supporting startups.
attracted four times the intended amount in subscrip-
tions from global investors.205 The UAE experienced • In fintech fundraising, notable achievements include
an exceptional response to its first local currency Moove, a Nigerian mobility fintech, securing US$30
Islamic Treasury sukuk, aggregating AED 1.1 billion but million for expansion into the UAE, 219 and Saudi
receiving bids worth AED 8.3 billion (US$2.26 billion), Arabia’s Tamara raising US$100 million in a Series
indicating a 7.6 times oversubscription.206 B equity round, reflecting the strength of the Saudi
• Additionally, Pomegranate Nigeria Limited (PNL), an fintech sector.220 Indonesian shariah-compliant fin-
emerging third-party logistics company, successfully tech Hijra (formerly Alami) closed a pre-Series B round
ventured into the sukuk market for the first time, led by East Ventures, totalling US$67.6 million in
raising 2.2 billion Naira through a three-year Ijarah raised funds and disbursing over US$300 million to
sukuk to expand its fleet.207 SMEs.221 Additionally, the shariah-compliant fintech
platform Wahed successfully raised US$50 million
in a Series B funding round222 making its valuation
ISLAMIC FUNDS DEVELOPMENTS (ETF, US$300 million.223
INVESTMENT FUNDS, AND INDICES) • In the realm of technology investments and ventures,
Iraq has launched its first technology fund through
There is an uptick in shariah-compliant ETFs and funds, with Islamic banking to support local tech startups.224 Ethis
new offerings and ventures emerging in various regions. Group unveiled the Ethis Super Angel Syndicate, focus-
Additionally, the introduction of new shariah-compliant indi- ing on pooling resources from angel investors for
ces in prominent stock exchanges underscores the broader early-stage startups.225 Moreover, Franklin Templeton
integration of Islamic finance in the financial markets. introduced a shariah-compliant technology fund,
tapping into the growing interest in tech within the
• In the realm of ETFs and funds, Chimera Capital has Islamic finance domain.226
expanded its shariah-compliant offerings with ETFs in • In the aviation and leasing sector, AviLease from
the US208 and for Hong Kong-listed Chinese equities.209 Saudi Arabia secured US$1.1 billion in shariah-compli-
Hejaz Financial Services has launched Australia’s first ant funding to expand its aircraft fleet.227 This move
shariah-compliant ETFs on the Australian Securities underscores the increasing role of Islamic finance in
Exchange (ASX).210 In Qatar, QIC and QInvest LLC have the aviation industry.
formed Epicure Islamic Investment Management, a
joint venture dedicated to Islamic asset management
services.211 The US is also seeing innovative develop- FINTECH DEVELOPMENTS
ments with Texas-based Sputnik ATX introducing
the country’s first shariah-compliant venture capital Fintech companies are experiencing dynamic shifts with
fund focused on tech startups,212 while Swiss BlueBox expansions, retractions, and rebranding, exemplified by
has launched a shariah-compliant technology fund.213 firms evolving their brand identities, entering new markets,
In Saudi Arabia, STV announced the Total Growth or facing regional challenges. Regulatory environments
platform with over US$150 million to support local are adapting to the fintech wave, with various countries
tech firms,214 and Merak Capital launched a SAR 200 introducing strategies and licenses, promoting digitization,
million Direct Lending Fund for SMEs.215 and setting up frameworks to foster innovation.
• The introduction of new shariah-compliant indices is
another significant trend. Tadawul, the Saudi Arabian • In terms of expansion, retraction, and rebranding,
stock exchange, debuted the Tadawul All Share Islamic Alami Group has transformed into Hijra, positioning
Index (TASI Islamic Index) for shariah-compliant com- itself as a “Platform for Goodness” aligned with Islamic
panies.216 In Australia, S&P Dow Jones Indices intro- values and sustainable development.228 Wahed has
duced the first set of Islamic indices based on the S&P/ broadened its reach by opening a physical bank branch
ASX series, targeting shariah-compliant ASX-listed in London, with the presence of Khabib Nurmagomedov
companies.217 Additionally, FTSE Russell and Ideal Rating at the inauguration,229 while also rebranding Maydan
have launched the FTSE IdealRatings Islamic Index Capital as WahedX.230 EthisX has expanded into
Series, designed to track the performance of global Oman to strengthen the startup ecosystem there.231
Islamic equity securities across international markets.218 However, UAE-based Tabby has ceased operations

in Egypt, reflecting the complexities in the region’s for socio-economic progress. Concurrently, the introduction
fintech landscape.232 of Islamic microfinance institutions signifies strides in
• Regarding licensing, regulation, and facilitation, the enhancing financial inclusion.
UK’s Algbra secured an e-money license to offer digital • In Malaysia, the national budget for 2023 highlights a
payment solutions.233 The Securities Commission of significant commitment to the development of waqf
Malaysia has approved more crypto exchanges while (Islamic endowment) land and assets.245 This strategic
focusing on investor protection and digitization ini- move is aimed at leveraging these endowments to
tiatives.234 Pakistan’s SECP is inviting applications for drive socio-economic advancement and contribute
its regulatory sandbox to foster innovation in Islamic to national growth.
and conventional finance.235 Bank Negara Malaysia • Burkina Faso is making notable advancements in
launched MyOR-I to streamline fintech innovation Islamic finance with the establishment of its first
registration.236 Islamic microfinance institution.246 This development
• In digital currency strategies and developments, the plays a crucial role in enhancing financial inclusion,
Central Bank of the UAE revealed its digital currency offering an alternative financial model that aligns
strategy, 237 emphasizing fintech’s role in Islamic with the cultural and religious practices of the local
finance. Türkiye introduced its Fintech Guide to encour- population.
age financial sector innovation,238 while Qatar Central
Bank’s Fintech Strategy 2023 aims to make Qatar a
regional fintech hub.239 The IMF is examining CBDC INNOVATION DEVELOPMENTS
designs within Islamic banking, highlighting the need
to adhere to Islamic finance principles.240 Islamic finance is rapidly integrating with cutting-edge
• In new fintech offerings, ABHI became the first firm technologies, from the metaverse to virtual reality, ensuring
in the MENA region to issue sukuk, 241 showcasing offerings remain both innovative and shariah-compliant.
a significant integration of technology with shari- A pronounced digital transformation wave is evident as
ah-compliant financial instruments. institutions pivot toward modern platforms, fintech col-
laborations, and enhanced payment systems.
TAKAFUL DEVELOPMENTS • In the realm of virtual reality and the metaverse,

IBF Net has taken a pioneering step by launching
The takaful market witnessed strategic consolidations to a shariah-compliant metaverse, a groundbreaking
amplify market presence, while specialized takaful offerings move that blends Islamic finance principles with the
are emerging to cater to niche sectors, such as agriculture. digital reality.247 Similarly, Warba Bank has integrated
virtual reality into its service offerings, providing an
• In the realm of mergers enhancing market presence, immersive banking experience that enhances cus-
Saudi Arabia saw Walaa Insurance merge with SABB tomer engagement.248
Takaful, resulting in a formidable insurance entity.242 • The digital transformation in Islamic banking is partic-
This merger positions the combined entity for market ularly pronounced in South Asian and Middle Eastern
leadership and expands its customer outreach. markets. Bangladesh is leading this change by reduc-
• Specialized takaful offerings are emerging, specifically ing capital requirements for digital bank licenses,249
in the agricultural sector. Agrobank in Malaysia is poised attracting a significant number of applications, a num-
to introduce an agricultural takaful program.243 This ber of which proposing shariah-compliant services.250
initiative signifies the growing integration of Islamic • In Türkiye, efforts are underway to establish the coun-
insurance solutions tailored to the specific needs and try’s first Islamic digital bank, indicating a shift towards
highlight the versatility and adaptability of takaful. digital Islamic financial services.251 Malaysia is also
• In terms of collaboration for market-specific takaful notable for its digital banking developments, high-
solutions, Daraz Pakistan and Salaam Takaful have lighted by AEON’s pursuit of a digital banking license252
partnered to offer shariah-compliant insurance solu- and Labuan IBFC’s introduction of Waafi Bank Ltd.253
tions designed for delivery riders.244 This collabora- • Innovative digital solutions are being introduced,
tion reflects the ongoing evolution and showcase with Sharjah Islamic Bank and Al Rajhi Bank Malaysia
how takaful is being innovatively applied to new and launching “klip”254 and “Rize,”255 respectively, catering
emerging market segments. to the technology preferences of Islamic banking
customers.
• Further, the launch of platforms like Dubai Islamic
ISLAMIC SOCIAL FINANCE Bank’s DIB “Alt,”256 ILA Bank’s “AlBuraq”257 in Bahrain,
DEVELOPMENTS and Sterling Alternative Finance’s venture into ethical
investments258 in Nigeria through digital platforms
There is emphasis on waqf land development in national showcase the broadening of digital Islamic financial
budgets highlighting the potential of religious endowments services.

PEXELS

• Pakistan is also embracing technology in Islamic • On a global scale, the IMF is acknowledging the dis-
finance, as seen with Meezan Bank’s Islamic sup- tinctiveness of Islamic finance by planning to separate
ply chain financing259 and BankIslami’s Electronic its transactions in SNA and BPM.276
Warehouse Receipt financing.260
• Saudi Arabia’s Rakeez Capital has introduced an
automated sukuk issuance platform, reflecting the NON-OIC ISLAMIC FINANCE
integration of technology in Islamic capital market.261 DEVELOPMENTS
• Additionally, the Arab Payment System Buna has
partnered with banks like Emirates Islamic, Dubai Nations outside the traditional Islamic finance hubs in the
Islamic Bank, and Bank Nizwa to enhance and secure OIC are exploring its potential and benefits to cater to their
cross-border transactions,262 to streamline and secure Muslim population and diversify their financial markets.
cross-border transactions in the Arab region.
• Australia: The Islamic Bank of Australia (IBA) has
emerged as the country’s first licensed Islamic bank,
REGULATORY AND INSTITUTIONAL planning to offer a broad spectrum of shariah-compli-
DEVELOPMENTS ant services.277 Additionally, Hejaz Group’s investment
in IBA reinforces the foundation for Islamic finance
Islamic finance saw significant regulatory developments, in Australia.278
including the introduction of guidelines for shariah-com- • Russia: The country is planning to introduce Islamic
pliant investment schemes and microfinance, as well as banking in Muslim-majority regions like Tatarstan,
the strengthening of insurance sector regulations. Bashkortostan, Chechnya, and Dagestan.279 This ini-
tiative aims to leverage the economic potential of
• West Africa is making strides in Islamic finance, with Russia’s substantial Muslim population.
the WAEMU Financial Markets Authority introducing • Canada: Alberta has opened its regulatory sandbox
guidelines for Islamic Collective Investment Schemes.263 for halal finance, promoting innovation in Islamic
This initiative lays a solid foundation for shariah-com- finance.280 Manzil’s launch of the halal digital invest-
pliant investment schemes in the region. ment platform, Manzil Invest, caters specifically to
• Malaysia continues to lead in Islamic finance reg- the Canadian Muslim community.281
ulatory development. The Central Bank of Malaysia • Mexico: The country is exploring the potential of
drafted guidelines on Hajah and Darurah,264 while the issuing sukuk, indicating its entry into the Islamic
Securities Commission Malaysia consolidated guide- finance world.282
lines for Islamic capital market products.265 Additionally, • United Kingdom: The establishment of an Islamic
Bank Negara Malaysia unveiled a Risk Management in finance working group aims to bolster the sector’s
Technology policy.266 In Malaysian budget, a plan to growth in the UK.283 Gatehouse Bank is pioneering
separate EPF Syariah savings to optimize returns was in offering 284 and enhancing 285 shariah-compliant
announced as well.267 green home products, integrating sustainable living
• In Indonesia, the Islamic microfinance framework is practices within the Islamic finance offerings.
being streamlined, with the OJK (Financial Services • Philippines: The Department of Justice has validated
Authority) introducing regulations for shariah-com- the authority of the Department of Finance to engage
pliant microfinance banks.268 in Islamic financing through sukuk instruments,
• Pakistan’s SECP is preparing for a more robust Islamic setting the stage for shariah-compliant investments
finance landscape by issuing comprehensive guide- in the Philippines.286
lines for 2023.269 • Zanzibar: With support from the United Nations
• Saudi Arabia is enhancing its insurance sector regula- Development Programme (UNDP), Zanzibar is adopting
tions with plans for a new unified insurance regulator270 a sustainable approach to financial growth, focusing
and collaborative efforts between SAMA and CBUAE on issuing a sovereign sukuk aligned with sustainable
for mutual supervision of the insurance sector.271 development goals.287
• Nigeria is strengthening its non-interest finance • North America: The Air Lease Corporation in North
market with new regulations and guidelines. The America has secured funding through the region’s
Securities and Exchange Commission announced sha- first-ever corporate sukuk offering.288 Pentavirate
riah advisory rules,272 and the Central Bank of Nigeria is offering global investors an opportunity to invest
revised guidelines for non-interest financial instru- in a shariah-compliant sukuk backed by U.S. assets,
ments273 and pushing Deposit Money Banks toward contributing to the diversification of the global Islamic
shariah compliance.274 finance market.289
• Abu Dhabi is adapting to changing financial environ-
ments, with the Abu Dhabi Global Market’s Financial
Services Regulatory Authority (ADGM’s FSRA) updating
its framework to accommodate private credit funds.275

Signals of
Opportunity
Charting the Next Frontier

Genuine Impact of Islamic Fintech with Synergy
in Sustainable Finance The Islamic fintech sector is
Institutions like IsDB are prioritizing expanding, with companies like Hijra
genuine impact in areas such and Tamara receiving significant
as climate resilience and food funding. Collaborations, such as the
security, positioning themselves as one between Kestrl and Bank Islam
transformative leaders in sustainable Malaysia Berhad and the partnership
finance, with potential validation between Aeon and Malaysia’s digital
from the COP28. bank initiative, are redefining the
scope of Islamic fintech.
Market Penetration
in Untapped Regions
The emergence of new Islamic
financial institutions in markets
like Iraq and Türkiye and growth
in regions such as Sub-Saharan
Africa and Russia underscore the
expanding opportunities in areas
with significant Muslim
populations.
Regulatory Support
Advancements in for Islamic Finance
Islamic Capital Markets Recent advancements in key
Innovative products in Islamic countries are catalyzing the growth
capital markets are emerging, as of Islamic finance. Initiatives by
highlighted by Bursa Malaysia’s Malaysia’s Securities Commission,
Carbon Exchange and Franklin new insurance sector regulations in
Templeton’s shariah-compliant Saudi Arabia, and Pakistan’s Federal
technology funds. Court-driven banking reforms
are significant in driving
this expansion.

Strategic
Considerations
by Stakeholder
INVESTORS
Investors are gravitating toward ESG-themed and shariah-compliant tech-
nology funds, underscoring a shift toward sustainable and religiously aligned
investments. However, challenges like ensuring transparency in tech-driven
financial products and addressing data privacy concerns on digital platforms
persist. Navigating these challenges is crucial to maintaining investor trust
and sustaining the growth of these innovative investment sectors.
Opportunities
1 The horizon is ripe for ESG-themed funds

and shariah-compliant technology funds,
capitalizing on the growing demand
• Introduction of new shariah-compliant technology
funds and investment products catering to ESG con-
for sustainable and innovative Islamic investment siderations.
products. Potential Outcomes by 2033:
The investment landscape is shifting, with a rising • Diversified investment portfolios with exposure
emphasis on ESG-themed funds that prioritize envi- to sustainable and innovative Islamic investment
ronmental, social, and ethical factors over just profits. products. Enhanced transparency and efficiency in
Concurrently, the demand for shariah-compliant tech- financial transactions, including Islamic finance,
nology funds is growing, allowing Muslim investors through blockchain technology.
to partake in tech advancements while adhering to
their faith. These trends highlight an expanding array
of investment options catering to diverse ethical and
religious needs.
2 Appetite for a broader range of sustain-

able and shariah-compliant financial
products aligned with investors’ values
• Introduction of user-friendly digital banking plat-
forms and mobile apps offering seamless Islamic
and preferences. banking experiences.
Investors are now more attuned to the ethical and Potential Outcomes by 2033:
environmental impact of their financial decisions, • Improved financial inclusion and access to Islamic
driving demand for investment products that align with financial services, especially for the tech-savvy gen-
their values. For those adhering to Islamic principles, eration. Increased awareness and demand for sus-
shariah-compliant options ensure religious alignment. tainable and socially responsible Islamic financial
The financial market is thus evolving to cater to both products.
ethical and religious preferences, moving beyond just
profit-centric considerations.

Challenges
1 Ensuring transparency and alignment

with shariah principles when investing
in technology-driven financial products.
Islamic laws, especially given the fast pace of tech-
nological advancements.
Risk:
The rapid digital transformation of the financial sector • Misalignment with shariah principles could deter
introduces technology-driven financial products that investor trust and adoption, impacting the growth
can be complex and less transparent. For investors trajectory of Islamic investment products.
prioritizing shariah compliance, it is challenging to
determine the adherence of these digital products to
2 Addressing privacy and data protection

concerns related to digital financial ser-
vices.
theft. Additionally, the global nature of digital finance
means data could traverse various jurisdictions, each
with its own regulatory standards.
Investors engaging with digital financial services are Risk:
increasingly concerned about data privacy and protec- • Given the speed of digital innovation, the default
tion. The convenience of online platforms and apps, option may soon become digital finance, but poten-
while beneficial, introduces potential vulnerabilities to tial breaches or misuse of data could still deter trust
cyberattacks and data breaches. For investors, the risks and adoption.
extend beyond financial loss to threats like identity
GOVERNMENTS
Governments are proactively fostering innovation in Islamic finance and
fintech, which can lead to accelerated economic growth and position their
nations as global technology-based Islamic finance hubs. The governments of
various OIC member countries are embracing sustainable finance initiatives,
including green sukuk, to align with environmental goals while at the same time
fermenting socio-economic development. However, balancing innovation with
financial stability, consumer protection, and ensuring equitable distribution
of benefits remains pivotal to safeguarding public trust and holistic growth.
Opportunities
1 Fostering an environment conducive

to innovation in Islamic finance and
Islamic fintech and streamlining regu-
• Establishing regulatory sandboxes has facilitated
the experimentation and development of pioneering
latory frameworks can stimulate growth. fintech solutions within the Islamic finance realm.
Governments nurturing innovation in Islamic finance Potential Outcomes by 2033:
and Islamic fintech can spur economic growth by • A robust Islamic fintech ecosystem that is under-
attracting both domestic and foreign investments. pinned by a regulatory environment that attracts
Streamlined regulations can position the country as investments and drives development. Regulatory
a global Islamic finance hub, promoting financial support through sandboxes, accelerators, and more
inclusion and stability through asset-backed or asset- will make it easier for fintech companies to develop
based transactions. Moreover, the alignment of Islamic and launch new financial products and services. It
finance with sustainable goals enables governments will also help to reduce the cost of financial ser-
to fund eco-friendly and socially beneficial projects, vices, making them more affordable for underserved
marrying economic advancement with environmental demographics.
considerations.

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2 The positive impact of sustainable
finance initiatives, such as green sukuk,
can promote environmentally friendly
creating jobs and stimulating industries aligned with
sustainable practices.
projects and socio-economic development. • Increased implementation of Islamic microfinance
From a government’s perspective, sustainable finance initiatives supporting entrepreneurship and small
initiatives like green sukuk offer a dual benefit. Firstly, businesses in underserved regions such as Sahel
they provide a mechanism to raise capital for envi- and CIS regions.
ronmentally friendly projects, supporting the nation’s Potential Outcomes by 2033:
goals for sustainability and combatting climate change. • A more inclusive and sustainable financial ecosystem
These projects could range from renewable energy supporting socio-economic development and address-
infrastructure to sustainable agriculture. Secondly, ing societal needs. Empowered communities with
such initiatives can drive socio-economic development, improved access to finance and financial education.
Challenges
1 Ensuring financial stability and con-

sumer protection while promoting inno
vation.
frameworks must evolve rapidly to support innovation,
mitigate systemic risks, and address concerns like
consumer protection, data privacy, and cybersecurity.
Governments face the challenge of promoting financial Risk:
innovation while ensuring stability and consumer • Over-regulation could stifle innovation, while lax
protection. As fintech solutions emerge, they bring oversight might expose the sector to undue risks,
both economic potential and new risks. Regulatory potentially undermining consumer confidence.
2 Ensuring equitable distribution of the

benefits of Islamic finance and Islamic
fintech across all segments of society.
areas, and ensuring that financial products cater to
the diverse needs of the populace, there is a risk that
the transformative potential of Islamic finance and
The rapid growth in these sectors can lead to wealth fintech could exacerbate existing inequalities rather
concentration among certain people or regions, depriv- than alleviate them.
ing marginalized or less digitally savvy populations. Risk:
Governments are facing the challenge of crafting pol- • Potential disparities in access and benefits could
icies that promote inclusivity. Without government lead to societal divisions and undermine the broader
interventions that involve increasing financial liter- objectives of Islamic finance.
acy, enhancing digital infrastructure in underserved
I think we’ve seen the combination of ESG being

distilled into a purely financial metric when you see
tobacco companies getting the top ESG scores. And I
think that’s always been. If you look at where ESG has
been developing, that’s always been driven by financial
materiality, which is useful in terms of its approach to
trying to get the widest range of institutions involved. But
people have a desire for more than just the financial profit-
maximizing approach to responsible finance, which I think
you can combine those two in Islamic finance to really
demonstrate ethics and values-based finance.”
Blake Goud, CEO, RFI Foundation

BUSINESSES
Embracing digital transformation in Islamic finance meets the tech-savvy
consumers’ needs and has potential growth in the Islamic fintech market.
However, fintech businesses face challenges ensuring shariah compliance in
digital products while also adhering to regulatory requirements. Innovative
Islamic financing models attract modern entrepreneurs, but they require
effective market education to ensure clarity and adoption.
Opportunities
1 Embracing digital transformation and

fintech innovations can cater to the
evolving demands of tech-savvy cus-
• Numerous Islamic banks in the UAE already have their
own sandboxes to develop fintech products that are
tomers and tap into the burgeoning Islamic fintech being launched on their own platforms.
market. Potential Outcomes by 2033:
Integrating digital transformation into Islamic finance • Islamic banks that seamlessly integrate fintech will
can unlock significant opportunities. As tech-savvy command a larger market share, offering enhanced
consumers increasingly seek seamless and real-time digital experiences. Strategic partnerships with fin-
financial services, businesses that adopt fintech inno- tech startups can lead to improved financial inclusion
vations can serve their demands better. By offering in underserved regions.
advanced Islamic financial products, from digital wal-
lets to blockchain-backed sukuk, businesses can tap
into the expanding Islamic fintech market, ensuring
both growth and relevance in a competitive landscape.
2 Introducing innovative Islamic financing

solutions to meet the modern-day needs
of entrepreneurs.
• WahedX and EthisX’s introduction of shariah-com-
pliant, alternative financing models.
By tapping into innovative financing models and adopt- Potential Outcomes by 2033:
ing such mechanisms, businesses can offer growth • Islamic financial institutions that offer such inno-
capital to startups and SMEs without dilution concerns, vative financing mechanisms can attract a broader
making it attractive for modern entrepreneurs. range of clients, from startups to established busi-
nesses looking for ethical financing solutions without
equity dilution.
Challenges
1 Navigating the landscape of shariah

compliance for digital financial products
while ensuring regulatory adherence.
Risk:
• Probable misalignment with shariah principles could
deter customer trust and adoption, impacting the
While the digital realm offers advanced solutions, the growth trajectory of Islamic fintech solutions.
dual challenge lies in innovating within the boundaries
of Islamic finance law while simultaneously meeting
evolving regulatory standards. Businesses face the
challenge of balancing leveraging fintech’s capabil-
ities and upholding the trust of their customers by
ensuring full compliance with both religious and legal
requirements.

For Wahed’s virality, I don’t think there’s one single
reason. In Malaysia specifically, we had a lot of virality.
We still do, alhamdulillah, and we’re very popular among
the youth, specifically the Malay youth. And we surveyed
this phenomenon. And there were two main reasons for
it. One is that people considered us genuinely shariah-
compliant, and the second factor that we found out
was that we were the first fully digital investment app
for small amounts of money in rural areas. So, we had a
huge rural area uptick.”
Junaid Wahedna, Founder and Group CEO of Wahed
2 Educating the market about the bene-

fits and intricacies of such innovative
financing mechanisms, ensuring clarity
Risk:
• Miscommunication or misconceptions about these
new financing mechanisms could limit their adoption
and understanding. or, worse, lead to unintended financial complications
The novel nature of mechanisms means many potential for the adopters.
stakeholders may be unfamiliar with their structure,
benefits, and nuances. This unfamiliarity can lead to
hesitation or misconceptions. If potential investors,
partners, and clients do not fully understand the intri-
cacies and advantages, it may lead to partial adop-
tion and limited trust and confidence in these novel
financing tools.

SPECIAL CONTRIBUTION FROM LSEG DATA & ANALYTICS®
IFDI SPECIAL COVERAGE:

ISLAMIC FINANCE IN THE PAST DECADE
BY: SHAIMA HASAN SENIOR PROPOSITION MANAGER LSEG DATA & ANALYTICS
The Islamic finance industry from 2012 to 2022 transformed from niche to mainstream in many countries, demon-
strating how a small sector can grow to become a large standalone industry. In this article, we cover the development
of the industry based on the IFDI data that we have gathered since 2012.
WIDER AND DEEPER GLOBAL increased by 84% to 274 in 2022. The highest
PRESENCE AS MORE growth in Islamic banking in the past decade
COUNTRIES ADOPT OR was in Saudi Arabia, the United Arab Emirates
EXPAND ISLAMIC FINANCE and Iran that capitalised on improvement of
its local currency in the early years.
Global Islamic financial assets expanded by Holding around 70% share of global Islamic
69% in the last five years and 163% in the financial assets, Islamic banking was the main
past ten years. This growth reflects a healthy driver of the overall growth of the industry in
industry driven by strong balance sheets, high the last ten years. Islamic banks stayed resilient
profits, regulator support and sustained demand by both through market volatilities from 2012 to 2022, pertinently
customers and investors across different regions. recovering from the intense stress inflicted on them during
The largest and most developed Islamic finance the Covid-19 pandemic and economic uncertainties post-
markets are Iran, the GCC countries, Malaysia, Türkiye, 2020 that prompted investors to push more capital and
Bangladesh and Pakistan. In the last decade, Islamic investments towards Islamic banking institutions. During
finance gained a foothold not only in more MENA nations the decade, more countries welcomed Islamic banks–
such as Morocco, but also in countries that are not Islamic significantly Oman was the last GCC country to adopt
or Muslim-majority, such as the UK. The industry’s geo- Islamic finance–while others, such as Qatar, closed Islamic
graphical expansion has brought more diversity and depth windows. Outside the GCC, countries in other regions also
to markets, for example with different instruments, struc- started focusing more on Islamic banking, with the prime
tures and investor capital. examples being Türkiye, the CIS countries Kazakhstan and
The industry has also deepened in presence and Uzbekistan, Nigeria and Uganda in Sub-Saharan Africa,
impact. In the last decade, regulators and governments and the Philippines in Southeast Asia.
continued to strengthen Islamic finance regulations, We also observed the push from governments in recent
growth strategies and comprehensive roadmaps to develop years for consolidation to create mega banks with interna-
the industry and its ecosystem. Whatever their motives– tional reach. We saw many mergers and acquisitions within
political, meet local demand, capitalise on a growth industry the banking sector in key Islamic finance markets, starting
or leverage funding options–we saw many jurisdictions with the UAE, followed by Indonesia, Malaysia, Bahrain,
build long-term strategies, invest in human capital and Kuwait, and Saudi Arabia, among others. In addition, we
education, organise industry events and publish dedicated also saw the increasingly mainstream Islamic finance
reports. Some, such as Indonesia, Malaysia, Saudi Arabia attract conventional financial institutions, for example in
and Türkiye, even added Islamic finance metrics as part of Morocco and Oman conventional banks established Islamic
their national economic strategies and blueprints. These subsidiaries and in Pakistan more insurance operators
initiatives bore much fruit in the form of double-digit opened Takaful windows.
growth rates in assets in the past few years. FinTech, digital banking and artificial intelligence (AI)
were some of the key developments that had material
impacts on the development of Islamic banking in the
ISLAMIC BANKING: SEVERAL FACTORS decade leading up to 2022. We saw many new digital banks
THAT HAVE RESHAPED THE SECTOR open such as in Malaysia and Indonesia in Asia, Bahrain
and Saudi Arabia in the Middle East, and Türkiye and the
The assets of the world’s Islamic banks expanded rapidly United Kingdom in Europe. We also closely followed the
to reach $2.76 billion in 2021/2022. The number of full- increasing importance and practice of sustainable finance at
fledged Islamic banks rose by 36% to 336 in 2022 while Islamic banks that led to new departments and frameworks
conventional banks with Islamic windows or services covering ESG, and sustainable finance and investments.

the development of the Sukuk market was limited by fewer
issuances compared to conventional bonds. Compared to
the bonds market, the Sukuk market is fragmented, and
has lower levels of liquidity in the secondary market due
to many investors holding the shariah-compliant papers
to maturity due to instrument scarcity, attractive rates
and low credit risk especially with regards government
and multilateral issuances.
Over the decade, we saw the pick-up of different
types and structures of Sukuk, such as project Sukuk and
cross-border Sukuk. Treasury Sukuk and retail Sukuk also
gained traction while more recently, there was a movement
towards green and other types of ESG Sukuk. Overall, many
sovereigns tapped the Sukuk market, including the UAE,
Bahrain, Malaysia, Indonesia, Egypt, and those representing
smaller Islamic finance markets such as South Africa and
Nigeria. Most of their Sukuk were oversubscribed and sold
at tight rates, reflecting high demand for Sukuk globally.
GLOBAL ISLAMIC BANKING ASSETS

2012-2022
3,500
3,000 2,875
140%
2,500 2,453
US$ BILLION
2,133
2,000
1,769 1,831 1,882
1,558 1,443 1,603
1,500 1,303
1,000
500
0
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
UNSPLASH
GLOBAL SUKUK OUTSTANDING

2012-2022
SUKUK: THE ASSET CLASS THAT 900
GAINED THE MOST INTEREST 800 788
713
700
626
The value of Sukuk outstanding in 2022 was a threefold 600
269%
539
increase over 2012: US$788.39 billion compared to US$260.03 500 470
420
billion. In 2022, 1,458 Sukuk were issued with a value of
US$ BILLION
400
346 349
US$198.82 billion compared to 878 in 2012 with a total 300
306
248
value of US$142 billion. Issuance from both international 213
200
and domestic markets reached a ten-year high in 2021. 100
The development of the Sukuk market was primarily 0
driven by the ever-growing need for funding. Additionally,
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
the wider investor base also caught on to the attractiveness

of the instrument, partly due to its scarcity, and partly
because of its unique mixed features straddling equity and
GLOBAL SUKUK ISSUANCE
fixed income. Many governments and corporates tapped
2012-2022
the niche market despite the instrument’s complex struc-
tures and procedures relative to conventional bonds. Since 250
2002 when the first Sukuk was issued during this modern 200
71%
181
195 194
165
Islamic finance period, growth has primarily been centred
US$ BILLION
150 128
113 104 100 117
in traditional Islamic finance markets. However, in the 100 93
71
past decade issuers from different countries in Europe, 50
Asia and Sub-Saharan Africa entered the Sukuk market to 0
contribute to its diversification and depth. Despite growth,
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
SPECIAL CONTRIBUTION 139

CHAPTER
Muslim-
8
Friendly
Travel
PEXELS

CHAPTER 8: MUSLIM-FRIENDLY TRAVEL 143
Muslim-Friendly Travel
CONSUMER
OPPORTUNITY
Represented by $133 billion of spending
by 2 billion Muslims on travel (2022 est.)
Türkiye and MENA countries (including
GCC) dominate the Muslim-friendly
travel ecosystem.
$133
2022 MUSLIM-FRIENDLY TRAVEL – Financial
(2023) Awareness
Social
Innovation
5.5%
CAGR
11
21
$174
2027
31
41
51
When I travel, I choose hotels

based on price, location, 61
and quality. I find food and

restaurants with halal logos.” 71
Amr Aledrisi, Saudi Arabia
81
The government should also 91

launch an official website or
post on social media on halal
100
products and services.”
Abdullah Maftuh Al Ikhsani,
1. 2. 3. 4. 5.
Indonesia TÜRKIYE UAE TUNISIA SAUDI MALAYSIA
ARABIA

SIGNALS OF
Muslim-friendly travel OPPORTUNITIES
promotes prosperity,
IMPACT
sustainability, and
Halal tourism Low
innovation. standards
Moderate
advancement
High
The Royal Commission for AlUla
(RCU) unveils the masterplan
“Towards a Prosperous Society.”
Bleisure and Saudi Arabia Health and
Emirates Airlines allocates spiritual retreats on emerging top wellness tourism
a US$200 million sustainability the rise tourism spot surging
fund for aviation R&D.
“Discover Gabon, The Last Eden,”

showcases its commitment to sustainability, AI revolution
biodiversity, and conservation. in travel

Travel industry in OIC countries expanded with new products, connectivity,
and year-round campaigns.
Top 5 Muslim-friendly travel Top 5 Muslim-friendly travel destination
consumer markets countries (Inbound est.)
US$ BILLION (2022) MILLIONS OF MUSLIM TRAVELERS (2022)
Saudi Arabia 20.6 Türkiye 21.1
UAE 12.8 UAE 11.1
Qatar 12.7 Saudi Arabia 11
Kuwait 9.6 Egypt 5.2

Russia 7.7 Tunisia 4.5

= 1 deal
UAE Switzerland Algeria Bangladesh Türkiye $3.4 billion

in Muslim-friendly travel
related investments
*All estimates by DinarStandard. Muslim consumer spend estimates & analysis by DinarStandard leveraging World Bank’s ICP 2017 consumer data as
baseline reference. Muslim outbound travel spend estimates & analysis by leveraging UNWTO and World Bank data as baseline. Projections are baselined
using UNWTO forecasts. Investments (figures and individual deals) are based on a detailed scan of databases from CapitalIQ, Crunchbase and DinarStandard
analysis from 1st August 2022 to 31st July 2023. See appendix for detailed methodology. OIC: Organization of Islamic Cooperation, 57 mostly Muslim-majority
member countries.

After three unprecedented years that completely
shook-up travel, people are ready to fly again and
explore new regional and international destinations,
creating diverse opportunities for the growing
Muslim-friendly travel industry.
D
espite a global slowdown in invest- nesses, several companies secured significant funding
ment, activity in the travel industry in 2022/23. Indonesian online travel agency Traveloka
in OIC countries grew at a strong raised US$300 million from investors; Pakistan’s Roomy
pace over the past year, driven by raised US$1 million to help unbranded hotels renovate their
the expansion of tourism products, properties; and UAE-based travel management company
enhanced connectivity, and stra- Dharma closed a US$3.5 million investment round.
tegic campaigns promoting year- Mergers and acquisitions (M&A) in the digital travel
round travel. space have also seen growth, with Singapore-based travel
Sovereign wealth funds are ramping up tourism startup GoZayaan acquiring Pakistan’s FindMyAdventure
spending, with billions of dollars in the pipeline for new for US$3.5 million and UAE-based OTA Musafir gearing up
projects. For example, Saudi Arabia plans to spend over to raise US$50 million to fund acquisitions in the Middle
US$800 billion on tourism projects in the next 10 years, East and India. Furthermore, shariah-compliant travel
while Morocco’s Mohammed VI Investment Fund plans to financing is being offered for Hajj and Umrah trips in
acquire minority stakes in distressed local hotels to support Oman and Malaysia.
the sector’s post-pandemic recovery. Altogether, 13 deals related to the Muslim-friendly
As travelers gear up for their next adventures, hotel-de- travel industry were recorded in 2022/23. Nine of these
velopment activity continues to boom in the MENA region, deals were disclosed and valued at US$3.4 billion. As the
including in upcoming destinations such as New Mansoura appetite for travel returns strongly, vast opportunities await
in Egypt. At the same time, bilateral cooperation in trans- Muslim-friendly tourism destinations, service providers,
portation among OIC countries, along with relaxed visa and hospitality businesses.
rules, is expected to enhance travel connectivity. In Oman Muslim spend on travel was valued at US$133 billion
and Saudi Arabia, new tourism laws are expected to elevate in 2022, an increase of 17% over the previous year. By
quality standards across the industry. 2027, it is forecast to reach US$174 billion, growing at a
Within the thriving medical tourism space, a variety CAGR of 5.5%.
of initiatives were rolled out across the Middle East and
Asia, such as Malaysia’s Flagship Medical Tourism Hospital
Program. On the other hand, there has been an upsurge
of interest in blended spirituality, fitness, and wellness
experiences among Muslim travelers. To meet the growing
demand for personalized experiences, travel companies
have been expanding their horizons and experimenting
with Artificial Intelligence (AI) in travel booking.
While shariah-compliant investors have traditionally
been reluctant to invest in Muslim-friendly travel busi-

2022/23
Developments
REVENUE DEVELOPMENTS 2021/22. Most of the deals relate to digital travel-related

solutions, such as booking apps. The total value for deals
Sovereign funds, like Saudi Arabia’s Public Investment related to Muslim-friendly travel increased from US$7.8
Fund (PIF) and Morocco’s Mohammed VI, are boosting million in 2021/22 to US$3.4 billion in 2022/23.
tourism investments, while the private sector’s focus is on
increasing the top-end hotel rooms in Dubai to cope with Sovereign wealth funds are ramping up tourism invest-
post-EXPO 2020 demand upon the discovery of the Emirate ments, including Saudi Arabia’s PIF and Morocco’s
by the world. Post-COVID, OIC countries are witnessing Mohammed VI Investment Fund.
hotel growth, and Muslim spiritual retreats, including • Saudi Arabia’s Public Investment Fund (PIF) plans to
those by influencers, are gaining traction. acquire 30% of Almosafer Travel and Tourism, which is
part of Seera Group, for US$412 million.290 It is also in
Latest Projections talks to buy a stake in Flynas, Saudi Arabia’s low-cost
airline.291 The government plans to spend over US$800
Muslim consumer spend on travel in 2022 reached US$133 billion on tourism projects in the next 10 years.292
billion, increasing by 17% from US$114 billion in 2021. The • To stimulate local and foreign direct investment in
top three countries by Muslim consumer spend on travel Saudi Arabia’s Aseer region, PIF established Aseer
remain unchanged. By 2027, Muslim consumer spend on Investment Company as its investment arm.293
travel is forecasted to reach US$174 billion at a CAGR of 5.5%. • Morocco’s Mohammed VI Investment Fund, a state
fund created to support Morocco’s post-pandemic
Note: This does not represent the actual value of Muslim- recovery, is planning to acquire minority stakes in
friendly travel consumption. Rather, it represents the core distressed local hotels.294
addressable Muslim consumer market spending in the • Cruise Saudi, owned by PIF, announced the launch of
general travel category. its own cruise line brand, Aroya Cruises.295
• Oman plans to invest an additional US$1.8 billion
Investments Summary in tourism projects, bringing the total investment
from 2021 to 2025 to US$7.79 billion. The bulk of the
In 2022/23, 13 deals related to the Muslim-friendly travel investment is in integrated tourism complexes.296
industry were recorded, nine of which were disclosed. • PIF-owned Red Sea Global is considering a public
This is up from three disclosed deals recorded during market offering as early as 2026.297
Kuwait Mergers & Financials; Hotels, Tamdeen Real Estate 1,103,700

Acquisitions Resorts, and Cruise Lines Company - KPSC (KWSE:TAM)
Saudi Private Equity Leisure, Predictive Analytics, Almosafer 1,000,000

Arabia Tourism, Travel
Switzerland Private Equity Hotels, Resorts Aman Resorts 900,000
United Arab Mergers & Hotels, Resorts, and Cruise National Corporation 198,800
Emirates Acquisitions Lines (Primary); Financials; for Tourism and Hotels
Restaurants (ADX:NCTH)
Algeria Venture Capital Financial Services, Yassir 150,000

Information Technology,
Mobile Apps, Transportation

Digital travel companies, many of which are based in acquisitions in the Middle East and India within the
Indonesia, have successfully secured significant funding. business travel space.303
• Traveloka, an Indonesia-based online travel agency • Singapore-based travel startup GoZayaan acquired
(OTA), raised US$300 million from investors, including Pakistan’s FindMyAdventure for US$3.5 million.304
Indonesia’s sovereign wealth fund and BlackRock.
The company’s attempts to go public last year were Transportation startups, including two from Bangladesh
unsuccessful. Traveloka shut down its food delivery and one from Algeria, successfully secured funding.
arm, launched during the pandemic, to diversify its • Bangladesh-based public transportation startup Jatri
revenue streams. raised undisclosed funding in a Series A round in
• The parent company of tiket.com, which is another April 2023, led by SBK Tech. Jatri has raised a total
Indonesia-based OTA, issued an IPO and was listed of US$5.2 million to date.305
on the Indonesia Stock Exchange.298 • Another Bangladesh-based transportation service,
• Pakistan-based Roomy raised US$1 million in a pre-Se- Shohoz, raised US$3.4 million in convertibles led by
ries A round led by Lakson Venture Capital. Roomy Sweden-based Vostok New Ventures. Total funding
helps unbranded hotels renovate their properties and received to date is US$18.4 million.306
digitize their services.299 • Algeria-based transportation app Yassir raised US$150
• UAE-based Dharma closed a US$3.5 million invest- million in Series B funding, led by Bond, with total
ment round led by Convivialite Ventures Abu Dhabi’s funding reaching US$200 million. The app provides
Mubadala Hub 71. Dharma is a business-to-business ride-hailing and food delivery across six countries,
travel management service that provides the backend having expanded to Morocco, Tunisia, France, Canada,
for companies to offer trips around specific interests.300 and South Africa.307
• Travelio, an Indonesia-based online home rental mar-
ketplace, secured Series C funding led by a Korean A flurry of new hotel developments has taken place in
financial group.301 OIC countries following consolidations and the freeze
• Salam Booking is a new Muslim-friendly travel mar- in developing new hotels post-COVID-19.
ketplace headquartered in Türkiye, focused on Muslims • In the second quarter of 2023, Saudi Arabia, the United
in the West.302 Arab Emirates, Egypt, Qatar, and Oman led in terms
of the highest number of hotel construction projects
Several mergers and acquisitions (M&A) have taken place in the Middle East, with Saudi Arabia leading with
in the digital travel space. 276 projects in the pipeline, according to Lodging
• UAE-based OTA Musafir (not to be confused with KSA’s Econometric’s Middle East Hotel Construction Pipeline
Almosafer Travel) hired a mergers and acquisitions Trend Report.308
(M&A) advisor with the goal of raising US$50 to fund • UAE-based Azizi Development plans to launch 50
Habitas AlUla Hotel,

Saudi Arabia.

luxury hotels and resorts with an estimated invest- OPERATIONAL DEVELOPMENTS
ment of US$16 billion, which will add 20,000 hotel
keys in Dubai in the next five years.309 Travel companies started offering shariah-compliant
• Several hotel brands, including IHG, Radisson, Conrad, financing for Hajj and Umrah. Meanwhile, tourism min-
and Fairmont, are expanding their portfolios in istries developed digital marketplaces to support the indus-
Morocco.310 try, and a telehealth service was introduced for Pakistani
• Egypt invited investors to build hotels in New pilgrims. On another front, destinations ran campaigns to
Mansoura, a new city under construction along the encourage year-round travel, while tourism stakeholders
Mediterranean coast.311 collaborated on marketing efforts.
Muslim travel spiritual retreats are on the rise, whether Shariah-compliant travel financing is being offered for
organized by travel companies, other businesses, or social Hajj and Umrah trips.
media influencers. • Oman Air Holidays partnered with the National Bank
• The GMW, which is part of LaunchGood, organized of Oman’s Islamic banking window, Muzn, to offer
a gathering of Muslim entrepreneurs in the Islamic flexible financing plans for Umrah packages. Under
economy space in Istanbul in 2022 and in Bali in 2023, the scheme, guests can tailor their pilgrimage with
and at the time of writing, a GMW Summit in Doha, flight, accommodation, transport, and add-on options
Qatar, was planned for November 2023. and pay for it in monthly installments according to
• The Productive Muslim and HalalTrip held a spiritual the service Ijarah concept.313
and personal growth retreat in Bosnia in May 2023. • Malaysia-based Emraz Travel & Tours and AmBank
• Holiday Bosnia organized a spiritual sister’s retreat Group have partnered to launch a shariah-compliant
with Muslim influencer Laura Booth. They have also financing package for Umrah.314 Similarly, Felda Travel
held charity and adventure retreats.312 partnered with Bank Simpanan Nasional (BSN) to
• British travel blogger Ellie Belhaj of the Wandering offer shariah-compliant financing for Hajj and Umrah.
Quinn collaborated with Abdiya Iman of Modest
Fitness, an influencer, for a fitness and spirituali- Several ministries of tourism have created digital plat-
ty-themed retreat in Southern Spain in 2022. They forms in the form of marketplaces to support the industry,
also hold retreats in Morocco and the UK. while a telehealth initiative was launched to accommo-
• Malaysia-based travel writer Anis Ramli, founder of date pilgrims’ medical needs.
Halaluxe, organized luxury spiritual retreats in 2022 • Ivory Coast’s Ministry of Tourism partnered with an IT
and 2023 that blended spirituality and wellness with firm to provide a central marketplace for its tourism
a luxury resort experience. products as well as offer secure payment options to
tourists.315
• Cameroon launched a marketplace platform funded
by the European Union that lists hotels, apartments,
tourist sites, and travel agencies.316
• Oman launched a partner support platform called the
Oman Tourist Hub, through which it shares knowledge
with local stakeholders on Oman’s tourism strategy
and its tourism products.317
• A Saudi-Pakistani Pilgrim Telehealth Center was estab-
lished by Funadiq and Educast, with plans to open
centers in all major hotels in Makkah and Madinah.
The center provides telehealth services to Pakistani
pilgrims during Hajj and Umrah.318
Destinations ran marketing campaigns to establish them-

selves as year-round destinations, while tourism entities
joined forces to run marketing campaigns.
• The Saudi Tourism Authority partnered with sev-
eral hotels, including the Hilton and IHG Hotels and
Resorts, to conduct joint marketing campaigns.319
• Emirates signed an agreement with the Bahrain
Tourism and Exhibition Authority to promote the
country as a weekend getaway.320
• Abu Dhabi launched a campaign titled ‘One Summer
SHUTTERSTOCK
Isn’t Enough’ that aims to attract visitors year-round.321

• Saudi Arabia launched a campaign titled ‘Rethink

Qatar 2022 marked
Summer’ to promote the country’s destinations that the first time the FIFA
World Cup takes place in
are suitable for summer, including the Taif moun- the Arab world.
tains, Jeddah beaches, and the high-altitude city of
Al Bahah.322
• The UAE launched the UAE Tourism Strategy 2031,
with the aim of increasing tourism revenue to US$7.4
billion and attracting new investments of US$27.2
billion by 2031.323 While the Dubai Tourism Strategy
aims to attract 25 million visitors by 2025.
Mainstream airlines accommodate the modest wear needs

of Muslim female cabin crew members.
• British Airways provided new uniforms for its cabin
crew, including a hijab option for Muslim female cabin
crew members looking for a modest option.324
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NATIONAL/TRADE DEVELOPMENTS Additional products include developing hiking and
mountain biking trails.332
Medical tourism initiatives are flourishing in Asia and the • Saudi Arabia’s Red Sea Global launched an adventure
Middle East. Many OIC countries, especially in the GCC and company, Akun, which will provide adventure experi-
Southeast Asia, are diving into sports tourism, while others ences at the Red Sea and Amaala resorts, including
have expanded their offerings with adventure products. electric biking, hiking, and trail running.333
Furthermore, bilateral transport agreements among OIC
nations aim to improve interconnectivity, and several are Bilateral cooperation in transportation among OIC coun-
elevating their tourism profiles through national branding tries is poised to enhance interconnectivity, while Saudi
and innovative initiatives. Arabia’s new airline will support the country’s ambitious
tourism goals.
Within the thriving medical tourism space, a variety of • Tunisia and Algeria will create a financing mechanism
initiatives are taking shape across Asia and the Middle for joint tourism projects as part of a bilateral tourism
East. cooperation agreement.
• To further strengthen its medical tourism, Malaysia • Bahrain and Saudi Arabia signed an MoU to collaborate
launched the “Flagship Medical Tourism Hospital on tourism, including joint programs and marketing
Program,” under which participating hospitals use activities. They also agreed to exchange information
the program’s branding to signify their excellence in within the areas of tourism legislation, data, and man-
medical services.325 agement of tourism facilities.334
• Penang Adventist Hospital in Malaysia entered a stra- • Emirates signed MoUs with Indonesia and Morocco’s
tegic alliance with Firefly, a subsidiary of Malaysia ministries of tourism to promote inbound tourism to
Airlines, to boost medical tourism visits from Indonesia each of the countries.335
to the Malaysian state of Penang.326 • Kazakhstan and Pakistan signed an MoU to coop-
• Zulal Wellness Resort by Chiva-Som, in Qatar, which erate in tourism through information sharing and
opened in April 2022, blends Traditional Arabic & workforce training.
Islamic Medicine (TAIM) with holistic health prac- • Saudi Arabia launched a new national airline, Riyadh Air,
tices. It focuses on herbal medicine, nutrition, mind- which is wholly owned by PIF.336 Saudi Arabia’s General
body therapies, physical movement, and connection Authority of Civil Aviation (GACA) plans to increase the
with nature.327 capacity of airports, given the Kingdom’s goal to reach
• Iran plans to establish a state-owned medical tourism 330 million passengers by 2030. GACA aims to invest
agency in Oman that will target patients from Oman, over US$100 billion in the aviation sector by 2030.337
Qatar, and Kuwait.328 With 220 hospitals with medical Additionally, Saudi Arabia’s NEOM has announced plans
tourism licenses, the country is pushing to further to launch its own airlines in 2024 for domestic flights
boost the medical tourism sector.329 as well as flights from London and Dubai.
• Uganda announced four new airfields in national
Several OIC countries, notably in the GCC and Southeast parks. This will bypass the need to go through immi-
Asia, are making a push for sports tourism. gration and facilitate direct flights from Kenya, Dubai,
• Qatar made history by hosting the FIFA World Cup 2022, and Europe.338
marking the first time the tournament took place in the
Arab world. The successful organization of the event Several OIC countries have made efforts to boost tourism
seamlessly blended Islamic and Arabian hospitality through establishing national brands and new tourism
with cutting-edge innovation and top-notch services. initiatives.
• For the second year, Malaysia held L’Étape Malaysia • Pakistan launched Salam Pakistan, a national tourism
by Tour de France, an amateur cycling race, in Johor in brand, to promote tourism.339
2023, with the goal of making Johor a sports tourism • Gambia launched a US$68 million tourism project
hub. Other sports tourism events in Malaysia include funded by the World Bank. The funds were allocated
motorsports and Ironman.330 to infrastructure projects.
• Saudi Arabia is investing heavily in sports tourism • Saudi Arabia announced its fifth giga project, Diriyah,
and has acquired large stakes in various sports clubs, which will feature cultural, historical, and tourism
including soccer and golf. It also won the bid to host the landmarks.340
2029 Asian Winter Games at NEOM.331 All of this aligns
with its Vision 2030 goals to establish the country as
a regional sports tourism hub.
OIC destinations, keen on attracting new tourist seg-

ments, are adding adventure products.
• Oman developed the Oman Adventure Center, which
includes the world’s longest zipline over water.

ECOSYSTEM DEVELOPMENTS comes in an effort to increase tourism by 30% annu-
ally and reach 30 million tourists annually by 2028.348
SMIIC released a standard for adventure tourism and is • Saudi Arabia started offering four-day stopover visas
developing one for spas, while MDEC is accrediting accom- in early 2023. The visas are issued with plane tickets
modations for digital nomads in collaboration with a travel from Saudia and Flynas and are valid for three months.349
tech firm. Saudi Arabia and Oman have introduced new • Kazakhstan is planning to grant visa-free entry to
tourism laws to further regulate the industry. Additionally, 26 additional countries, bringing the total number
AirAsia’s parent company now accepts cryptocurrency, and of visa-free countries to 100.350
Saudi Arabia allocated US$80 million to SMEs. To spur • Iran is planning to waive visa requirements for about
tourism, many OIC nations are simplifying visa processes, 50 countries.351
with GCC countries eyeing a unified visa system.
SMIIC has released a standard for adventure tourism, with SOCIAL IMPACT DEVELOPMENTS
a standard for spas on the way, while MDEC has partnered
with a travel tech company to accredit accommodations Ecotourism is gaining traction with initiatives like Egypt’s
as suitable for digital nomads. sustainable tourism campaign. RCU’s AlUla masterplan,
• The Standards and Metrology Institute for Islamic Kuwait’s net-zero city, and Abu Dhabi’s sustainable
Countries (SMIIC) released the “Adventure Tourism guidelines highlight regional commitments. Meanwhile,
Safety Management Systems” standard in 2023. Pakistan’s ecotourism project, Emirates’ US$200 mil-
Additionally, a forthcoming standard, “Halal Tourism lion eco-fund, and initiatives by TUI, Bobobox, and
– Classification for Wellness Spa,” is under develop- CrescentRating showcase global strides toward sustainable
ment.341 SMIIC had already released a “Halal Tourism tourism. Dubai is making efforts to improve accessibility
Services – General Requirements” standard in 2019. for disabled travelers.
• Malaysia Digital Economy Corporation (MDEC) part-
nered with travel tech startup Tourplus to accredit Ecotourism has taken the forefront, with destinations
accommodations as suitable for digital nomads.342 implementing practices that emphasize environmental
sustainability, support for local communities, and pres-
Saudi Arabia and Oman announced tourism laws in 2023. ervation of local cultures.
• Saudi Arabia released a new tourism law in March 2023 • Egypt’s Ministry of Tourism launched a campaign
that covers regulations related to accommodation, to promote sustainable tourism titled “a civilization
travel agents, tour guides, and tourism destinations. inspired by nature.” The campaign was launched on
This legislation also enables Saudi citizens to rent the sidelines of the UN Convention on Climate Change
their homes to tourists. (COP 27).352
• Oman issued a draft law, also in 2023, that simplifies • Dubai established a task force mandated to improve
procedures regulating tourism activities and focuses accessibility for travelers with disabilities.353 The
on elevating quality standards.343 Emirate also held its 3rd Dubai Accessible Travel and
Tourism International Summit in November 2022,
AirAsia’s mother company started accepting cryptocur- with a 4th edition slated for 2024.
rency; Saudi Arabia provided US$80 million to SMEs. • Moreover, Dubai’s Department of Economy & Tourism
• Capital A’s (the mother company of AirAsia) fintech (DET) launched the ‘Dubai Sustainable Tourism Stamp’
arm, BigPay, started accepting cryptocurrency in to recognize hotels with the highest adherence to
partnership with Singapore-based crypto payment sustainability standards.
firm TripleA.344 • The Royal Commission for AlUla (RCU) launched its
• Saudi Arabia provided funding worth US$80 million second masterplan, “Towards a Prosperous Society,”
to tourism SMEs. The Tourism Finance Program was for the development of AlUla. The plan focused on
launched by the Tourism Development Fund and the improving the quality of life for its residents, pro-
Arab National Bank.345 moting economic growth, and protecting both the
natural environment and the region’s rich heritage.354
Several OIC countries are easing visa requirements to • Kuwait plans to develop a net-zero-carbon city for
boost tourism, with GCC countries planning to introduce residents and tourists. The city will include a five-
a unified visa. star eco-resort and eco-lodges, as well as a nature
• GCC countries are planning to introduce a unified conservation center.355
Schengen-style visa for visitors from 25 countries.346 • Abu Dhabi released its “Sustainable Tourism Guidelines,”
• Qatar expanded its Hayya visa processing platform, which cover recommendations across culture and her-
which it used during the FIFA World Cup, to be used itage, events, food and beverage, hotels, leisure and
for all tourist and business visas.347 entertainment attractions, as well as travel agents
• Egypt announced a new five-year multiple entry visa and tour operators.356
for citizens of 180 countries at a cost of US$700. This • Pakistan is implementing the third phase of the

Ecotourism and Camping Village project in Khyber includes training 4,000 students to become eco cham-
Pakhtunkhwa, a region in the north-west of Pakistan pions.360 While the TUI Care Foundation is supporting
known for adventure tourism.357 Egyptian startups with a focus on digital technologies.361
• Emirates Airlines announced a US$200 million sus- • Indonesia-based Bobobox capsule hotels and cabins
tainability research and development fund that aims partnered with Fairatmos, a climate technology pro-
to reduce the environmental impact of aviation.358 vider, to offer guests a carbon offset feature to help
• Dubai launched Hatta the ‘Highlands of Dubai’ in a reduce the environmental impact of their tourism
new tourism campaign, with 11.5 kilometers of cycling activity.362
trails in the mountain enclave. • CrescentRating introduced the Muslim Traveler
• Gabon launched a marketing campaign with the slogan Responsible Tourism Framework, which is designed
“Discover Gabon, The Last Eden,” which promotes the to guide Muslim travelers in making mindful choices
country’s sustainability, biodiversity, and conservation.359 that promote socio-cultural, socio-economic, and
• Global travel group TUI, which has Malaysian roots, environmental sustainability while upholding the
launched a sustainability initiative in Türkiye, which values of their faith.363
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Dubai

Innovations
Travel companies are integrating AI into booking via chat-

bots; the Saudi Tourism Authority, in collaboration with
Visa, is creating a Tourism Data Lab for trend insights
and piloting an AI solution for personalized traveler rec-
ommendations; facial recognition is enhancing check-in
processes; and both Saudi Arabia and Indonesia are using
technology to highlight their cultural heritage.
Travel companies are experimenting with AI in travel

booking through conversational chatbots.
• Almosafer, based in Saudi Arabia, is piloting the inte-
gration of ChatGPT on its mobile booking platform
with the goal of enhancing the booking experience
by providing tailored responses to customer queries.364
• Etihad Airways is planning to provide conversational
flight booking using Botim, a VoIP application popular
in the Middle East.365
The Saudi Tourism Authority is leveraging data analytics

powered by AI.
• The Saudi Tourism Authority partnered with Visa to
develop a Tourism Data Lab that is designed to provide
insights into travel and tourism trends, including
data-driven insights related to spending behaviors
across categories.366
• The Saudi Tourism Authority is also piloting an SHUTTERSTOCK
AI-based solution that provides visitors with real-
time, location-based recommendations based on
their interests.367
Hegra’s
Tomb of Lihyan.
Facial recognition technology is starting to transform the
check-in experience, enhancing efficiency and offering
travelers a more seamless process.
• Emirates has launched a robot check-in assistant, Sara,
which, through facial recognition, is able to match
customers’ faces with their scanned passports and
can check them in and guide them to drop off their
luggage within Emirates City Check-in, located in This is part of Saudi Arabia’s Vision 2030’s National
Dubai’s financial district.368 Transformation program, which focuses on techno-
• Dubai introduced tunnels with facial recognition tech- logical development and innovation.370
nology to reduce waiting time at security clearance.369 • Indonesia is digitizing its cultural treasures on Web3.
Several Indonesian artisans have placed their work
Both Saudi Arabia and Indonesia are harnessing tech- as NFTs on a Web3 platform that was designed by
nology to showcase their rich heritage. Indonesia’s Ministry of Tourism to preserve cultural
• AlUla entered the metaverse with an immersive heritage. The one-of-a-kind digital assets are sold
three-dimensional model of Hegra’s Tomb of Lihyan. through Web3.371

Signals
of Opportunity
Health and wellness tourism Halal tourism

is experiencing notable growth standards have advanced
Beyond hospitals and medical spas, beyond the basic tourism services
several hotels started offering This is evidenced by SMIIC’s
healthcare services, including IV drips release of the Adventure Tourism
and stem-cell therapies. Emotional Safety Management Systems
and mental health retreats are Requirements Standard.
also on the rise.
The rise of bleisure

and spiritual retreats
Trips that combine business and leisure
travel, known as “bleisure,” are shaping
the needs of travelers. Concurrently,
spiritual retreats are on the rise, with
companies organizing spiritually-focused
retreats. Islamic economy companies
are also choosing to merge business
and spirituality at their
corporate retreats.
Saudi Arabia’s The travel

ascendance as a premier industry is undergoing
tourism destination a revolution driven by AI
Saudi Arabia’s strategic investment in The technology is being used
tourism, with a focus on luxury, adventure, across multiple spheres, including
and heritage tourism, is poised to reshape customer service through virtual
the global tourism landscape. Central Asia, assistants, data-driven target
specifically Uzbekistan and Azerbaijan, is marketing campaigns, optimized
emerging as an attractive destination for pricing strategies, and informing
Muslim tourists. Indonesia is climbing future strategies with its
the ranks in sustainable tourism, predictive capabilities using
including village tourism large amounts of data.
and ecotourism.

Strategic
Considerations
by Stakeholder
In the evolving tourism sector, each key stakeholder

— investors, governments, and businesses — faces
unique opportunities and challenges. Investors are
presented with significant prospects, particularly
in Islamic financing of infrastructure projects in OIC
countries and the expanding tourism sector in Saudi
Arabia. Governments, on the other hand, have the
opportunity to leverage the booming health and
sports tourism sectors while grappling with potential
threats like climate change and overtourism.
Meanwhile, businesses are poised to benefit from
technological advancements and emerging market
trends, such as spiritual business retreats. The
following sections provide a detailed analysis of
these considerations, offering strategic guidance for
each stakeholder in light of the upcoming challenges
and opportunities.

INVESTORS
Demand for Islamic financing capital is surging, particularly in response to
the growing hospitality infrastructure needs in OIC countries. Meanwhile,
investment in Saudi Arabia’s tourism sector presents a significant opportunity.
Opportunities
1 Providing Islamic capital for hospitality

development across OIC markets.
As the demand for hospitality infrastruc-
the top five countries accounting for 92% of hotel
projects in the Middle East, according to Lodging
Econometrics’ Middle East Hotel Construction Pipe-
ture escalates in OIC countries, including Saudi Arabia, line Trend Report.
Egypt, Qatar, Oman, Morocco, and Indonesia, investors Potential Outcomes by 2033:
should capitalize on the opportunity to deploy sukuk • Investors stand to realize substantial returns as the
and other Islamic financing instruments. sustained expansion of the tourism sector in these
Relevant Developments & Precedents: OIC markets fuels a robust demand for high-quality
• Saudi Arabia, the UAE, Egypt, Qatar, and Oman are hospitality services and infrastructure.
2 Investing in Saudi Arabia’s tourism sector,

focusing on sustainable luxury, adven-
ture, and heritage tourism.
• Indonesia’s Hajj Fund Management Agency (BPKH)
announced plans to invest Hajj funds in the hospitality
Saudi Arabia is heavily investing in its tourism sector sector in Saudi Arabia.373
and inviting private sector participation. Potential Outcomes by 2033:
The country’s sovereign wealth fund, the Public • Saudi Arabia’s proactive tourism drive offers substan-
Investment Fund (PIF), established a tourism invest- tial prospects for investors to secure high returns on
ment company, Asfar, to foster private sector partici- their investments.
pation through co-investment opportunities.372
Challenge
1 Vulnerability to future risks, including

climate change, overtourism, pandemics,
political instability, and technological
disruptions, like cyberattacks or travel booking platform
failures, can also impact tourism.
Risk:
disruptions. • Elevating the risk profile for investors, with the poten-
Overtourism can lead to strained resources, cultural tial for investment losses looming in destinations
homogenization, and local resentment. Technological most susceptible to these multifaceted threats.
Investing in tourism now is exciting amidst unprecedented

disruption and innovation. The industry is firmly on a path
to decarbonization, while responsible destinations are
implementing climate resilience and adaptation strategies
as they face the trauma of climate change. Investors think
that business as usual post-COVID will fail; those that
embrace change will foster sustainable development,
benefiting both themselves and host communities!”
Benjamin Carey FTS, Carey Tourism

GOVERNMENTS
Health and wellness tourism, as well as sports tourism, are important oppor-
tunities for governments with the potential to bolster their tourism revenues.
Meanwhile, countries will benefit from establishing bilateral and multilateral
tourism projects.
Opportunities
1 Governments should prioritize the devel-

opment of health and wellness tourism
benefit from these trends.
infrastructure and support businesses • The Thai government is planning a US$131 million
across the sector to foster sustainable economic medical hub in Phuket. Construction is expected to
growth. be completed by 2027.375 Meanwhile, in 2022, the cab
The global wellness tourism market was valued at inet approved a new visa scheme that allows medical
US$814.6 billion in 2022.374 Considering the growth in tourists a one-year visa.
this sector, governments are urged to allocate resources Potential Outcomes by 2033:
and policy efforts strategically to bolster this sector. • Expanding health and wellness tourism will diversify
By encouraging investments in wellness facilities and tourism offerings and augment tourism and health-
fostering partnerships between healthcare providers care revenues.
and the hospitality industry, destinations will greatly
2 Governments should proactively invest

in sports tourism initiatives to bolster
economic growth, attract visitors, and
• Spain is known for its football tourism and hosts
popular events like La Liga matches and the Formula
elevate their destination’s appeal. One Spanish Grand Prix.
By investing in sports infrastructure, hosting interna- Potential Outcomes by 2033:
tional events, and promoting local sports, governments • Proactive investment in sports tourism will position
can boost tourism revenue, stimulate local businesses, the destination as a premier global sporting hub and
and enhance the nation’s image as a vibrant destina- catalyze economic growth.
tion, benefiting both citizens and visitors.
3 OIC countries will mutually benefit from

establishing bilateral and multilateral
further boost the region’s tourism sector.
tourism projects. • Countries in the Greater Mekong Subregion, including
By pooling resources and expertise, countries can Thailand, Vietnam, Cambodia, China, Laos, and Myan-
collaborate on destination development, marketing mar, established a tourism working group to develop
campaigns, and creating investment opportunities. and promote the region as a tourism destination.
The GCC is contemplating the implementation of Potential Outcomes by 2033:
a Schengen-style unified visa system for member • Economic growth, employment generation, and
states that will allow visitors to move freely between enhancing overall prosperity for member nations.
the six GCC countries. Initiating joint projects will
Challenge
1 Climate change and overtourism pose

a threat to destinations.
Climate risks, such as earthquakes, hur-
Risk:
• Heritage sites, coastal destinations, and destinations
with warm climates will be negatively impacted by
ricanes, floods, and rising sea levels, jeopardize many climate change. While overtourism poses a risk to
destinations. Also, the rapid influx of tourists due to the destination’s natural resources, disrupts the local
increasing middle-class populations and aggressive community, and diminishes the authenticity of the
marketing campaigns puts a strain on destinations. cultural experience.

BUSINESSES
Leveraging AI across the travel value chain offers transformative opportuni-
ties for businesses, while the emerging trend of spiritual business retreats
presents a lucrative niche opportunity.
Opportunities
1 Travel businesses should prioritize inte-

grating AI across the travel value chain,
and facilitating quick visa processing.
encompassing areas such as customer • Crayon Data, a leading AI and big data company head-
service, product development, marketing campaigns, quartered in Singapore, partnered with TBO.com, a
and operations. global travel distribution platform, to allow banks
AI can be harnessed for delivering personalized rec- to create personalized travel experiences for their
ommendations, providing instant assistance via chat- customers.376
bots and virtual assistants, optimizing pricing based Potential Outcomes by 2033:
on demand, competition, and other factors, resource • Higher levels of customer satisfaction, improved oper
allocation by predicting demand, sentiment analysis on ational efficiency, and a competitive edge.
customer reviews to identify areas for improvement,
2 Incorporate spiritual business retreats

into your product mix.
A growing trend in the Islamic economy
• The GMW Network, which is part of LaunchGood, orga-
nizes ‘workations’ that bring entrepreneurs together
space involves businesses choosing to host their cor- for knowledge exchange and networking opportunities.
porate retreats in countries with rich Islamic traditions • The Productive Muslim and HalalTrip organize annual
like Türkiye, Morocco, and Jordan. These retreats often spiritual retreats that combine spirituality with the
integrate spiritual elements and visits to heritage sites. cultivation of productive habits.
In addition, there has been a notable surge in themed Potential Outcomes by 2033:
Muslim retreats. Travel companies have an opportunity • Additional revenue streams for travel companies
to concentrate on and scale this product offering to capitalizing on the anticipated growth in demand
meet the growing demand. for this trend.
Challenge
1 Scarcity of shariah-compliant financing

for Muslim-friendly travel businesses.
these businesses.
Risk:
Shariah-compliant investors are often • Muslim-friendly travel businesses will be unable to
reluctant to invest in Muslim-friendly travel busi- scale, remaining confined to small and medium-sized
nesses, especially digital ventures, thereby restricting enterprises. on.
access to working capital and growth financing for
Holiday Bosnia has a strong interest in Muslim spiritual

retreats and has run many over the years, including charity,
adventure, women’s groups, and personal development.
There is a strong interest from groups in retreats that
combine spiritual elements with an activity. We always
have proper discussions with clients to understand their
expectations and then focus on exceeding them.”
Kamraan Siddiqui, Founder, Holiday Bosnia

CHAPTER
Modest
9
Fashion
PEXELS

CHAPTER 9: MODEST FASHION 163
Modest Fashion
CONSUMER
OPPORTUNITY
Represented by US$318 billion of spending
by 2 billion Muslims on fashion (2022 est.)
Türkiye, Southeast Asian, and European
countries dominate the modest
$318 fashion ecosystem.
2022
MODEST FASHION – Financial

GIE INDICATOR RANKING Awareness
(2023) Social
6.1% Innovation
CAGR
11
21
$428
2027
31
41
51
71
Some stores do not follow
the modest fashion for
clothing, so I go for baggy 81
clothes and would be very

mindful about how I look in 91
public. For leather imported
from other countries, I
100
believe it is important to
know its halal status.”
1. 2. 3. 4. 5.
Fatima Awali, Lebanon TÜRKIYE MALAYSIA INDONESIA SINGAPORE ITALY

SIGNALS OF
Modest fashion drives OPPORTUNITIES
entrepreneurship, inclusivity,
IMPACT
airline uniform diversity,
Modest clothing Low
sustainable practices, and resale and rentals
Specialized Moderate
environmental conservation. services
modest
sportswear for High
women
Women launch modest
clothing businesses.
Mainstream luxury Social commerce
brands catering to as a fashion retail
non-Arab modest channel
FashionValet offers free-to-list fashion consumers
online platform.
Indonesia as the
British Airways’ uniform upgrade
future hub of modest
includes hijab and jumpsuit.
fashion
Daska (UK) launched an exclusive

retail-to-rental brand.
Singapore’s Hafizah Ghazali

plants 100+ trees via IUVA Forest
Regeneration program.

Smaller-scale brands attracted attention at investor forums. China remains
the largest export of apparel and footwear (50% of total exports).
US$ BILLION (2022)
Top 5 halal fashion consumer markets Top 5 countries exporting to OIC
Islamic Republic of Iran 57 China 18.6
Türkiye 36.7 Türkiye 3
Saudi Arabia 24.3 India 2.8

Pakistan 23.8 Italy 2.1
Egypt 22.7 Vietnam 1.2
$37.1 billion of fashion imports by OIC countries

= 1 deal
Türkiye UAE Indonesia $129 million

in modest fashion
related investments
*All estimates by DinarStandard. Muslim consumer spend estimates & analysis by DinarStandard leveraging World Bank’s ICP 2017 consumer data as baseline
reference. Fashion exports are based on ITC Trademap 2022 data. Projections are baselined on data from IMF Outlook from April 2023. Investments (figures
and individual deals) are based on a detailed scan of databases from CapitalIQ, Crunchbase and DinarStandard analysis from 1st August 2022 to 31st July 2023.
See appendix for detailed methodology. OIC Organization of Islamic Cooperation, 57 mostly Muslim-majority member countries.

Modest fashion is quickly bouncing back as Muslim
consumer spend on apparel and footwear surpasses
pre-pandemic levels. However, opportunities remain
untapped as consumers struggle to find more
options in streetwear, casualwear, and sportswear.
T
he global fashion industry saw a York and the European Union, new rules were introduced
good recovery after 2 years of uncer- to ensure corporate sustainability and ethical production
tainty driven by the COVID-19 pan- brands such as Modest Transitions and Studious Mondays
demic. Similarly, the modest fashion are already implementing sustainability practices in their
industry saw a good recovery with modest fashion businesses, while others are working with
the revival of old brands, the addition textile manufacturers to produce more sustainable fabrics
of many new brands and continued for their designs.
interest from mainstream retailers. While legal rulings against hijab in some places have
Throughout 2022/23, established modest fashion created limitations for women choosing to wear it, social
brands continued to receive investment for further growth, media users and celebrity influencers have been vocal
while smaller-scale brands attracted attention at investor about this discrimination and are helping to educate the
forums. Türkiye’s Modanisa raised US$20 million, Palestine’s public about Muslim women. As modest fashion steps
Modesta raised a six-figure amount in its Seed round, and further into the spotlight and gains more recognition in
UAE-based The Giving Movement raised US$15 million. In fashion schools, fashion events, and mainstream retail
Indonesia, hijab brand Elzetta entered the stock exchange stores, this dynamic segment of the fashion industry is
with an IPO of US$114.21, becoming the first Muslim fashion bound to continue expanding.
retailer to be listed in the country. In 2022, Muslim spend on apparel and footwear
All in all, a total of six deals related to the apparel and was valued at US$318 billion, an increase of 8.4% over
modest fashion industry were recorded in 2022/23. Four of the previous year. By 2027, Muslim spend on apparel and
these deals were disclosed and valued at US$129 million. footwear is forecast to reach US$428 billion, growing at
In a widespread effort to promote inclusivity, main- a CAGR of 6.1%.
stream clothing retailers launched modest clothing ranges
and edits. These included Saudi Arabia-based REDTAG,
the UK’s BooHoo and Next, Australia’s The Iconic, and
Indonesian brand Claude. Another trend saw modest fash-
ion brands partner with mainstream retailers to increase
the reach of their products, though some chose to expand
by themselves within their regions.
Several brands rolled out innovations to cater to
the diverse needs of the modest fashion consumer, such
as modest surfwear, clothing made with fabric that can
absorb vitamin D-rich light, and the first-ever water and
windproof hijab and niqab.
In certain jurisdictions, such as the State of New

2022/23
Developments
REVENUE DEVELOPMENTS Established modest fashion brands continue to receive

investment for further growth, while smaller-scale brands
The modest fashion industry is seeing growth beyond perform well at attracting attention at investor forums.
the religious context and becoming more of an estab- • Indonesian hijab brand Elzetta entered the Indonesian
lished fashion niche. Many new modest brands have been Stock Exchange (IDX) listed as Elcorps with an IPO of
launched since the pandemic, with existing brands growing IDR170 billion (US$114,218.58). This is the first Muslim
well through partnerships with mainstream retailers. fashion retailer to be listed in Indonesia.377
• Indian brand Forever Modest was presented to inves-
Latest Projections tors on Shark Tank India and received several offers
from the investors.378
In 2022, Muslim consumer spend on apparel and footwear • Modanisa received a US$20 million investment from
reached US$318 billion, increasing by 8.4% from US$293 Re-Pie Asset Management. Through the investment,
billion in 2021. Saudi Arabia overtook Pakistan to reach the Modanisa aims to expand its global service network
third largest market by Muslim consumer spend. Iran and and strengthen its global leadership with plans to set
Türkiye retained the top two spots, respectively. Muslim up a warehouse in Egypt, begin exports to Saudi Arabia,
consumer spend on apparel and footwear is expected to and launch dedicated sites for Malaysia and Indonesia.379
reach US$428 billion by 2027, growing at a CAGR of 6.1%. • Modesta, a modest online fashion marketplace from
Palestine, raised a six-figure amount in its Seed round,
Note: This does not represent the actual value of modest led by 500 startups, with the participation of the
fashion consumption. It represents the core addressable Innovative Private Sector Development Project (IPSD)
Muslim consumer market spending in the apparel category. program funded by the World Bank. The investment
will be used to expand the market reach into Saudi
Investments Summary Arabia and Bahrain, as well as to improve technology
to add on new brands and vendors.380
A total of six deals related to the apparel and modest • UAE-based sustainable athleisure brand The Giving
fashion industry were recorded in 2022/23. Four of these Movement raised US$15 million in Series A funding.
deals were disclosed and valued at US$129 million. This is The brand will use the investment to further category
a 92% decrease from the five deals recorded in 2021/22 growth in children’s and the recently announced baby
valued at US$1.5 billion. wear line and to expand into new markets.381
Türkiye Venture Capital E-Commerce, Fashion, Online DeFacto 59,708

Portals
United Arab Private Equity Consumer Goods, E-Commerce, Squatwolf 30,000

Emirates Fashion, Lifestyle, Retail
Türkiye Venture Capital E-Commerce, Fashion, Modanisa 20,000

Women's
Indonesia Venture Capital Commerce and Shopping, KitaBeli 20,000

Consumer Goods, Food and
Beverage, Real Estate

More mainstream clothing retailers join those offering Children’s sizes were also available in some styles.
dedicated modest clothing ranges or edits in efforts to This range was exclusively available in the United Arab
improve inclusivity. Emirates, Saudi Arabia, Kuwait, and Qatar at Versace
• Middle Eastern clothing retailer REDTAG launched a boutiques and e-retailer Ounass.402
dedicated modest fashion line called A’anika.382 • Australian designer label, Camille, launched a Ramadan
• UK-based BooHoo launched its first modest clothing collection entitled “Blessed Eid.”403
collection in collaboration with the winner of Graduate • Shein launched two Ramadan collections targeting
Fashion Week, Sameera Mohmed.383 384 the Middle Eastern customer.404
• Turkish clothing retailer LC Waikiki opened the first • Malaysian online marketplace ZALORA opened the
dedicated modest clothing store in the GCC region House of ZALORAYA pop-up shop to showcase the
in Doha, Qatar.385 seasonal modest wear designs and accessories from
• Australian online retailer The Iconic launched “The designer exclusives and ZALORAYA’s private label
Modest Edit,” which will feature modest international brands.405
and Australian brands such as Twiice, Asiyam, and • UK-based clothing rental platform MyWardrobe HQ
Yasmin Jay.386 387 offers items from ethnic wear brand Amrika London
• Indonesian fashion brand Claude launched its first for rental ahead of Eid.406
modest collection, called Noesantara.388 • UK brand PrettyLittleThings received criticism for their
• Pakistani fashion designer Sania Mastakiya launched Eid Edit, which featured items customers deemed
a modest collection called “Modest.”389 390 inappropriate to be classed as modest.407
• UK retailer Next launched its first modest wear col- • Modest clothing customers have expressed that
lection for women.391 Ramadan collections are often limited to the Middle
• European online retailer Zalando has released its plans Eastern aesthetic and lack options for casual or street-
to build long-term relationships with brands that cater wear. Many items do not conform to basic modest
to customers that identify as “underrepresented,” concepts and may feature deep necklines or sheer
such as those catering to modest fashion consumers.392 fabrics.408
Mainstream clothing retailers, specifically luxury brands, The modest clothing market is seeing growth beyond
continue to capitalize on the “Ramadan Rush,” but many the religious context.
consumers have found the marketing related to these • The Reflective, which started off as a modest fashion
campaigns to be inauthentic. content-based platform in 2020, has launched an
• The demand for modest clothing increased by 30% in online marketplace for modest clothing. The market-
Indonesia as the annual “mudik,” or returning home place caters to women across the modest spectrum.
for Eid celebrations, returned for the first time since The online marketplace was launched in May 2023.409
the pandemic.393 • The ADdress department store opened in New Jersey,
• Online retailer Farfetch and multi-brand boutique USA. The department store is dedicated to modest
Browns launched a 182-piece capsule collection of fashion, catering to the significant populations of
modest clothing for men, women, and children.394 Muslims and Orthodox Jews in the area.410
• Net-a-Porter launched the Ramadan range, made up
of designs from over 27 Arabian and international Swimwear and activewear continue to be popular areas of
names, exclusively for the Middle Eastern market.395 specialty and brand expansion for modest clothing labels.
• Off-White released a 17-piece Ramadan collection • Malaysian modest swimwear brand Matsalleh Design
featuring a selection of luxury loungewear and acces- launched a sports hijab as part of their new collection.411
sories. The line was sold online and in selected retail • Activewear label Lululemon launched two styles of
stores in Kuwait, Dubai, and Riyadh.396 workout hijabs, with a third style planned for launch.412
• Louis Vuitton launched its first ready-to-wear line • Malaysia-based modest activewear label The Modest
for Ramadan 2022, which was available exclusively Brand was launched. All items use recycled materials.413
to stores in the Middle East.397 398 • Malaysian brand LILIT launched a size-inclusive mod-
• Luxury brands, including Prada, Dior, and Christian est swimwear range.414
Louboutin, as well as e-tailer Net-a-Porter’s subsid- • UAE-based influencer Hadia Ghaleb launched a lux-
iary, Mr Porter, all released Ramadan ranges for men ury modest swimwear range in 2022. The range sold
in the Middle East.399 out soon after being released. Accessories such as
• Danish brand Stine Goya releases an exclusive 12-piece handbags and swim hijabs were added to the Spring/
Ramadan collection sold through their website and Summer 23 range.415 416
select retailers in the UK and Middle East.400 • Malaysia-based TudungPeople signed an MoU with the
• Ultra-luxury brand Lauro Piana launched a Ramadan National Sports Council to supply modest headgear
capsule collection with Harrod’s.401 for athletes’ training from now until 2024.417
• Versace launched a special-edition women’s ready-to- • Breethe Modest Activewear was launched in South
wear, bags, and shoes collection for Ramadan 2023. Africa. The line is produced locally.418

Many new modest clothing labels launched across the
globe, with some known brands re-launching or reopening
after being affected by the COVID-19 pandemic.
• LYRA Swimwear re-launched in Egypt after shipping
was discontinued in 2021 due to logistical issues.419
• Jordanian brand Hiya was launched during the London
Muslim Shopping Festival. The brand is a collabora-
tion between a consortium of professional Jordanian
manufacturers and is targeted at EU and international
markets. This was supported by the Centre for the
Promotion of Imports from Developing Countries
(CBI), an initiative from the Ministry of Foreign Affairs
of the Netherlands.420
• Canada-based online marketplace Modasty was
launched at the end of 2021. The site features 17
local vendors across Canada, the United States, and
Australia,421 offering hijabs, dresses, and other ethnic
options for women across North America.422
• Indian former actress Sana Khan launched Haya by
Sana Khan with an exhibition in Hyderabad.423
• US-based Unheard of Hijabi was launched in late 2021.
The brand offers everything from avant-garde head
scarves to ultra-versatile sweatshirts on its digital
storefront, combining modest fashion and streetwear
for a Y2K feel. The brand has garnered a large social
media following as well as the attention of popular
modest fashion influencers.424
• Luxury modest clothing marketplace The Modist
announced that it would be re-launching the site,
offering a wider price range with new brands and
clothing categories.425 426
• Malaysian modest fashion marketplace FashionValet
closed after 12 years in operation and pivoted the
business to focus on in-house brands dUCk and LILIT.
This will allow the company to deliver a more person-
alized, seamless, and optimized brand experience.427 428
Existing modest fashion brands have partnered with

mainstream retailers to increase the reach of their prod-
ucts, while others have chosen to expand by themselves
within their regions.
• Saudi-based Leem partnered with UK online market-
place Zalando, Selridges.com, and retailer Next. Leem
plans on opening its own dedicated e-commerce site
for UK customers.429 430
• UK-based modest fashion brand, Daska, launched an
exclusive range for retail-to-rental brand MyWardrobe
HQ at Harrod’s.431
• Indonesian brand Si.Se.Sa opened a flagship store
in South Jakarta.432
• Indonesian brand Ria Miranda launched Dale by Ria
Miranda to be sold on the Evermos social commerce
platform. The collaboration is aimed at encouraging
Indonesians to purchase locally produced modest
clothing.433
• Lebanese brand Leo and Ted Limited launched its
UNSPLASH
collection in the Qatari department store Printemps

Doha.434

• Canada-based Hyat.co hijabs partnered with Winners by 66%, with a 70% increase in shoppable products
and Marshalls department stores to sell their range globally over the last year.442
at the 279 branches across Canada.435 • Malaysian company Zucca is utilizing the data from
social commerce to provide real-time data so brands
can monitor customer insights, which then allows
OPERATIONAL DEVELOPEMENTS brands to make better production decisions. Zucca also
works with local small and medium manufacturers,
With customers interacting with brands through their collaborating with them to produce small ‘prototype’
omnichannel interfaces, a unique and efficient customer batches to get initial feedback.443
experience is essential to differentiating a brand. Social
commerce is also developing as a key part of the omni- Collaborations between influencers and mainstream
channel mix. brands remain a popular way for mainstream retailers
to enter the modest fashion sector.444
Brands are seeking new ways to draw customers into • British clothing retailer, Next, partnered with celeb-
retail locations through improved customer experience rity chef Nadiya Hussain on a range of headscarves.445
and streamlining their omnichannel approach.
• Modest fashion transactions made up 91.93% of
online transactions in Indonesia between January and NATIONAL/TRADE DEVELOPMENTS
October 2021, showing that customers still preferred
online shopping even with reduced social distancing Exposure through fashion events continues to be a key means
measures and increased shopping hours.436 of marketing modest fashion brands to international markets.
• Malaysian brand dUCk launched its revamped and Several OIC governments are actively taking measures to
relocated store in the Pavilion Kuala Lumpur mall in assist their local modest fashion industries.
Kuala Lumpur. The store is based on a playhouse con-
cept and features multiple innovations to improve the The fashion category increased by 11.97% from US$33.1
customer’s omnichannel experience with the brand, billion in 2021 to US$37.0 billion in 2022, with women’s
which includes allowing customers to reorder out- apparel contributing significantly to this growth. It is
of-stock items in-store and purchase them at the projected that fashion imports to the OIC will grow to
counter. They can then opt for a later pickup date at US$47 billion with a 4.87% CAGR. Advancements in fash-
the store or arrange for standard express delivery. ion manufacturing and digital commerce technology will
There are also several features to make the shopping play an important role in supporting this growth. Modest
experience more fun.437 fashion is also gaining momentum in major cities to
• Accessories brand Coach installed an AR mirror as be more inclusive, not only for Muslims but for a wider
part of its window display, which showed customers audience.
a reflection of them holding various versions of the Unlike halal food, pharma, and cosmetics, fashion is
brand’s bestselling bag, the Tabby. The mirror resulted the only category with a trade surplus for OIC countries.
in in-store traffic increasing by almost 50%.438 In 2022, the trade surplus accounted for US$85.6 billion,
with three OIC countries in the list of the top ten fashion
Social commerce is becoming increasingly popular with exporters to the OIC: Türkiye, Bangladesh, and Indonesia.
customers. However, the largest exporter to the OIC is still China, with
• TikTok’s e-commerce functionality, called TikTok Shop, US$18.6 billion in 2022. About 70.8% of fashion imported
has been launched in the UK. The Summer Sale event to the OIC consists of apparel-related products, while
reached over 276 million live views and nearly 135 footwear contributes 29.2%.
million views on associated hashtags. Beauty and
fashion have been the top performers so far. TikTok
has fully launched live shopping in the U.K., but the OIC IMPORTS 2022
feature is still in early test mode for the U.S.439 440
• Modanisa introduced WhatsApp shopping. More than US$ BILLION
50% of Modanisa’s customer interactions now take

place through WhatsApp. The Modanisa WhatsApp
chatbot offers services in five languages.441
• Pinterest will integrate the collage-making app $37.1 $47.0
Shuffles into its main shopping experience, which will 2022
2027 (f)
CAGR
allow users to create collages of different shoppable
4.87%
products and purchase them through Pinterest. This
would be particularly effective for putting together
fashion looks and then purchasing the items. Brands
uploading shoppable catalogs to Pinterest increased Source: DinarStandard synthesis and analysis

Fashion Trade
US$ BILLION (2022)
Exports Imports
$37.1
$122.7
Footwear Apparel
29.2% 70.8%

China 18.58 United Arab Emirates 8.06

Türkiye 3.02 Saudi Arabia 4.58
India 2.81 Türkiye 3.34
Italy 2.13 Malaysia 2.67
Vietnam 1.23 Kazakhstan 2.11
Bangladesh 1.00 Iraq 1.92
Spain 0.98 Indonesia 1.62
France 0.54 Qatar 1.17
Indonesia 0.54 Kyrgyzstan 0.97
Singapore 0.5 Kuwait 0.95
OIC countries
Indonesia is intent on becoming the global hub of modest its foreign trade offices to promote the Indonesia
fashion by 2024 and has been implementing various Modest Fashion Week (IMFW). The Trade Ministry
initiatives to grow and strengthen its modest fashion is actively working to increase Indonesian Muslim
industry. fashion exports through various trade cooperation
• With the Jakarta Muslim Fashion Week (JMFW) being schemes with partner countries.450
an important part of growing the Indonesian modest • Asia Pacific Rayon (APR) signed a memorandum of
fashion sector, a series of events were held in the understanding (MoU) with fashion design schools in
buildup to the main event in The Road to JMFW 2023. Indonesia. The development of fashion schools is one
This included panel discussions attended by key gov- of the key parts of Indonesia’s strategy to become the
ernment and industry representatives like the Vice global hub of modest fashion. The MoU encompasses
President of Indonesia, Ma’ruf Amin, and Trade Minister, partnerships in access to sustainable viscose rayon,
Muhammad Lutfi, and a Ramadan fashion festival. The research on sustainable modest fashion, and working
Road to JMFW 2024 is already in progress, from March together to mentor local fashion micro, small, and
to September 2023, and is supported by the Tourism medium enterprises (MSMEs). APR also collaborated
and Creative Economy Ministry.446 447 448 449 with designers for a sustainable, modest fashion show
• The Indonesian Trade Ministry mobilized all 46 of at the MUFFEST+ event.451 452

• Indonesian designers were provided with several • The Trade Ministry of Indonesia has prepared a road-
opportunities to exhibit their work internationally. map to improve exports of modest fashion, which
Indonesia Modest Fashion Day was held at the includes making various trade agreements, forging
Indonesian Pavilion of the Dubai Expo 2020. The show cooperation with several countries, and removing
featured 20 Indonesian and two local UAE designers. import duties for the Middle East, Central Asia, and
Designers Heaven Lights and Vivi Zubedi presented Eastern Europe. Cooperation on free trade with the
collections at NYFW 2022, and the Trade Ministry United Arab Emirates (UAE) is being processed for rat-
took seven of the country’s modest-wear brands to ification by the Indonesian House of Representatives
New York Fashion Week (NYFW) Fall/Winter 2023. (DPR RI). Through this cooperation, Indonesia hopes
The Trade Ministry also opened Nusantara Fashion to gain access to the African market.468 469
House in Malaysia to showcase Indonesian products. A
modest fashion show showcasing Indonesian brands Modest fashion brands have been appearing increas-
was held at a gala dinner of the World Conference on ingly at mainstream fashion weeks and events around
Creative Economy. The Tourism and Creative Economy the world, while dedicated modest fashion showcases,
Ministry also showcased local halal creative economy which included panel discussions and workshops on the
products, including modest fashion, at the 2022 G20 sector, also took place.
Summit.453 454 455 456 457 458 • The Modanisa London Fashion Week was co-hosted
• The JMFW 2023 was held at the 37th Trade Expo by the London Muslim Shopping Festival in 2022.470
Indonesia, the largest B2B exhibition in Indonesia. • The annual Modest Fashion Weeks by Think Fashion
60 designs from students at vocational schools and was held in Riyadh, Saudi Arabia, with the theme of
vocational higher education institutions were shown the event, “Roots of the Future,” paying homage to
at JMFW. This was an effort by the ministry to demon- KSA’s Vision 2030.471
strate the capability of vocational human resources • As a soft launch for the 3rd Miami Modest Fashion
to compete in the fashion sector of the world.459 460 Week, the Rebirth & Beloved event was held. This
• The Indonesia Sharia Economic Festival (ISEF) event featured a fashion show, fashion talk, and a
was rebranded as the Indonesia International fashion charity event.472
Modest Fashion Festival (IN2MOTIONFEST). The • The 13th International Economic Summit: Russia-
IN2MOTIONFEST includes community gatherings, Islamic World: Kazansummit 2022 featured Modest
workshops, competitions, and curations. The main Fashion Day, which included a fashion show featur-
event consists of fashion shows, talk shows, busi- ing brands and designers from Russia, Tatarstan,
ness matching, and diaspora forums. It is the biggest Uzbekistan, Kazakhstan, and Indonesia, and two-panel
international modest fashion event that promotes discussions with modest fashion experts. Modest
Indonesia’s local products. The IN2MOTIONFEST Fashion Day was also included during Kazansummit
was also held in Dubai as part of the Indonesian 2023.473 474 475
Investment Forum in Dubai (IIFD).461 462 463 • An Islamic Clothing Expo was held in Iran, fea-
• The Indonesian government has recognized the impor- turing designers from other Muslim nations. The
tance of MSMEs to the economy and has introduced International Fajr Fashion and Clothing Festival was
various policies around access to financing as well as also held in Iran and showcased both local and inter-
provided facilities, including licensing, fiscal incentives, national designers.476 477
market access, and access to raw materials for MSMEs. • Halal Expo Canada included a fashion show.478
In order to strengthen the MSMEs ecosystem, the gov- • The Modestly Modern Fashion show was held at the
ernment has worked toward creating a healthy business Namaste Eid Festival 2022 in Kathmandu, Nepal.479
climate, supporting digital payments and logistics, • The 2nd edition of the #Markamarie Together(e) Summit
ensuring personal data protection, and implementing was held as an in-person event in Istanbul, Türkiye,
electronic systems and transactions, as well as digital entitled The Royal Experience. 22 brands were show-
infrastructure in e-commerce. The Ministry of Tourism cased.480
and Creative Economy is also involved with developing • Melbourne Fashion Week 2022 added the Modest
modest fashion MSMEs. The Cooperatives and Small Fashion Runway to the core program for the first time.481
and Medium Enterprises (SMEs) Ministry took a stall at • The Afterpay Australia Fashion Week (AAFW) featured
MUFFEST+ 2023 to allow MSMEs to market their prod- the modest brand Asiyam as part of the Next Gen
ucts. The SMEs Ministry also formed a joint production showcase, as well as a hijab-clad model for the first
house to assist and train MSMEs, specifically those time in 2022. Asiyam subsequently won the Next Gen
in the textile field, as well as operate the Integrated competition. In 2023, Asiyam was the first modest
Business Service Center (PLUT) to facilitate and assist label to hold a standalone show at AAFW.482 483 484
MSMEs seeking to promote their products. Online • The London Modest Fashion Show was included in
marketplace Tokopedia also launched a campaign to the program at the UK’s first international govern-
champion local modest fashion producers, which was ment-to-government, B2B, and consumer halal trade
commended by the Minister of SMEs.464 465 466 467 show in London.485

PEXELS

• The 2023 Modest Fashion Week was hosted in Riyadh, ECOSYSTEM DEVELOPMENTS
Saudi Arabia, with the theme Roots to the Future,
inspired by the KSA’s Vision 2030 program.486 Social media users have been a key part of developing aware-
• The Kazakh modest fashion brand, Asheri, closed the ness about modest dressing and the hijab, with many users
13th season of the Azerbaijan Fashion Week.487 taking an active stance against the various rulings being
• The Salam Seoul Festival in South Korea featured passed around the world against the hijab.
modest designs of the traditional hanbok by four
Korean designers.488 Legal rulings against hijab continue to create limitations
• The second Paris Modest Fashion Week was held and for women choosing to wear it.
arranged by Modest Fashion France.489 • Hijab-wearing students were banned from attending
• The Islamic Festival held in Birmingham, UK, featured classes in Karnataka, India.501
Souk Fashion in September 2023.490 • The hijab laws were a main point of debate in the
• The OIC Modest Fashion Forum was held during the French presidential election. French lawmakers pro-
World Halal Summit in Istanbul.491 posed a ban on the wearing of the hijab and other
• The Netherlands-based modest fashion label, Les The “ostensible religious symbols” in sports competitions.
Brand, was featured on the Young Entrepreneurs plat- The French Football Federation already does not allow
form at the Dutch fashion trade show Modefabriek.492 women to wear hijabs during official matches and
• Modest fashion designer Zined Hazim showcased competitions. The French city of Grenoble had sought
her Fall 2022 range at Milan Fashion Week for the to overturn the ruling that banned burkinis in public
second time.493 swimming pools; however, the administrative court
blocked the rule change. The ban on barristers in the
Other OIC member states have taken steps to increase Lille region wearing religious symbols in courtrooms
awareness of their countries’ products and develop bilat- was also upheld, setting a precedent for the rest of
eral relations to increase exports of clothing products. the country.502 503 504 505 506
• With the Netherlands being Malaysia’s second largest • Kosovo’s Islamic community requested the Ministry
trading partner in Europe, Malaysia External Trade of Education, Science, Technology, and Innovation
Development Corporation (MATRADE), together with remove the ban on wearing religious symbols in high
Islamic economy sector representatives, including schools after a sign banning hijab was placed outside
modest fashion, met with Dutch halal industry players a high school in Djakovica.507
in the Hague.494 • The Supreme Court of Nigeria granted the use of a
• The Saudi Fashion Commission hosted an exhibi- hijab by female Muslim students in Lagos State gov-
tion to showcase the Saudi 100 Brands in New York. ernment-owned schools.508
Saudi 100 Brands is an initiative of the Saudi Fashion • The Iranian president ordered the Enforcement of
Commission where selected designers and brands work Hijab and Chastity Law for Women, which restricts
with an international team of fashion consultants to women’s dressing and forces the covering of the hair,
develop their businesses.495 neck, and shoulders.509
• The Taiwan Modest Fashion and Beauty Online Pop-up
Shop was livestreamed to potential business part- Modest fashion is becoming more recognized within
ners in ASEAN, the Middle East, and North Africa fashion schools.
to introduce the market to Taiwanese fashion and • The University of Georgia’s, USA, Textiles, Merchandising,
beauty products.496 and Interiors department hosted the third event of
• The Islamic Fashion Festival held in Malaysia show- its four-part diversity in fashion speaker series titled
cased Malaysian and Indonesian modest fashion “Islamic Fashion and Anti-Fashion.”510
designers and raised funds for charity.497 • UK fashion graduate Nadia Hadhrami’s modest fashion
collection, “Hands off my Hijab,” was shown on the
Accelerator programs and industry partnerships remain student and graduate runway of York Fashion Week.511
important ways to develop the modest fashion sector. • Al Huda Centre of Modest Fashion has signed an MoU
• The Selangor Information Technology and Digital with the UAE School of Design to mutually enhance
Economy Corporation (SIDEC) has announced a fashion the potential of the modest fashion industry.512
accelerator program with the theme Modest Fashion. • Central Saint Martins graduate Kazna Asker showcased
16 fashion entrepreneurs were selected for the two- her line “Watered by One Water” at the Central Saint
month program, which culminated in six teams pitch- Martins MA 2022 fashion show, which was the first MA
ing to investors on Demo Day.498 499 show at the school to feature models wearing hijabs.513
• The Saudi Fashion Commission and Fawaz A. Alhokair
and Partners Co., the only fashion company listed on Social media users and celebrity influencers have been
the Saudi stock market, signed a deal to cooperate on vocal about the discrimination against hijab-wearing
the development of Saudi fashion designers.500 women and the laws banning it. Social media, especially
TikTok, has become an important platform for educating

and dispelling mistruths about Muslim women and the Philippine National Police, and the Bureau of Jail
the hijab. Management and Penology have already allowed the
• Palestinian-Canadian singer-songwriter Nemah Hasan use of headscarves as part of the official uniform for
addressed the discrimination faced by people of color their Muslim personnel.527
(POC) and hijab-wearing women through her debut sin-
gle, which has also gained popularity as a soundtrack While mainstream media has increased its inclusion of
for videos on TikTok.514 Muslim women with hijab and in modest fashion, in gen-
• Social media users condemned Vogue France for an eral, many Muslims are not satisfied with the depiction.
Instagram post praising the model’s headscarf amidst • The Media Style Guide (MSG) launched the Global
hijab bans in France. The caption of the post was Media Style Guide on Islam (MSG-I), which aims to
then removed.515 help the world’s media, governments, and academia
• Model Bella Hadid and makeup entrepreneur Huda present Islam and Muslims accurately, authentically,
Kattan use their social media platforms to call out and with accountability. This is a positive step, as a
countries implementing hijab bans.516 517 poll by an online publication, Amaliah, found that 60%
• Public art project, The Fearless Collective, created a of Muslims did not want to be represented in ads and
campaign to support hijab-wearing Muslim women in campaigns because of fears about misrepresentation
India. The collective requested Muslim women to share of their faith and community.528 529
photographs of themselves wearing their hijab. Using • Basketball player Asma Elbadawi was cast by Adidas
the hashtags #wedefineus and #haq, The Fearless to star in their global campaign.530
Collective launched a campaign wherein a global com- • A billboard reading “My hijab, my right” was put up
munity of artists came together to create illustrations on a highway in Chicago, USA.531
based on these photographs. The illustrations were • GQ Middle East’s Renaissance issue included an edi-
also displayed in a physical exhibition entitled “Haq” torial featuring male models in thobes paired with
at the Goethe-Zentrum Hyderabad (GZH).518 mainstream designer items.532
• The number of Muslim women in Latin America shar- • A Muslim fashion and beauty influencer character
ing their lives as Muslims on social media has been was included in a Canadian-designed fashion illus-
increasing significantly over the past few years. They tration set.533
create content to address the most common miscon- • Bongo, the first and biggest video streaming service
ceptions about Muslim women in their countries.519 provider in Bangladesh, introduced its newest live TV
• Vogue France featured a hijabi on the front cover for addition, “FashionTV.” It will also showcase regional
the first time.520 trends based on Muslim and modest fashion.534
• #modestfashion reached over 3.7 billion views on • UAE-based designer Lara Ali showcased some of her
TikTok.521 designs at Fashion Factor, one of the biggest fashion
competitions in the Middle East.535
World Hijab Day provides an excellent platform to raise • Miss Universe Bahrain wore modest looks throughout
awareness about hijab and remove the stigma around it. the 71st Miss Universe Pageant, including an abaya
• To commemorate the 10th annual World Hijab Day, and burkini.536
a virtual conference, “Salam from around the world,” • In markets including Indonesia, Malaysia, Pakistan,
was held.522 and Bangladesh, the Hijrah Movement refers to con-
• The Muslim Student Association (MSA) of Columbia sumers who have rediscovered their faith during the
University in the US allowed fellow students to expe- pandemic, which has led to an increase in spend in
rience the hijab and other religious garments.523 categories such as modest apparel, consumer goods,
• The Philippines’ House of Representatives has finance, as well as personal care and cosmetics. Brands
approved a measure declaring February 1 of every and companies, including Unilever, Wipro, Pureline,
year as “National Hijab Day” and mandating the gov- and Kahf, have launched products and campaigns
ernment launch an awareness program on the practice targeted at this new group of consumers.537
of wearing a hijab by Muslim women.524
• Hijab and jumpsuit options are included in the British
Airways uniform upgrade. The new uniforms intro- SOCIAL IMPACT DEVELOPMENTS
duced by BA have prompted Malaysian Airlines to
also consider having modest uniform options.525 526 Sustainability and ethical supply chains are still one of
the main concerns for fashion consumers. Fashion com-
Hijabs and modest options continue to be implemented panies of all sizes are taking measures to improve their
in uniform rules and utility wear. environmental footprint.
• The Philippine Coast Guard has approved the use
of headscarves for female Muslim personnel in a Modest fashion brands are implementing sustainability
bid to encourage more Muslim women to join the practices in their businesses and finding ways to benefit
Coast Guard. The Armed Forces of the Philippines, their communities.

• The Sustainable Modest Fashion Show was held for the • Italy-based Fi Miliano created a modest fashion range
fourth time at Indonesia’s MUFFEST+. APR collaborated using the brand’s patented Vylet fabric, which helps
with seven designers for this show.538 women absorb more vitamin D. Vitamin D deficiency
• US-based Modest Transitions provides naturally dyed is a common concern for many women, particularly
clothing items and classes in sustainable, eco-friendly, those of South Asian descent.544
naturally dyed textile products.539 • Qatar VCUarts fashion design student Noor Rashid
• US-based modest fashion label Studious Mondays Butt created the Nanoabaya, which uses nanotechnol-
debuted its first full collection focused on sustain- ogy to absorb vitamin D-rich light along with thermal
ability, even offering customers insight into their full insulating properties that help to regulate the body’s
process and detailing where and how the clothing is temperature.545
made on their website.540 • Malaysian hijab inner brand Innersejuk launched 12
• Australian modest clothing brand Modest Fashion new and improved designs using their proprietary
Outlet released a new clothing collection created by DriChill material. This material helps to keep hijab
newly arrived skilled migrant and refugee women wearers cool, comfortable, and clean.546
from Afghanistan. • Tommy Hilfiger and Calvin Klein brand house PVH
announced a partnership with circular fashion tech-
Formally implementing rules and legislation to ensure nology group Infinited Fiber Company to introduce
sustainability and ethical production is an important regenerated fibers into their collections. The fibers,
way of getting businesses to improve their practices. called Infinna, are a patented regenerated textile fiber
• Copenhagen Fashion Week implemented 18 sustain- that mimics the natural look and feel of virgin cotton
ability requirements based on UN goals that designers and is created using cotton-rich textile waste that
must meet if they want to be part of the event. One of would otherwise end up in landfills or be burned.
the requirements is that at least 50% of their collec- These are then broken down at the molecular level
tion should be “certified, made of preferred materials and recreated into new fibers.547
or new generation sustainable materials, upcycled,
recycled, or made of deadstock.” Both modest and mainstream fashion brands continue
• Rights groups had filed a new complaint in France to innovate new products fit for the diverse needs of the
against clothing giants, including Uniqlo and Zara modest fashion consumer.
owner Inditex, for allegedly profiting from the forced • Malaysian entrepreneur created a line of earrings for
labor of the Uyghur minority in China.541 hijabis called Pinrings.548
• The State of New York, US, implemented the Fashion • US-based Mawadda created an FDA-approved dis-
Act, which affects fashion companies with operations posable isolation hijab.549
in the state that generate more than US$100 million • UK-based surfwear company Finisterre developed
in annual revenue. The bill will require brands to fully modest surfwear in collaboration with Irish surfer
disclose information about their supply chain, such Easky Britton and Iran’s first female triathlete Shirin
as carbon emissions produced and labor standards. Gerami.550
Brands will have to reduce their impact and improve • US-based The Layali by Nur Shah launched its first
on poor practices.542 collection featuring a sustainable top called the Lula,
• The European Commission launched the Sustainable which can be worn in 20 different ways.551
Products Initiative (SPI), which aims to build sustain- • Outdoor clothing specialists Trekmates created the
ability throughout the product’s lifecycle, beginning first ever water and windproof hijab and niqab together
with the product design. The SPI will extend minimum with Amira Patel, founder of The Wanderlust Women.
sustainability requirements beyond energy-related Another outdoor clothing specialist, Berghaus, collab-
products to a whole new array of sectors. These rules orated with Scottish Muslim hiker Zahrah Mahmood
will ensure that products on the EU market are designed on designing an activewear hijab suitable for dealing
to be not only energy-efficient but also repairable, with the outdoor elements.552 553
durable, recyclable, and free of hazardous chemicals.543
INNOVATIONS
The unique needs of the modest fashion consumer continue
to be addressed through innovation in fabrics and designing
fit-for-purpose items.
Many modest wear and mainstream companies have

worked with textile manufacturers to produce more func-
tional or sustainable fabrics to be used in their designs.

Signals
of Opportunity
Social commerce
as a fashion retail channel Modest clothing
Social media platforms like resale and rentals services
TikTok and Pinterest are actively Fashion’s sustainability improves
developing their commercial by cutting clothing waste. Popular
capabilities. Over a third of TikTok users mainstream brands, such as ASOS, have
purchase post-ad viewing, spending partnered with resale platforms. In
14% more than other networks.554 Social the UK, Harrod’s launched an in-store
commerce fosters direct consumer designer clothing rental service. There
contact. Influencers will play an is yet to be a resale or rental platform
even more critical role in dedicated to modest clothing.
sales conversion.
Specialized modest
sportswear for women
Female athletes participating in
sports requiring specialized gear
are unable to find modestly suitable
versions. These need to be developed
in partnership with sports bodies
and athletes.
Mainstream luxury Indonesia as the

brands catering to non-Arab future hub of modest fashion
modest fashion consumers’ tastes Indonesia is targeting global modest
Most luxury brands create modest fashion hub status by 2024, with several
collections that predominantly feature initiatives already in place. Indonesia
typical Arab modest wear. Modest has a thriving local market and provides
fashion consumers of luxury brands easy entry to the rest of the Southeast
span across all ethnic groups and Asian modest fashion market. Similar
would prefer designs modified to style preferences in the region
accommodate the modest fashion minimize the need for much
consumer in general. product localization.

Strategic
Considerations
by Stakeholder
As fashion consumers, both modest and mainstream,

seek out more sustainable clothing, governments
and investors can find opportunities that lead
to great returns. Investors can seek out textile
development companies that are at the forefront
of improving the circularity of the fashion industry.
This will also contribute to making fashion
businesses more vertically integrated. Consumers
are continuously seeking more inclusive clothing
options, which creates opportunities for businesses
to develop special niche segments such as
specialized modest sportswear for different sporting
codes. Governments can also help influence clothing
inclusivity by supporting fashion academia and
encouraging more thoughtful design.

INVESTORS
Investors can begin to look for opportunities across the entire fashion supply
chain and identify modest fashion brands ripe for growth through partner-
ships with mainstream retail platforms.
Opportunities
1 Modest fashion companies seeking to

invest should consider startups in the
textile development industry, specifically
• H&M Group invested in Kintra Fibers, a materials
science company that has developed a proprietary
those involved in sustainable products. bio-based and biodegradable polyester. This is just
R&D on fabrics used by fashion brands is rarely done one of the investments made by the group in com-
by the company itself. For companies to become more panies working to make the fashion supply chain
involved in this process without having to acquire all more sustainable.
the necessary skills and equipment, modest fashion Potential Outcomes by 2033:
companies should consider making investments in • Sustainable practices are cost-effective and well-de-
textile development startups, specifically those devel- veloped, thus reducing the negative impact of fashion
oping sustainable textiles, making businesses more on the environment.
vertically integrated.
2 Mainstream retailers have shown inter-

est in collaborating with modest fash-
ion brands; however, most of the brands
• UK-based Aab collection stocks its range at John
Lewis stores.
need investment to provide the level of supply main- • Australian online retailer The Iconic stocks a variety
stream retailers may require. of Australian modest bran
Investors may seek out modest fashion brands that Potential Outcomes by 2033:
have an interest in collaborating with mainstream • Modest fashion brands are easily available at multiple
retailers and provide them with the investment nec- mainstream retailers.
essary to meet retailer’s supply requirements.
Challenges
1 Since modest fashion consumers fall on a

spectrum of how modesty is interpreted,
most modest fashion brands may only
cific designs, as investors may not see worthwhile
returns from investing in them.
Risk:
cater to the tastes of a subset of that group. • Growth will be more prominent in certain sub-sectors,
Few modest fashion brands have universal appeal. This such as hijabs and modest activewear, but may be
is limiting for the more niche sub-sects or region-spe- thwarted in more niche areas.
It is difficult to expand internationally; the ambition and the drive

are there, but the market is so fragmented. If you go to a Muslim-
majority country, there is already a lot of competition there. And if
you go to a minority one, the sentiment is always that the Muslims
there are not as high-income earners. So, you’re kind of stuck.”
Vivy Yusof, Co-founder of FV Group Malaysia

GOVERNMENTS
Governments stand to make a significant impact on the sustainability of the
fashion industry by investing in fashion academics and creating legislature
to aid in making the industry more circular.
Opportunities
1 Governments should invest in the aca-

demic side of fashion, specifically mod-
est fashion, through fashion schools and
• Developing fashion education is one of the key parts
of Indonesia’s plan to be the global hub of modest
material science. fashion by 2024. Students were included in the JMFW,
A country’s fashion industry could benefit from invest- and textile producer APR signed an MoU with schools
ing in the academic training of fashion sector players to access sustainable viscose rayon, conduct research
by helping them to design more thoughtfully. It will on sustainable modest fashion, and work together to
help make fashion more inclusive, as these trained mentor local fashion MSMEs.
designers will have a better understanding of catering Potential Outcomes by 2033:
to the needs of a variety of consumers. • Fashion academics will create thoughtfully designed
pieces made with sustainable fabrics developed by
material scientists, which will, in turn, create a more
sustainable and progressive fashion industry.
2 Legislation needs to be created to ensure

the circularity of the fashion industry
and ensure that companies are all con-
• The UK government pledged US$97.5 million to the
10-year Fashion Industry Sustainable Change Pro-
tributing in accordance with their impact. gramme, which aims to create a world-leading circular
Government legislature would be the most effective fashion and textiles ecosystem in the UK.555
measure to ensure the circularity of the fashion indus- • The US state of New York, implemented the Fashion
try. Governments can impose fines for the dumping Act, which affects fashion companies with opera-
of textiles and provide incentives for those companies tions in the state that generate more than US$100
that recycle or prevent textile waste. Incentives can million in annual revenue. The bill will require brands
also be provided for decreasing the carbon footprint to fully disclose various information about their
through nearshoring while simultaneously benefiting supply chain, such as carbon emissions produced
the local economy. and labor standards.556
Potential Outcomes by 2033:
• The fashion industry will no longer be one of the top
three 557 polluting industries.
Challenges
1 Most OIC governments do not implement

a global set of quality standards for their
fashion manufacturers.
Risk:
• Not adhering to certain standards in quality and,
also, garment worker working conditions can lead to
Most OIC governments do not adhere to a single set countries being limited in their exports of those goods.
of quality standards for clothing imports. The level
of enforcement of quality standards, including the
quality of working standards for garment workers,
also differs by country.

Indonesia is confident that we have something unique
to offer. We have so many designers in modest fashion.
There are a few thousand designers. In the Indonesia
Fashion Chamber alone, there are almost 200 permanent
designers focused on modest fashion. We have something
to offer the European, US, or Middle Eastern markets.
It’s just a matter of time until some of these brands gain
international recognition.”
Ali Charisma, National Chairman of Indonesia Fashion Chamber (IFC)

PEXELS

BUSINESSES
Modest fashion brands can capitalize on untapped markets like specialized
modest sportswear and digital modest fashion for the metaverse.
Opportunities
1 Modest versions of specialized sports-

wear have a high demand that is not
being adequately fulfilled. Modest
• UK-based surfwear company Finisterre developed
modest surfwear in collaboration with Irish surfer
fashion brands are best equipped to help address Easky Britton and Iran’s first female triathlete Shirin
these needs. Gerami.
Modest fashion brands, particularly those producing • A modest powerlifting singlet was designed in col-
activewear, should work together with athletes and laboration between US-based designer Ayana Ife and
sports bodies to create modest versions of the spe- powerlifter Mubarakah Ibrahim.
cialized gear athletes require for their sport. Potential Outcomes by 2033:
• Female athletes who prefer modest, specialized sports
gear will be able to easily access it. A modest sports
brand on the scale of Nike or Adidas will exist.
2 Generative AI tools can be used by main-

stream fashion brands to alter existing
designs for modest fashion customers.
• Project Muze was created by Google and Zalando to
collect the style preferences of customers and create
AI tools have a huge scope for application through- designs to match them.558
out the fashion value chain. While fashion design by • An AI system called AiDA, developed in Hong Kong,
generative AI is still in its early stages, it is a huge can output eight outfit designs in 10 seconds.559
opportunity to make fashion more inclusive by being Potential Outcomes by 2033:
able to automatically adjust designs and clothing pat- • Modest fashion is a key category for a large number of
terns to the needs of the customer. mainstream brands, as they can easily adjust existing
designs to cater to the modest fashion consumer.
3 A unified customer experience across

all sales channels will help strengthen
brand image and improve the overall
• French luxury brand Isabel Marant appointed a new
chief omnichannel officer to consolidate the online
customer experience. and offline channels of the brand and unify the cus-
Although customers have become more accustomed tomer experience.560
to e-commerce during the pandemic, the removal of • Malaysian modest fashion brands dUCk and LILIT
social distancing and restricted movement orders offer in-store pickup for online purchases. Customers
have seen them return to in-person shopping. Modest can also return online purchases at a physical store.
fashion retailers would benefit from streamlining sales Potential Outcomes by 2033:
channels and allowing an easy omnichannel experience • Modest fashion brands offer a seamless customer
for customers. Companies can also leverage the data experience across all their sales channels and have
collected from the various interaction points with deep insights into their customers’ purchasing
customers and use this to provide them with a more behavior.
personalized service.

PEXELS
Challenges
1 Most modest fashion brands utilize man-

ufacturers of modest fashion products in
countries like Türkiye and China. Local
turing. Most smaller brands source their products from
these regions, with very few using local manufacturers.
Risk:
production is not common for specialized modest • Events like the COVID-19 pandemic have demon-
fashion products like hijabs and modest activewear. strated the need to have less reliance on offshore
Türkiye is the current hub for the manufacturing of production. Carbon emissions are also higher from
modest fashion goods, particularly modest activewear products manufactured and then transported a large
and hijabs. China is also common for hijab manufac- distance to the consumer.
Designers and creators will be the beneficiaries of

digital fashion, as they will directly own their designs
and be able to further monetize through collaborations.
AI fashion is still in its early stages and needs more
regulations. It will help designers from even remote parts
of the world to partner with brands or directly sell their
creations.”
Afroja K, Founder & CEO, NEOMODEST

CHAPTER
Halal
10
Pharma-
ceuticals
SHUTTERSTOCK

CHAPTER 10: HALAL PHARMACEUTICALS 187
Halal Pharmaceuticals
CONSUMER
OPPORTUNITY
by 2 billion Muslims on pharmaceuticals (2022 est.)
Southeast Asian and European
countries dominate the halal
$108 pharmaceutical ecosystem.
2022
HALAL PHARMA – Financial

(2023) Awareness
Social
5.7% Innovation
CAGR
11
21
$142
2027 31
51
For my kids, I’m constantly
looking for products without
gelatin and in our medications 61
and supplements.”
Laura Hassan, US
71
81
When I buy medicine, I look

at the ingredients to make 91
sure they are halal. I usually
order drugs imported from
100
Türkiye because they have
halal certification.”
1. 2. 3. 4. 5.
Fuad Akbarov, Azerbaijan SINGAPORE BELGIUM MALAYSIA FRANCE INDONESIA

SIGNALS OF
Halal pharma efforts drive OPPORTUNITIES
SDGs: drug traceability,
IMPACT
education, global medical
Halal vaccines Low
collaboration. and biopharma
Moderate
Local pharma High
regulation
UAE’s Tatmeen drug tracking.
Harmonized halal
standards
Qatar enhances pharmacy
education. Pharma
tech
Indonesia and Iran collaborate to pilot

telerobotic surgery and telemedicine. Green halal
pharma

Significant funding is flowing into the local pharmaceutical manufacturing industry.
Pharmaceutical products are mainly sourced from non-OIC countries.
US$ BILLION (2022)
Top 5 halal pharma consumer markets Top 5 countries exporting to OIC
Türkiye 10.5 Germany 5.2
Saudi Arabia 9.5 US 4.3
United States 8.2 Belgium 3.9

Indonesia 6.1 France 3.7
Algeria 4.5 India 3.3
$42 billion of pharma imports by OIC countries

= 1 deal
Indonesia Egypt Malaysia Morocco US $702 million

in halal pharma related
investments in 2022/23
reference. Pharma exports are based on ITC Trademap 2022 data. Projections are baselined on data from IMF Outlook from April 2023. Investments (figures

There have been new possibilities and promising
innovations for halal pharmaceutical industry
players, with tangible progress made on many
fronts, including standards, local manufacturing,
certification of new drugs, and traceability. Low
consumer awareness, persistent inflation, talent
shortages, and import dependence on Active
Pharmaceutical Ingredients (APIs) in some OIC
countries could, however, derail progress.
T
he COVID-19 pandemic has dom- more so in the halal pharmaceutical sector, which is why
inated almost every aspect of the the UAE has launched a new national drug tracking system.
pharmaceutical industry over the In Nigeria, Chekkit, a blockchain-powered drug-tracking
past few years, providing opportu- solution provider, secured funding that will enable it to
nities for local vaccine manufac- support more manufacturers across Africa and expand
turing in OIC countries. As a result, into the Middle East and beyond. There has also been
SaudiVax is positioned to become the an increasing uptake of AI solutions to accelerate local
first manufacturer of halal vaccines and biotherapeutics in pharmaceutical manufacturing in OIC countries, which
Saudi Arabia, and Indonesia has launched its first home- will help advance halal medicine.
grown halal-certified COVID-19 vaccine. While globally harmonized halal standards are not
Building stronger local health resilience and grow- yet in place, the OIC organization SMIIC published a new
ing the local economy are driving major pharmaceutical standard in 2022 covering the manufacturing and trans-
industry localization projects, particularly in GCC and portation of halal pharmaceuticals. Talent development
Southeast Asian countries such as Indonesia, Malaysia, for the halal pharmaceutical sector is still minimal, and
Saudi Arabia, and the UAE. These initiatives are becoming there remains a shortage of skilled individuals who can
a catalyst for halal pharmaceutical development. Abu build the industry with strong knowledge of both shariah
Dhabi’s newly launched M42, a tech-enabled healthcare and science.
company, is now looking to advance medical research and As more halal medicines and innovations are com-
capabilities in the UAE, while Saudi Arabia’s PIF launched mercialized, and accreditation practices are increasingly
Lifera to boost local pharmaceutical manufacturing. In harmonized, halal pharmaceuticals will continue to scale
Asia, China and Indonesia are investing US$120 million in up and expand.
two state-owned Indonesian pharmaceutical companies, Muslim spend on pharmaceuticals was US$108 billion
and a growing trend has seen Korean companies create in 2022 and is forecast to reach US$142 billion by 2027.
JVs to develop pharma businesses in Indonesia.
Although dedicated funding for the development of
halal pharmaceuticals is still limited, innovation in the
sector is progressing. Malaysian companies continued to
drive forward such innovation, with Duopharma becoming
the first in the country to receive halal certification for
oncology products in 2022 and Pharmaniaga aiming to
commercialize Malaysia’s first halal blood anticoagulant
drug by 2024.
Traceability of drugs remains crucial for maintaining
product integrity in the pharmaceutical industry, and even

2022/23
Developments
REVENUE DEVELOPMENTS Some OIC countries experienced an increasing inflation

rate amid their import-dependent pharma ingredient
Amid inflation challenges, the pharmaceutical indus- economy, resulting in high drug prices and shortages.
try in OIC countries is striving to build its local pharma • Pakistan approved a drug price rise of up to 20%, but
industry. Key localization efforts are spearheaded by GCC manufacturers demanded a 39% increase, warning
and Southeast Asian countries, while startup innovation that the industry could collapse.561
funding is becoming more diversified across some major • Drug manufacturers in Nigeria are considering relo-
and emerging OIC economies. Local production is crucial cation due to rising production costs.562 The cost of
for the development of the halal pharmaceutical industry. bringing materials from Asia to Nigeria is increas-
ing, while the consumer capacity to buy medicine
Latest Projections is limited.
• Hundreds of medicines, including important treat-
Muslim consumer spend on pharmaceuticals grew by 7.8% ments for heart disease, diabetes, and cancer, have
in 2022, reaching US$108 billion from US$100 billion in 2021. been experiencing shortages for months in Tunisia.563
Türkiye, Saudi Arabia, and the US remain the three largest • Children’s medicine and cancer treatments have
markets for Muslim consumer spend on pharmaceuticals. become the top-listed drugs that have long been
Muslim spend on pharmaceuticals is forecasted to reach out of stock in Türkiye.564
US$142 billion by 2027, at a CAGR of 5.7%.
Significant funding is flowing into the local pharma-
Note: This does not represent the actual value of ‘halal-cer- ceutical manufacturing industry, which is becoming a
tified’ pharmaceutical consumption. Rather, it represents catalyst for halal pharmaceutical industry development.
the core addressable Muslim consumer market spending in This major funding is primarily led by Middle Eastern
the general pharmaceutical category. and Southeast Asian Pacific countries.
• Saudi Arabia’s PIF launched Lifera to boost local
Investments Summary pharmaceutical manufacturing. Lifera will manu-
facture essential pharmaceutical products and create
In 2022/23, 35 deals related to the pharmaceutical industry partnerships to enhance the capacity of the local
were recorded. 22 of these deals were disclosed and valued pharmaceutical industry.565
at US$702 million. This is a 40% decrease from the US$1.1 • Saudi Arabia announced an investment opportunity
billion invested across 19 deals in 2021/22. in the vaccine and vital medicine industry, valued
United States Private Equity Pharmaceuticals, Biotechnology Recursion 150,300

and Life Sciences (Primary) Pharmaceuticals, Inc.
(NasdaqGS:RXRX)
Indonesia Venture Capital Commerce and Shopping, Health Kimia Farma Apotek 119,235
Care
United States Venture Capital Pharmaceuticals, Biotechnology Neumora Therapeutics, 112,400

and Life Sciences (Primary) Inc.
Morocco Venture Capital Medical, Pharmaceutical Laprophan 72,208
Morocco Private Equity Health Care, Hospital, Medical Oncorad groupe 45,358

PEXELS
PEXELS
Habitas Al’Ula Hotel,

Saudi Arabia.

at US$3.4 billion. The first phase of the investment Health Fund. For the fund’s first stage, the two firms
will focus on localizing vaccine, plasma, and insu- built a US$20 million investment vehicle for early and
lin technologies. The second phase will be followed growth-stage startups in the biotech and healthcare
by localizing immunological and cancer treatment industry.581
technologies.566 • Pakistan’s MedzMore has raised more than US$11.5
• One of the leading pharmaceutical companies in Saudi million in the country’s largest funding round by a
Arabia, Jomjoom, has raised US$336 million in an IPO healthcare startup.582 The MedzMore platform pro-
on the Tadawul Stock Exchange.567 This has become vides users with access to purchase medicines and
the largest retail pharmaceutical IPO in Saudi Arabia.568 wellness products, as well as functioning as a B2B
• Abu Dhabi’s Mubadala and G42 launched M42, a platform for the medical supply chain.583
“tech-enabled” healthcare company, to advance med-
ical research and capabilities in the UAE.569 While investment in halal pharma development remains
• Mubadala and Resilience collaborated to develop the specialized and R&D budgets are limited, there is a
first Goods Manufacturing Practice (GMP) biopharma noticeable advancement in halal pharma products and
facility in the UAE, the first of its kind in the region, innovations.
to manufacture essential life science products for • SaudiVax is collaborating with Merck to develop halal
advanced biologics.570 vaccines and biotherapeutics. The group is positioned
• ADQ bought Birgi Mefar Group (BMG), one of Türkiye’s to become the first developer and manufacturer of
leading manufacturers of sterile injectable products.571 halal vaccines and biotherapeutics in Saudi Arabia.584
• Eczacibasi acquired the Turkish pharmaceutical com- • Pharmaniaga is planning to commercialize Malaysia’s
pany Gensenta from Amgen in a deal worth US$135 halal blood anticoagulant drug.585
million.572 • Duopharma became the first company in Malaysia
• IsDB, together with the African Development Bank to receive halal certification for oncology products.586
and the European Investment Bank, launched a new • Indonesia launched its first home-grown, halal-cer-
investment platform for primary healthcare services.573 tified COVID-19 vaccine.587
• The African Development Bank approved a US$6.63
million grant to the Common Market for Eastern and
Southern Africa (COMESA) to develop the pharma- OPERATIONAL DEVELOPMENTS
ceutical sector.574
• Egypt’s sovereign fund unveiled a B2B pharma venture A growing number of local manufacturing facilities
to boost the pharmaceutical sector.575 have been established to build the local pharmaceutical
• China’s Silk Road Fund and Indonesia’s INA sovereign industry. They are supported by global partnerships in
fund invested US$120 million in two state-owned knowledge transfer and to facilitate market penetration.
Indonesian pharmaceutical companies, Kimia Farma • The Indonesian state pharmaceutical holding company,
and Kimia Farma Apotek.576 Biofarma Group, through its subsidiary Kimia Farma,
• South Korea’s Bioneer and Indonesia’s Indika Energy signed an MoU with a Chinese state firm, Sinopharm,
formed a joint venture to sell molecular diagnostic to develop and increase business potential related to
products in Southeast Asia. 577 Additionally, South the development of medical raw materials.588
Korea’s SK Plasma will build a blood product plant • MHD signed a deal to establish Pen-G, Oman’s first
through a joint venture with an Indonesian com- pharmaceutical manufacturing facility.589
pany, which is expected to be worth around US$250 • Bahrain International Medicine Manufacturing
million.578 Company Limited (Bahrain Pharma) established its
first pharmaceutical production plant in Bahrain.
number of digital health startups received funding to
A It produces omega-3 and cough syrup, which will
support their innovative ideas, including from Pharma be marketed in Saudi Arabia, Oman, Kuwait, Iraq,
CVC (Corporate Venture Capital) firms. and Yemen.590
• Altibbi, a Saudi Arabian digital health platform, raised • The World Health Organization (WHO) has approved
US$44 million in a Series B round, marking the largest zinc sulfate 20mg dispersible tablets manufactured
single financing round in the regional digital health by Swiss Pharma Nigeria Limited in Lagos, Nigeria.591
economy. The round was led by Foundation Holding This approval marked the first pharmaceutical product
and Hikma Venture, with participation from existing and manufacturer to receive WHO prequalification
investors Global Ventures and Dash Ventures.579 in West Africa.
• Yodaws, an Egyptian healthcare startup that connects • In line with Pharmaniaga’s plan to establish the world’s
pharmacies, insurance companies, and pharmaceuti- first halal vaccine plant, the company aims to develop
cals with patients, has secured a US$16 million Series a children’s hexavalent vaccine by 2023.592 This vaccine
B funding round.580 will protect against six diseases: diphtheria, tetanus,
• MDI Venture collaborated with Indonesia’s largest pertussis, poliomyelitis, Haemophilus influenzae type
pharmaceutical group, Bio Farma, to launch the Bio- B, and hepatitis B.

The UAE and Nigeria have introduced blockchain-based • Bloom Public Health, along with its technical partner
drug-tracking solutions. Biotech Training Facility in the Netherlands, is set to
• The UAE officially launched a national drug tracking launch the African Vaccine Academy (AVA), which aims
system named Tatmeen. The platform enables the to provide training to enhance local pharmaceutical
traceability of drugs throughout the entire supply skills in Africa.602
chain on a single digital platform.593
• Nigerian startup Chekkit, a blockchain-powered drug
safety and tracking solution provider, has successfully NATIONAL/TRADE DEVELOPMENTS
assisted over 50 million pharma and consumer goods
products, ensuring that end-users have access to Pharmaceutical imports have normalized with a decrease
safe and genuine products.594 In 2022, the startup of more than 30.92% in 2022, following a 40.25% jump in
secured funding that will be utilized to support more 2021 due to the soaring demand for global vaccine imports
manufacturers across the African region and facilitate in OIC countries. In 2022, OIC imports stood at US$42
expansion into new markets in India, the UK, and the billion. However, it is predicted that global pharmaceutical
Middle East. imports to the OIC will grow to US$56.7 billion in 2027
with a 6.8% CAGR.
The adoption of technologies like artificial intelligence
(AI) is accelerating local pharmaceutical manufacturing in
OIC countries. Technology can assist in various aspects, OIC HALAL PHARMA IMPORTS AND GROWTH
such as drug discovery, development, and tracking, which (2022-2027)
are essential for the advancement of halal medicine.
• Insilico Medicine, a clinical-stage artificial intelli-
US$ BILLION
gence-driven drug discovery company, opened the

region’s largest AI-powered biotechnology research
center in Abu Dhabi.595
• A healthtech startup from Indonesia, Halodoc, $42.0
$56.7
launched an AI-based chatbot to assist doctors in 2027 (f)
2022 CAGR
diagnosing patients.596
6.80%
• Tunisia-based AI startup InstaDeep was acquired by
BioNTech SE in a US$684 million deal. The acquisi-
tion is part of BioNTech’s strategy to build a leading
AI-driven drug discovery and development company.597 Source: DinarStandard synthesis and analysis

Emirates Health Service uses the metaverse in healthcare
delivery, while Nigeria debuts its telemedicine platform, Saudi Arabia, Türkiye, and Egypt are the top three
NigComHealth. importers among OIC countries, accounting for a combined
• Emirates Health Service started deploying metaverse 32.2% of imports. Pharmaceutical exports from the OIC
technology in healthcare delivery. It is one of the amount to only US$5.2 billion, compared to imports of
pioneers of healthcare providers in the MENA region US$60.8 billion, highlighting a high dependence on pharma-
to apply metaverse technology to provide advanced ceutical product imports. The majority of pharmaceutical
and sustainable health services.598 products are sourced from non-OIC countries, including
• Nigeria launches its first telemedicine platform, Germany, the USA, and Belgium.
NigComHealth, to improve healthcare access across In the post-pandemic era, there have been many dis-
the country.599 cussions on how global regulations can protect the intel-
lectual property of pharmaceuticals while still promoting
Some OIC countries are trying to shorten the skills gap inclusive and affordable access to their pharma inventions.
through curriculum reform and upskilling programs, OIC countries are trying to decrease their dependency on
especially with a greater focus on pharmatech and patient developed countries with major IP licenses by building
care. However, talent development, specifically for halal stronger collaborations.
pharma talent, is still minimal.
• The UAE Department of Health has launched a series Global discussions are underway regarding protecting
of training courses as part of its “Healthcare Workforce pharmaceutical intellectual property while promoting
Upskilling” program.600 inclusive and affordable medicine.
• Qatar is updating pharmacy education as a result of • The pharmaceutical industry is calling for stron-
pharmacists’ changes. This change follows the global ger IP protection in free trade agreements. A new
pharmacy education trend, shifting from focusing study commissioned by the European Centre for
solely on drugs and chemical specifications to a more International Political Economy (ECIPE) found that
clinically oriented and patient-centered approach.601 stronger intellectual property protection in free trade

Halal Pharma Trade
US$ BILLION (2022)
Exports Imports
$5.2
$60.8

Germany 5.17 Saudi Arabia 5.55

United States of America 4.26 Türkiye 4.55
Belgium 3.89 Egypt 3.43
France 3.67 United Arab Emirates 3.09
India 3.30 Malaysia 2.22
Switzerland 3.30 Kazakhstan 1.85
China 2.11 Uzbekistan 1.58
Italy 1.56 Indonesia 1.51
United Kingdom 1.44 Pakistan 1.28
Ireland 1.35 Algeria 1.22
agreements will benefit the EU economy, including The UAE, Egypt, Jordan, Indonesia, Iran, and African nations
in attracting larger investments. Based on this study, are strengthening regional collaboration with significant
the pharmaceutical industry is the most IP-intensive investments and partnerships in areas like pharmaceu
industry in Europe, followed by the ICT and elec- ticals, medical technology, and digital health innovations.
tronic sectors.603 • The UAE, Egypt, and Jordan have reached an agreement
• The WTO approved a waiver of IP protections for to establish a US$10 billion industrial partnership
COVID-19 vaccine patents, previously secured under investment fund.606 These countries will collaborate
the Trade-Related Aspects of Intellectual Property in five key areas: food, agriculture and fertilizers,
Rights (TRIPS).604 The WTO is also considering expand- pharmaceuticals, textiles, minerals and metals, and
ing this waiver to include COVID-19 diagnostics and petrochemicals.
therapeutics in addition to the vaccine. • The pharmaceutical industry in Africa has become
• The EU revamped its drug laws after the COVID-19 one of the highest-potential sectors affected by the
pandemic and drug shortages, aiming to revive invest- AfCFTA free trade area.607 Pharma also has high prod-
ment and enhance affordable access while facing a uct complexity, which has led to a higher opportunity
drained health budget due to the cost of treating for high local value-added production.
COVID-19.605 • Indonesia and Iran are collaborating on a pilot project
focused on telerobotic surgery and telemedicine.608

ECOSYSTEM DEVELOPMENT • The pharmacy sector in Tunisia is undergoing radical
changes, including measures to reform legislation,
OIC countries such as Egypt, Nigeria, the UAE, Saudi Arabia, including the granting of medicine marketing autho-
and Pakistan have made progress in building their regulatory rizations.610
frameworks to support global standards in local manufac-
turing. Ensuring quality Good Manufacturing Practices (GMP) Progress has been made in the global harmonization of
is important as it serves as the foundation for halal pharma halal pharmaceutical standards led by SMIIC.
regulations. Halal regulations have also been established • SMIIC announced the publication of a new halal
in countries such as Russia, Bangladesh, and Zimbabwe. standard (OIC/SMIIC 50-1:2022) that addresses the
manufacturing and transportation of halal pharma-
Several OIC countries, including Egypt, Nigeria, Tunisia, ceuticals based on Islamic rules. This standard covers
and Pakistan, are making significant strides in health the basic requirements for all organizations, regardless
regulation. of size and complexity.
• Egypt and Nigeria’s medical regulatory agencies have
achieved the WHO’s maturity level 3 for vaccines
and medicines, respectively. Both nations qualify SOCIAL IMPACT DEVELOPMENTS
for the WHO’s globally recognized listed authorities.
Similarly, Indonesia attained this status in 2019 for The African Development Bank has established the African
local vaccines.609 Pharmaceutical Technology Foundation (APTF) to trans-
• The Drug Regulatory Authority of Pakistan (DRAP) form Africa’s pharmaceutical industry.611 The foundation is
has finalized its first consolidated guidelines on Good committed to spending at least US$3 billion over the next
Manufacturing Practices (GMP). The final guidelines 10 years to support the pharmaceutical and vaccine man-
clarify that licensed companies need standardized ufacturing sectors under the Vision 2030 Pharmaceutical
facilities, talents, procedures, and materials to “permit Action Plan.
future examination.”
PEXELS

Signals of
Opportunity
The emergence of
Vaccines and pharma tech, especially
biopharmaceuticals are a artificial intelligence (AI), hybrid
growing area in halal pharma manufacturing facilities, tracking
The Muslim reaction to the vaccine technology, and telemedicine
during the recent pandemic has led These technologies not only
to an increased demand for halal- boost awareness and access to
certified vaccines, and the industry halal medicines but also increase
wants to sustain this efficiency and trigger more
momentum. innovation in the halal
pharma industry.
Harmonized halal standards

for the pharmaceutical industry
Global coordination on global halal
pharma standards initiated by
organizations such as SMIIC help
boost the halal pharma industry. In
2022, SMIIC published a new halal
standard covering the manufacturing
and transportation of halal
pharmaceuticals based
on Islamic rules.
Progression in Innovation
pharmaceutical industrial to develop local and green
regulation in OIC countries halal pharmaceutical products
Countries like Nigeria and Egypt With the rising consumer demand
have recently reached level 3 in WHO for sustainability standards, halal
regulatory standards, potentially green pharmacy has the opportunity
boosting local pharmaceutical to give stronger value to broader
production. consumer segments.

Strategic
Considerations by
Stakeholder
INVESTORS
Opportunities
1 Integrating an impact investment

approach to develop the halal and green
pharma industry.
Relevant Development:
• Indonesia promoted Green Pharmacy implementation
for strengthening global health in the T20 Forum.
Impact investment aligns with the Tayyib values of the With green pharmacies, countries such as Indonesia
halal and green pharmaceutical industry. Deal screen- can achieve independence in terms of Active Raw
ing, analysis, and portfolio management should consider Materials (APIs) in local production, have stronger
measurable innovation, impact and sustainability. environmental systems, and enhance farmer welfare.
Potential Outcome in 2033:
• The halal pharmaceutical industry can become more
attractive to many global impact investors. It can
also strengthen tayyib values in halal, focusing not
only on halal compliance but also on impact and
sustainability.
2 Localize pharmaceutical technology

innovation.
Leverage partnerships and joint venture
• Biofarma and MDI Ventures launched a US$20 million
BIO-Health Fund.
models to localize halal pharmaceutical innovation, • Abu Dhabi’s Mubadala and G42 launched M42, a
combining proven technology with local halal exper- tech-enabled healthcare company, to advance medical
tise. Significant opportunities are available in OIC research and capabilities in the UAE.
countries, specifically the GCC and Southeast Asia, Potential Outcome in 2033:
with the potential for investments in the halal pharma • Increasing investment in local pharmaceutical inno-
sector. vation in OIC countries will contribute to the larger
capacity of these countries to develop their own halal
products.
Challenges
1 Low IP protection in major OIC countries.

Major drug discovery and development
come from countries with strong data
Potential Risk:
Low investment interest in the OIC pharma industry
also affects the innovation required to develop specific
privacy and protection policies. The pharmaceutical halal pharmaceutical products.
industry is driven by high-risk investments in inno-
vation, where data and knowledge are crucial assets.
Currently, only three OIC countries have GDPR-like IP
protection: Türkiye, Egypt, and Nigeria.

Pharmaceutical companies that want to enter the
Indonesian or Malaysian market are aware of halal
certification. They consider Indonesia as a base from which
they can advance into other Islamic markets. This is why
they enter into a JV and enter the Indonesian market. Also,
maybe Indonesia has a good strategy and gives incentives
to foreign pharma companies to enter the market.”
James Noh,
President, Korea Institute of Halal Industry, South Korea
PEXELS

GOVERNMENTS
Opportunities
1 Bring more stakeholders into the global

halal pharmaceutical harmonization
and coordination forum. More diverse
• Global coordination and discussion of global halal
pharma standards initiated by organizations such as
stakeholders are needed to build a harmonized and SMIIC help boost the halal pharma industry.
sustainable global halal pharmaceutical industry. • In 2022, SMIIC published a new halal standard cov-
This includes not only government and halal standard- ering the manufacturing and transportation of halal
ization organizations but also companies, academia, pharmaceuticals based on Islamic rules. It defines
consumer communities, associations, and more. minimum requirements that are applicable to an
organization regardless of size and complexity. This
standard was developed with active involvement by all
major stakeholders from the OIC member countries,
namely the government, pharmaceutical regulatory
authorities, halal certification competent authorities,
standardization agencies, industry players, shariah
scholars, and academia.
• More vibrant, diverse, and representative global halal
pharma synergy.
• Hospitality services and infrastructure.
2 Strengthening collaboration in building

halal pharmaceuticals in Africa.
Although the development of pharma-
• The WHO announced that Egypt’s and Nigeria’s med
ical product regulatory agencies have reached matu
ceuticals, specifically halal pharmaceuticals, is still at rity level 3.
an early level, some African countries show important • The pharmaceutical industry in Africa has become
development. With a large Muslim population, major one of the highest-potential sectors affected by the
trade agreements, growing digital capacity, and regu- AfCFTA free trade area.612
latory advancements in some African countries, there Potential Outcome in 2033:
is a significant opportunity for collaboration to build • Growing capability of African countries to build their
the halal pharmaceutical industry in Africa. foundation in the halal pharma industry.
The most important challenge is to find technical experts

who know about halal. Many are technical but have no
information about halal. I can find a lot of experts on
vaccines and on fiqh, but people who know both are
very difficult to find. If there were more people, work
would be easier.”
Dr. Ali Alsheikh,
SMIIC TC16 Halal Pharmaceuticals Technical Advisor

Challenges
1 Top-down regulation in developing halal

pharmaceuticals.
Despite the pharmaceutical industry
Potential Risk:
• The halal pharma industry is not aligned with real con-
sumer needs and problems, resulting in low demand.
being highly regulated, bottom-up initiatives from
consumers and private companies to develop the halal
pharma industry remain low. Many stakeholders at the
grassroots level are still unaware of and unconcerned
about halal pharma.
2 Limited talent to build the halal pharma-

ceutical industry with a strong knowl-
edge of both shariah and science.
by the private sector but also by regulators and halal
standard organizations.
Potential Risk:
The halal pharmaceutical industry is highly knowl- • Limited capability to build halal standards and reg-
edge-intensive, demanding a high standard of capability ulations in the pharma industry.
in shariah and science. This challenge is faced not only
BUSINESSES
Opportunities
1 Boosting research and development for

halal vaccines and biopharmaceuticals.
Consistent effort is needed to maintain
• SaudiVax, in collaboration with Merck, is positioned
to become the first developer and manufacturer of
vaccine and biopharmaceutical momentum in the halal vaccines and biotherapeutics in Saudi Arabia.
post-pandemic era. Halal Vaccine OIC Centers of • Indonesia launched its first home-grown, halal-cer-
Excellence, such as Biofarma, can play an active role tified COVID-19 vaccine.
in leading the development of halal vaccines through • Malaysia’s National Institute of Biotechnology,
collaboration with all OIC countries. through the Malaysia Genome Vaccine Institute
(MGVI), signed a MoU with MVP Healthcare Sdn
Bhd and Pfizer Malaysia Sdn Bhd to develop a local
vaccine ecosystem.613
• Vaccines and biopharmaceuticals can become some
of the largest halal-certified pharmaceutical products
in OIC countries, playing a crucial role in enhancing
access to halal medicine and healthcare.
2 Integrating technology and halal prin-

ciples from the start is essential for a
• Duopharma used hybrid technology to produce halal
long-term roadmap. pharmaceutical products.
Numerous digital technologies, including AI, 3D engi- • Insilico Medicine, a clinical-stage artificial intelli-
neering, telemedicine, and hybrid manufacturing, are gence-driven drug discovery company, opens the
rapidly growing and becoming integral parts of inno- region’s largest AI-powered biotechnology research
vation within the halal pharmaceutical industry. center in Abu Dhabi.
• Nigerian startup Chekkit, a blockchain-powered drug
safety and tracking solution provider, has successfully

assisted over 50 million pharma and consumer goods Potential Outcome in 2030:
products, ensuring that end-users have access to safe Halal has become integral in business sustainability
and genuine products. and innovation, not merely an added value. Halal can
adapt to and leverage the latest technology, remaining
relevant and in step with significant advancements.
Vaccines and biopharmaceuticals are emerging as

potential areas in halal pharma. The reactions of Muslims
during the recent pandemic justify the shift of focus
towards halal. RnD should begin as soon as a company
starts developing a product.”
Rozi Osman, Halal Industry Strategist
“We found that we are able to employ a hybrid

technology, enabling us to use the same production
line for biosimilars to also manufacture vaccines. The
advantage is that we can manufacture two different types
of products. One is a therapeutic product and the other, a
vaccine product, on a single line.”
Wan Amir Jeffrey, COO Duopharma Biotech
Challenges
1 High import dependence on Active

Pharmaceutical Ingredients (APIs) in
OIC countries.
Potential Risk:
In addition to the difficulty of halal tracking, there is
a business vulnerability to supply chain shocks and
Import dependence has become a challenge for halal price volatility.
pharmaceutical companies that are starting their halal
initiatives.
One of the main causes of the slow speed of halal

certification for the pharmaceutical industry is that the
source of raw materials for medicines is still imported at
95% from abroad.”
Agusdini Banun Saptaningsih,

Director of Pharmaceutical Production and Distribution,
Ministry of Health of the Republic of Indonesia614

PEXELS

CHAPTER
Halal
11
Cosmetics
ADOBE STOCK

CHAPTER 11: HALAL COSMETICS 207
Halal Cosmetics
CONSUMER
OPPORTUNITY
by 2 billion Muslims on cosmetics (2022 est.)
Southeast Asian and European countries
dominate the halal cosmetics ecosystem.
$84
2022 HALAL COSMETICS – Financial
(2023) Awareness
Social
Innovation
8.9%
CAGR
11
21
$129
31
2027
41
51
61
71
81
For perfume sprays, I think

a lot of them are alcohol- 91
based, but we just try to
use all-natural essential
100
oil sprays. Just water and
essential oils are better.”
1. 2. 3. 4. 5.
Laura Hassan, US SINGAPORE BELGIUM MALAYSIA FRANCE INDONESIA

SIGNALS OF
Halal cosmetics contribute OPPORTUNITIES
to SDGs: economic growth,
IMPACT
innovation, responsible
Skin-friendly Low
consumption. makeup
Moderate
VC funding High
Morocco licenses argan for startups
oil exports.
Non-alcohol
L’Oréal partners with the perfumes gaining
metaverse avatar platform, popularity
Ready Player Me. Growing trend
of Korean cosmetics
in MENA
Paragon’s new Looklab promotes
sustainable halal lifestyle.
Live commerce
strengthens halal beauty
influencer

Some of the biggest deals were made by Indonesian companies, such as Social Bella. France
continues to lead as the top exporter to the OIC (16% of total exports).
US$ BILLION (2022)
Top 5 halal cosmetics consumer markets Top 5 countries exporting to OIC
India 6.9 France 2.6
Indonesia 5.4 Ireland 1.02
Türkiye 4.9 China 1

Russia 4.8 Germany 0.97
Egypt 4.6 US 0.89
$15.6 billion of cosmetics imports by OIC countries

= 1 deal
Indonesia Uganda India $99 million

in halal cosmetics
related investments
reference. Cosmetics exports are based on ITC Trademap 2022 data. Projections are baselined on data from IMF Outlook from April 2023. Investments (figures

The global beauty market is shining once again as
the industry bounces back after a pandemic decline.
Halal cosmetics brands kept up with international
trends by embracing environmental sustainability
and immersive technologies, as well as product co-
creation. With such developments, funding is poured
into promising halal beauty startups to help expand
their reach and tap new markets.
T
he explosive growth of social media this space include Clinique, L’Oréal, and Southeast Asia’s
platforms has played a huge role in e-commerce giant Lazada.
raising awareness of clean and halal Funding and M&A activity driven by the Middle East
beauty in recent years. Celebrity and Southeast Asia continued through 2022/23, with direct-
endorsements and Korean beauty to-consumer brands accounting for the lion’s share. Some
content have also influenced men’s of the biggest deals were made by Indonesian companies,
skincare habits in OIC markets. The such as Sociolla, which secured US$60 million in funding,
Skintellectual generation is particularly spurring these and beauty brand YOU, which raised US$40 million.
trends. Driven by TikTok, these consumers are well-informed Regulatory oversight has increased in several mar-
about clean and halal beauty and often share knowledge kets. Singapore, for example, started mandatory packaging
in their beauty communities. reporting in 2022, while Pakistan plans to establish its
As younger generations become increasingly aware of first cosmetics authority, a move that will support the
sustainable beauty products, brands are leveraging their local industry’s growth on a global scale.
communities and turning to co-creation for product devel- As halal cosmetics brands continue to meet consumer
opment and sales. One such brand is virtual-led beauty demand for unique products such as multitasking makeup
platform KIKI, which in 2023 launched Pretty Nail Graffiti sticks and alcohol-free fragrances, and as they continue
and invited members to vote on the colors of nail polish to put their brand communities first through product
it produces. Indonesia’s ‘Mad for Makeup’ also tapped co-creation, the sector will ultimately grab a bigger share
into Gen Z, leveraging its 1,000+ members for product of the global beauty market in the years to come.
development and marketing. Muslim spend on cosmetics was estimated at US$84
Responding to the growing demand for natural per- billion in 2022 and is forecast to reach US$129 billion by 2027.
fumes, global brands like Dior launched their first-ever
alcohol-free and water-based fragrances, while Indonesia’s
halal-focused Wardah Beauty introduced men’s perfumes. A
range of brands are also investing in supply chain upgrades
to become more sustainable. L’Oréal, for example, invested
in a new venture to create sustainable alternatives to
key beauty-product ingredients, while other brands are
integrating sustainable packaging, such as Indonesia’s
beauty lifestyle store Looklab.
Meanwhile, new technologies like augmented reality
(AR) and artificial intelligence (AI) are reshaping customer
interactions with beauty brands, ushering in immersive
and personalized experiences. Companies investing in

2022/23
Developments
REVENUE DEVELOPMENT Investments Summary
The beauty industry experienced a rebound in makeup There were a total of 10 cosmetics-related deals in 2022/23.
demand post-pandemic, triggered by more intense outdoor Seven of these were disclosed and valued at US$99 million.
activities and relaxed mask-wearing regulations. Social This is an increase of 10% from the US$90 million invested
media platforms, such as TikTok, have raised customer in 2021/22, where three deals were disclosed.
awareness of authentic, clean, and halal beauty. They have
also impacted the increased adoption of skincare products There has been a rebound in demand for makeup, espe-
among men. With the increasing demand for halal beauty cially lip products.
products, several halal beauty startups secured funding • Makeup, especially lipstick, has rebounded in the
from VCs to tap into maximum opportunities. post-pandemic era.615 Besides more outdoor activ-
ities and relaxed mask-wearing, it also becomes an
Latest Projections emotional boost amid difficult times in the pandemic
and post-pandemic.616
In 2022, Muslim consumer spend on cosmetics reached • Increasing trend of hybrid, a multitasking product
US$84 billion. This is an increase of 14.3% from 2021, when where skincare benefits are added to makeup formulas
spend was valued at US$74 billion. India and Indonesia to improve skin quality with each wear.617 Customers
remain the top two largest markets by Muslim consumer are increasingly moving to simple beauty usage and
spend on cosmetics; however, Türkiye has moved up to are aware that healthy skin is the foundation of beauty.
third position. This market is forecasted to grow at a CAGR
of 8.9% between 2022 and 2027, reaching US$129 billion The Skintellectual generation is emerging, driven by
by 2027. social media, especially TikTok. It is a generation with
rising knowledge and awareness of clean and authentic
Note: This does not represent the actual value of ‘halal-cer- beauty. This is a generation that is open and eager to learn
tified’ cosmetics consumption. Rather, it represents the new concepts, including halal beauty. Some ingredients,
core addressable Muslim consumer market spending in the such as retinol and niacinamide, also gained popularity
cosmetics category. on social media due to their important functions for
healthy skin.
Indonesia Venture Capital Commerce and Shopping, Sociolla 60,000

Community and Lifestyle,
Consumer Goods
Indonesia Venture Capital Beauty, Cosmetics, Somethinc Beauty 10,0000

Personal Health
India Venture Capital Halal and Vegan IBA Cosmetics 10,000

Cosmetics
Indonesia Venture Capital Beauty, Cosmetics, E-Commerce, Base 6,000

Wellness
Indonesia Venture Capital Fitness, Health Care, Youvit 6,000

Wellness

• Global makeup trends in 2022, such as “passport halal-certified IBA Cosmetics Series B round.629 The
makeup,” “red nail theory,” and “slugging,” are pow- deal amounts to US$10 million, adding more halal-cer-
ered by TikTok. These trends have also dominated tified brands to their portfolio.630
Google’s top trending beauty searches for 2022.618 • Purplle, a retailer of beauty and personal care prod-
Ingredient research is also prevalent on TikTok; many ucts in India, has recently raised a funding round of
users searched for niacinamide, hyaluronic acid, US$50-60 million from the Abu Dhabi Investment
and retinol.619 Authority (ADIA).631
• In Indonesia, retinol is also gaining popularity on • The Saudi Arabia-based beauty e-commerce platform
Twitter due to its important functions for healthy Kaya has raised US$2.6 million in seed funding from
skin.620 Avoskin, Originote, and Azarine are top brands Revival Lab and others.
that are often mentioned by Indonesian consumers • The UAE-based sustainable skincare platform, Secret
in conversations about retinol.621 Skin, has secured US$765,000 in a pre-seed funding
• With salons reopening, there has also been an increase round. The round was led by angel investors, with
in beauty product purchases and knowledge transfer participation from the INSEAD and Wharton Alumni
at clinics. According to a survey, 80% of physicians groups.
indicate an increase in revenue for professional skin-
care products.622 Consumers prefer products that are
wellness-oriented, designed to repair damaged or
irritated skin, and have clean beauty claims.
TikTok and Korean beauty content also led to an increase

in men’s skincare demand in OIC countries.
• Saudi Arabian men are ‘more open’ to having cos-
metic procedures, driven by social media and celebrity
culture.623
• Product premiumization has become one of the latest
trends for male skincare products.624
• The Korean wave plays a significant role in driving
increased exposure of skincare brands to more men.
As awareness of dermatological health grows, skin care
is no longer exclusively for women but also for men.625
Middle East and Southeast Asia secured funding to boost

halal products, with much room for growth. D2C brands
dominated the recent halal cosmetics funding.
• Indonesia’s largest beauty startup, Social Bella, has
secured a US$60 million funding round led by Temasek
and L Catterton.626 Social Bella has transformed from
an initial e-commerce platform to a more complete
beauty ecosystem, covering end-to-end O2O marketing
and beauty brand development.
• Indonesian beauty brand YOU raised US$40 million
in a new Series C funding round led by China-based
venture capital firm Hidden Hill Capital.
• Indonesian beauty brand Somethinc – Beauty Haul
has raised US$10 million in a Series B funding round
led by Sequoia Capital India and Prosus Ventures. All
Somethinc products are certified by BPOM (Badan
Pengawas Obat dan Makanan) and are also halal-cer-
tified.627
• The Singapore beauty startup Believe has raised US$55
million in a Series C funding round led by Venturi
Partners and IIF AMC. Nicholas Cator, the founder of
Venturi, stated that they are confident that, with a
strong team and a group of investors, they will emerge
ADOBE STOCK
as the leading global halal and clean BPC (Beauty and

Personal Care) house of brands.628
• Singapore’s Believe Pte Ltd. invests in the Indian

OPERATIONAL DEVELOPMENTS creative meetups, AR games, and virtual try-on expe-
riences. Looklab is built on four pillars, including halal
As customers become increasingly aware of clean and technology, creativity, innovation, and sustainability.
sustainable beauty products, community and co-creation
are playing a more significant role in product develop- Augmented reality (AR) and artificial intelligence (AI) have
ment and sales. Brands are also working toward making become the two hottest innovations that are boosting
their supply chains more resilient and sustainable in the advancements in the beauty industry.
aftermath of the pandemic. Some brands are integrating • Southeast Asia’s leading e-commerce, Lazada, launched
sustainability into beauty packaging and enhancing the a new augmented reality virtual try-on for beauty
customer experience. AI and AR have emerged as the two lovers.638
hottest technological innovations in the beauty industry. • Exploring new audiences, L’Oréal announced a multi-
brand beauty partnership with the metaverse avatar
Co-creation and community are playing a greater role platform, Ready Player Me.639
in cosmetic product and sales development. • Clinique has launched the immersive virtual Clinique
• Indonesia’s ‘Mad for Makeup’ taps into Gen-Z for Lab in the metaverse. This innovative digital concept
co-creation and marketing.632 This brand leverages enables Clinique consumers to explore the brand, prod-
its 1,000+ member social club for product and mar- ucts, and ingredients through interactive storytelling.640
keting development. • The leading AR and AI SaaS solution provider, Perfect
• Community-driven beauty platform KIKI turns con- Corp., has been utilized by 95% of the 20 global beauty
sumers into co-creators.633 In 2023, it launched Pretty brand groups and over 400 beauty brands in more
Nail Graffiti, an easy-to-use water-based nail polish, than 80 countries and regions.641 Perfect Corp.’s con-
and invited members to vote on the color of the nail sumer apps have also achieved more than 950 million
polish KIKI produces. Members participating in the downloads globally and enabled over 10 billion virtual
voting process are rewarded with a virtual membership product try-ons annually.
card built on Ethereum, in addition to exclusive product
perks, insider access, and member-only loyalty points.
NATIONAL/TRADE DEVELOPMENTS
Brands such as L’Oréal and e.l.f. Beauty are investing
in enhancing their supply chains to become more sus- Cosmetics-related products experienced a 3.25% decrease,
tainable and resilient, learning from the lessons of the declining from US$16.08 billion in 2021 to US$15.55 bil-
pandemic. lion in 2022. Difficult times have led people to seek more
• Following in the footsteps of Unilever and Kao affordable cosmetics. However, it is projected to grow to
Corporation, L’Oréal has invested in the sustainable US$20.4 billion in 2027 with a 5.60% CAGR.
materials company GENO’s venture. The investment The majority of imported products in the cosmetics
fund aims to develop, produce, and commercialize category are mixtures of odoriferous substances and mix-
biotech-based critical ingredients in everyday cos- tures (US$4.71 billion) and beauty and skincare products
metics, personal care, and cleaning products.634 (US$4.36 billion). Together, these categories account for
• e.l.f. Beauty has become the first in the beauty industry a total of 57.8% of cosmetics-related products. The UAE
to achieve Fair Trade USA certification for its man- emerged as the largest OIC importer with US$3.32 billion
ufacturing facility.635 To attain this certification, the in imports, more than double the imports of Saudi Arabia
brand’s suppliers are required to undergo audits and (US$1.69 billion) and Türkiye (US$1.58 billion), which are the
demonstrate strict adherence to over 100 compliance 2nd and 3rd largest OIC importers of cosmetics-related
criteria encompassing social responsibility, environ- products, respectively. Meanwhile, France continues to
mental sustainability, empowerment, and economic lead as the top exporter to the OIC, with exports exceeding
development. US$2.6 billion in 2022.
Sustainability is on the rise beyond the product itself,

with an increasing number of brands, such as The Body OIC IMPORTS (2022-2027)
Shops and Wardah (Paragon), integrating sustainability
US$ BILLION
into the customer experience.
• The Body Shop is expanding its refill program beyond
hair care, shower gel, and hand soap to include makeup
products.636 This refill program is popular among con-
sumers aged 16 to 34, tailoring a community movement $20.4
$15.5
experience that promotes sustainability. 2027 (f)
• Paragon has launched Looklab beauty stores to pro-
2022 CAGR
5.60%
mote a creative and sustainable halal lifestyle.637 These
beauty stores integrate recycling facilities, art spaces,

Cosmetics Trade
US$ BILLION (2022)
Exports Imports
$5.1 $15.56
Odoriferous Makeup and

Substance Skincare
30.5% 28.2%
Parfume and
toilet water
14.9%
Essencial Oil
2.9%
Oral Care
4.8% Personal Haircare
8% 10.7%

US$ BILLION (2022) US$ THOUSAND (2022)
France 2.60 United Arab Emirates 3.32

Ireland 1.02 Saudi Arabia 1.69
China 0.99 Türkiye 1.58
Germany 0.97 Malaysia 1.35
United States of America 0.89 Indonesia 1.34
India 0.87 Kazakhstan 0.58
Italy 0.79 Iraq 0.47
Singapore 0.70 Qatar 0.44
United Kingdom 0.68 Morocco 0.43
Spain 0.64 Kuwait 0.33
There are more initiatives to build sustainable global filling argan oil bottles as a source of income.
trade in the cosmetics supply chain. Korea is actively work- • Indonesia and Malaysia’s palm oil industry, which
ing to establish a global network to capture a larger share has become an important ingredient in many beauty
of the Muslim cosmetics market. products, are being compelled to adopt more sus-
tainable practices due to a new EU regulation. The
More regulation is approved with the aim of building EU has approved a regulation that prohibits the sale
more sustainable trade in the local cosmetics industry. of palm oil and other commodities associated with
Morocco has announced the regulation of exporting deforestation unless importers can provide evidence
argan oil. In Southeast Asia, Indonesia and Malaysia that the production of their specific goods has not
are being compelled to adopt more sustainable practices resulted in any harm to forests.643
due to EU regulation.
• In 2022, Morocco announced the issuance of licenses Korea is actively building its global trade network to
to permit the export of argan oil.642 This initiative aims boost its cosmetic products.
to regulate the quantities exported and preserve local • South Korea’s leading cosmetics ODM company,
jobs in the sector, particularly for those who rely on Kolmar, has signed a contract with International

PEXELS

Beauty Industry Trade Associations to ship products
to the Middle East and North Africa.644 Kolmar will
develop cosmetics for its brand clients in the Middle
East in compliance with halal mandates.645
• The Indonesia-Korea Comprehensive Economic
Partnership Agreement (IK-CEPA) started on January
1, 2023. It opened a bigger trade opportunity between
the two nations, including in Korean halal cosmetics.
• Malaysia’s Halal Development Corporation Bhd (HDC)
and the Korea Trade-Investment Promotion Agency
(KOTRA) signed a MoU to strengthen bilateral rela-
tions in building the halal industry.646 South Korea is
Malaysia’s tenth largest trading partner in the halal
industry, with a total of RM7.24 billion.647
ECOSYSTEM DEVELOPMENT
More countries have increased their ethical standards
for beauty products to ensure a sustainable impact on
health and the environment.
• Pakistan has approved the draft bill for the establish-
ment of the first Pakistan General Cosmetics Authority
under the Ministry of Science and Technology. This
step has been taken to separate the authority to reg-
ulate the complex business of the cosmetics sector
and to generate revenue to support industry growth
on a global scale.648
• After more than 80 years without a major update,
US cosmetics regulation has been updated with the
Modernization of Cosmetics Regulations Act (MoCRA)
to advance product safety and innovation in the US
cosmetics industry.649
• The regulatory body of Kuwait cooperatives has banned
cosmetics and personal care products containing Lilial
(products that contain butylphenyl methylpropional)
to ensure consumer safety.650
• Singapore started mandatory packaging reporting
on March 31, 2022. It requires brand owners, man-
ufacturers, and importers with an annual turnover
of more than SGD10 million (US$7.3 million) to file a
report on the amount of packaging used annually to
the National Environment Agency (NEA) each year.651
SOCIAL IMPACT DEVELOPMENT

The emergence of technology opens a wider innovation
to make beauty products more inclusive for customers.
• Estée Lauder UK and Ireland have launched the Voice-
Enabled Makeup Assistant (VMA) application, designed
to assist visually impaired users in applying makeup
more easily and confidently.652
• L’Oréal has launched a motorized lipstick applicator
designed specifically for people with limited hand and
arm mobility.653 The system features smart motion
UNSPLASH
control and customizable attachments to enable the

precise application of lipsticks.

Signals of
Opportunity
Growing local halal

cosmetic brands funded by
Makeup rebound, VC, especially in Southeast Asia
with more demand for simple, With a large Muslim population, the
natural, and skin-friendly types spreading of digital connectivity,
As people engage in more outdoor and increasing awareness of halal
activities, the demand for decorative cosmetics, the Southeast Asia region
products increases, but with a has raised more than US$100
more natural and gentle million funding for halal
ingredients. cosmetics startups.
Non-alcohol and
naturally sourced perfumes
are gaining more popularity
Consumer awareness of natural
perfume and emerging non-alcohol
perfume technologies, such as WPE,
has increased the popularity of non-
alcohol perfumes. Big brands like Dior
have successfully launched their
first-ever alcohol-free and
water-based fragrances.
Increasing trend
Live and Social of Korean cosmetics to MENA
commerce strengthens The Korean cultural wave is
the role of halal beauty experts gaining popularity in the MENA
and influencers region, which is helping the
Live and social commerces such as cosmetics industry in the area.
Tiktok Shop, goes beyond traditional Kolmar Korea is set to begin
commerce, offering new engagement supplying halal cosmetics to the UAE,
and education to consumers about marking the company’s first foray
halal cosmetics. into the Middle Eastern
beauty market.

Strategic
Considerations
by Stakeholder
INVESTORS
Opportunities
1 Invest in local D2C (Direct-to-Consumer)

halal beauty startups.
Local D2C brands are emerging with their
• Local D2C halal startups are experiencing significant
growth and popularity, attracting funding from var-
localized innovation and marketing approach to cap- ious venture capitalists (VCs).
ture local consumers. With their agility and digital Potential Outcome in 2033:
ecosystem, they challenge a well-positioned cosmetics • Local halal brand startups are growing, leveraging
brand. There is also increasing consumer trust in local their local cultural insight.
cosmetic products.
2 Long-term investment in R&D for inno-

vation in sustainable and ethical beauty.
Halal should be integrated with strate-
• Following in the footsteps of Unilever and Kao Corpo-
ration, L’Oréal has invested in the sustainable material
gic, innovative solutions amid rising beauty product company GENO’s venture.
competition. Investment is needed for research and • Paragon has launched Looklab beauty stores to pro-
development, particularly to innovate in sustainable mote a creative and sustainable halal lifestyle.
and ethical beauty, which is an integral part of halal. Potential Outcome in 2033:
• More sustainable and innovative halal beauty industry.
Challenges
1 As 93% of VCs are men, this significant

imbalance may have adverse conse-
quences for female beauty entrepreneurs.
Potential Risk:
• Unseen opportunities related to women’s needs in
beauty products. Women entrepreneurs also have dif-
The majority of top-level executives in investment ficulty securing funding to build their beauty brands.
institutions are dominated by men, which limits their
natural insight and sense of opportunity.

GOVERNMENTS
Opportunities
1 Proactively regulate with an inclusive

policy to unlock the potential of local
halal cosmetic brands.
• Pakistan has approved the draft bill for the estab-
lishment of the first Pakistan General Cosmetics
Local brands that have emerged are high-potential Authority under the Ministry of Science and Technol-
SMEs with limited networks and funding. The govern- ogy. The goal is to regulate the complex business of
ment should be proactive in regulating and supporting the cosmetics sector and generate revenue to support
them with an inclusive policy that is relevant to smaller industry growth on a global scale.654
brands as well. Potential Outcome in 2033:
• Implementing more supportive regulations in the
beauty industry can have a positive impact on the
growth of the local economy.
Challenges
1 Certain user segments are still price-sen-

sitive and have low awareness of natural
and sustainable products.
Potential Risk:
The market for halal skincare and cosmetics is still
concentrated in some niche segments with limited
Although awareness of natural and sustainable products growth potential.
is increasing, there are some segments that still have
low awareness of them and find it difficult to switch to
more sustainable products because of pricing issues.
In terms of getting consumers to switch types of products

to move to a much more environmentally friendly type of
product, that too is challenging in this part of the world.
But I think it’s largely a question of education. This will
change. There’s a lot of focus on COP28 this year. And
our hope is that awareness will start to filter down and
change perceptions and how people buy. Slowly and
naturally.”
Stevi Lowmass, CEO, Dubai Camel Soap, UA
“There are two dimensions to this scenario. On one hand,

some consumers use products without awareness of the
presence of Najis ingredients in their makeup. On the
other hand, there are consumers who lack options as no
brands offer a suitable solution. We cater to both sets of
consumers by positioning ourselves right in the middle.”
V Ranganathan, AVP Marketing, Believe, Singapore

BUSINESSES
Opportunities
1 Research and innovate to create non-al-

cohol perfume products
Non-alcohol perfumes are also gaining
• Dior launched the innovative J’adore Parfum d’Eau.
Their first ever alcohol-free and water-based fragrance.
more awareness and popularity for their friendly effects • WPE Technology is gaining more popularity in the
on the skin. production of non-alcohol perfumes.
• Wardah launched Oud perfume for halal men’s life-
style.
• Non-alcohol perfume is gaining popularity with a
long-lasting scent and is skin-friendly.
2 Collaborate with Korean companies and

influencers to develop skin-friendly halal
Korean makeup and skincare.
• Kolmar Korea would begin to supply halal cosmetics
to the UAE, which would be the company’s first move
• Halal local cosmetics brands can collaborate with into the Middle Eastern beauty market.655
Korean brands, which have strong RnD and marketing • Cosmax became the first South Korean company
capabilities. More Korean companies are open to to receive a halal award from LPPOM MUI in the
exploring partnerships with local OIC companies to cosmetics category.
explore halal beauty products. • The Korean wave in cosmetics is expanding to MENA.
• More local cosmetics grow, collaborating with Korean
beauty suppliers and influencers
There has been a lot of education regarding skincare,

ingredients, and routines, which has made consumers
more aware of what they put on their skin. People are
also aspiring to achieve natural, flawless skin, leading
them to use less makeup than before.”
Héloise Lefebvre du Prey,

Project Manager for Southeast Asia, Asia Cosmetics Lab
“TikTok has been a great asset for the halal industry. I have
been exposed to a lot of videos on what to use or not,
so a lot of this narrative is helping a brand like Anaaka. For
the markets where we operate, TikTok is not a medium to
sell but to educate. We use it to educate and promote our
identity. It is no longer regional but global.”
Hajar Hachki, Marketing Manager, Anaaka

Challenges
1 Halal value proposition alone is not

enough to grab customer demand.
Many consumers expect more added value
Potential Risk:
• Halal has become associated with ‘low value’ in cus-
tomer perception because many halal products fail
beyond halal; they need ‘Tayyib,’ a positive impact that to meet consumers’ minimum quality standards and
solves their skin problems. do not effectively address their primary skincare
concerns.
ADOBE STOCK

CHAPTER
Media &
12
Recreation
PEXELS

CHAPTER 12: MEDIA & RECREATION 225
Media & Recreation
CONSUMER
OPPORTUNITY
Represented by US$247 billion of spending by
2 billion Muslims on media and recreation (2022 est.)
Southeast Asian and GCC countries
dominate the Islamic-themed media
$247 and recreation ecosystem.
2022
MEDIA & RECREATION – Financial

GIE INDICATOR RANKING Awareness
(2023) Social
6.8% Innovation
CAGR
11
21
$344
2027
31
41
I try to avoid whatever is not

consistent with Islamic values. 51
I think we still need more
entertainment activities. We
need more beach activities 61
and theme parks.”

Amr Aledrisi, Saudi Arabia
71
81
I consistently monitor my
children, ensuring awareness 91
of their viewing choices.
It’s important that they
100
understand and prioritize
Islamic ethics and values.”
1. 2. 3. 4. 5.
Sadia Kashif, Pakistan MALAYSIA SINGAPORE CHINA QATAR UK

SIGNALS OF
Islamic media and recreation OPPORTUNITIES
drive women empowerment,
IMPACT
knowledge, values, and
Digital tech Low
sustainability. augments Islamic
Moderate
interactions
Muslim-centric High
“Hooping in Faith” game
empowers young Muslim
women in sports.
Islamic toys reach Growing Muslim
critical mass presence in
Ansari.ai chatbot answers Global sport and
mainstream media
Islamic faith-based questions. entertainment
shifts eastward
‘Labayk’ a new social media

platform, prioritizes social impact
and upholds Islamic values.
Environmental and
social impact in
The Museum of Islamic Art (MIA) in Qatar Islamic art and media
achieves carbon-neutral certification, the
first in MENA and Asia.
Metaverse products are

targeting Muslims

Islamic educational toys are reaching global production scale. Muslim representation
in mainstream media and content platforms is expanding rapidly.
US$ BILLION (2022)
Top 5 media and recreation

consumer markets
Türkiye 26.3
$247 billion
United States 24.3
Muslim spend on
Indonesia 23.7
media and recreation
Saudi Arabia 14
Pakistan 13.8

= 1 deal
Indonesia Türkiye UAE Iran United States $4.9 billion

in media and recreation
related investments
reference. Halal and related product exports are based on ITC Trademap 2022 data. Projections are baselined on data from IMF Outlook from April 2023.
Investments (figures and individual deals) are based on a detailed scan of databases from CapitalIQ, Crunchbase and DinarStandard analysis from 1st August
2022 to 31st July 2023. See appendix for detailed methodology. OIC Organization of Islamic Cooperation, 57 mostly Muslim-majority member countries.

The media and recreation sector in the Muslim world
is soaring to new heights as promising partnerships
and expansion plans take off, and exciting product
developments come to fruition. Social media
regulations, however, are tightening in some OIC
countries, which reflects the increasing significance
of the digital content industry.
F
rom Islamic TV channels and edu Kingdom, and Zain Bhikha Studio’s sleep-aide app and toy
tainment initiatives to lifestyle and for Muslim kids.
gaming apps, Muslim representation Meanwhile, governments across the MENA region
in mainstream media and content have been tightening social media regulations and mone-
platforms is rapidly growing. tization policies. Egypt, for example, is drafting a law that
Advancements continued in would require social media platforms to obtain a license to
Saudi Arabia’s communication land- reach mobile users locally. The country is also planning to
scape, with government collaborations that aim to bolster tax social media influencers earning above EGP 500,000
the local and regional media ecosystem. Among the biggest (US$32,000) a year. In Saudi Arabia, individuals are now
initiatives were the launch of the Saudi Broadcasting required to secure a license before posting advertising
Authority Training Academy, designed to develop a new material on social media platforms.
generation of media professionals, and the US$100 million Further afield, Indonesia is planning for a new regula-
Film Investment Fund, which aims to support local film tion that will permit media outlets to be compensated by
and media at the Cannes Film Festival. digital platforms or aggregators displaying their material,
Efforts to develop digital radio broadcasting ser- a move that aims to balance profit generation between
vices also placed the Kingdom among the frontrunners tech firms and content providers.
in implementing this technology to enhance listeners’ With the growing use of digital technologies to aug-
experiences. The progression of Saudi Arabia’s media sector ment traditional Islamic interactions and the rising demand
led American Canadian broadcasting group Vice Media to for Muslim-centric gaming and content platforms, Muslim-
broaden its operation in the country through a content themed media is expected to record strong growth and
partnership with MBC Group. profitability in the years ahead.
Islamic streaming witnessed a surge, with Malaysia’s Muslim spend on media and recreation was valued at
Islamic video-streaming platform for children, Durioo+, US$247 billion in 2022 and is forecasted to reach US$344
raising US$2.85 million. Singapore’s Bitsmedia unveiled a billion by 2027.
streaming service called Qalbox with content that high-
lights Muslim cultures and identities worldwide.
As one of the key drivers of Islamic-themed media,
Muslim-themed children’s content saw an uptick in activity
in 2022/23. Qatar Foundation, for example, launched a
series of special episodes of Siraj, its 3D edutainment TV
series, to teach children about Islamic values. Similarly,
Islamic educational toys are reaching global production
scale, as seen with Desidoll, whose products are now
being sold in Asda, Morrisons, and Selfridges in the United

2022/23
Developments
REVENUE DEVELOPMENTS Investments Summary
Global Muslim consumer spending in media and recre- A total of 21 deals related to media and recreation in
ation surged to US$247 billion in 2022, growing by 6.4%. OIC countries were recorded during 2022/2023. 14 of
Türkiye leads, with the US in second place. OIC coun- these deals were disclosed, totaling over US$4.9 billion,
tries recorded 21 deals in Media and Recreation worth increasing from US$2.4 billion in 2020/2021. This number
over US$4.9 billion. Technology, such as AI, continues is dominated by the acquisition of Scopely, valued at
to augment offerings in this sector, giving rise to new US$4.9 billion, by Savvy, a game and esports company
offerings and new businesses. wholly owned by Saudi Arabia’s Public Investment Fund
(PIF). If this deal is excluded, the remaining 13 acquisitions
Latest Projections have a total disclosed value of US$84 million.
In 2022, Muslim consumer spend on media and recreation Advancements and partnerships in Saudi Arabia’s com-
reached US$247 billion, growing by 6.4% from US$233 munication landscape.
billion in 2021. Türkiye has retained first position in terms • The Saudi Food and Drug Authority (SFDA) and the
of Muslim consumer spend on media and recreation, while Saudi Broadcasting Authority (SBA) inked a memo-
the US has moved up to second position, pushing Indonesia randum of cooperation (MoC). This collaboration aims
down to third. Between 2022 and 2027, Muslim consumer to bolster communication and foster the creation and
spend on media and recreation is forecasted to grow at a dissemination of expert media content in the realms
CAGR of 6.8%, to reach US$344 billion in 2027. of health and food.656
• SRMG, a prominent integrated media conglomerate,
Note: This does not represent the actual value of Islamic- has inked a Memorandum of Understanding (MoU)
themed or regulated media and recreation consumption. with NEOM Media Industries, an emerging hub for
Rather, it represents the core addressable Muslim consumer media and creative sectors situated in Saudi Arabia’s
market spending in the general media and recreation cat- core.657
egory. • Camel Lab and WEO Technology, in a collaborative
effort between Saudi and Chinese enterprises, are set
to unveil “Hectar.” This new social media application
United States Mergers & Entertainment and Video Games Scopely 4,900,000
Acquisitions
Türkiye Venture Capital Media and Entertainment (Primary) Ace Academy 33,000
Teknoloji AS
Indonesia Venture Capital Content, Digital Media, Migo 20,000

Education, Media and
Entertainment, Video
Indonesia Venture Capital Content Creators, Video on TipTip 13,000

Demand, Video Streaming
United Arab Venture Capital Broadcasting, E-Learning, Almentor 10,000

Emirates Education, Online Portals, Video

SHUTTERSTOCK
The Saudis are
attracting the biggest
names in soccer, such
as Cristiano Ronaldo.
boasts numerous features that position it competi- • A tech-savvy entrepreneur and banker from London
tively alongside major social media platforms.658 has introduced a new social media platform named
‘Labayk.’ This platform aims to be more socially impact-
Innovations enhancing Islamic engagement and cultural ful and truthful while also upholding Islamic values.662
connection globally. • The app, dubbed ‘Qur’an Sahbi’ (Qur’an is my compan-
• Singapore’s Bitsmedia, the brains behind the Muslim ion), has been developed by the Kuwaiti Charitable
lifestyle app Muslim Pro, has now unveiled a global Society for the Service of the Holy Qur’an.663
subscription-based streaming service called Qalbox. • The Faculty of Qur’an and Sunnah Studies at Universiti
This service showcases a spectrum of content that Sains Islam Malaysia (USIM) has developed the nation’s
highlights Muslim cultures and identities worldwide.659 inaugural Qur’an application, designed to assist those
• NIM, the innovative Muslim dating app, has officially with hearing impairments in reading and exploring
debuted, marking a new phase of contemporary the sacred text.664
and significant relationships for Muslims globally.
Prioritizing intentional relationships and emphasizing Pioneering innovations and collaborations in the Middle
compatibility, NIM has swiftly earned the moniker “The East and Southeast Asia.
Raya for Muslims,” likening it to the famed exclusive • Viola Outdoor, a subsidiary of the Abu Dhabi-centric
dating platform, Raya.660 media communications expert Viola Communications,
• According to the Match to Marriage report by Halal has unveiled a groundbreaking advancement in the
Wave, close to 77.8% of Muslims are leveraging DOOH media space. This innovation comes as a col-
matchmaking platforms to find their special some- laborative venture with Firefly, a frontrunner in mobile
one. Topping the list of commonly used Muslim dating marketing media solutions.665
and matchmaking apps among 25 to 34-year-olds are • Salman Al-Dosari, the Saudi Minister of Media and
Muzz, Salams, and BaitulJannah.661 Chairman of the Board of Directors of the Saudi

Broadcasting Authority (SBA), officially opened the is on the lookout for game projects to purchase and
SBA Training Academy and introduced Digital Audio also aims to create and release its own.677
Broadcasting (DAB+) technology.666 • Saudi Arabia’s General Entertainment Authority has
• Saudi Arabia unveiled ‘Ignite,’ a fresh initiative opened registration for the second Entertainment
focused on digital content creation and production. Business Accelerator, which will run from July 2023
Additionally, the program will bring new investments until the end of October 2023.678
and bolster advanced connectivity and communica-
tion infrastructure.667 Tech augments Islamic art and creative expression.
• The swift advancement and achievements of • Zain Bhikha Studios launched the first-ever sleep-aide
Tantannews piqued the interest of REV Media Group app for Muslim kids, as well as a plush toy with sleep-
(RMG), Malaysia’s leading digital publisher. Recently, time audio, in partnership with Desidoll company.679 680
RMG finalized a deal to secure the intellectual property • Dubai-based toymaker introduces ‘Muslim Blocks,’ a
(IP) assets of Tantannews.668 Lego-inspired creation: UAE’s Abdellah Zejli was driven
by both creativity and fatherly instincts to develop
New channels, collaborations, and content for diverse Muslim Blocks. Designed as interlocking bricks, these
audiences in the media landscape. mini-structures mirror significant Islamic edifices.681
• DStv has introduced a new Islamic channel to its • The Museum of Fine Arts in Houston is unveiling its
lineup. Hilaal TV, available on all packages, including new, permanent galleries dedicated to the Art of the
Easy View, offers a 24/7 assortment of Islamic content Islamic World. This expansion nearly doubles the
tailored for both adults and children, catering to the previous exhibition space for Islamic art.682
Muslim audience.669 • Bigitec Studio, an Islamic digital media startup based
• The Vice Media Group is broadening its operations in Germany, aims to craft a metaverse tailored for
in Saudi Arabia by sealing a deal with MBC Group, Muslims, centered on Islamic education and enter-
the Saudi-owned powerhouse that boasts the most tainment.683
extensive media operation in the Middle East, to cre-
ate content.670
• Ansat Broadcast Sdn Bhd has entered into a collabo- OPERATIONAL DEVELOPMENTS
ration with the Indonesian multinational entity, MNC
Group, to delve into subscriber-based television and Digital transformation in Islamic affairs.
content distribution operations.671 • The Ministry of Islamic Affairs, Dawah, and Guidance in
Saudi Arabia inked a memorandum of understanding
Islamic streaming surges in Southeast Asia. with the Saudi Data and Artificial Intelligence Authority.
• Malaysia-based Durioo+, an Islamic video-streaming This collaboration aims to incorporate its services
platform for children, has raised US$2.85 million in a into the Tawakkalna app, enhancing communication.684
seed round led by Y Combinator and Gobi Partners.672 • IBF Net has introduced Netverse, the inaugural
• Qalbox, a subscription video-on-demand (SVOD) plat- metaverse built on the Algorand blockchain, marking
form by Muslim Pro from Singapore, has partnered it as the first shariah-compliant metaverse across
with Malaysia’s pay-TV company, Astro. This collab- all blockchains. Netverse is anticipated to play a
oration aims to exclusively showcase Muslim-centric pivotal role in the digital transformation within the
content in Malaysia.673 Islamic realm.685
• H.E. Sheikh Dr. Abdullatif bin Abdulaziz Al-Sheikh,
Pioneering investment endeavors in Saudi Arabia and Minister of Islamic Affairs, Dawah, and Guidance,
Qatar are revving up entertainment in the Gulf. unveiled a range of e-applications at the ministry’s
• The Saudis have created a war chest to attract and Riyadh location. These applications aim to enhance
target the biggest names in soccer investing, such as the ministry’s operations both within and outside
Cristiano Ronaldo and Karim Benzema.674 the Kingdom, with a particular emphasis on aiding
• The PGA Tour agreed to merge with rival LIV Golf, pilgrims and those performing Umrah.686
which is backed by Saudi Arabia’s Public Investment
Fund (PIF).675
• Quest Esports, based in Doha, has introduced its NATIONAL/TRADE DEVELOPMENTS
‘Gaming District’ in the heart of Qatar’s capital. This
initiative is a collaboration with the Qatar Esports • The Konoz initiative is focused on chronicling the
Federation (QESF) to promote the growth of esports cultural depth and the civilizational and intellectual
in the nation.676 contributions of the Kingdom of Saudi Arabia. By
• Saudi Arabia plans to channel US$38 billion into collaborating with local enterprises, the initiative
Riyadh’s online gaming industry. A Bloomberg report aspires to produce content that meets the highest
suggests that Savvy Gaming Group, an offshoot of the global standards in artistic production, targeting a
kingdom’s sovereign Public Investment Fund (PIF), diverse audience.687

• MBC GROUP has forged a collaboration with VICE and policies of the Emirate’s governmental units, and
Media Group to deliver cultural and lifestyle content supervising and granting licenses for media endeavors,
and media training to Saudi Arabia and the broader encompassing those in free zones.697
Middle East. This alliance will produce tailor-made • The Algerian Council of the Nation passed new media
Arabic-language content exclusively for MBC GROUP.688 legislation, placing stricter regulations on journalists
and introducing new penalties for breaches. One of
the notable clauses approved by the National People’s
ECOSYSTEM DEVELOPMENTS Council on March 28, 2023, prohibits Algerian media
from obtaining any form of funding or support,
Unified media perspectives and content alignments in whether direct or indirect, from foreign entities.698
the Arab world. • Egypt’s Supreme Council for Media Regulation declared
• At the 53rd session of the Council of Arab Information its intentions to roll out new licensing and regula-
Ministers held in Rabat, Morocco, Salman Al-Dosari tory guidelines for streaming services like Netflix
emphasized the need for “a unified Arab perspective and Disney+.699
towards international media platforms that broadcast • The General Commission for Audiovisual Media
content contrary to our core principles and values.”689 (GCAM) in Saudi Arabia has introduced a structured
• Saudi Arabia, along with five other Gulf Arab nations, method for clearing and categorizing cinematic films.
released a collective statement urging Netflix to elim- The multi-step process involves a specialist team
inate content they believe infringes upon Islamic and evaluating film content for age suitability. Six age
societal norms and values, as per Saudi media sources.690 categories, ranging from “G” (general audience) to
• Upon the request of Saudi Arabian media regulators, “R18” (restricted to those over 18), have been defined
YouTube took down specific advertisements deemed based on content themes like violence, romance, and
not in line with Islamic and Saudi cultural norms.691 politics. This classification aims to help adults select
appropriate films and uphold societal values and
MENA region tightens social media regulations and standards in media content.700
monetization policies. • Indonesia’s Press Council reveals plans for a new
• Highlighting the increasing significance of the digital regulation permitting media outlets to be compen-
content industry in Saudi Arabia, the Kingdom’s media sated by digital platforms displaying their content.
regulator has now mandated that individuals secure a This move aims to balance profit generation between
license before posting advertising material on social tech firms and content providers.701
media platforms.692
• Karam Gabr, the head of Egypt’s Supreme Council
for Media Regulation, informed the Senate that they ESG IMPACT DEVELOPMENTS
are drafting a law that would mandate social media
platforms to acquire a license to reach mobile users • In accordance with the Qatar National Climate Change
within the country.693 Action Plan 2030, the Museum of Islamic Art (MIA) has
• Egypt has announced plans to tax social media influ- secured the prestigious carbon-neutral certification.
encers earning more than 500,000 Egyptian pounds This accolade distinguishes MIA as the inaugural
(US$32,000) a year. The move underscores the country’s museum in both the MENA region and Asia to attain
approach to ensuring that all profitable ventures con- carbon neutrality.702
tribute to the treasury. Tax authority figures warned
of potential jail sentences of up to five years for those
evading this tax.694
• The acting chairman of MCMC revealed that a reas-
sessment of the existing online content guidelines and
structure is underway. This announcement comes in
the wake of online publications that are perceived as
threats to national security and unity.695
Regulatory overhauls and strategic realignments in
MENA and Asia.
• Indonesia’s Press Council announced on Thursday
that it is working on a new regulation that will permit
media entities to be compensated by digital platforms
or aggregators that host their material.696
• The independent Abu Dhabi Media Office (ADMO) is
set to manage a consolidated media landscape in the
Emirate. It will be responsible for devising Abu Dhabi’s
media strategy, synchronizing the media agendas

UNSPLASH

Megatrends
Decentralized learning to reach global audiences for Khayaal, featuring diverse characters from global
Islamic education. and Muslim cultures worldwide.707
• Qatar Foundation launched a series of special episodes
of Siraj, its 3D edutainment TV series, that are religiously Muslim visibility through competitive sports.
significant and offer an engaging way for children to • Following Morocco’s impressive run in the World Cup,
learn Islamic values and morals. Siraj uses storytelling Morocco’s visibility in leading media outlets increased
and animation to teach children about Islamic values. by 277%, with a reach of 6.4 billion during the tour-
• The Little Believers, a children’s Islamic media com- nament, bringing both Islamic teachings and culture,
pany, collaborated with Mufti Ismail Menk and Shaikh such as parent-child interactions, to mainstream
Omar Suleiman, two prominent scholars, in creating conversations.708
children’s content.703 • Following Khabib Nurmagomedov and Islam
• Desidoll, a children’s Islamic educational toy company, Makhachev’s victories in the UFC, the Dagestani fight-
is now being sold in Asda, Morrisons, and Selfridges ers have been cited as being religious, influencing the
in the United Kingdom.704 reason why they are disciplined and hence dominant.709
• At a camp called Hooping in Faith, young women build
Culture in Muslim-majority countries goes mainstream, confidence in their identities as athletes and faithful
bringing Islam into mainstream content. Muslims.710
• Widely praised for being the first Marvel show with a
Muslim and Pakistani lead, Ms. Marvel currently has AI is changing the way Muslims interact with their religion.
an 80% fresh audience rating on the leading movie • A chatbot was launched called Ansari.ai, which was
site, Rotten Tomatoes.705 designed to help answer non-Muslims’ questions about
• AlRawabi School for Girls’ trends globally on Netflix, Islam and to help Muslims strengthen their faith.
announcing a new season.706 • In March, a day before Ramadan, Raihan Khan launched
• An online sci-fi/fantasy webcomic launched off the his AI chatbot, QuranGPT. In the first 36 hours alone,
back of a crowdfunding campaign called Tales of it processed over 60,000 searches from 73 countries.711
PEXELS

Signals for
Opportunities
Increasing Growing demand

openness to adopting for Muslim-centric gaming
digital technologies to augment and media content platforms
traditional Islamic interactions Surging demand for Islamic gaming
Charity platforms swiftly adopt digital and media platforms is evident in the
mechanisms for transparent donations. Islamic economy. Durioo+ focuses on
AI chatbots like Ansari aid in religious Islamic video streaming for children,
education, showcasing openness to reflecting a growing market for
tech. SMIIC’s Safety Management content aligning with Muslim values.
Systems Standard release Collaborations like Pink Llama Films
exemplifies proactive tech emphasize authentic portrayals.
adoption.
Sport and
entertainment attention is
shiftingfrom the West to the East
A noticeable shift to the East occurs
in sports and entertainment. Major
events and esports thrive in the
Middle East, especially in Saudi
Arabia and Qatar. This underscores
the East’s growing influence,
offering economic growth and
global engagement.
Increasing representation Islamic physical toy

of Muslims in mainstream products are reaching critical mass
media and content platforms Global production of Islamic toys
This is reflecting a cultural shift signals a shift in consumer demand.
toward inclusivity. Collaborations Products like ‘Muslim Blocks’ and
between Vice Media Group and MBC Desidoll, acclaimed internationally, show
Group for a broader Middle Eastern readiness to meet the global demand for
audience mark a positive step culturally relevant toys. This presents
toward comprehensive portrayal, opportunities for businesses to
recognizing the importance of tap into the market and enhance
Muslim representation. their global footprint.

Strategic
Considerations
by Stakeholder
INVESTORS
Opportunities
1 Investment in Islamic technology start-

ups leveraging demographics. Consider
investments in the growing Islamic gam-
• Growing demand for Muslim-centric gaming and
media content platforms.
ing and media sector, focusing on platforms that offer • Sport and entertainment attention is shifting from
Muslim-centric content, children’s Islamic educational the West to the East.
games, and compliant content platforms. Potential Outcomes by 2033:
Investors should focus on Islamic technology startups, • By 2030, strategic investments in Islamic technology
leveraging the immense demographic potential of spe- startups would have propelled these ventures into
cific emerging markets like Bangladesh, Egypt, Pakistan, unicorn status, generating substantial returns for
Nigeria, and Indonesia, with a collective population investors. The large markets with significant customer
nearing one billion. A mere US$2 per year in service fees bases will witness a surge in innovative tech solutions,
to access 100 million customers could yield an annual addressing various sectors and transforming the way
recurring revenue (ARR) of US$200 million. Assuming these markets operate. This shift will foster economic
a 5x ARR investment multiple, this presents a unicorn growth and technological advancement, ultimately
valuation opportunity. The MENAP region, inclusive of creating a new wave of unicorns primarily serving
Egypt and Pakistan, is particularly attractive for venture Muslim-majority markets.
funds due to its transformation and growth potential.
Investing in Islamic technology startups, or taqwatech,
in these Muslim-majority markets is compelling and
relatively untapped by mainstream venture capital,
offering significant room for growth and innovation.
2 Invest in generative AI startups that

enable Islamic learning interactions at
• Advances in AI-driven Islamic educational platforms.
scale. • Growing interest in and adoption of AI-powered
Investors should consider backing generative AI tools for learning and religious knowledge within
startups that specialize in enabling Islamic learning the Muslim community.
interactions at scale. With a rising demand for digi- Potential Outcomes by 2033:
tal solutions to augment traditional Islamic interac- • By 2030, investments in generative AI startups
tions, AI-powered platforms can provide personalized, focused on Islamic learning will have significantly
immersive, and accessible learning experiences. These enhanced the accessibility and effectiveness of
startups have the potential to revolutionize the way Islamic education worldwide. These innovative plat-
Islamic knowledge is disseminated, reaching a global forms will cater to a vast audience, promoting a deeper
audience and meeting the diverse learning needs within understanding of Islamic teachings and fostering a
the Islamic community. sense of unity and knowledge-sharing within the
global Muslim community.

Challenges
1 Most investors lack a clear investment

thesis that identifies Islamic technology
startups aligned with their aspirations,
hampers their ability to target investments that match
their specific goals and criteria.
Risk:
risk tolerance, and key performance indicators (KPIs). • Without a precise investment thesis, investors might
A significant challenge for investors is the absence of make decisions that do not align with their objectives,
a well-defined investment thesis tailored to Islamic potentially resulting in missed opportunities within
technology startups. This lack of strategic guidance the burgeoning Islamic technology sector.
GOVERNMENTS
Opportunities
1 Promote Islamic tech innovation hubs.

Governments should prioritize the estab-
lishment and support of Islamic tech
• Emerging innovation hubs focusing on Islamic tech-
nology in select countries.
innovation hubs, fostering an environment conducive • Government initiatives supporting technology and
to the growth of Islamic technology startups. These innovation in the Islamic sector.
hubs can provide resources, mentorship, and funding Potential Outcomes by 2033:
opportunities for entrepreneurs in the Islamic tech • By 2033, Islamic tech innovation hubs will have fostered
sector, promoting innovation, research, and develop- a robust tech ecosystem, drawing talent and invest-
ment. By nurturing a supportive ecosystem, government. These hubs will gain global recognition as centers
ments can position their countries as leaders in Islamic for Islamic tech innovation, driving the development
technology, driving economic growth and technological of groundbreaking technologies to address unique
advancements. challenges and opportunities in the Islamic world.
2 Regulatory framework for ethical gaming

and media.
Governments should focus on creating a
• Initiatives and discussions around ethical content
regulation in the gaming and media industry.
robust regulatory framework that encourages the devel- • Growing awareness of the need for ethical guidelines
opment of ethical gaming and media content aligned in the creation and dissemination of content.
with Islamic values. By establishing clear guidelines Potential Outcomes by 2033:
and standards, governments can ensure that the rapidly • By 2033, a defined regulatory framework for ethical
growing Muslim-centric gaming and media industry gaming and media will promote responsible content
operates in a manner that upholds cultural and moral creation. This will fuel a thriving industry meeting
values. This framework will also provide a competitive the demand for ethically grounded entertainment,
advantage to compliant businesses, attracting both cre- attracting international partnerships and investments
ators and consumers seeking ethically aligned content. while preserving cultural and moral integrity.
Challenges
1 Balancing cultural sensitivities and reg-

ulatory control in Islamic-themed media
and recreation across diverse Muslim-
Islamic-themed media and recreation sector. Striking
this balance is complex due to the diverse interpretations
of Islamic principles.
majority regions. Risk:
Governments face the challenge of creating regulatory • Unbalanced regulations risk overly restrictive or per-
frameworks that respect Islamic cultural sensitivities missive regulations, stifling creativity or offending
while ensuring appropriate oversight and control in the cultural and religious sentiments.

BUSINESSES
Opportunities
1 Create marketplaces backed by robust

supply chains that provide Islamic media
companies with access to global audi-
• Emergence of efficient supply chain-backed plat-
forms connecting Islamic media companies with a
ences and minimize the cost of logistics. global audience.
Businesses should unite to establish well-structured • Growing recognition of the importance of cost-ef-
marketplaces backed by robust supply chains, stream- fective and efficient logistics in the dissemination
lining logistics and ensuring efficient distribution. of Islamic media content.
These marketplaces will serve as gateways for Islamic Potential Outcomes by 2033:
media companies to connect with a global audience, • By 2030, the collaborative establishment of these
enhancing the visibility and accessibility of authentic marketplaces, bolstered by efficient supply chains,
Islamic content on a worldwide scale. This collabo- will have revolutionized the accessibility and diversity
rative initiative will result in a mutually beneficial of Islamic media content for audiences across the
scenario, empowering content creators and meeting globe. Islamic media companies will experience ampli-
the burgeoning demand for genuine Islamic content fied reach and recognition, fostering cross-cultural
while significantly reducing distribution costs through understanding and appreciation of Islamic values
optimized supply chains. and narratives, all while minimizing logistical costs
and ensuring sustainable growth.
2 Development of Muslim-centric gaming

and media platforms, promoting ethical
content.
• Emergence of Muslim-centric gaming and media
platforms with a focus on ethical content.
Businesses should focus on developing Muslim-centric • Growing demand for halal and morally sound enter-
gaming and media platforms that prioritize ethical tainment options within the Muslim community.
content aligned with Islamic values. By creating inter- Potential Outcomes by 2033:
active and engaging content that educates, entertains, • By 2030, businesses investing in the development of
and uplifts, these platforms can contribute positively Muslim-centric gaming and media platforms with a
to society while meeting the demand for halal enter- strong ethical foundation will have gained a signifi-
tainment. Ethical gaming and media platforms will cant market share. These platforms will serve as hubs
resonate with a global Muslim audience seeking content for interactive learning and entertainment, fostering
that aligns with their values and beliefs. community and values-driven engagement among
users worldwide.
3 Collaborate for sustainable Islamic arts

and media.
Businesses should collaborate to foster
• A growing trend toward environmental and social
responsibility within the Islamic arts and media
sustainability within the Islamic arts and media sec- sector.
tor. By prioritizing environmental and social impact, • Increased consumer demand for sustainable and
businesses can contribute to the development of a ethical products and services.
responsible and conscientious industry. Sustainable Potential Outcomes by 2033:
practices in the production, distribution, and consump- • By 2030, collaborative efforts to promote sustain-
tion of Islamic arts and media will align with ethical ability within the Islamic arts and media sector will
values and cater to an audience seeking environmentally have resulted in a more conscious and responsible
friendly and socially conscious choices. industry. Businesses adopting sustainable practices
will gain a competitive edge, attracting environmen-
tally aware consumers and contributing to a greener
and more socially responsible future.

Challenge
1 Achieving content diversity and repre-

sentation that resonates with the global
Muslim audience while respecting cul-
Risk:
• Businesses face the risk of alienating certain seg-
ments of their audience or diluting their content’s
tural nuances and variations. cultural authenticity to appeal to a broader audi-
Businesses in Islamic-themed media and recreation ence. Balancing both aspects is critical for sustained
need to create content that appeals to a diverse Muslim success.
audience, considering cultural variations in interpre-
tations of Islamic values. Striking a balance between
diversity and cultural sensitivity is challenging.
The use of song and video has always been an extremely

powerful medium, which transcends race, nationality,
and even religion, and even more so today being able
to access millions in seconds, so, therefore, the ‘why’ we
do things is ever more important, with clearly defined
outcomes so that we may know where we are going and
then give it time, hard work, and the best of ourselves.”
Zain Bhikha, Director of Zain Bhikha Studios
UNSPLASH

Acknowledgments
Produced by: Supported by:
DinarStandard™ is a growth strategy research and exe- Dubai’s Department of Economy and Tourism (DET) is
cution management firm, empowering organizations for mandated to support the Government in achieving its
profitable and responsible global impact. DinarStandard competitiveness vision to position the Emirate as a major
specializes in the global halal/ethical economy, govern- hub for the global economy and tourism and in boosting the
ment innovation, and the social impact space. Since 2008, Emirate’s economic and tourism competitiveness indicators.
DinarStandard has supported over 30 government entities, Under this remit, DET is driving efforts to further enhance
investment institutions, industry leaders, and multilat- Dubai’s diversified, innovative service-based economy to
erals from over 12 countries worldwide. Its unique value attract top global talent, deliver a world-class business
proposition is rooted in delivering original facts and fore- environment, and accelerate productivity growth.
sight-driven client impact grounded in excellence and ethics. ded.ae
dinarstandard.com
In Partnership with: Islamic Finance Data Partner:
Launched in October 2015, Salaam Gateway (SG) is the Serving more than 40,000 institutions in approximately
world’s leading news and insights platform on the global 190 countries, LSEG Data & Analytics provides informa-
Islamic economy. It covers Islamic finance, halal, and tion, insights, and technology that drive innovation and
Islamic lifestyle sectors, with an eye on the key producer performance in global financial markets. Our history of
and consumer markets. It is for professionals, business integrity enables our customers to make critical deci-
owners, decision-makers, and policymakers who operate sions with confidence, while our best-in-class data and
in fast-changing socio-economic environments and want cutting-edge technologies enable greater opportunity. We
reliable and accurate news, insights, data, and intelligence allow the financial community to trade smarter and faster,
to inform their next moves. overcome regulatory challenges, and scale intelligently.
salaamgateway.com lseg.com

PEXELS
ACKNOWLEDGMENTS 241
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
Sohail Zubairi
Senior Advisor - Islamic Economy, Department of Economy & Tourism (DET)
Report Coordinator and Travel Analyst Reem El Shafaki

Partner, DinarStandard
Halal Food Analyst Iman Ali Liaqat

Consultant, DinarStandard
Salama Evans
Senior Advisor
Islamic Finance Analyst Najmul Haque Kawsar

Senior Consultant, DinarStandard
Islamic Finance Data LSEG Data & Analytics Islamic Finance Team
Halal Regulation Advisor Mufti Zeeshan

Halal Certification Expert
Modest Fashion Analyst, Indicator, Aaliya Mia

Investments and Sizing Lead Senior Associate, DinarStandard
Halal Pharmaceuticals Paul Cochrane

and Cosmetics Sector Advisor
Mohammed Ali Alghofiqi

Research Analyst, DinarStandard
Rozi Osman
Advisor, Halal Industry Strategist
Media and Recreation Sector Ebrahim Vahed

Senior Consultant, DinarStandard
Kamil Echchihab
Consumer Profiles and Islamic Economy Nahla Mesbah

Drivers Senior Associate, DinarStandard
Hanya Waseem
Market Research Assistant, DinarStandard

10th Anniversary Chapter Rafi-uddin Shikoh
CEO & Managing Partner, DinarStandard
Dr. Muhammad Talha Salam

Academic Advisor
Trade Analysis Mohammed Ali Alghofiqi

Research Analysts Mirza Zuhaib Baig

Operations Manager, DinarStandard
Ahmed Abdul Moiz

Researcher
Fareeha Ali
Researcher
Report Design Lead Ángel Monroy

@theangelmonroy
We would also like to thank all the industry experts interviewed for this report, as referenced in the Methodology section.
We would like to dedicate this edition to one of our most inspirational leaders at DinarStandard, Randah Taher, who left
this world back to her Creator this year. May God Almighty grant her a high level in paradise.
Disclaimer Copyright
The data of this report is believed to be correct at the time DinarStandard 2023 All Rights Reserved.
of publication but cannot be guaranteed. Please note that
the findings, conclusions, and recommendations that The material in this report is subject to copyright. Given
DinarStandard has delivered are based on information that Dubai’s Department of Economy and Tourism (DET) and
gathered in good faith from both primary and secondary DinarStandard encourage dissemination of this report, this
sources, whose accuracy we are not always in a position to work may be reproduced, in whole or in part, for non-com-
guarantee. The findings, interpretations, and conclusions mercial purposes as long as full attribution to this work is
expressed in this report do not necessarily reflect the views given. The attribution should clearly state that the report
of DinarStandard. As such, the information contained in this is produced by DinarStandard with the support of Dubai’s
report is intended to provide general information only and, Department of Economy and Tourism (DET).
as such, should not be considered as legal or professional
advice or a substitute for advice covering any specific situa-
tion. 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).
ACKNOWLEDGMENTS 243
Report Purpose
and Methodology
Context Purpose
The 57 OIC (Organization of Islamic Cooperation) countries The purpose of the State of the Global Islamic Economy
represent close to 15% of global GDP (PPP). Furthermore, Report is to inspire and empower government officials,
the Muslim population exceeds two billion, representing business leaders, entrepreneurs, and industry bodies to
more than 25% of the global population, growing at a evaluate and develop an actionable, practical, and high-im-
faster pace than the overall global population, and con- pact market strategy focused on the global Islamic econ-
taining some of the fastest-growing global economies. The omy. The 2023-24 State of the Global Islamic Economy
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.

PEXELS
REPORT PURPOSE AND METHODOLOGY 245

Report
Methodology
APPROACH
In addressing its purpose, the report incorporates a top-down and bottom-up approach. This includes:
1. Primary research and frameworks used to ensure

a comprehensive understanding of developments,
issues, and opportunities, supplemented by
extensive secondary research.
PRIMARY RESEARCH SECONDARY RESEARCH AND

PROPRIETARY FRAMEWORKS
Original research on halal products, lifestyle, and Islamic
finance market developments was conducted by leveraging A range of sources have been used for evaluating related
the services of on-the-ground analysts from each global sector developments, including but not limited to
region and gathering insights from 21 expert interviews SalaamGateway.com, international news sites (over 450
(shared below). stories analyzed and referenced in the report), multi-lateral
agency databases (UN, World Bank, IMF), and company
websites, supplemented by the extensive project-based
sector knowledge developed by DinarStandard.
The report presents sector-level opportunities and
challenges that also leverage DinarStandard’s related con-
sulting and ongoing sector research-based experiences.
Interviews and Focus Group Discussions
HALAL FOOD ISLAMIC FINANCE
Diana Sabrain, Junaid Wahedna

CEO/Co-Founder, OneAgrix Founder and Group CEO, Wahed
Amnah Shaari Blake Goud

Group CEO and Founder, Serunai CEO, RFI Foundation
Commerce Sdn Bhd
Dato Dr. Sirajuddin Suhaimee

Deputy Director General (Policy),
Department of Islamic Development
Malaysia (JAKIM)

MUSLIM-FRIENDLY TRAVEL HALAL PHARMACEUTICALS
Kamraan Siddiqui James Noh

Founder, Holiday Bosnia President, Korea Institute of Halal
Industry
Benjamin Carey FTS Dr. Ali Alsheikh

Carey Tourism SMIIC TC16 Halal Pharmaceuticals
Technical Advisor
Nabeel Shariff Wan Amir Jeffrey

Director, GMW Network COO, Duopharma Biotech
Anis Ramli Rozi Osman

Founder & Curator, Halaluxe Advisor, Halal Industry Strategist
MODEST FASHION HALAL COSMETICS
Afroja K Stevi Lowmass

Founder and CEO, Neomodest CEO, The Camel Soap Factory
Ali Charisma V. Ranganathan

Chairman, Indonesian Fashion AVP Marketing, Believe Pte,
Chamber Singapore
Vivy Yusof Hajar Hachki

Co-founder, FV Group Marketing Manager, Anaaka
Cosmetics
Héloise Lefebvre du Prey

Project Manager for Southeast Asia,
Asia Cosmetics Lab
MEDIA AND RECREATION
Zain Bhikha
Director, Zain Bhikha Studios

2. Trade data analysis.
The OIC imports and their exporting markets are retrieved Around 29 HS codes (2-digit) were analyzed. Food
and synthesized by DinarStandard from the ITC Trademap product codes exclude the codes identified as haram (not
database (2022). The OIC import projections for 2023-2027 permissible to consume in Islam). Trade data on phar-
were forecast using one of the following three methods: maceuticals and cosmetics is based on codes 30 and 33,
1) Correlating GDP with OIC imports 2) Using GDP CAGR, respectively. Fashion product codes include only apparel
or 3) Forecasting using historic import CAGR. The trade and footwear trade codes. The categorization of products
projections are assumed to account for the impact of for each sector is a result of DinarStandard’s proprietary
COVID-19, using the latest IMF GDP growth projections trade database and analysis.
released in April 2023.
3. Universe market sizing: The value of Muslim

consumer spending across lifestyle sectors by
country was developed by applying a proprietary
Muslim socio-demographic multiplier to global
sector-level market sizing data.
Overall, the estimates of the Islamic economy sector are Global Muslim market estimates are applied based on
based on the potential universe of opportunity and focused DinarStandard’s Muslim population estimates per country,
on its core audience of Muslim consumers globally. This which are adjusted for income disparities. Projections
number does not represent the actual value of the global were determined primarily by regressing historical annual
Islamic or halal-certified products economy, but more growth of the relevant industry metrics on GDP growth
broadly, the total spend value that Muslims provide to the for each country, in many cases showing a high correla-
referenced sectors. Islamic finance estimates are based on tion, while also comparing them to external estimates by
the LSEG Data & Analytics Islamic Finance Development national statistics agencies and global industry forecasts
Indicator (IFDI), with banking estimates baselined from to triangulate historic and projected growth.
central bank data, and assume full regulatory support
in the core Islamic finance markets (OIC countries) and
100% Muslim demographic penetration.
UNIVERSE MARKET SIZING METHODOLOGY OVERVIEW
Key Steps in Calculation (Summary) Key External Sources
1. Global lifestyle spend by sector (excl. Finance), US$ billion
Comprises: (by country) National databases:

• Food & Beverage International Comparison Programs
X • Footwear & Clothing
• Pharma & Cosmetics
(2017 baseline), UN World Trade Organization,
World Bank, DS Analysis and Estimations
• Media & Recreation
2. Muslim multiplier
Based broadly on: (by country) Census data:
= • Muslim % of population
• Relative income levels
DS Analysis and Estimations
• 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 Baselined from the latest International
• Muslim spend on apparel non-alcoholic beverages Comparison Program values (2017),
and footwear • Spend on clothing and footwear adjusted to more recent values
• Muslim spend on media • Spend on culture and recreation from national statistics agencies
and recreation and GDP evolution
Muslim travel spend Spend on outbound travel 2010-2020 World Bank
Muslim spend on pharmaceutical Spend on pharmaceuticals National statistics agencies,

and personal care products and cosmetics industry associations
CALCULATION OF NUMBER OF obtained from the WTTO and applied to the total number
MUSLIM TOURIST ARRIVALS of tourist arrivals. The number of Muslim tourists amongst
these arrivals was derived by applying the Muslim multi-
The number of Muslim tourist arrivals was derived by plier of the tourist country of origin. The top five source
calculating the proportion of Muslims within the total countries were provided. For the remaining inbound
inbound tourist arrivals to a specific country. tourists, a 5% Muslim proportion was applied for non-
The total number of tourist arrivals per country OIC destination countries, and 55% was applied for OIC
in 2022 was obtained from UNWTO. The breakdown of destination countries.
the tourist arrivals based on their country of origin was
4. Investment Research
An extensive list of investments made in the OIC and GLOBAL ISLAMIC ECONOMY
Islamic economy-specific investments outside the OIC INDICATOR
over the period August 2022 to July 2023, covering the
Food, Pharmaceuticals, Cosmetics, Islamic Finance, Media Methodology
and Recreation, Apparel, and Travel sectors, was compiled
based on research carried out across multiple databases, In its tenth year, the purpose of the GIEI is to benchmark
including CapitalIQ and Crunchbase. This research was the leading national ecosystems best able to support the
supplemented by DinarStandard’s own research and a development of Islamic economy business activity relative
scan of subsequent transactions identified by Salaam to their size. The GIEI is a composite weighted index that
Gateway and other news publications from August 2022. measures the overall development of the Islamic economic
Investments analyzed include mergers and acqui- sectors across 81 key countries by assessing the performance
sitions (M&A), private equity (PE), and venture capital of its parts in line with its broader social obligations. It
(VC) transactions. For venture capital transactions, angel comprises 52 metrics organized into five dimensions (finan-
funding, seed rounds, or pre-seed rounds are not included. cial, regulatory, awareness, social, innovation) for each of
Public offering/IPO deals are not included. the seven sectors of the Islamic economy (Islamic finance,
Financial services companies operating in both con- halal food, Muslim-friendly travel, modest fashion, media
ventional and Islamic finance were also assumed to belong and recreation, halal pharmaceuticals, and halal cosmetics).
to the Islamic finance category. To enhance the indicator as it moves toward its second
The scope of comparison has been altered from the decade, some changes are being introduced into the meth-
previous year’s report to widen the net and capture all odology. In addition to those changes incorporated last year,
relevant sector transactions to gain a more nuanced view such as expanding the countries covered and expanding the
of investments in the broader sector. definition of the food items being exported, the indicator
now includes an innovation dimension, and the weighting
of each dimension and sector has been changed to better
reflect the impact of the different dimensions and sectors.

INTRODUCTION Country indicator level
The GIEI is a global-level composite indicator with selected • Assess the current state of the Islamic economy in
country and industry component-level indicators with the each country.
following objectives: • Track changes over time and make comparisons
between regions and countries.
Global indicator level
• Present a single indicator to provide a pulse of the Specific sector level
global Islamic economy’s health and development. • Measure the sector’s health and development from
• Provide an indicator that is reliable and unbiased. various perspectives.
• Provide a global view of the Islamic economic land- • Enhance the sector’s market transparency and effi-
scape. ciency.
• Inform current and potential Islamic economy stake-
holders and investors about the industry’s performance. The sector indicator score is a product of numerous key
sub-indicators underlining the industry. All components
are fundamental to the development of the industry as
a global business.
GLOBAL INDICATOR
COUNTRY INDICATOR
SECTOR LEVEL
Islamic Halal Halal Modest Media Halal Pharma

Finance Food Travel Fashion & Recreation & Cosmetics
DIMENSION
LEVEL
Financial Financial Financial Financial Financial Financial

Governance Governance Governance Awareness Awareness Governance
Awareness Awareness Awareness Social Social Awareness
Social Social Social Innovation Innovation Social
Innovation Innovation Innovation Innovation
The GIEI is calculated by applying a weightage to each The different components that make up the indi-
of the sector indicators. The weightage is fixed to give cator are selected based on an outline of the industry’s
proportional importance to each sector. The weighting key constituents as a whole and are based on critical
is as follows: contemporary issues, including financial, governance,
awareness, and social developments. All are fundamen-
30% 30% 10%
Islamic Finance Halal Food Halal tally important for the development of the industry as
Travel a global business.
10% Modest Fashion
10% Media & Recreation
10% Halal Pharma & Cosmetics

DATA COLLECTION • The methodology should have minimal subjectivity
The data employed in the Global Islamic Economy Indicator and be based on a consistent formula across metrics.
when aggregating data and computing indicator values • The Global Indicator is based on the arithmetic mean
includes information that is publicly disclosed only. The of the individual Country Indicators.
employment of disclosed information ensures the reliability • The Country Indicators are based on the arithmetic
and consistency of the results. means of their individual Indicators.
• The Individual sectors are based on the arithmetic
INDICATOR CALCULATION METHODOLOGY means of their Sub-Indicators.
The methodology for calculating the indicator values has • The Sub-Sectors are based on the sum of the metric
been developed based on the following key characteristics: values of their individual Metrics.
• The absolute values should be adjusted or rationalized • The Metric Value is designed to be aggregated to
based on the overall size of the country/economy to provide the Sub-Indicator Values.
ensure comparability among countries.
For numerical values (US$ amounts) and numbers (e.g., number of seminars or conferences):
Absolute Value Metric Weight
Metric Value = x
(Scale Value x Rationalizing Coefficient) 2
For percentage values (e.g., return on equity):

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

Average ,
Median GDP Median Population
Rationalizing Coefficient = 1+
4
Scale Value is the average of all absolute values for that Metric Weight is designed to ensure that particular sub-in-
metric (not including zeros). This value forms the basis dicator metrics are weighted to ensure that all sub-indica-
of our scale for that metric and will remain unchanged tors are comparable, regardless of the number of metrics
for future years. 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
The Metric Weight is calculated as follows:
metric is measured.
100
Metric Weight =
Total metrics within
the Sub-Indicator

SHUTTERSTOCK

UNIVERSE
All OIC countries are included, along with non-OIC coun-
tries that have a strong halal industry presence. A total
of 81 countries are included.
GCC (Gulf Corporation Council) • Netherlands • Guinea

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

ImpactIntell.
Special
Features
CONSUMER STORY PROFILES

DinarStandard held interviews with Muslim consumers
ranging from Gen X to Gen Alpha to discuss their con-
sumer views and behavioral preferences around shariah
compliance and halal products/services.

PEXELS

Endnotes
1. Sara Zouiten. Global Muslim Population Exceeds 2 Billion. Morocco World News. April 6, 20203.
2. The Future of World Religions: Population Growth Projections, 2010-2050. Pew Research Center. April 2, 2015.
3. The Future Global Muslim Population: Projections for 2010-2030. Pew Research Center. January 2011.
4. The Future Global Muslim Population: Projections for 2010-2030. Pew Research Center. January 2011.
5. Jeff Fromm. As Gen Z’s Buying Power Grows, Businesses Must Adapt Their Marketing. Forbes. July 20, 2022.
6. Annual Report on Trade Among the OIC Member States Executive Summary. Islamic Centre for Development of Trade Organisation of Islamic Cooperation. May 25, 2022.
7. GDP per capita (current US$) - Arab World. The World Bank. 2023.
8. Key Findings from the Global Religious Futures Project. Pew Research Center. December 21, 2021.
9. Key Findings from the Global Religious Futures Project. Pew Research Center. December 21, 2021.
10. Sara Lebow. Where in the world is internet use rising the fastest?. Insider Intelligence. May 25, 2023.
11. Sophia Godinho. Internet Commerce Summit 2023 to focus on $49.78bln opportunities in the e-commerce sector in the GCC. Zawya. March 15, 2023.
12. Johnny Wood. Gen Z cares about sustainability more than anyone else – and is starting to make others feel the same. World Economic Forum. March 18, 2022.
13. Halal Economy Thrives as Product Demand from Muslims and non-Muslim Nations Surges. Frost & Sullivan. September 6, 2022.
14. A Glimpse into The Global Halal Industry [2023]. Islamic Services of America. February 23, 2023.
15. Hassan Jivraj. Outlook 2022: Global sukuk issuance may soften but ESG provides bright spot. Salaam Gateway. February 1, 2022.
16. OIC is working towards achieving 25% intra-OIC trade by 2025: official. Zawya. June 16, 2022.
17. Islamic Development Bank workshop promotes investment in OIC countries. Arab News. December 9, 2023.
18. Olivia White, Kevin Buehler, Sven Smit, Ezra Greenberg, Mihir Mysore, Ritesh Jain, Martin Hirt, Arvind Govindarajan, Eric Chewning. War in Ukraine: Twelve disruptions changing
the world. McKinsey & Company. May 9, 2022.
19. Mohammad Al-Saidi. Caught off guard and beaten: The Ukraine war and food security in the Middle East. National Library of Medicine. February 21, 2023.
20. Stefan Legge, Piotr Lukaszuk. Regionalization vs globalization: what is the future direction of trade?. World Economic Forum. July 15, 2021.
21. Christian Keller, Renate Marold. Deglobalisation: what you need to know. World Economic Forum. January 17, 2023.
22. Kelly Bogdanova. Worlds apart: Risks and opportunities as deglobalization looms. Wealth Management. June 5, 2023.
23. Zongyuan Zoe Liu, Mihaela Papa. Can BRICS De-dollarize the Global Financial System?. Cambridge. February 24, 2022.
24. Alexander Jaax, Sébastien Miroudot, Elisabeth van Lieshout. Deglobalisation? The reorganisation of global value chains in a changing world. OECD Trade Policy Papers. 2023.
25. Enda Curran. These Could Be the World’s Biggest Economies by 2030. Bloomberg. January 8, 2019.
26. Alicia Wallace. IMF: Global economy is improving but inflation is still enemy No. 1. CNN Business. July 25, 2023.
27. Regional Economic Outlook: Middle East and Central Asia. International Monetary Fund. October 12, 2023.
28. Ajit Niranjan. ‘Era of global boiling has arrived,’ says UN chief as July set to be hottest month on record. The Guardian. July 27, 2023.
29. Climate Change Overview: Development news, research, data. World Bank. May 12, 2023
30. Marc Jones. Climate change putting 4% of global GDP at risk, new study estimates. Reuters. April 28, 2022.
31. Anthony Cillufio, Neil G. Ruiz. World’s population is projected to nearly stop growing by the end of the century. Pew Research Center. June 17, 2019.
32. Daniel Lievano. Global fertility has collapsed, with profound economic consequences. The Economist. June 1, 2023.
33. Anthony Cillufio, Neil G. Ruiz. World’s population is projected to nearly stop growing by the end of the century. Pew Research Center. June 17, 2019.
34. PwC’s Global Artificial Intelligence Study. PwC. 2017.
35. Hafiz. M. Ahmed. How Can AI Help the Global Halal Industry?. The Halal Times. December 28, 2022.
36. Will robots really steal our jobs?. PwC. 2023.
37. Organization of Islamic Cooperation – 57 mostly-Muslim majority countries
38. Global Islamic Fintech Report, 2022 Elipses and DinarStandard
39. Estimates through 2022; SalaamGateway.com data; Interview based soft-copy email and messaging sharing was at 8x
40. Dubai FDI Annual Result and Rankings. Government of Dubai. 2022.
41. Bahrain’s economy grows 2% as non-oil sector expands. Arab News. December 9, 2023.
42. TradeArabia. Bahrain origin products’ exports jump 24% in 2022. Zawya. January 24, 2023.
43. Juergen T Steinmetz. Sanctions, Protests? Tourism to Iran is booming again. eTurboNews, July 7, 2023.
44. Hugh MacArthur, Rebecca Burack, Christophe De Vusser, Graham Rose, Brenda Rainey. Stuck in Place: Private Equity Midyear Report 2023. Bain & Company. July 17, 2023.
45. Global M&A Industry Trends: 2023 Mid-Year Update. PwC. 2023.
46. Hugh MacArthur, Rebecca Burack, Christophe De Vusser, Graham Rose, Brenda Rainey. Stuck in Place: Private Equity Midyear Report 2023. Bain & Company. July 17, 2023.
47. 2022 M&A Review and Outlook. Wilmerhale. April 17, 2023.
48. Blazej Kupec. Mid-year state of the industry: How is private equity doing so far in 2023?. Moonfare. August 11, 2023.
49. Gené Teare. How Low Can It Go? Health Care Leads with Nearly $5.7B Invested in Bummer Month for Global Venture Funding. Crunchbase. May 3, 2023.
50. Jeffrey Grabow. Q1 VC investment rises, with headwinds increasing for 2023. EY. May 3, 2023.
51. Simon Harvey. Hormel Foods takes minority stake in Indonesia’s GarudaFood. JustFood. December 16, 2022.
52. Seeds provider Advanta hits $2.25bn valuation thanks to KKR investment. Private Equity Insights. October 21, 2022.
53. Manama. KFH completes acquisition of Ahli United Bank. Trade Arabia. October 3, 2022.
54. Islamic Coin raises $200 million from ABO Digital. Wamda. July 4, 2023.
55. Saudi PIF mulls $1bn stake in Seera’s travel unit Almosafer. Arab News. September 13, 2022.
56. Saudi’s Public Investment Fund and Cain invest $900m in Aman Group. Hotel Management Network. August 16, 2022.
57. Jens Kengelbach, Daniel Friedman, Kanchan Samtani, Lianne Pot, Teemu Ruska, Georg Keienburg, Dominik Degen. Dealmaking Remains Active as Dark Clouds Form. BCG.
October 20, 2022.
58. EBRD buys equity stake in Turkish retail giant DeFacto for $59M. Daily Sabah. January 20, 2023.
59. Modanisa, the global leader of modest fashion receives 20M USD investment. Corporat News. July 6, 2023.
60. Jim Cornall. Recursion announces $150M private placement. Labiotech. October 28, 2022.
61. INA and SRF announce investments in KAEF and KFA. Kimia Farma. February 23, 2023.
62. Gabriel Budi Sutrisno. Sociolla raises over $60m from Temasek, L Catterton. TechInAsia. October 18, 2022.
63. Sujata Sangwan. IBA cosmetics raises $10m in series B from strategic investor Believe. YourStory. November 15, 2022.
64. Aisha Malik. Saudi’s Savvy Games Group to acquire mobile games company Scopely for $4.9 billion. TechCrunch. April 5, 2023.

65. Gabriel Budi Sutrisno. MNC Group leads $20m round of Indonesian content distributor. TechInAsia. February 10, 2023.
66. World Investment Report 2023. UNCTAD. 2023.
69. Ana Mano. Brazil’s BRF formalizes halal JV as ties with Saudi Arabia strengthen. Zawya. August 2, 2023.
70. Salama. Brazil’s BRF sustains lead on halal exports to Gulf region. Halal Focus. August 17, 2023.
71. Saudi’s SALIC adds Brazilian BRF to its strategic investment’s portfolio. Zawya. July 20, 2023.
72. Salama. Saudi Arabia: Kerry Group opens new state of the art facility at its Jeddah operation. Halal Focus. January 1, 2022.
73. Pearly Neo. Upgrades and opportunities: Kraft Heinz pumps investment into Indonesia, eyes meat replacement innovation. Food Navigator. May 2, 2023.
74. Ras Al Khaimah. India’s Al Amir Food to set up new factory in Ras Al Khaimah. Trade Arabia. February 7, 2023.
75. Kudakwashe Muzoriwa. Saudi wealth fund sets up Sawani to boost camel dairy industry. Gulf Business. July 21, 2023.
76. Salama. PIF Establishes Al Madinah Heritage Company to Develop and Enhance Production of Saudi Ajwa Dates. Halal Focus. July 24, 2023.
77. Al Islami Foods returns to Qatar with premium offerings. Zawya. August 31, 2023.
78. Samaa Web Desk. UAE bans Pakistani frozen meat imports via sea. Samaa. September 22, 2023.
79. Islamic Development Bank Group Signs MoU with Halal Products Development Company. Islamic Development Bank. May 11, 2023.
80. Iran, Indonesia Establish Halal Product Cooperation. Financial Tribune. May 24, 2023.
81. Salama. Malaysia is launching its first lab-grown meat facility. Halal Focus. April 25, 2023.
82. Sharon Wrobel. Kosher, now maybe halal: Aleph Farms gears up for rollout of cultivated steak. The Time of Israel. March 2, 2023.
83. Doug T. Graham. Family-owned grocery store in Gurnee adds halal meat counter. Daily Herald. August 31, 2023.
84. Staff Writer. Halal industry ecosystem in review. Salaam Gateway. September 28, 2023.
85. Staff Writer. Halal industry ecosystem in review. Salaam Gateway. September 28, 2023.
86. Pooja Malik. Rebel Foods Enters Saudi Arabia, Expands Focus on Middle East. Your Story. July 3, 2023.
87. Al Ghurair Foods to invest Dh1b on 3 food processing plants in Abu Dhabi. Islamic Organization for Food Security. 2023.
88. Saudi Agricultural Development Fund inks deals worth $246.8m. Arab News. July 9, 2023.
89. Saudi Agricultural Development Fund approves $400m to improve farm productivity. Arab News. June 20, 2023.
90. Saudi Arabia attracts $61.8m investments in the food industry. Arab News. June 23, 2023.
91. Arya M Nair. PIF-owned HPDC & Tanmiah in deal to expand Saudi halal market. GCC Business News. June 18, 2023.
92. Alyona Pavlenko. Signing of memorandum between ASK and ICHS to foster halal products in Azerbaijani market. Trend News Agency. July 18, 2023.
93. Islamic Organization for Food Security. Islamic Organization for Food Security. 2023.
94. SFDA empowers consumers to track sources of food and beverages via blockchain. Saudi Gazette. April 13, 2023.
95. Salama Evans. UAE: Pioneering and Comprehensive Food Traceability Technology with DNA Verification Launched by OneAgrix and Ecosystem Partners. Halal Focus. Desember 12,
2022.
96. Joseph Sipalan. Foodpanda Malaysia looks to Middle East, South Asia as appetite for halal delivery surges. SCMP. April 18, 2023.
97. DOST-Davao, PWC launch 1st Halal research, innovation center. Sunstar. August 08, 2023.
98. Saudi Agricultural Development Fund approves $400m to improve farm productivity. Arab News. June 20, 2023.
99. Saudi Arabia targets $20bn food industry investment: Ministry. Arabian Business. June 13, 2023.
100. Indonesia Accelerating Digitization of MSMEs to Encourage Development of Islamic Economy. Iqna. July 15, 2022.
101. ‘None of the Muslim kids can eat’: Illinois to provide halal and kosher meals to schoolkids. The Guardian. June 1, 2023.
102. Saudi Arabia, Oman sign multiple MoUs at food show in Riyadh. Arab News. June 25, 2023.
103. SFDA chief: Mutual recognition of Halal certificates by Saudi Arabia, Morocco to boost Halal trade. Saudi Gazette. March 16, 2023.
104. Saudi Arabia, Malaysia sign deal for mutual recognition of halal certification. Arab News. May 28, 2023.
105. FAO, IsDB, and IFAD Collaborate to Strengthen Food Security Technologies for Smallholder Farmers. Islamic Development Bank. September 18, 2023.
106. 6th IOFS General Assembly Convenes in Doha: A Milestone Event for Global Food Security. Islamic Organization for Food Security. October 4, 2023.
107. Philippines, Malaysia to resume 8th JCM, consider opportunities in Halal industry. Philstar Global. March 1, 2023.
108. Raffy Cabristante. Philippines, Malaysia agree to develop BARMM, halal industry. ABS-CBN News. July 26, 2023.
109. HDC, Kotra Ink Mou To Strengthen Bilateral Ties. Halal Development Corporation. 2023.
110. BPJPH invites IMT-GT to increase innovation in halal product assurance. Antara Indonesian News Agency. July 3, 2023.
111. Khan. The Halal Beef Revolution: Japan’s Kobe Beef Goes Global with Halal Certification!. Halal Food in Japan. March 03, 2023.
112. Bernama. Halal-certified Hanwoo Korean beef export to Malaysia will boost bilateral trade. New Straits Times. May 12, 2023.
113. Salama. A new deal will see South Africa export up to 1,000 tons of beef to Saudi Arabia per year. Halal Focus. October 21, 2022.
114. Gov’t Introduces New Halal Certification Mark to Replace MUI Label. Jakarta Globe. March 13, 2022.
115. FamilyMart Malaysia to Open 300 Halal-Certified Stores. RLI. May 15, 2023.
116. Shaik Zakeer Hussain. Islamic scholars deem lab-grown meat halal contingent on specific criteria. Salaam Gateway. September 19, 2023.
117. Richard Wheeler. Halal and kosher meat labelling reforms under consideration, MPs told. Independent. January 12, 2023.
118. Salama. USA: New York State Agriculture Commissioner Announces Updated Kosher and Halal Food Registry. Halal Focus. May 24, 2023.
119. New Desk. Labeling oversight leads to recall of 30 tons of halal meat and poultry sausages. Food Safety News. April 24, 2023.
120. CAS deemed unsuitable for Halal poultry. Poultry World. June 15, 2023.
121. Salama. India: Government Issues Guideline for Exports of Halal Meat. Halal Focus. April 07, 2023.
122. Nikkei Staff. Indonesia’s halal certification body opens office in Japan. Nikkei Asia. April 16, 2022.
123. Hyung-Chang Choi. S. Korean SMEs unprepared for Indonesia’s mandatory halal certification. The Korea Economic Daily. June 20, 2023.
124. Russia adopts new halal standards. All About Feed. February 2, 2023.
125. Salama. Russia Establishes Accredited Agency for Certification of Halal Products. Halal Focus. May 22, 2023.
126. Indonesia: Indonesia Halal 20 Forum. USDA. December 15, 2022.
127. Salama. Dubai: World Halal Food Council Assembly 2023. Halal Focus. February 23, 2023.
128. Omar Assi. Egyptian food industries focus on halal exports. Anba. July 18, 2023.
129. Bruna Garcia Foncesca. ApexBrasil, Arab Brazilian Chamber sign halal agreement. Anba. July 04, 2022.
130. The Halal Science Centre Chulalongkorn University’s “Development of Smart Farm Systems by Using Modern Sustainable Technology in the Northern Region”. City News. July 19,
2023.
131. Kiara Worth. COP27 Reaches Breakthrough Agreement on New “Loss and Damage” Fund for Vulnerable Countries. United Nations. November 20, 2022.
132. Pearly Neo. Coffee with respect: Nestle aims to maximise Malaysian sector potential via NESCAFE sustainability strategy. Food Navigator Asia. April 24, 2023.
133. ERC sacrificial meat project benefits up to 500,000. Emirates News Agency-WAM. June 30, 2023.
134. Mohammed bin Rashid launches 1 Billion Meals Endowment campaign to provide sustainable food aid. Government of Dubai. March 19, 2023.
135. Haj 2023: Saudi authorities distribute over 751m food items. The Siasat Daily. July 5, 2023.
136. Staff Reporter. Dubai: RTA announces launch of food delivery robots. Khaleej Times. February 15, 2023.
137. Talabat launches an experiential dine-in kitchen concept in its tech headquarters at City Walk, Dubai. Zawya. March 15, 2023.
138. Arya M Nair. FOODICS & SEA Ventures tie up to digitally support Saudi F&B sector. GCC Business News. February 21, 2023.
139. Hui Ling Dang. Collaborate to innovate: House of Pops injects Lebanese flavours into new collaboration range. Food Navigator Asia. September 27, 2023.
140. Pearly Neo. Plant-based successors: PLNT eyes APAC and Middle East markets with sodium-balanced, high-digestibility meat alternatives. Food Navigator Asia. May 17, 2023.
141. PIF’s subsidiary facilitates entry of US-based Eat Just into halal market. Arab News. September 11, 2023.
142. Hamoud Boualem. Drinks Innovation | Foodtech Startup Challenge. Soolvit. 2023.
143. Hui Liang Dang. Collaborate to innovate: House of Pops injects Lebanese flavours into new collaboration range. Food Navigator Asia. September 27, 2023.
144. IsDB’s Strategic Realignment - A Promising Strategy for a Sustainable Future. Islamic Development Bank. April 5, 2023.
145. IsDB Launches Paris Alignment Action Plan to support Climate Action in Member Countries. Islamic Development Bank. June 3, 2023.
ENDNOTES 257
146. UN High Commission for Refugees and IsDB’s Islamic Solidarity Fund for Development to Launch Global Islamic Fund for Refugees. Islamic Development Bank. March 17, 2022.
147. IsDBI helping Uzbekistan to build a resilient Islamic finance industry. Zawya. March 26, 2023.
148. IsDB, ICIEC, and UNCTAD Join Forces to Spur Sustainable Investment. Islamic Development Bank. April 30, 2023.
149. Fitch Rates ICD Eagle Limited’s Proposed KZT Trust Certificates ‘A+’. Fitch Rating. May 22, 2023.
150. ITFC signs annual financing plan for $1.4 billion with Bangladesh to ensure energy security. The Business Standard. May 28, 2023.
151. ITFC signs six agreements totaling $101mln with Cote d’Ivoire, Egypt, Uzbekistan, and The Kingdom of Saudi Arabia. Zawya. May 12, 2023.
152. ITFC Signs the 2023 Annual Work Program with Egypt for US$1.5 billion. International Islamic Trade Finance Corporation. January 23, 2023.
153. ITFC signs largest Syndicated Murabaha Trade Financing Agreement with STO, Maldives & MoU with MIFCO. International Islamic Trade Finance Corporation. September 25, 2022.
154. ITFC Signs Euro 400 million 2023 Annual Plan with Senegal and AATB Country Program. International Islamic Trade Finance Corporation. January 30, 2023.
155. ITFC, Tunisia sign nearly $280mln worth of trade financing agreements. Zawya. March 6, 2023.
156. The Islamic Corporation for The Development of The Private Sector and Leasing Group Sign Kazakhstan Tenge-Denominated Deal in Equivalent of Us$5 Million to Boost SMEs In
Kazakhstan. Islamic Corporation for The Development of The Private Sector. May 11, 2023.
157. ICIEC Shareholders Approve Substantial Capital Increase Demonstrating Adequate Support to Its Strategic Growth Plans. ICIEC. June 9, 2022.
158. Shahbaz Rana. Govt announces end to riba in five years. The Express Tribune. November 9, 2022.
159. Participation Finance Strategy Document will significantly contribute to efforts aimed at developing alternative instruments for financial system. Presidency of The Republic of
Turkiye. October 3, 2020.
160. Abdulselam Durdak. Türkiye eyes to become leader in Islamic finance, says official. AA. October 05, 2022.
161. Turkiye eyes to become leader in Islamic finance, says official. Middle East Monitor. October 4, 2022.
162. Short-term liquidity facility for Islamic banks introduced. New Age Business. December 5, 2022.
163. Uganda issues first Islamic banking license. The Star. September 11, 2023.
164. Path to COP28 Round Table on Islamic Finance hosted by King & Spalding and S&P Global. GEFI. 2023.
165. Aarti Nagraj. Cop28 to shed more light on benefits of sustainability-linked sukuk. The National News. July 13, 2023.
166. Marlena Kareem. Indonesia issues largest-ever global green Sukuk tranche. Islamic Sustainable. August 18, 2022.
167. Dubai Islamic Bank sells $750 million in debut sustainable sukuk. Reuters. November 22, 2022.
168. Inaugural Issuance of RM4.5-Billion Domestic Sustainability MGII Sukuk by The Government of Malaysia. Official Portal of Ministry of Finance Malaysia. September 30, 2022.
169. Bahrain’s Infracorp lists $900mln green sukuk on London Exchange. Zawya. March 28, 2022.
170. Alrajhi bank announces the successful closing of the Bank’s First US Dollar Sustainable Sukuk. Media Center. April 4, 2023.
171. Alrajhi bank announces the successful closing of the Bank’s First US Dollar Sustainable Sukuk. Media Center. April 4, 2023.
172. Amjad Saleh. Registration fees waived for firms listing green, sustainability-linked bonds, sukuk in 2023: SCA. Zawya. June 7, 2023.
173. RHB unveils green financing scheme for SMEs with RM1.5bil target by 2024. The Star. March, 13 2023.
174. Masraf Al Rayan launches Qatar’s first green deposit. Gulf Times. April 11, 2022.
175. Maybank Launches Sustainable Product Framework to Drive Sustainable Finance. Business Today. September 1, 2022.
176. Vineeta Tan. Profit, people, planet — HSBC Amanah unveils triple bottom line framework as part of sustainability drive. Islamic Sustainable. September 28, 2022.
177. Bursa Malaysia Launches Two New Esg Themed Indices with Ftse Russell. Bursa Malaysia. August 29, 2022.
178. Cynthia Ignatius. Bursa Enhances Listing Requirements to Facilitate Offering of Islamic REITs, ETFS With Waqh Features. Business Today. March 27, 2023.
179. Islamic Organization for Food Security eyes local currency agricultural Sukuk issuance. Islamic Organization for Food Security. August 1, 2023.
180. AmInvest reintroduces AmBon Islam as SRI fund. Business Times. January 10, 2023.
181. Elizabeth Yee. Hong Leong’s First Shariah-Compliant ESG Fund Launched by Its Asset Management Arm. Business Today. January 9, 2023.
182. Cynthia Ignatius. Greenpro Launches World’s First Shariah-Compliant ESG Digital Asset Exchange, Green-X of Labuan. Business Today. September 20, 2022.
183. Carbon credits can now be traded in line with Islamic principles. FMT. December 9, 2022.
184. Gulf Ventures launches food business platform. Gulf Ventures launches food business platform. March 28, 2023.
185. Standard Chartered Malaysia introduces SC WIN. The Star. June6, 2023.
186. CIBAFI Launches Sustainability Guide for Islamic Financial Institutions. Islamic Markets. 2023.
187. Faysal Bank becomes full-fledged Islamic bank. Business Recorder. December 31, 2022.
188. Erum Zaidi. Faysal Bank becomes full-fledged Islamic bank. The News. May 10, 2023.
189. KARACHI: Security Investment Bank Ltd (SIBL) told the Pakistan Stock Exchange on Friday its board has decided to transition into a Sharia-compliant entity. Dawn. May 13, 2023.
190. Khurshid Ahmed. Pakistan’s Summit Bank changes name after acquisition by Dubai-based businessman. Arab News. July 18,2023.
191. Sarmad Khan. Bank Dhofar makes offer to acquire 100% of competitor Ahli Bank. The National News. May 24, 2023.
192. KFH Wins “Best Islamic Bank in Kuwait” and “World Best Islamic Bank for ESG 2023” awards. Kuwait Finance House. June 22, 2023.
193. Sunil Singh. Gulf Bank and Ahli Bank of Kuwait call off merger talks. The National News. June 05, 2023.
194. Interim Condensed Financial Statements for The Nine Months Ended 30 September 2022. Sohar International. 2023.
195. HSBC Oman merger with Sohar International complete. Zawya. August 20, 2023.
196. Al Salam Bank completes $2.2bn acquisition from Ithmaar. Retail Banker International. November 16. 2023.
197. FABMISR announces successful integration of all banking services with Bank Audi Egypt. Zawya. November 1, 2022.
198. Akanda Muhammad Jahid. IBBL, Agrani, Al-Arafah top remittance recipient banks in FY23. The Daily Star. July 7, 2023.
199. IDLC Finance gets nod to launch Islamic finance window. The Daily Star. April 11, 2023.
200. DBH Finance gets approval to launch Islamic finance window. The Finance Express. April 13, 2023.
201. Muluken Yewondwossen. Rammis Bank cuts its HQ ribbon. Capital Ethiopia. June 5, 2023.
202. SEC’s $2bn Sukuk oversubscribed 7.7 times, attracting $15.4bn order book. Arabian Business. April 5, 2023.
203. Emirates Islamic is first bank in the UAE to issue a Dirham Sukuk. Emirates NBD. February 09, 2023.
204. Press Release: N100 Billion Sovereign Sukuk Issuance For 2022 Closes on a High Note. Debt Management Office Nigeria. December 07, 2022.
205. Egypt’s debut sukuk sale 4x oversubscribed at $6.1bln. Zawya. February 27, 2023.
206. Tariq Al Fahaam. UAE’s Islamic Treasury Sukuk achieves bids worth $2.26bln and oversubscription of 7.6 times. Zawya. May 11, 2023.
207. Pomegranate Nigeria Limited secures ₦2.25 billion ijarah Sukuk Funding. Business Day. November 29, 2022.
208. Chimera Capital launches two US Shariah-compliant exchange traded funds. Zawya. June 27, 2022.
209. Chimera Capital LLC launches shariah-compliant ETF tracking Hong Kong-listed Chinese equities. Zawya. May 25, 2023.
210. Hejaz launches Australia’s first Sharia-compliant ETFs on ASX (ASX: ISLM and ASX: HJZP). Zawya. October 17, 2022.
211. QIC and QInvest LLC announce the establishment of Epicure Islamic Investment Management LLC. Zawya. October 3, 2022.
212. Sputnik ATX launches first Shari’a compliant VC Fund. Zawya. April 26, 2023.
213. BlueBox launches Shariah-compliant technology fund. Zawya. August 4, 2022.
214. STV launches $150 million Total Growth investment platform. Wamda. February 8, 2023.
215. Merak Capital launches SAR 200mln Direct Lending Fund. Zawya. February 7, 2023.
216. Saudi stocks exchange launches first Shariah-compliant index. Arab News. July 17, 2022.
217. First Islamic Indices Based On S&P/ASX Series Launched. Seeking Alpha. March 9, 2023.
218. FTSE Russell & IdealRatings Launch FTSE IdealRatings Islamic Index Series. FTSE Russell. July 19, 2022.
219. Maingi Gichuku. Nigerian mobility fintech Moove raises US$30 million for UAE expansion. The Exchange Africa’s Investment Gateway. December 8, 2022.
220. Tamara raises $100mln in Series B equity round. Zawya. August 22, 2022.
221. Indonesia’s Alami Closes Pre-Series B Round Led by East Ventures. Tn Global. October 10, 2022.
222. Wa’ed leads $50 million Series B round for US-based fintech startup Wahed. Wamda. June 16, 2022.
223. Aisha S Gani. Startup Wahed Backed by Aramco and Paul Pogba Now Valued at $300 Million. Bloomberg. June 15, 2022.
224. Entrepreneur Middle East Staff. Iraq’s First Independent Technology Fund Launched Through Partnership Between Iraqi Islamic Bank and Singapore-Based Venture Capital Fund
MSA Novo. Entrepreneur Middle East. March 16, 2023.
225. Ethis Group Launches New Ethis Super Angel Syndicate. Ethis. August 10, 2022.

226. Franklin Templeton Launches New Shariah-Compliant Technology Fund. Franklin Templeton. February 22, 2022.
227. Pramod Kumar. Saudi jet lessor AviLease secures $1.1bn to expand fleet. AGBI. June 8, 2023.
228. ALAMI Group Rebranded to Hijra, Forging Vision to Become a Platform for Goodness. ALAMI Sharia. 2023.
229. Ryan Browne. Aramco-backed fintech opens bank branch in London to help Muslims invest. CNBC. January 24, 2023.
230. Rebranding Announcement: Maydan Capital is now WahedX. Wahed Ventures. September 12, 2022.
231. The entrepreneurial haven: EthisX kicked off its official launch in Oman. Zawya. June 26, 2022.
232. Nada El Sawy. UAE-based Tabby suspends operations in Egypt. The National News. February 22, 2023.
233. Algbra receives authorised e-money licence. Zawya. June 10, 2022.
234. Intan Farhana Zainul. SC opens up for more crypto exchanges. The Edge Malaysia. November 16, 2022.
235. Rizwan Shah. SECP’s Regulatory Sandbox Accepting Applications for Fourth Cohort, Focuses on Islamic and Conventional Finance Segments. BNN Breaking News. September 23,
2023.
236. BNM launches Malaysia Islamic Overnight Rate (MYOR-i) to spur Islamic financial product innovation. Bank Negara Malaysia. March 25, 2022.
237. Kudakwashe Muzoriwa. CBUAE unveils Central Bank Digital Currency strategy. Gulf Business. March 23, 2023.
238. Finance Office publishes Türkiye Fintech Guide. AA. March 29, 2023.
239. QCB launches Qatar FinTech Strategy 2023 to diversify financial sector. Qatar Tribune. March 03, 2023.
240. Derek Andersen. IMF examines CBDC design in context of Islamic banking, finds some risks magnified. Cointelegraph. March 20, 2023.
241. Abhi becomes MENAP’s first fintech to issue Islamic bonds (Sukuk). Zawya. May 12, 2023.
242. Walaa Insurance, SABB Takaful say merger complete; SABB Takaful to delist. Argaam. Oktober 19, 2022.
243. Marlena Kareem. Development financial institution Agrobank to launch agricultural Takaful program early next year, ISFI learns. Islamic Sustainable. June 13, 2023.
244. Daraz Pakistan and Salaam Takaful are partnered to offer Islamic insurance for the mobile and personal belonging of riders. Trade Chronicle. May 23, 2023.
245. Nor Ain Mohamed Radhi, Teh Athira Yusof & Qistina Sallehuddin. Budget 2023: Development of wakaf land and assets to be prioritised. New Straits Times. February 24, 2023.
246. Islamic finance group, the “first approved Islamic microfinance in Burkina Faso”, opens its doors. News Directory. May 10, 2023.
247. IBF Net launches world’s first Shariah Compliant Metaverse. Zawya. January 23, 2023.
248. Warba is reviewing the products and services that will be provided in virtual reality. Warba Bank. July 27, 2022.
249. Jebun Neso Alo. Digital bank licence requires Tk125cr capital. The Business Standard. June 07, 2023.
250. Sakhawat Prince. These 40 companies are competing to set up digital banks. The Business Standard. August 22, 2023.
251. Boustead teams up with GEC to establish Turkiye’s first Islamic digital bank. The Star. July 06, 2022.
252. Emmanuel Samarathisa. Aeon to proceed with Malaysia digibank despite MoneyLion exit. Techinasia. May 4, 2023.
253. Labuan IBFC Inc Witnesses the Official Launch of Waafi Bank Ltd. Labuan IBFC. 2023.
254. SIB launches Emirates Digital Wallet’s klip in SIB Digital App. Sharjah. March 8, 2023.
255. Elizabeth Yee. Al Rajhi Bank Malaysia Launches End-to-End Digital Banking, Rize. Business Today. December 1, 2022.
256. Dubai Islamic Bank launches DIB ‘alt’, consolidates digital offerings. Gulf Business. June 5, 2023.
257. Ila Bank launches ‘alburaq’ Islamic banking experience in Bahrain. Zawya. May 16, 2023.
258. Afeez Odunoye. AltInvest offers wealth creation, capital appreciation, others, with focus on real sectors of the economy. Technext. June 16, 2022.
259. Islamic Supply Chain Financing: Meezan Bank, Fauree to develop digital platform. Business Recorder. June 7, 2023.
260. BankIslami becomes first Islamic bank to finance electronic warehouse receipt financing. Pakistan Observer. 2023.
261. Rakeez Capital launches automated sukuk issuance platform. Zawya. June 12, 2023.
262. Bank Nizwa partners with Buna to offer seamless cross-border payments. Zawya. May 3, 2023.
263. WAEMU: Financial markets authority AMF-UMOA sets Islamic CIS operating guidelines. Ecofin Agency. March 2, 2023.
264. Exposure Draft on Hajah and Darurah. Bank Negara Malaysia. December 15, 2022.
265. Sc Issues Consolidated Guidelines on Islamic Capital Market Products and Services. Surahanjaya Sekuriti. November 28, 2022.
266. Regulatory News. BNM Proposes Guideline on Cloud Technology Risk Assessment. Moody’s Analitics. June 3, 2022.
267. Rahimy Rahim, Martin Carvalho, Tarrence Tan. Budget 2023: EPF syariah savings to be separated from next year for more competitive returns, says Anwar. The Star. February 24,
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268. Heru Yulianto. Otoritas Jasa Keuangan Terbitkan POJK BPRS Baru. Pajak.Com. 2023.
269. SECP issues Guidelines for Offering Islamic Financial Services, 2023. The Nation. January 12, 2023.
270. Saudi Arabia to establish new unified regulator for insurance sector. Zawya. September 29, 2022.
271. Arya M Nair. Saudi’s SAMA & CBUAE sign MoU for mutual supervision of insurance sector. GCC Business News. September 19, 2022.
272. Non-interest Capital Market: SEC Announces New Rule on Shariah Advisory Services. This Day Live. December 14, 2023.
273. Aderonke Alex-Adedipe, Eustace Aroh. Nigeria: Regulatory Update: The Revised Guidelines for The Operation of Non-Interest Financial Instruments by The Central Bank of
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274. Philip UKPE. DMBs Seeking Non-Interest Banking License Must Divest from Non-Shariah Compliant Activities, CBN Says in New Guidelines. The Whistler. May 29, 2023.
275. Muhammad Aamir, Hazem Hussein. ADGM’s FSRA enhances its regulatory framework to permit private credit funds. Zawya. May 4, 2023.
276. IMF to separate Islamic finance in SNA/BPM. Zawya. April 5, 2023.
277. Aaron Raj. Islamic banking gets the nod in Australia. Techwire. July 7, 2022.
278. Islamic Bank Australia successfully fills Series A raise with Hejaz Group strategic partnership. Islamic Bank Australia. May 31, 2023.
279. Yusra Asif. Russia introduces Islamic banking: Experts explain why and possible impact on economy. Alarabiya News. September 12, 2023.
280. James Langton. Alberta invites halal finance to its sandbox. Investmen Executive. April 12, 2023.
281. Manzil Launches Manzil Invest, Canada’s First Actively Managed Halal Digital Investment Platform. Manzil. October 26, 2022.
282. Reuters. Mexico in exploratory talks to issue Islamic bonds. AGBI. June 2, 2023.
283. Soraya Ebrahimi. Islamic finance working group announced at ‘Great British Iftar’. The National News. March 29, 2023.
284. Rommel Lontayao. Gatehouse Bank launches first Shariah-compliant green home products. Mortgage Introducer. April 29, 2022.
285. Gatehouse Bank enhances green home finance products. Gate House Bank. March 08, 2023.
286. Jeffrey Damicog. DOJ says DOF legally empowered to enter into Sukuk instruments for Islamic financing. Manila Bulletin. January 16, 2023.
287. Unlocking Sustainable Finance: UNDP’s Support for Zanzibar’s Sovereign SUKUK Bond. UNDP. June 2, 2023.
288. Air Lease Corporation Completes First Ever North American Corporate Sukuk Offering. Businesswire. March 20, 2023.
289. Pentavirate Launches $100m Luxembourg Sukuk, Rated A-. Businesswire. February 20, 2023.
290. Saudi PIF to acquire $412 million stake in local tourism giant Almosafer. Arabian Business. September 13, 2022.
291. Julia Fioretti, Matthew Martin. Saudi Arabia’s Wealth Fund Eyes Flynas Stake to Bolster Tourism. Bloomberg. April 27, 2023.
292. Saudi Arabia announces $800bn tourism plan. Arabian Business. June 12, 2023.
293. Saudi: PIF launches new company to transform Aseer into a year-round tourism destination. Zawya. December 2, 2022.
294. Juhane Rahhou. Mohammed VI Investment Fund Could Acquire Stakes in Distressed Local Hotels. Morocco World News. April 16, 2023.
295. Tamara Abueish. Saudi Arabia launches new cruise line to explore the Kingdom from sea. Alarabiya News. June 19, 2023.
296. Oman to raise investments by $1.8bn for new tourism and heritage projects. Travel and Tour World. April 19, 2023.
297. Zainab Fattah. Saudi Red Sea Developer Weighs Public Offering as Soon as 2026. Bloomberg. May 8, 2023.
298. Deni Ghifari. Officially going public, Blibli marks second biggest IPO on IDX this year. The Jakarta Post. November 8, 2022.
299. Zubair Naeem Paracha. Pakistan’s Roomy raises $1 million for its tech-enabled mid-tier hotel network. Mena Bytes. December 4, 2020.
300. Sean O’Neill. UAE’s Dharma Helps Passion Brands Build Tours: Travel Startup Funding This Week. Skift. January 21, 2022.
301. Yeni Yusra. Travelio Kantongi Pendanaan Seri C. Daily Social. April 10, 2023.
302. Discover the Best Muslim-friendly, Halal Holidays, Tours & Travels. Salam Booking. 2023.
303. Matthew Parsons. Online Travel Agency Musafir Hires Advisors to Raise $50 Million for Acquisitions. Skift. April 12, 2023.
304. Faseeh Mangi. Online Travek Portak Gozayaan enters Pakistan with acquistion. Bloomberg. February 16, 2022.
305. Mars W. Modqueda, Jr. Bangladesh transport startup Jatri obtains series funding. Nikkei Asia. April 17, 2023.
ENDNOTES 259
306. Mars W. Mosqueda Jr. Bangladeshi online ticketing startup Shohoz raises $3.4m in convertibles. Deal Street Asia. June 5, 2023.
307. Tage kene-okafor. Yassir pulls in $150M for its super app, led by bond. Tech Crunch. November 7, 2022.
308. Peden Doma Bhutia. Middle East Hotel Project Count Hits All-Time High. Skift. September 6, 2023.
309. Tradea Arabia. Azizi unveils $16.3 bln Dubai hospitality investment plan. Zawya. May 6, 2023.
310. Trencer baker. Brands schedule development project in Morocco as travelers return. CoStar. April 13, 2022.
311. Sama Mousa. Egypt investor to build hotels in New Mansoura. Amwal Al Ghad. July 11, 2023.
312. Interview with Kamraan Siddiqui, Founder of Holiday Bosnia. 2023.
313. Oman Hir holidays partners with Muzn Islamic banking. Oman Air. March 19, 2023.
314. Bank, travel agency lunch shariah-compliant umrah financing package. Free Malaysia Today. February 3, 2023.
315. Cybastion, ivorian ministry sign $23M tourism digitization PPP. Emerging Brand Africa. April 6, 2023.
316. Yaounde. Cameroon gets a digital tourism promotion platform. Business in Cameroon. December 14, 2023.
317. Amr Alfiky. Oman launches new digital platform for tourism sector. Zawya. April 22, 2023.
318. First pak-Saudi Telehealth center established in Makkah to facilitate Pakistani pilgrims. Economy.pk. March 14, 2022.
319. IHG Hotels & Resort signs MoU with the Saudi Tourism Authority. Zawya. May 5, 2023.
320. Aurora Welch. Emirates Embarks on partnership with Bahrain and Zambia tourism to attract more tourists. Travel Radar. May 4, 2023.
321. Abu Dhabi launches global campaign one summer isn’t enough. Branding in Asia. May 24, 2023.
322. Summer in Saudi. Visit Saudi. 2023.
323. Peden Doma Bhutia. UAE Eyes $122 Billion a Year Form Tourism by 2031: Middle East Travel Roundup. Skift. November 16, 2022.
324. Marwa Hassan. British Airways Lunches new uniform with hijab option. The National News. May 23, 2023.
325. Bernama. M’sia introduces firs flagship Medical tourism Hospital programme. NST. March 17, 2023
326. Penang Adventist Hospital in Malaysia Partners with Firefly Airlines. A Today. March 3, 2023.
327. Chiva-Som. Zulal Wellness Resort. Zulal. 2023
328. IMTJ Team. Iran to set up state medical travel agency In Oman. Laing Buisson News. December 16, 2022.
329. 220 Iranian hospitals have medical tourism licenses. Tehran Times. January 14, 2023.
330. Johor wants to become a sports tourism hub, says state exco. Malay Mail. May 10, 2023.
331. Saudi Arabia wins bid to host 2029 Asian winter games at NEOM. Reuters. October 4, 2022.
332. Oman launces world’s longest zipline as part of tourism boost. Travel and Tour World. April 25, 2023.
333. Adam Stacey. IDEAS: Adventure Awaits with Akun, The Latest Offering Form Red Sea Global. Skift. May 15, 2023.
334. Trade Arabia. Bahrain, Saudi Arabia deal to position as single tourism destination. Zawya. June 7, 2023.
335. Emirates boost ties with Indonesia, Morocco and Zimbabwe. Trade Arabia. May 2, 2023.
336. Saudi Arabia launches new national airline. Reuters. March 14, 2023.
337. Amani Hamad. Saudi Arabia to boost airports’ capacity to handle 330 million passengers by 2030. Al Arabiya. May 10, 2023.
338. Uganda Announces four new airfields in national parks. Travel Agent Central. May 4, 2023.
339. Ayu Verma. Salam Pakistan: First-ever National Tourism Brand to Promote Tourism in Pakistan. Native Planet. August 8, 2023.
340. Saudi Crown Prince announces kingdom’s fifth giga-project. Arabian Business. January 9, 2023.
341. Standards Under Development. SMIIC. 2023.
342. Tourplus partners with MDEC in de Rantau Programme. NST. November 25, 2022.
343. Shura approves draft Tourism law, focus on quality services. Oman Observer. May 15, 2023.
344. Dashveenjit Kaur. Capital A’s fintech arm BigPay makes a foray into the cryptocurrency space. Tech Wire Asia. November 4, 2022.
345. Nirmala Naryanan. Tourist businesses given $80m funding injection amid Saudi plans to grow sector. Arab News. June 13, 2022.
346. ATM 2023: New ‘Schengen- style’ GCC unifed visa for tourist, business people soon. Gulf News. May 4, 2023.
347. Qatar visa update: All tourist must use new Hayya Platform. Arabian Business. April 17, 2023.
348. Marina Makary. Egypt Introduce Five-Year Multiple-Entry Visa for Foreigners. Egyptian Streets. June 20, 2023.
349. Free four-day visa introduces for Saudi Arabia air travelers. Al Arabiya. January 31, 2023.
350. Galiya Khassenkhanova. Kazakhstan plans to grant visa-free regime to 100 countries. Tha Astana Times. September 29, 2022.
351. Iran set to drop visa requirements for 50 countries. Tehran Times. January 7, 2023.
352. Habiba Hamdy. ‘A Civilization Inspired by Nature’, An Egyptian campaign to promote sustainable tourism. Ahram Online. November 17, 2022.
353. Josh Corder. Sheikh Ahmad priorities US$ 150bn disabled tourism marker, looks to make Dubai more accessible. Hotelier Middle East. December 9, 2022.
354. Path to Prosperity. Royal Commission for AlUla. 2023.
355. Trade Arabia. Major sustainable tourism project coming up in Kuwait. Zawya. August 23, 2022.
356. DCT Abu Dhabi’s new initiatives to promote sustainable tourism. Gulf Today. May 5, 2023.
357. Amin Ahmed. Rs300m agreement inked for next phase of ecotourism project in KP. Dawn. April 29, 2023.
358. Emirates airline earmarks $200mln fund for sustainability research. Zaywa. May 11, 2023.
359. Gabon launches new tourism identify for “the last eden”. Travel Agent Central. January 27, 2023.
360. Children becoming ambassadors for a green Jamaica and turkey – environmental education through two new TUI Junior Academies. TUI Group. June 26, 2022.
361. Travel Tech 4 good- TUI Care foundation and enpact launch tourism startup accelerator in Egypt. TUI Group. July 8, 2019.
362. Ghania Nurcahyadi. Dukung upaya keberlanjutan, Bobobox gandeng Fairatmos kembangkan fitur carbon offest. Media Indonesia. December 14, 2023.
363. Caroline Boey. Mastercard- crescentrating introduces new tools in global Muslim Travel Index 2023 report. TTG Asia. June 7, 2023.
364. Arya M Nair. Saudi travel company Almosafer to use ChatGPT in mobile Booking booking platforms. GCC Business News. May 8, 2023.
365. Yousef Saba. Etihad to make flight bookings conversational Using Artificial Intelligence. Skift. May 3, 2023.
366. Visa and Saudi Tourism Authority team up to improve saudi Tourist Experience. The Fintech Times. May 2, 2023.
367. Personalized tourism: Saudi tourism authority reinvents travel. Deloitte. November 18, 2022.
368. Jonathan E. Hendry. Emirates reveals the world’s 1st robotic check in assistant. Simple Flying. April 27, 2023.
369. Dubai airport will scan your face as you walk through a video tunnel. Engadget. October 10, 2017.
370. Alula enters virtual world with Hegra’s tomb of Lihyan. Arab News. November 14, 2022.
371. Claire Turrell. Indonesia’s futuristic take on travel. BBC. June 28, 2023.
372. PIF announces the establishment of the Saudi tourism investment company “Asfar”. Zawya. July 27, 2023.
373. Dewi Elvia Muthiariny, Laila Afifa. Indonesia to invest hajj funds inSsaudi Arabia’s Property sector. Tempo. February 17, 2023.
374. Wellnes tourism market size, share & trends analysis report by service (Lodging, wellness activities) By travel purpose (primary, secondary), By travel type (Domestic, international),
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375. Pathom Sangwongwanich. Thailand plans $131 Million Phuket Medical hub to boost tourism. Bloomberg. October 11, 2022.
376. Crayon Data and TBO.com partner to bring personalized travel experiences to the banking Industry. Crayon Data. June 7, 2023.
377. Lim Fathimah Timorria. Emiten Hijab Elzatta (ZATA) resmi masuk bursa, himpun dana IPO Rp 170 Miliar. Bisnis.com. November 10, 2022.
378. Mumtaz Hussain Bhat. Sana Farheen’s modest clothing pitch wows Shark Tank India judges. The Siasat Daily. May 16, 2023.
379. Modanisa, the global leader of modest fashion receives 20M USD investment. Re-pie Asset Management. July 22, 2022.
380. Palestinian e-commerce Modesta raises six-figure Seed round. Wamda. July 19, 2022.
381. UAE brand the giving movement raises $15m in series Around. Gulf Business. March 11, 2022.
382. Value fashion giant REDTAG launches modest range, empowers women to experiment with latest trends. APN News. January 20, 2022.
383. Georgia Wright. Boohoo set to launch a new range this summer created by a graduate fashion week student. Retail Gazette. February 7, 2022
384. Georgia Wright. Boohoo set to launch a new range this summer created by a graduate fashion week student. Retail Gazette. June, 24, 2022
385. LC Waikiki opens GCC’s first modest store in Doha. Khaleej Times. November 11, 2022.
386. Sammy Preston. The iconic just dropped a brand-new modest fashion edit. Urban List. June 1, 2022.

387. Petra Loho. In Australia, Twiice boutique aims to sweep modest fashion market. Salaam Gateway. February 4, 2022.
388. Claude Retail Singapore. Claude, The Independent Indonesian-based Fashion Brand, Launches Its First Ever Modest Wear Collection: Noesantara. PR Newswire. April 8, 2022.
389. Sania Mastakiya. Sania Maskatiya introducing: Modest. Instagram. March 15, 2022.
390. Maria Shirazi. Going the modest route. InStep. April 24, 2022.
391. Next launches first-ever modest collection. About Her. October 5, 2022.
392 . Rüdiger Oberschür. Zalando extends offer to underrepresented communities. Fashion Network. December 8, 2022.
393. Yosi Winosa. Indonesia modest wear segment boosted during Ramadan. Salaam Gateway. April 29, 2022.
394. Ezreen Benissan. Farfetch brings modest fashion collection to Middle East. Vogue Business. March 2, 2022.
395. Luxury etailer NET-A-PORTER champions Arab designers in new Ramadhan edit. Arab News. February 24, 2022.
396. Shatakshi Gupta Off-White cozy capsule collection: Where to buy price, and more about Ramadhan special line. SK Pop. April 5, 2022.
397. Louis Vuitton lunches first- ever ready-to-wear line for Ramadhan. Arab News. March 23, 2022.
398. Naheed Ifteqar. Exclusive louis Vuitton’s Ramadan Collection Includes A Debut Clothing Line and a New Fragrance. Vogue Arabia. March 18, 2022.
399. Siham El Yandouzi. Luxury labels target men with collections dedicated to Ramadhan. Fashion Network. March 23, 2023
400. Collette Grimes. Stine Goya celebrates Ramadhan with its new collection. Hypebae. February 22, 2023
401. Priya Raj. 15 modest fashion ossentials you’ll want to even once Ramadhan is over. Screenshot. April 5, 2023.
402. Ruman Baig. The Versace Ramadan collection modernises modest wear. Emirates Woman. April 5, 2023.
403. Camilla aligns with Blessed Eid. Ragtrader. April 27, 2022.
404. Elevate Your Wardrobe This Ramadan With SHEIN’s Exclusive Modest Collections. Emirate Woman. March 1, 2023.
405. Xuen Li. Zaloraya2023 Was A Modest Wear Fashion MicDrop. Hype Style. March 10, 2023.
406. Lauretta Roberts. My Wardrobe HQ Offers Amrika London For Rental Ahead of Eid. The Industry Fashion. April 13, 2023.
407. Harpal Bobby. Pretty Little Thing Eid Shop: Young Muslims Criticise Fashion Brand. BBC News. April 19, 2023.
408. Hafsa Lodi. Are Fashion Collections for Ramadan Missing the Mark? The National. March 3, 2022.
409. Arthur Zaczkiewicz. The Reflective Wants Modest Fashion to Go Mainstream. WWD. January 20, 2022.
410. Marianne Wilson. In A First, Modest Fashion Department Store to Open at American Dream. Chain Store Age. February 6, 2023.
411. Aireena Azni. Matsalleh Design Makes Swimming Fun and Fashionable for Modest Women. The Edge Malaysia. January 10, 2022.
412. Asher Notheis. Lululemon Launches New Workout Hijabs. Washington Examiner. June 11, 2022.
413. Amaline Anuar. Fashion Obsessions: The Latest News on Dior, Valentino, And More. Lifestyle Asia. April 13, 2022.
414. Syida Lizta Amirul Ihsan. Fashion Lilit Rolls Out Size Inclusive Modest Swimwear. New Straits Times. June 22, 2022.
415. Menna El Nady. Designer Burkini Makes Waves and Changes Attitudes at Egypts Luxury Resorts. The National News. September 4, 2022.
416. Farida El Shafie. Fashion: Lilit. Rolls Out SizeInclusive Modest Swimwear. Cairo Scene. April 10, 2023.
417. Syida Lizta Amirul Ihsan. #FASHION: TudungPeople’s boundary-breaking move. New Straits Times. November 23, 2022.
418. Gerry Cupido. First Modest Activewear Brand Launches in South Africa. IOL. January 14, 2023.
419. Lyras Burkinis Modest Swimwear Relaunches in The Egypt. Switching Fashion. March 26, 2022.
420. Hiya Jordanian Modest Fashion for The European Market. Fashion United. March 11, 2022.
421. Sylviana Hamdani. Si.Se. Sa: At the Cutting Edge of Modest Fashion. The Jakarta Post. August 21, 2022.
422. Ritika Dubey. Roaa Mashaleh Online Marketplace Muslim Fashion. The Hamilton Spectator. March 30, 2022.
423. Rasti Amena. Sana Khan Hosts Clothing Exhibition in Banjara Hills, Hyderabad. The Siasat Daily. April 15, 2022.
424. Myra Bari. Charlotte Based Fashion Designer Drops Modest Streetwear Range. Technician. August 7, 2022.
425. Amrita Singh. We Bid Farewell to The Modist, Our Favorite Modest Fashion Store. About Her. April 15, 2022.
426. Imogene Legrand. Never Say Never: The Modist Gets Ready to Make Its Return. Harper’s Bazaar Arabia. June 13, 2022.
427. Anis Hazim & Azalea Azuar. Fashionvalets Focus on In House Brands Part of Its Strategy. The Malaysian Reserve. August 5, 2022.
428. Yoganeetha Sivakumar. Vivy Yusof’s Fashionvalet Announces Closure, Gets Hit by Wave of PR Storm and Allegations. Marketing Interactive. August 4, 2022.
429. Samantha Conti. Modest Fashion Label Leem Hits the U.K. High Street with Next Online. Html. WWD. May 16, 2022.
430. Natasha Syed. Leem Launches in Selfridges. The British Muslim Magazine. March 26, 2023.
431. Sandra Halliday. Modest Brand Daska Launches Collection with Harrods And Mywardrobe HQ. Fashion Network. November 22, 2022.
432. Sylviana Hamdani. Si.Se. Sa: At the Cutting Edge of Modest Fashion. The Jakarta Post. August 21, 2022.
433. PR Newswire. Indonesia Social Commerce Evermos Collaborates. Yahoo Finance. December 5, 2022.
434. Leo And Ted Limited Debuts in Qatar a New Name on The Qatari Fashion Scene. MENA FN. January 15, 2023.
435. Karina Zapata. This 22YearOld Calgarian Went from Homesense Cashier to Hijab Entrepreneur. CBC. March 7, 2023.
436. Yosi Winosa. Online Sales of Halal Products Grows by In Indonesia. Salaam Gateway. February 2, 2022.
437. Yoganeetha Sivakumar. The Duck Group Revamps Store with Playhouse Concept. Marketing Interactive. June 30, 2022.
438. Elissaveta M. Brandon. Coach’s AR Mirror Might Be A Marketing Stunt, But It’s Also the Future of Retail. Fast Company. May 17, 2023.
439. Danny Parisi. Social Shopping Could Be the Answer to ECommerce’s Discoverability Problem. Glossy. March 28, 2023.
440. Catherine Erdly. Tiktok Live Shopping Is Booming In 2022. How Can Small Businesses Benefit?. Forbes. July 29, 2022.
441. Modanisa. New Shopping Trend by Modanisa X Whatsapp. PR Newswire. February 6, 2023.
442. Danny Parisi. Social Shopping Could Be the Answer to ECommerces Discoverability Problem. Glossy. March 28, 2023.
443. Syida Lizta Amirul Ihsan. Fashion Zuccataps Modest Market Instant Feedback. New Straits Times. November 8, 2022.
444. Melissa Suraya Ismail Have You Seen The New SHEIN X Iman Troye Modest Fashion For Your New Wardrobe?. The Rakyat Post. April 14, 2022.
445. Roula Allam. Nadiya Hussain Collaborates with Next for Special Headscarf Edit. About Her. April 8, 2022.
446. Road To JMFW 2022: Unlocking Indonesia’s Modest Fashion Mecca Dream. Jakarta Globe. April 8, 2022.
447. Rangga Pandu A J, Mecca Yumna. Academics Should Frame Marketing Strategy for Muslim Fashion Industry. Antara. April 6, 2022.
448. Nanien Yuniar, Raka Adji. Trade Ministry Holds Ramadan Fashion Festival 2022. Antara. April 17, 2022.
449. Sinta Ambarwati, Fadhli Ruhman. Ministry Supports Jakarta Muslim Fashion Week Through Road To JMFW. Antara. March 28, 2023.
450. Indonesia On Track to Become Hub in Global Muslim Fashion. New Strait Time. July 23, 2022.
451. Newswrap Islamic Lifestyle. Salaam Gateway. April 29, 2022.
452. Road To JMFW 2022 Unlocking Indonesia’s Modest Fashion Mecca Dream. Jakarta Globe. April 8, 2022.
453. Sylviana Hamdani. Indonesia Now to Present Fashion Collections at NYFW S/S 2023. The Jakarta Post. September 6, 2022.
454. Devadasan K P. Photos Expo2020 Dubai Hosts Its First Modest Fashion Day1. Gulf News. March 14, 2022.
455. Various Indonesian Creative Economy Products. The Mirage. October 7, 2022.
456. Baqir Alatas, Uyu Liman. Ministry To Showcase Indonesias Halal Products AtG 20 Summit. Antara. November 5, 2022.
457. Sylviana Hamdani. Indonesian Modest Wear: From New York Fashion Week to The World. The Jakarta Post. February 9, 2023.
458. Maria C G P, Fadhli Ruhman. Trade Ministry Opens Nusantara Fashion House in Malaysia. Antara. February 4, 2023.
459. Sella P, Azis Kurmala. Ministry targeting US$10 billion in transactions at 37th TEI. Antara. August 10, 2022.
460. Indriani, Raka Adji. Sixty Student Made Outfits Showcased at JMFW 2023. Antara. October 23, 2022.
461. IN2MOTIONFEST - Indonesia International Modest Fashion Festival 2022 Announces Dates and Venue. Wallstreet Online. October 10, 2022
462. Sanya Susanti, Uyu Liman. ISEF 2022 business matching generates Rp9.43 trillion: BI. Antara. October 7, 2022.
463. Indonesian Fashion Chamber (IFC). Showcasing Indonesian “Wastra” in Modest Fashion to the World, IN2MOTIONFEST Comes to Dubai. PRNewswire. March 23, 2023.
464. Kuntum Khaira R, Resinta S. VID-19 Pandemic Brings Positive Impact on Climate Change: Minister. Antara. May 20, 2022.
465. Suci Nurhaliza, Fadhli Ruhman. Time for Indonesia To Become Islamic Fashion Trendsetter Official. Antara. September 2, 2022.
466. Fitra Ashari, Fadhli Ruhman. Ministry Supports Muffest+ 2023 By Marketing MSMEs’ Products. Antara. March 4, 2023.
467. Sheena Suparman. Tokopedia’s Muslim Fash Forward 2022 To Boost Sales of Muslim Fashion Items. The Jakarta Post. September 8, 2022.
468. Sella Gareta, Uyu Liman. JMFW To Expand Global Market for Muslim Fashion Products Minister. Antara. August 23, 2022.
ENDNOTES 261
469. Maria C, Azis Kurmala. Indonesia Seeks to Corner Share of Africa’s Muslim Fashion Market. Antara. October 13, 2022.
470. Unzela Khan. Massive 20,000 Person Muslim Food and Shopping Festival Coming to London. MyLondon. March 22, 2022.
471. Modest Fashion Show 2022 In Its 1st Edition in Riyadh. DestinationKSA. February 28, 2023.
472. Miami Beach Chamber. An Ultimate Experience of Unorthodox Modest Fashion Show Fashion Talk That Are Breaking Borders and Creating Dialogue. Miami’s Community News.
March 26, 2022.
473. GetNews. Modest Fashion Day at International Economic Summit Russia Islamic World Kazan Summit the Aesthetic of Modern Modesty. Digital Journal. May 23, 2022.
474. Kazan Summit 2022 Hopes to Spur Cooperation Between Russia And Islamic World. YeniSafak. April 18, 2022.
475. Sibel Morrow, Zeynep Beyza Kılıç. Tatarstan Hosts Modest Fashion Day as Part of Kazan Forum 2023. Anadolu Agency. May 21, 2023.
476. Yusef Jalali. Iran’s Islamic Clothing Expo Draws Designers from Muslim Nations. Press TV. May 1, 2022.
477. Yusef Jalali. 11th International Fajr Fashion and Clothing Festival in Iran. Press TV. July 11, 2022.
478. Muslim News Staff. Halal Expo Canada Comes to Toronto This Week. About Islam. May 8, 2022.
479. Sajira Shrestha. Namaste Eid Fest Concludes with A Great Success. MyRepublica. May 8, 2022.
480. GetNews Published. Istanbul Hosted Togethere Summit Royal Experience by Markamarie Modest Fashion Event with Royal Touch. Digital Journal. June 17, 2022.
481. Melbourne Fashion Week to Bring Style and Flair. Mirage News. August 31, 2022.
482. Patty Huntington. Day Five At AAFW: An Inside Look Through the Eyes of BAZAAR’s Fashion News Director. Harper’s Bazaar Australia. May 14, 2022.
483. Lauren Sams. Cover Up Girls on The Runway in Australian Fashion Week First. Financial Review. May 15, 2023.
484. Cait Emma Burke. Afterpay Australian Fashion Weeks Next Gen Program. Fashion Journal. March 29, 2022.
485. Muslim News Staff. Biggest Halal Expo Comes to London Next Week. About Islam. November 27, 2022.
486. Riyadh To Host Latest Edition of Modest Fashion Week, December 15–17. Lucire. December 6, 2022.
487. Laman Ismayilova. Azerbaijan Fashion Week Presents Dazzling Fashion Looks. MENA FN. December 7, 2022.
488. Ko Dong-hwan. Nation 2023. The Korea Times. May 5, 2023.
489. Modest Fashion Is A Minimalist and Comfortable AestheticT hats Taking Over Tiktok Video. MalayMail. May 11, 2023.
490. Husna Anjum. Islamic Festival Launches Birmingham Full. Birmingham Live. May 18, 2023.
491. Council Of Modest Fashion. Facebook. November 23, 2022.
492. Caitlyn Terra. Modest Fashion Brand Les The Brand: “We Provide the Ingredients to Look Stylish Yet Modest”. Fashion United. March 15, 2023.
493. Two Arab Female Designers to Watch Out for At Milan Fashion Week. Albawaba. February 25, 2022.
494. Malaysian Halal Players Should Seize Business Opportunities in The Netherlands. The Sun Daily. May 26, 2022.
495. Brands Showcasing an Exhibition In New York. The Kurator. July 26, 2022.
496. Gulf News Report. Taiwan Modest Fashion Show to Live Streamed in Arab World. Gulf News. September 22, 2022.
497. Jeremy Ng. Islamic FashionF estival Trending Design Raise Funds. SAYS. November 25, 2022.
498. Sidec Brings Top Ecm Awards Back Adds Fashion Accelerator Mix. Digital News Asia. June 22, 2022.
499. Aufa Mardhiah. Sidec To Empower Small Fashion Businesses with Digitisation. The Malaysian Reserve. July 29, 2022.
500. Deal signed to support Saudi fashion designers. Arab News. April 24, 2022.
501. Manjushree G Naik. Hijab Clad Students Denied Entry to Classrooms in Udupi College in Karnataka. Deccan Herald. January 1, 2022.
502. Amy Woodyatt, Nada Bashir, Dalal Mawad. French lawmakers have proposed a hijab ban in competitive sports. The impact on women could be devastating. CNN. February 1, 2022.
503. Islamic Clothing of Women Featured in French Election Debate. Yeni Safak. April 16, 2022.
504. Layli Faroudi. Top French Court Upholds Ban on Barristers Wearing Hijab in Lille Courtrooms. Reuters. March 2, 2022.
505. French City Approves Muslim Swimsuit in Controversial Change. The Strait Times. May 17, 2022.
506. French court blocks ‘burkinis’ in council’s pools. France 24. May 25, 2022
507. Xhorxhina Bami, Egzon Dahsyla. Kosovo Muslims Want Ban on Religious Dress in Schools Lifted. Balkan Insight. April 1, 2022.
508. Shakira Adunola. Supreme Court Approves Wearing of Hijab in Lagos Schools. The Guardian. June 17, 2022.
509. RFE/RL’s Radio Farda. Iran President Orders Enforcement Hijab Chastity Law. RFE. July 7, 2022.
510. Lindsay Owens. UGA hosts ‘Islamic Fashion and Anti-Fashion’ presentation. The Red and Black. April 19, 2022.
511. Rahul Sachitanand. Hijrah Movement: Brands Court Newly Conservative Consumers. Campaign. March 28, 2022.
512. Al Huda CMF-UAE Signed MOU With University of Management and Technology. Zawya. July 7, 2022.
513. Amy Peacock. Kazna Asker Blends Islamic Fashion and Sportswear To “Showcase the Diversity of Britain. Dezeen. January 11, 2023.
514. Sophie Williams. Nemahsis Nemah Hasan Tiktok Interview. NME. January 19, 2022
515. Ghufrane Mounir. France French Vogue Headscarf HijabH ypocritical Double Standards Instagram Julia Fox. Middle East Eye. January 30, 2022.
516. Sara Alhumiri. Bella Hadid: “I urge countries who are discriminatory against Muslim women, to rethink what decisions you have made”. Cosmopolitan. February 18, 2022.
517. Belal Nawar. Bella Hadid And Huda Kattan Break Their Silence on Hijab Bans and Discrimination. Scoop Empire. February 19, 2022.
518. Chintan Girish Modi. As India’s Muslim women are reduced to their hijabs, an art project offers empowering counter-narrative. News Nine. April 6, 2022.
519. Eduardo Campos Lima. Muslim women in Latin America becoming online influencers. Arab News. April 13, 2022
520. Sarah Mainuddin. Vogue France Features a Hijabi On Its Cover for The First Time. Muslim Girl. September 5, 2022.
521. Modest fashion is a minimalist and comfortable aesthetic that’s taking over TikTok (VIDEO). MalayMail. May 11, 2023.
522. World Hijab Day to be celebrated tomorrow to stress its significance, Muslim women’s right. Associated Press of Pakistan. January 31, 2022.
523. Irvin Ibarra. World Hijab Day Gives Columbia Students Opportunity to Wear A Hijab for The First Time. The Columbia Chronicle. February 14, 2022.
524. Maricel Cruz. Lawmakers OK Measure on National Hijab Day. Manila Standard. November 16, 2022.
525. Evon Goh. Mas Issues Survey on Revamping Iconic Kebaya Uniform After British Airways Unveils New Modest Attire. World Of Buzz. January 17, 2023.
526. Experts Confirm Joshimath Disaster Due to Rampant Infrastructure Development. Ummid.Com. January 8, 2023.
527. Ellie Aben. Philippine Coast Guard Allows Female Muslim Personnel to Wear Hijab. Arab News. February 3, 2022.
528. The World’s First Media Style Guide on Islam Launches. NewsWires. April 4, 2022.
529. Zeynab Mohamed. Brands Cashing in On Muslim Holy Money Need to Get Better at Representation. Elle. April 8, 2022.
530. Hafsa Lodi. Meet Asma Elbadawi: The Athlete Who Made Basketball Accessible to Hijab-Wearing Women. The National News. March 1, 2022.
531. María Paula Mijares Torres. Hijab Campaign Raises Awareness Violations. Chicago Tribune. April 20, 2022.
532. Az Munrallee. Muslim Men Like Me Often Face Hostility, However Fashion Magazines Have the Power to Change That. iNews. April 26, 2022
533. Spin Master Teams with Inner City Arts Students to Amplify Diversity with Creative Play. License Global. June 1, 2022.
534. Bongo Introduces Its Newest Live TV Addition Fashion TV. United News of Bangladesh. June 28, 2022.
535. Husain Razvi. Designer Lara Ali On Her Modest and Modern Fashion Fusion. Khaleej Times. October 9, 2022.
536. Katy Gillett. Miss Universe Bahrain Evlin Khalifa Wears Abayas As Beauty Pageant Begins. The National News. January 7, 2023.
537. Hajra Akbar. Rotherham University Graduate Unveils Collection for Muslim Women at York Fashion Week. The Star. March 28, 2022.
538. Josa Lukman. APR Highlights Commitment to Sustainable Modest Fashion in MUFFEST 2022 Collaboration. The Jakarta Post. April 25, 2022.
539. Courtney Duchene. Voice: Courtney Duchene. The Philadelphia Citizen. June 7, 2022.
540. MJ Galbraith. Dearborn Apparel Company Launches First Full Line of Modest and Sustainable Fashion. Metromode. November 3, 2022.
541. Fashion Groups Face New Uyghur Forced Labour Complaint in France. France 24. May 17, 2023.
542. Zofia Zwieglinska. How New Legislation Will Affect Fashion Brands In 2023. Glossy. January 3, 2023.
543. Loana Popescu, Rita Tedesco. ECOS briefing: Sustainable Products Initiative (SPI) – What to expect?. ECOS. March 28, 2022.
544. Sam Allcock. Smart Fabric Clothing Brand. Wealth Of Geeks. March 30, 2023.
545. Laura Kell. Introducing The Nanoabaya: The Future of Modest Activewear That’s HH Sheikha Moza of Qatar Approved. February 16, 2023.
546. Syida Lizta Amirul Ihsan. Fashion Hijab Inner Keep You Cool. New Straits Times. January 17, 2023.
547. Camilla Rydzek. Tommy Hilfiger and Calvin Klein To Introduce Regenerated Fibres Into Them. The Industry Fashion. May 10, 2022.
548. Alia Kamelia. My Lifestyle Lush Pins Hijab Earrings. SAYS. August 23, 2022.
549. Xara Aziz. Co-Founders Design FDA Approved Protective Gear for Muslim Women in Healthcare. Shine My Crown. December 6, 2022.

550. Ruth O Connor. Surfing Seasuit Why Not Have the Option for Something More Modest. The Irish Times. June 5, 2022.
551. Getnews. The LayaliIs An Upcoming Modest Designer Brand to Keep an Eye On. Digital Journal. January 10, 2023
552. World’s first weatherproof Hijab and Niqab from Trekmates. Live for The Outdoors. April 4, 2023.
553. Sandra Seaton, Furvah Shah. The Activewear Hijab That Doesn’t Compromise on Comfort, Modesty or Performance. Refinery 29. April 14, 2023
554. Krsiti Hines. TikTok Shop: Social Commerce for Brands and Influencers. Search Engine Journal. April 26, 2023
555. UK Government Applauds 10 Year Sustainable Fashion Plan. Just Style. June 14, 2022.
556. Zofia Zwieglinska. How New Legislation Will Affect Fashion Brands In 2023. Glossy. January 3, 2023.
557. Nikita Shukla. Fast Fashion Pollution and Climate Change. Earth.Org. February 21, 2022.
558. Think With Google. Zalando’s Project Muze: Fashion Inspired by You, Designed by Code. March 2017.
559. Daniel Suen. HongKong Artificial Intelligence Software Helps Fashion Designers Craft New Looks Mere Seconds. February 18, 2023.
560. Business of Fashion. The State of Fashion. 2023.
561. Pakistan Hikes Drug Prices By 20%, Manufacturers Want More. Tribune.Com. April 28, 2023.
562. Drug Manufacturers Lament Production Cost. Consider Relocation. Punch. July 18, 2022.
563. Tunisia’s Financial Crisis Leaves the Sick Struggling to Find Medicine. Arab News. June 1, 2023.
564. Turkey’s Medicine Shortages Could Turn Into ‘Drug Famine’ With No End in Sight. Al Monitor. January 27, 2023.
565. Saudi PIF Launches Lifera To Boost Pharma Manufacturing Locally. Zawya. June 19, 2023.
566. Saudi Arabia Announces Investment Opportunities in Vaccines, Vital Medicines Industry Worth $3bln. June 25, 2022.
567. Farah Elbahrawy, Bloomberg News. Jamjoom Soars in Debut After Saudi Arabia’s Biggest IPO of 2023. BnnBloomberg. June 20, 2023.
568. Exclusive: Jamjoom Pharma CEO, Tarek Hosni, Discusses Its Recent IPO—Saudi’s Largest in H1 2023. The National News. August 02, 2023.
569. Abu Dhabi’s Mubadala And G42 Launch Tech-Focused Healthcare Company M42. The National News. April 17, 2023.
570. Mubadala And Resilience Partner to Develop and Advance Biopharma Manufacturing in the UAE. Mubadala. January 10, 2023.
571. Abu Dhabi’s ADQ Acquires Turkish Pharma Producer to Boost UAE’s Ability to Manufacture Health Products. Arabian Business. June 13, 2022.
572. Eczacıbaşı to acquire Turkish pharma company Gensenta for $135m. June 30, 2022.
573. Multilateral Development Banks and WHO Launch New Investment Platform to Strengthen Primary Health Care Services. ISDB. June 23, 2023.
574. The African Development Bank Supports COMESA To Develop the Pharmaceutical Industry in The Region. Comesa Int. November 11, 2022.
575. Egypt: Sovereign Fund Unveils B2B Pharma Venture to Spur Pharmaceutical Sector. North Africa Post. May 9, 2023.
576. China’s Silk Road Fund to Invest in Indonesian Pharma Firms. Reuters. November 13, 2022
577. S. Korea’s Bioneer Forms Diagnostic Joint Venture with Indonesian Company. Ked Global. January 17, 2023. SK Plasma to Build $250m Blood Products Plant in Indonesia. March 8,
2023.
578. SK Plasma to Build $250m Blood Products Plant in Indonesia. March 8, 2023.
579. Altibbi Raises $44m In A Series B Round. Waya Media. March 28, 2022.
580. Egyptian Health Tech Yodawy Raises $16M, Backed by Delivery Hero Ventures. February 9, 2023.
581. Shadine Taufik. Telkom VC Arm, State-Owned Pharma Launch $20m Fund in Indonesia. May 12, 2022.
582. Online Pharmacy Secures Pakistan’s Biggest Health Care Funding. Bloomberg. Mei 11, 2022
583. Medznmore company profile. Tracxn. 2023.
584. Merck to Support SaudiVax in Becoming First Developer and Manufacturer of Halal Vaccines and Biotherapeutics in Saudi Arabia. PR Newswire. Nov 3, 2021.
585. Pharmaniaga To Commercialise M’sia’s First Halal Blood Anti-Coagulant Drug. The Sun. July 15, 2022.
586. Duopharma First Company to Get Halal Certification for Oncology Product. The Sun. December 28, 2022.
587. Indonesia Launches Its First Home-Grown COVID-19 Vaccines. AP News. October 13, 2022.
588. Bio Farma, Sinopharm Develop Medicinal Raw Materials. April 15, 2023.
589. MHD Signs Deal to Establish Pen-G, Oman’s First Pharmaceutical Manufacturing Facility. Zawya. April 10, 2022.
590. Pharma Plant Begins Production in Bahrain. Zawya. March 21, 2023.
591. Nigeria Pharmaceutical Company First to Receive WHO Prequalification in West Africa. USP. June 6, 2023.
592. Malaysia Strives to Develop Children’s Hexavalent Vaccine By 2023. Bio Spectrum. December 14, 2023.
593. UAE Health Authorities Officially Launch National Drug Tracking System ‘Tatmeen’. Gulf Business. February 4, 2023.
594. Chekkit Secures Additional Funding to Scale Its Blockchain-Powered Drug Safety & Tracking Technology. Chekkit. 2023.
595. Insilico Medicine Opens Largest AI-Powered Biotechnology Research Center in the Middle East. Globe Newswire. February 1, 2023.
596. Lenny Septiani. Alodokter Luncurkan ‘ChatGPT’ Alni Khusus untuk Dokter. March 9, 2023.
597. Tunisia-Founded AI Startup Instadeep Acquired In $684m Deal. Disrupt Africa. January 11, 2023.
598. Emirates Health Services Launches Transformative Project that Deploys Metaverse Technology in Healthcare Delivery. EHS. December 30, 2022.
599. Why Is Nigeria’s Satellite Company Championing Nigcomhealth, The Country’s First Telemedicine Platform?. Techpoint. June 13, 2023.
600. DoH Launches Series of Training Courses as Part Of ‘Healthcare Workforce Upskilling’ Programme: UAE. Zawya. May 25, 2023.
601. Qatar Updates Pharmacy Education as Role of Pharmacists Changes. Al Fanar Media. January 2, 2022.
602. Innovative Solutions for Sustainable Local Pharmaceutical Manufacturing in Africa. Business Day. February 7, 2023.
603. János Allenbach-Ammann. Pharma Industry Calls for Stronger IP Protection in Free Trade Agreements. January 11, 2022.
604. TRIPS Waivers and Pharmaceutical Innovation. CSIS. March 15, 2023.
605. Explainer: After COVID And Drug Shortages, EU Revamps Drug Laws. Reuters. April 26, 2023.
606. UAE, Egypt And Jordan Agree On $10bn Industrial Partnership Investment Fund. Gulf Business. May 30, 2022.
607. Wamkele Mene, Børge Brende, Chido Munyati. ACFTA: A New Era for Global Business and Investment in Africa. January 2023
608. Jokowi: Indonesia-Iran Jalankan Pilot Project Telerobotic Surgery dan Telemedicine. Liputan 6. May 23, 2023.
609. Egypt And Nigeria Medicines Regulators Achieve High Maturity Level in WHO Classification and WHO Launches List of Regulatory Authorities That Meet International Standards.
Who Int. March 30, 2022.
610. Tunisia’s Pharmaceutical Industry to Undergo Radical Changes, Says Health Minister. Zawya. January 25, 2023
611. African Development Bank Urges Inaugural Graduates of Public Finance Management Academy for Africa to Champion Accountability and Transparency. December 18, 2023.
612. Wamkele Mene, Børge Brende, Chido Munyati. ACFTA: A New Era for Global Business and Investment in Africa. World Economic Forum. January 2023.
613. Science Ministry: Mou Inked for Human Vaccine Development. Malaymail. January 30, 2023 .
614. Menjamin Obat Halal, Kemenkes Dorong Industri Farmasi Indonesia Produksi Bahan Baku Sendiri. Halalmui.org. April 16, 2022.
615. Makeup Trends 2022: The Wake-Up of Makeup & Return to Routine. October 20, 2022
616. How to Win Over… Consumers in An Evolving Post-Pandemic Makeup Category. April 26, 2023.
617. Fiona Embleton. Makeup That Acts as Skincare Promises to Leave Your Complexion with A Next-Level, Ethereal Glow. Vogue Scandinavia. July 20, 2022.
618. Tiktok’s Influence Dominates Google’s Top Trending Beauty Searches For 2022. Glossy Logo. Dec 7, 2022.
619. Tiktok’s Influence Dominates Google’s Top Trending Beauty Searches For 2022. Glossy Logo. Dec 7, 2022.
620. Rizky Tia. Produk Skincare dengan Retinol dalam Perbincangan Warganet. Netray. February 1, 2023.
621. Rizky Tia. Produk Skincare dengan Retinol dalam Perbincangan Warganet. Netray. February 1, 2023.
622. Melanie Macleod. Clients Spending More on High-End Skincare Post-Pandemic. Professional Beauty. February 21, 2022,
623. Saudi Men ‘More Open’ To Having Cosmetic Procedures. Arab News. May 17, 2023.
624. Men’s Skincare Market to Hit $13 Billion by End of 2022. Beauty Packaging. May 24, 2022.
625. Looking Good: Indonesian Men Celebrate Skin Care. The Jakarta Post. January 6, 2022.
626. Social Bella Raises 927 Billion Rupiah Funding Led by Temasek and L Catterton. Daily Social. October 18, 2022
627. Indonesia Beauty Somethinc Snags $10m Series B Round. Deal Street Asia. September 22, 2022.
628. Beauty start-up Believe raises $55 million in Series C led by Venturi Partners, IIFL AMC. Fashion Network. April 25, 2022.
629. Iba Cosmetics Raises $10m In Series B From Strategic Investor Believe. Your Story. November 15, 2022.
630. ADIA Invests $50-60 Mn In Purplle at $1.1 Bn Valuation. Live Mint. May 24, 2023.
ENDNOTES 263
631. Acne-Friendly Cosmetics: Indonesia’s Mad for Makeup Tapping Gen Z Base for Co-Creation and Marketing. March 31, 2023
632. Community-Driven Beauty Platform KIKI Turns Consumers into Co-Creators. Beauty Packaging. May 16, 2023.
633. L’Oréal Invests in Geno-Led Venture for Sustainably Sourced Ingredients. Beauty Packaging. March 21, 2023.
634. e.l.f. Beauty Becomes the First in the Beauty Industry to Achieve Fair Trade USA™ Certification for a Manufacturing Facility. Business Wire. September 7, 2022.
635. The Body Shop Adds Makeup to its Refill Arsenal in Battle Against Plastic Waste. Retail Touch Points. March 28, 2023.
636. LookLab, Gerai Kecantikan Pertama dari Paragon Hadirkan Wardah hingga Make Over. Kumparan. September 20, 2022.
637. Lazada Launches New Augmented Reality Virtual Try-On for Beauty Lovers. PR Newswire. March 10, 2022.
638. L’Oréal premier’s virtual beauty looks on first ever multi-brand beauty partnership with metaverse avatar platform, Ready Player Me. Loreal. November 15, 2022.
639. Austyn King. Clinique Enters the Metaverse With Immersive Virtual Clinique Lab. Cosmetic Business. March 29, 2023.
640. Shiseido Commits to Invest in Perfect Corp. Shiseido. March 3, 2022.
641. Lamine Rahhali. Morocco Announces Licenses to Permit Exporting Argan Oil. Morocco World News. April 14, 2022.
642. Growing Tensions Between Asian Palm Oil Producers and The European Union. Reuters. January 15, 2023.
643. Kolmar Korea To Assemble and Ship Beauty Products Targeting Muslim Consumers. PulseNews. February 24, 2022.
644. Kolmar Korea To Assemble and Ship Beauty Products Targeting Muslim Consumers. PulseNews. February 24, 2022.
645. HDC, South Korean Agency to Strengthen Halal Industry Ties. The Sun. May 17, 2023.
646. HDC, South Korean Agency to Strengthen Halal Industry Ties. The Sun. May 17, 2023 .
647. Pakistan General Cosmetics Authority Bill Approved to Regulate Cosmetics Industry. PT Profit. May 22, 2023.
648. Major Change Is Coming to Beauty Regulation: Is the Industry Ready for It?. MindBodyGreen. March 7, 2023.
649. Kuwait Cooperatives’ Regulator Bans Cosmetics Containing Lilial. Zawya. November 23, 2022.
650. Need-to-know: The major cosmetics regulatory issues on the agenda for APAC in 2023. Cosmetics Design. January 4, 2023.
651. Estée Lauder Launches AI-Powered Beauty App for Visually Impaired Users. Premium Beauty News. January 12, 2023.
652. L’Oréal Created A Motorized Lipstick Applicator for People with Limited Mobility. Engadget. January 4, 2023.
653. Pakistan General Cosmetics Authority Bill Approved to Regulate Cosmetics Industry. Pakistan Today. May 22, 2023.
654. Kolmar Korea To Supply Private-Label Cosmetics To UAE. Yonhap News Agency. September 7, 2022.
655. Made for Me: Customised Cosmetics Will Become ‘Centrepiece’ Of K-Beauty in A Post-COVID Market – Review. The Korea Economic Daily. September 26, 2022.
656. SFDA, SBA sign MoC to create media content in health, food fields. Saudi Gazette. April 6, 2022.
657. NEOM And SRMG Agree Partnership To Enhance Regional Media Ecosystem. NEOM. June 11, 2023.
658. LEAP 23 sees launch of Hectar as most competitive social media application. Saudi Gazette. February 7, 2023.
659. Parent firm of Muslim Pro app enters SEA streaming race. Marketing Interactive. October 5, 2022.
660. Sahar Younus. NIM: The First Private Muslim Dating App That Redefines Love and Connection. Newswires. June 7, 2023.
661. Marcus Venu Das. Study: Global Muslim consumers to spend US$2.8 trillion by 2025, marriageable Muslims key. Marketing Interactive. September 8, 2023.
662. Naima Rabbie. Labayk; The first social media app that runs on the principles of Islam. Techjuice. July 28, 2023.
663. Khatm Quran App Launched in Kuwait. International Quran News Agency. May 14, 2022.
664. Bernama. USIM develops M’sia’s first sign language Quran application. Malaysia Kini. April 19, 2022.
665. Viola Outdoor launches market-leading taxi-top digital media screens from the UAE capital. Zawya. June 7, 2023.
666. Minister of media inaugurates SBA Training Academy and DAB+ technology. Saudi Gazette. August 7, 2023.
667. Leap22. ‘Ignite’ to uplift Saudi digital content creation and media production with US$1.1 billion of investments. PR Newswire. February 2, 2022.
668. Sukhbir Cheema. M’sia’s REV Media Group grows even larger through the purchase of Tantannews. Mashable SE Asia. September 22, 2022.
669. Alyssia Birjalal. DStv adds the first Islamic channel to its platform. IOL. June 28, 2022.
670. Alex Ritman. Vice Expands in Saudi Arabia Via Deal With Media Giant MBC. IMDb. January 25, 2023.
671. Azanis Shahila Aman. Ansat Broadcast, MNC Group ink MoU to bring DTH satellite contents to Malaysian market. Business Times. December 21, 2022.
672. Shadine Taufik. Malaysia streaming platform for Muslim children raises $2.8m. TechInAsia. March 1, 2023.
673. Qalbox Partners Astro To Offer Muslim-Focused Entertainment Content in Malaysia. Technode Global. August 5, 2023.
674. Samindra Kunti. Saudi Soccer Bonanza: Public Investment Fund Backs Four Domestic Clubs To Grow Game And Influence. Forbes. June 6, 2023.
675. Lillian Rizzo. PGA Tour agrees to merge with Saudi-backed rival LIV Golf. CNBC. June 6, 2023.
676. Quest Esports opens gaming district in Doha. Gulf Business. December 2, 2022.
677. Saudi Arabia invests almost $40bn to become video gaming hub. Middle East Monitor. April 5, 2023.
678. Training program targets Saudi entertainment entrepreneurs. Arab News. July 16, 2023.
679. Zain Bikha Sleepytime. Zain Bikha Kids. 2024.
680. NEW! Sheepy the Sleepytime Sheep. Desi Doll. 2024.
681. One Carlo Diaz. Islam for children: Toymaker in Dubai launches Lego-style Muslim Blocks. The National News. July 29, 2023.
682. Museum of Fine Arts. New Hossein Afshar Galleries for Art of the Islamic Worlds open Sunday, March 5, at the Museum of Fine Arts, Houston. PR Newswire. March 2, 2023.
683. Petra Loho. Islamic video game Muslim 3D launches. Salaam Gateway. February 23, 2022.
684. Saudi data authority, Islamic Affairs Ministry sign deal to boost integration through Tawakkalna. Arab News. February 27, 2023.
685. Arya Devi. World’s first Shariah-compliant metaverse to accelerate digitalisation in the Islamic world. Edge Middle East. January 23, 2023.
686. Islamic Affairs Minister Launches Several E-Apps. Asharq Al Awsat. June 19, 2023.
687. Ministry of Media launches Saudi ‘Konoz’ initiative to document cultural richness. Saudi Gazette. January 5, 2023.
688. Tamara Abueish. MBC, VICE to partner on content training in Saudi Arabia, wider Middle East. Al Arabiya English. January 26, 2023.
689. Saudi media minister calls for Arab efforts to address content infringing on societal values. Arab News. June 22, 2023.
690. Natasha Turak. Saudi Arabia and Gulf neighbors threaten Netflix over content that ‘violates Islamic values’. CNCB. September 7, 2022.
691. Tala Michel Issa. YouTube removes offensive ads upon request by Saudi Arabia regulators. Al Arabiya English. July 25, 2022.
692. New social media requirements for Saudi Arabia. Clyde&Co. September 14, 2022.
693. Gamal Essam El-Din. Egypt drafting legislation to regulate social media platforms. Ahram Online. January 22, 2023.
694. Egypt to tax social media influencers earning over $32,000. Middle East Monitor. September 28, 2021.
695. Kherk Ying Chew & Chun Hau Ng. Malaysia: Review of online content regulation and framework. Global Compliance News. December 13, 2022.
696. Indonesia drafts law enabling media to receive payments from digital platforms for content. Reuters. February 9, 2023.
697. UAE President issues law establishing Abu Dhabi Media Office. Gulf Business. January 13, 2023.
698. Algeria bans foreign ownership of media. Middle East Monitor. April 14, 2023.
699. Egypt to censor Netflix, Disney+ content. Al-Monitor. September 15, 2022.
700. Saudi audio visual body unveils mechanism for clearing cinematic films. Al Arabiya English. August 2, 2023.
701. Indonesia drafts law enabling media to receive payments from digital platforms for content. Reuters. February 9, 2023.
702. Fareeha Imtiaz. Museum of Islamic Art becomes Asia’s first museum to achieve carbon neutral status. ILoveQatar. November 3, 2022.
703. The Little Believers Video. The Little Believers’ Instagram. April 18, 2023.
704. Kelly-Ann Mills. Islamic toy range launches in Asda, Morrisons and Selfridges in time for Ramadan. Mirror. March 22, 2023.
705. Mera Aladam. Meet Marvel’s female Muslim heroes: From Kamala Khan to Monet St Croix. Middle East Eye. June 20, 2023.
706. About the Project. Tales of Khayaal. 2024.
707. Morocco’s World Cup Success Goes Far and Beyond Football. Carma. March 28, 2023.
708. Faizan Mirza. “They Don’t Chase Girls, They Don’t Drink”: Joe Rogan Lauds Khabib Nurmagomedov’s Beliefs as He Explains the Mentality of ‘Islamic Fighters That Are in Dagestan’.
Essentially Sports. January 13, 2023.
709. Liz Kineke. Hoop dreams, with hijab. Religion News. September 7, 2023.
710. Waleed Kadous. Ansari. Github. 2024.
711. Anu Prabhakar. Religious GPT: The chatbots and developers fighting bias with AI. The National News. July 29, 2023.

PEXELS
ENDNOTES 265
ImpactIntell.

ENDNOTES 267
2023/24
State of
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Islamic
Economy
Report
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4 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

160 184 204

6 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

Welcome to the 10th edition of the State of the

8 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

10 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

KEY 2022 2027 CAGR%

MEDIA & RECREATION

$108 5.7% $3,958 $5,955

12 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

Top 5 OIC Importers Top 5 Exporters to OIC

UAE 32.2 China 31.8

Saudi Arabia 31.7 India 26.4

Türkiye 31.5 Brazil 20.9

Indonesia 30.3 US 20.8

Malaysia 29 Türkiye 16.3

$359 billion OIC imports Top 5 represents 34% of exports to OIC

Countries with more than 10 investment Share by sector

10 YEARS OF IMPACT (SEE CHAPTER FOR DETAIL)

Islamic Lifestyle ‘Zeitgeist’

SDG Economic equity Environment Gender equity

16 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

18 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

HALAL PRODUCTS ETHICAL & SOCIAL FINANCE

CHAPTER 1: THE ISLAMIC ECONOMY AND DRIVERS OF OPPORTUNITY 19

Modest Halal Intersection

JUSTICE AND SOCIAL FAMILY

20 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

CHAPTER 1: THE ISLAMIC ECONOMY AND DRIVERS OF OPPORTUNITY 21

22 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

CHAPTER 1: THE ISLAMIC ECONOMY AND DRIVERS OF OPPORTUNITY 23

Key Trends and

subsidiary organ of the OIC, organized various workshops GEOPOLITICAL INSTABILITY

24 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

DEGLOBALIZATION THE FERTILITY SLUMP

INFLATION AND ENERGY PRICES

CHAPTER 1: THE ISLAMIC ECONOMY AND DRIVERS OF OPPORTUNITY 25

28 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

30 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

CHAPTER 2: 10 YEARS OF TRACKING THE GLOBAL ISLAMIC ECONOMY 31

2013 2014 2015 2016 2017 2018 2019

• China’s Belt and • 17 Global • Global climate • VC investment • Starlink, satellite

32 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

CHAPTER 2: 10 YEARS OF TRACKING THE GLOBAL ISLAMIC ECONOMY 33

34 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

CHAPTER 2: 10 YEARS OF TRACKING THE GLOBAL ISLAMIC ECONOMY 35

36 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

• There have been 645 citations of SGIE Reports data

CHAPTER 2: 10 YEARS OF TRACKING THE GLOBAL ISLAMIC ECONOMY 37

$1,292 $1,173 $1,245 $1,303 $1,369 $1,170 $1,267

$266 $254 $270 $283 $277 $295

$169 $177 $189 $198

38 STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT 2023/24

$87 $92 $94 $100

$57 $61 $64 $66 $70

CHAPTER 2: 10 YEARS OF TRACKING THE GLOBAL ISLAMIC ECONOMY 39