The UAE has been ranked second globally in the Global Islamic Economy Indicator (GIEI), according to the State of the Global Islamic Economy Report 2025/26 by DinarStandard, as global Muslim consumer spending reached $2.6 trillion in 2024 across halal food, pharmaceuticals, cosmetics, modest fashion, Muslim-friendly travel, and media and recreation.
The UAE advanced from fourth place in 2023 and 2024, ranking among the top three across all Islamic economy sectors. It secured first place in media and recreation, second in halal food, Muslim-friendly travel, modest fashion, and halal pharmaceuticals and cosmetics, and third in Islamic finance.
UAE strengthens role as trade, investment hub
The report said the UAE’s performance reflects its position as a leading regional hub for capital, trade, and deal-making within the Islamic economy.
It retained its status as the most active investment destination by volume, recording 94 transactions across venture capital, private equity, and mergers and acquisitions, strengthening its role in Islamic finance, technology, and halal consumer sectors.
The UAE also recorded the second-highest foreign direct investment inflows among Organisation of Islamic Cooperation (OIC) countries at $45.6 billion, equivalent to 5.24 percent of GDP. In trade, it ranked as the seventh-largest exporter to OIC markets, with export growth of 7.83 percent between 2023 and 2024.
Global Islamic economy expansion
The report was released at an event hosted by the Investment and Finance Office of the Presidency of the Republic of Türkiye (CBYFO) at Ibn Haldun University (IHU) in Istanbul, Turkey.
It projects global Islamic economy spending to reach $3.56 trillion by 2029, growing at a compound annual growth rate of 6.5 percent. Islamic finance assets stood at $5.99 trillion in 2024 and are expected to rise to $9.72 trillion by 2029.
Rep Image Credits: DC Studio@Magnific | Cropped by GBN
The report describes the next phase of growth as sovereignty-building, driven by stronger halal value chains, certification standards, local and regional production, Islamic finance infrastructure, digital platforms, and consumer trust aimed at reducing dependency and strengthening long-term market advantage.
Top rankings in GIEI
Malaysia ranked first in the GIEI, followed by the UAE, Saudi Arabia, Indonesia, and Bahrain. The rankings highlight the importance of integrated national ecosystems combining regulation, finance, trade, innovation, and sector development. The UAE’s position reflects its logistics, trade, and digital infrastructure strengths, while Saudi Arabia and Indonesia continue expanding Islamic finance, halal production, and Muslim-friendly travel ecosystems.
Investment activity in Islamic economy-related companies reached $13.1 billion across 346 deals in 2024/25. Islamic finance accounted for the largest share of capital, followed by halal food, media and recreation, Muslim-friendly travel, and halal pharmaceuticals. Top deal-value markets included Saudi Arabia, the UAE, Indonesia, Azerbaijan, and Turkey.
Halal food remains largest sector; Travel fastest growing
Halal food remained the largest sector, with Muslim consumer spending at $1.53 trillion in 2024 and projected to reach $2.06 trillion by 2029. Muslim-friendly travel is the fastest-growing segment, rising from $249 billion in 2024 to $424 billion by 2029, driven by post-pandemic recovery and faith-conscious tourism infrastructure.
Image Courtesy: | DinarStandard | Cropped by GBN
OIC imports across halal-related sectors reached $421.5 billion in 2024. Saudi Arabia, the UAE, Turkey, Indonesia, and Malaysia were the top importers, while Brazil, China, India, the US, and Turkey were the leading exporters, accounting for 32 percent of total exports.
The report also highlights a sustained shift in Muslim consumer behavior. DinarStandard’s analysis of more than 86 million social media engagements shows that values-driven purchasing trends have persisted beyond initial boycott movements, with continued focus on ethical, local, and alternative brands across food, fashion, cosmetics, technology, and media.
Rafiuddin Shikoh CEO and Managing Partner DinarStandard
“The Islamic economy is no longer an emerging idea. It is an emerging system. What we are documenting this year is a global consumer and investor base increasingly acting on the conviction that economic life must align with moral life. The next wave of Islamic economy growth will be led by those who can convert market demand into systems, standards, trust infrastructure, and institutions that reduce dependence while widening opportunity.”
The SGIE Report 2025/26 highlights growth opportunities across key sectors including AI-enabled halal certification, blockchain-based traceability, digital Islamic finance, sovereign travel platforms, pilgrimage digitization, halal pharmaceuticals, clean-label cosmetics, digital modest fashion, and culturally aligned media and recreation.
The report was produced by DinarStandard in partnership with SalaamGateway.com, with IsDBI as thought leadership partner and IFANCA as global strategic partner.
