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Home / Insights

Featured Insights

OIC Economies

How Gazans are navigating the tech shortage crisis with creative solutions

07 Jul 2026
Insight

OIC Economies
China's 15th Five-Year Plan: What it means for OIC countries
05 Jul 2026
Insight

Halal Industry
Explainer: How timeless remedies can effectively converge with modern techniques
29 Jun 2026
Insight

Islamic Finance
AAOIFI Shariah Standard 62: A hexagonal fiqhi-market synthesis
22 Jun 2026
Insight

Halal Industry
Singapore bets big on halal food amid thriving sector growth
18 Jun 2026
Insight

Salaam Gateway
SGIE Report 2026: Top 10 Islamic economy ecosystems in the world
17 Jun 2026
Insight


All Other Insights
OIC Economies
How Gazans are navigating the tech shortage crisis with creative solutions

A staggering 745,000 students in the Gaza enclave have been deprived of formal schooling since the outbreak of the conflict in October 2023. 

Among them are 88,000 higher education pupils who have been forced to put their academic degrees on indefinite hold, according to UN agency UNESCO. Furthermore, north of 95% school buildings either require extensive rehabilitation or total reconstruction, according to the agency’s satellite damage assessments. 
 


But beyond the shattered infrastructure, the tipped over desks, the dangling wood beams and broken glass, another crisis has unfolded: a catastrophic shortage of digital equipment.

The conflict has decimated institutions, disrupted logistics, and triggered a strict blockade that predicates on the harsh understanding of labelling laptops, smartphones, and their spare parts as ‘dual-use’ military items. Securing tech in this new reality has become virtually impossible.

The context is both instructive and overwhelming: For millions around the world, a broken laptop is an inconvenience. In Gaza, it can mean the sudden demise of a university education, the loss of a family's primary income, or complete isolation from the outside world.

By cutting off access to technology, the blockade has suffocated daily life, disproportionately impacting students, remote workers, and a broader workforce desperate to link up with and serve the global economy.

“Gaza is facing an extreme, system-wide shortage of digital devices,” Maha Alfarra, managing director at the Galilee Foundation, a UK-registered charity focused on Palestinian education and humanitarian initiatives, tells Salaam Gateway. 

Image Courtesy: Shutterstock 

“Most laptops, tablets, and smartphones were destroyed during the war, and no new electronics have been allowed into Gaza since October 2023.”

The few devices that survive or slip through the blockade are priced astronomically. A basic laptop that once cost $400 now commands $1,000 or more. If a student's laptop breaks, they face an impossible choice: purchase a replacement at a hyper-inflated price or drop out entirely.

“Prices for the few remaining devices have risen to more than five times their original cost, far beyond the reach of most families and institutions,” Alfarra adds. 

“At Al-Azhar University-Gaza, a recent $10,000 support fund was only enough to purchase five laptops, illustrating the scale of scarcity.”

Human capital, skillset at risk

The hardware shortage is triggering a much broader crisis: the erosion of Gaza's talent base and the demise of entire livelihoods. 

Before the escalation, Gaza had fostered a resilient digital workforce. Through local incubators and university programs, young Palestinians built careers in software development, graphic design, and digital marketing, bypassing physical borders through the Internet. Today, those professionals are struggling to remain visible to global employers.

“Losing a laptop means losing an immediate economic lifeline or halting university progress entirely,” Wisam Elswerki, a Gaza-based content developer who works with humanitarian organizations, tells Salaam Gateway.

After losing his own equipment, Elswerki was forced to manage his workload entirely from a mobile phone. “Trying to handle professional documentation, join virtual meetings, and review files on a small screen - while dealing with erratic power and network coverage - turns standard work into a daily test of endurance.”

“A simple task takes four times longer than it should.”

Without the ability to work consistently, client relationships wither, and hard-earned technical skills inevitably decline.

“The greatest long-term risk is not the loss of laptops or smartphones - it’s the gradual loss of the human capital that took years to build,” Mohammed Abu Hassira, a development professional based in Gaza, tells Salaam Gateway.

Abu Hassira notes that before October 2023, remote work was one of the few accessible pathways to financial independence, particularly for women.

“Digital work depends on continuity,” he explains. “One of Gaza's greatest strengths has always been its people. Preserving digital talent and reconnecting professionals with global markets should therefore be viewed not only as humanitarian support, but as a strategic investment in Gaza's long-term economic recovery.”

In the face of these extreme restrictions, Palestinians are engineering makeshift solutions using damaged equipment and pre-digital adaptations.

When laptops and computers are unavailable, students use mobile phones to access course materials on platforms like Moodle or Google Classroom, relying on WhatsApp as their primary tool for peer-led engagement.

Families frequently pool their resources, sharing a single rented laptop among multiple siblings just to keep their education alive. Tech workers and freelancers travel through destroyed neighborhoods to reach makeshift, solar-powered co-working hubs. There, they share access to electricity to charge devices, rotating in shifts to maintain their income streams.

“Despite severe logistical restrictions, several organizations have launched creative initiatives to restore digital access,” Elswerki notes. 

He highlights entities like Gaza Sky Geeks and Taqat Gaza, which have been instrumental in setting up community tech spaces, as well as Academic Solidarity with Palestine, an initiative distributing free e-SIMs to help Gazan students and professors re-establish basic connectivity.

“While the gap between supply and demand remains massive, these efforts keep Gaza's workforce and student body connected,” he says.

Integrated ecosystems are the sole way forward

Standard charity models are no longer viable in an environment stripped of basic power and connectivity.

“Companies can play a meaningful role, but only if support goes beyond simply donating devices,” warns Alfarra. “In Gaza’s current conditions, digital access depends on three things simultaneously: devices, power, and connectivity. Effective programs therefore need to be integrated and resilient.”

To build these ecosystems, international bodies are shifting their focus from individual distribution to shared resources. Rather than dropping single laptops into an infrastructural vacuum, they are now equipping collective workspaces.

Investing in decentralized, solar-powered computer labs and coworking spaces allows hundreds of people to use reliable equipment through shift schedules. UN agencies such as UNESCO and the UNDP have already piloted similar approaches.

“UNESCO has provided laptops through Temporary Learning Spaces, supporting more than 10,000 students, while UNICEF continues to procure ICT equipment for Palestinian education systems," Alfarra says.

 "Furthermore, a major initiative led by Education Above All and UNDP distributed 10,000 tablets and built 100 digital learning centres equipped with reliable power and internet access.”

Other NGOs - including US-registered HEAL Palestine, West Bank-headquartered Teach for Palestine and US-based GiveInternet - have contributed crucial hardware, connectivity tools, and remote learning assistance. These initiatives prove that progress is possible when device distribution is paired with infrastructure and training.

Preserving the future

The Galilee Foundation raised around £106,000 in a campaign to fund laptops and tablets for Gaza. However, with electronics barred from entering the Strip, the charity is pivoting toward high-impact, locally informed strategies.

“We’re now assessing where our support can be most effective within this ecosystem,” says Alfarra. “We’re comparing three interventions: device handouts, shared access hubs, and digital classroom platforms. Early evidence suggests that shared hubs combined with digital platforms offer the greatest impact under current constraints.”

To truly unlock online access, Alfarra asserts that stakeholders must coordinate hardware grants alongside low-cost rental models. This framework should offer communities flexible ways to secure refurbished computers from the secondary market, such as borrow-and-return schemes or installment plans.

Citing mechanisms outlined by Al-Azhar University, she argues that organizers must keep distribution targeted, prioritizing financially disadvantaged students and professionals whose specialized fields - such as engineering or software development - simply cannot be managed on mobile devices.

Meanwhile, international clients and academic institutions must adapt to the constraints facing these professionals, adds Elswerki. This requires optimizing platforms to be low-bandwidth and mobile-first, ensuring essential web tools run smoothly on basic mobile browsers. 

Ultimately, overcoming the technological blockade is less a logistical challenge than a humanitarian imperative to preserve an entire generation’s future.

“Rebuilding Gaza's digital economy goes beyond replacing damaged devices,” notes Abu Hassira. 

“It’s about protecting decades of human capital and empowering skilled individuals to reconnect with education, employment, entrepreneurship, and global markets. Investing in digital access today is an investment in Gaza's most valuable asset - its people.”

Read our special coverage on Gaza, click here.

07 Jul 2026
Insight
OIC Economies
China's 15th Five-Year Plan: What it means for OIC countries

Against a backdrop of heightened geopolitical tensions and supply-chain uncertainty, China's 15th Five-Year Plan (2026–2030) signals continuity with earlier policy priorities while sharpening its focus on industrial strength, technological self-reliance, energy security, and high-standard opening up.

For the 57 member states of the Organisation of Islamic Cooperation, the plan matters because it points to where China is likely to buy, build, and compete through 2030. That makes it relevant not only as a domestic policy blueprint, but also as a guide to China’s external economic behaviour.
 

What the plan prioritises

Compared with its predecessor, China’s 15th Five-Year Plan appears to place even greater emphasis on advanced manufacturing, innovation, domestic demand, green transition, and high-quality ‘Belt and Road’ cooperation. It also highlights emerging technologies such as semiconductors, artificial intelligence, biotechnology, and energy-related innovation, while reinforcing the importance of technological self-reliance and supply-chain resilience.

The plan sets several specific measurable targets. On technology and innovation, it targets R&D spending growth of at least 7% annually. On energy, it targets a 17% reduction in carbon intensity relative to the 2025 baseline, and a 16 to 20% increase in energy production capacity, driven mainly by renewables. 

On agriculture, the plan targets grain production capacity of 725 million tonnes by 2030, alongside greater seed self-sufficiency and more integrated digital farming systems. On the digital economy, it targets value-added output reaching 12.5% of GDP by 2030, with AI given significantly greater prominence than in the previous plan.

This resilience push also reflects broader geopolitical and supply-chain instability. As Dr Yu Jie, Senior Research Fellow on China at Chatham House, observed: “Conflicts, geopolitical rivalry and the COVID-19 pandemic have exposed the fragility of global supply networks. And intensifying technology restrictions by advanced economies have underscored how dependence on foreign inputs can constrain national development.”

She added that the turmoil in the Gulf would only reinforce Beijing’s conviction. “Instability in several of the world’s most important energy suppliers illustrates how quickly geopolitical crises can ripple through global markets. For a country like China, which remains the world’s largest energy importer and a central hub in global manufacturing networks, the war is a stark reminder of the risks inherent in overreliance on external conditions beyond its control.”

The plan also reflects China’s effort to align economic development with national security. In practical terms, that means reducing vulnerability to external shocks, strengthening industrial chains, and ensuring that energy, technology, and manufacturing policy are more tightly integrated.

This has implications for OIC countries. China’s push for resilience and self-sufficiency may sustain demand for energy, minerals, and industrial inputs, but it will also increase competition for countries that are trying to move up the manufacturing ladder themselves.

The OIC foundation that already exists

The ‘Belt and Road Initiative’ has already created a substantial infrastructure footprint across several Muslim-majority economies. Chinese-linked economic zones, agricultural cooperation centres, transport corridors, ports, and industrial parks already exist in parts of Africa, the Middle East, South Asia, and Southeast Asia.

The scale of this existing base is documented. Ten Chinese-linked economic zones are recorded across OIC countries — in Algeria, Egypt, Mauritania, Nigeria (two zones), Djibouti, Pakistan, Oman, Saudi Arabia, and the UAE — covering industries from textiles and automotive assembly to petrochemicals and clean energy.

Four Chinese agricultural technology centres are operational in OIC member states in Africa: Sudan, Cameroon, Mauritania, and Senegal, covering crop cultivation, rice, irrigation, and subsistence farming. Cumulative BRI engagement since 2013 has reached $1.399 trillion, comprising roughly $837 billion in construction contracts and $561 billion in non-financial investments. In 2025, the Middle East was the second-largest recipient of BRI engagement globally, receiving $39.4 billion.

That existing base matters because the 15th Five-Year Plan does not start from zero. Its emphasis on quality, integration, and innovation can be read as an attempt to upgrade and better coordinate the infrastructure and partnerships China has already built.

This creates both opportunity and risk for OIC states. Countries that can align their industrial strategies with China’s priorities may attract more investment, technology transfer, and market access. Countries that remain passive may find themselves more deeply embedded in Chinese supply chains without gaining enough value-added production in return. 

Identifying where the opportunities are

Agriculture: China’s focus on food security, smart agriculture, and seed innovation creates room for agricultural cooperation, machinery exports, and value-chain integration. OIC countries with strong agricultural sectors could position themselves as suppliers of food, inputs, and processing capacity.

Manufacturing: China’s continued industrial upgrading will intensify competition in labour-intensive and mid-tech manufacturing. OIC economies seeking industrialisation will need to specialise, improve productivity, and target niches where they can compete effectively.

Green energy: The plan’s green transition agenda supports new opportunities in renewables, batteries, green hydrogen, grid infrastructure, and energy-efficient manufacturing. This is especially relevant for OIC countries with solar, wind, or critical mineral potential.

Connectivity and trade: High-quality Belt and Road cooperation may continue to support ports, railways, logistics corridors, and digital trade systems across OIC regions. That could improve trade efficiency, but only if projects are commercially viable and fiscally sustainable.

The risks to manage

The biggest structural risk for many OIC countries is increased competition from Chinese firms in manufacturing and exports. As China moves further up the value chain, it may become harder for emerging industrial economies to build export capacity in sectors where Chinese firms already have scale, efficiency, and policy backing.

A second risk is technological dependence. Chinese firms may expand exports of digital infrastructure, automation, and industrial software, but these partnerships can also create dependence on Chinese standards, platforms, and data governance systems.

For oil- and gas-exporting OIC states, the energy transition is another medium-term challenge. China will continue to need hydrocarbons, but its demand mix may gradually shift toward cleaner energy, strategic minerals, and inputs linked to electrification and advanced manufacturing.

Hong Kong’s possible role

Hong Kong may also become a more important bridge between China’s industrial base and OIC markets. Its strengths in finance, legal services, trading, and international connectivity could make it a useful platform for firms trying to reach Muslim-majority markets.

That said, the halal and certification gap should not be overstated. Hong Kong can help facilitate market access and trust-building, but any claim that it can single-handedly solve the challenge would be too strong. The more realistic view is that it can support a wider ecosystem of trade, certification, and service provision.

This view was echoed by Sharifa Leung, Managing Director, 3 Hani Enterprises Ltd when speaking to Salaam Gateway. She said: “By bridging rigid regulatory frameworks with modern ecosystem safety, Hong Kong and Macau can translate China’s Belt and Road vision into tangible economic trust, unlocking multi-trillion-dollar OIC markets through standardised, premium halal and tourism experiences.”

How OIC countries should respond

China’s 15th Five-Year Plan is best understood as a framework for selective engagement, and not automatic alignment. For OIC countries, it creates opportunities in trade, investment, energy transition, infrastructure, and industrial upgrading — but only if they negotiate carefully and build stronger domestic capabilities.

OIC governments are likely to do best if they engage China selectively rather than passively. That means negotiating sector by sector, insisting on local value addition, and ensuring that projects include technology transfer, maintenance capacity, and realistic financing terms.

It also means coordinating more regionally where possible. States with complementary strengths — in energy, logistics, agriculture, or manufacturing — can improve their bargaining position if they act with greater coherence.

The central point is simple: China is moving up the ladder, and OIC countries will benefit most if they do the same. Those that focus only on commodity exports or debt-heavy infrastructure risk becoming more dependent on Chinese supply chains without capturing enough of the value.

05 Jul 2026
Insight
Halal Industry
Explainer: How timeless remedies can effectively converge with modern techniques

Sidr & Stone was carved out of a need to honour centuries-old prophetic remedies. Nigella Sativa, named in Sunnah as a powerful healing tool, and widely overlooked in modern medicine for years, has gained ground in recent years for its antioxidant and immune-supporting properties. 

We speak with Yusuf Elsayed, founder of Sidr & Stone, on the underlying need to create the enterprise, and his overarching intent to converge traditional healing with modern technique. 

Yusuf Elsayed, founder, Sidr & Stone

Salaam Gateway: What inspired you to launch Sidr & Stone, and what market gap were you aiming to fill?
 

Elsayed: I came to this from a tech sales career, and as an Imam I'd long been struck by how seriously our tradition takes certain natural foods — black seed, olive oil, honey — and how poorly the modern market serves them.

The gap was trust. The category is full of bold claims and very little proof; brands talk about potency but almost none publish an independently verified figure. I wanted to build a brand around the foods of the Sunnah, held to modern quality standards — taking something 1,400 years old seriously enough to lab-test it.

Salaam Gateway: How do you source and verify the quality of your ingredients?
 

Elsayed: Sourcing first, then proof. For our black seed oil I personally evaluated more than 36 suppliers across several countries before settling on cold-pressed Ethiopian Nigella sativa, widely regarded as a high-quality seed source.

We then commissioned independent European laboratory testing rather than relying on a supplier's word — our oil is verified at 2.67% thymoquinone (the active compound used to judge black seed oil), and we publish the certificate of analysis openly on our quality assurance page. We keep it cold-pressed and unfiltered so the natural compounds aren't stripped out.

Salaam Gateway:The wellness market is crowded and often criticised for weak regulation. How do you build trust with consumers?

Elsayed: By being verifiable rather than loud. We don't chase the biggest number — we publish only what we can evidence. The certificate of analysis is the heart of it: a customer doesn't have to take our word on potency, they can see the independent lab result. I'd rather state an honest, verified 2.67% thymoquinone than an unverifiable higher figure. In a category criticised for weak regulation, transparency is the product.

Salaam Gateway: Where do you see Sidr & Stone in the next three to five years regarding product expansion, markets, or partnerships?
 

Elsayed: We began with cold-pressed black seed oil and olive oil; sidr honey and oregano oil are next — all within the same thesis of traditional, minimally-processed foods.

We serve the UK, EU and US and want to deepen those markets rather than spread too thin. On partnerships, I'm most interested in retailers and platforms that value third-party verification, and in continuing to publish our testing openly so the whole category is pushed toward proof over marketing.

29 Jun 2026
Insight
Islamic Finance
AAOIFI Shariah Standard 62: A hexagonal fiqhi-market synthesis

The global sukuk market has undergone significant structural evolution since its modern inception, adapting to investor appetites, regulatory frameworks, and market dynamics while navigating persistent tensions between Shariah authenticity and financial functionality and adapting to the changing needs and dynamics of the global financial market and stakeholder appetites. The following evolutionary depiction, adapted from Yagci, Izhar, and Turkhan Ali (2025), traces this trajectory:

AAOIFI Shariah Standard 62 (SS62) represents a pivotal development in the evolution of the global  sukūk market. At its core, the standard seeks to address a long-standing structural imbalance—namely, the pre-dominance of asset-based sukuk structures that grant investors only beneficial ownership rather than the asset-backed arrangements grounded in genuine ownership and effective risk transfer. While this corrective shift is firmly anchored in classical Shariah principles, its implications for contemporary financial markets are significant and potentially far-reaching.

By requiring substantive ownership and the assumption of risk, SS62 realigns sukuk structures with foundational Shariah maxims such as al-ghunm bi al-ghurm and al-kharāj bi al-ḍamān. The standard also carries important implications for tradability, placing greater emphasis on the actual composition and nature of underlying asset pools rather than relying solely on numerical thresholds or ratios. In doing so, it reinforces the legitimacy of jurisprudential approaches where ownership and risk-bearing are genuine and substantive.

 

In response to these developments, the Islamic Development Bank Institute has conceptualized two complementary institutional mechanisms: the Ṣukūk Development Finance Corporation (DFC) and the Ṣukūk Enhancement Fund (SEF). The DFC is designed to issue asset-backed sukuk to finance development projects while avoiding the need for governments to transfer strategic public assets. The SEF, in turn, functions as a mutual risk-sharing platform among issuers, strengthening credit quality and improving pricing without reliance on external guarantees.

Together, these mechanisms provide a practical pathway for the gradual transition toward SS62-compliant sukuk structures. While the DFC facilitates the large-scale issuance of asset-backed sukuk for sovereign and development financing, the SEF mitigates systemic risk and expands access to authentic sukuk for smaller issuers, including SMEs. Collectively, they offer scalable institutional solutions capable of supporting the implementation of AAOIFI SS62 while minimizing disruption to existing market dynamics.


Dr. Hylmun Izhar is a Senior Research Economist at the Islamic Development Bank Institute (IsDBI). Dr. Turkhan Ali Abdul Manap is a Senior Research Economist at IsDBI. Yahya Rehman is Associate Manager, Knowledge Leaders Section, at IsDBI.

22 Jun 2026
Insight
Halal Industry
Singapore bets big on halal food amid thriving sector growth

Muslims comprise just 16% of Singapore’s population, yet halal products and services have become increasingly mainstream across the city-state. From multinational restaurant chains securing certifications to digital halal verification systems, the country is positioning itself as a gateway for the global halal economy.

“Singapore has moved beyond niche market appeal to become a credible, trusted hub,” Dewi Suratty, founder and CEO of Singapore-based halal consultancy Dawn Horizon tells Salaam Gateway. 

Singapore’s food service industry offers perhaps the clearest evidence of the halal sector’s growing appeal – more than 4,000 of Singapore’s 23,600 food establishments are halal-certified, growing at roughly 10% annually.

Major fast-food chains including McDonald’s, KFC, Pizza Hut, and Subway operate halal-certified outlets across the island, while delivery platforms such as GrabFood and Foodpanda offer halal search filters.

In February, Canadian coffee chain Tim Hortons and South Korean bakery-café giant Paris Baguette secured halal certification for 17 and 20 Singaporean outlets, respectively. Singapore’s only halal-certified Filipino eatery, Nanay’s Kitchen, opened its fourth outlet in April, while Gyusei Gyukatsu Wagyu-Steakhouse introduced the country’s first halal A5 wagyu katsu earlier this year. 

Meanwhile, local meat importer and processor Lim Traders recently launched a direct-to-consumer platform, The Halal Meat Specialist, further expanding the local halal retail landscape.

Convenience retail is also evolving. In late 2025, 7-Eleven rolled out halal-certified Korean snacks nationwide, while Thai restaurant Pratunam Plus by Soi Thai Soi Nice became halal-certified nearly a decade after first opening. 

For consumers, the change reflects a dramatic expansion of choice. “Halal doesn’t mean just traditional Malay or Indian Muslim food anymore,” says Suratty. 

“We’ve got halal-certified Japanese, Chinese, Western, even fine dining. That diversity has removed a lot of friction from consumer choice. You can access halal food at a hawker for four dollars or at an eighty-dollar fine dining establishment. That’s inclusive access across economic segments.”

Building cross-border trust through regulation

Singapore began developing its halal governance framework in 1978 through the Islamic Religious Council of Singapore, also known as MUIS, which oversees halal certification and Muslim affairs under the Administration of Muslim Law Act. 

That foundation is becoming more important as Southeast Asian nations seek to strengthen cross-border halal cooperation. A recent report by Indonesia’s halal inspection body highlighted collaboration between Indonesia, Malaysia, and Singapore as a major opportunity to establish ASEAN as a global halal hub.

“When a product carries the MUIS halal stamp, traders in the GCC, Malaysia and Indonesia know exactly what they’re getting,” says Suratty.

Singapore is also modernising its certification systems through digital halal certificates introduced by MUIS last October, enabling consumers to instantly verify certifications via their mobile devices.  

“The amendment grants MUIS robust legal authority to govern its foreign halal certification bodies (FHCB) recognition scheme, enabling it to impose recognition conditions, prosecute certificate forgery, and establish a structured appeals process,” says Muhammad Faizal bin Othman, director of halal development at MUIS.

The move reflects a wider effort to strengthen the integrity of imported halal products, which is critical given Singapore’s reliance on food imports.

Alongside the digital certification rollout, MUIS launched an online portal for its enhanced FHCB recognition framework, streamlining the application and renewal process for overseas certification bodies. To date, the scheme has onboarded 88 recognised FHCBs from across the globe.

MUIS has also introduced the comprehensive halal risk management framework, replacing a one-size-fits-all approach with a more targeted risk-based methodology.

“Establishments are assessed across three dimensions - the nature and scope of certification, the robustness of controls in place, and their compliance track record,” explains Othman.

“Higher-risk establishments are subject to more frequent inspections, while those with strong compliance records qualify for extended certification validity of three to five years.” 

The framework directly links regulatory scrutiny to performance, encouraging businesses to maintain high standards while rewarding strong compliance.

Singapore-based companies are also expanding their halal manufacturing footprint beyond borders to meet growing regional demand. Food manufacturing group OTS Holdings opened a new $9.7 million facility in Malaysia last October that is expected to triple its halal production capacity from 60 tonnes to 200 tonnes per month.

“With two food manufacturing facilities in Singapore and one in Malaysia, we are contributing to the expansion of Singapore’s halal economy through improved efficiency and halal production capacity,” says Ong Shiya, senior manager for group corporate marketing at OTS Holdings. 

For many manufacturers, Singapore’s appeal extends beyond domestic demand.

“A company manufacturing specialty food in Singapore can reach Malaysia, Indonesia, Brunei, and the GCC with confidence that MUIS certification will be recognised,” says Suratty. 

The market outlook remains strong -  Singapore’s halal meat market was valued at more than $6.5 billion in 2024 and is projected to reach $7.7 billion by 2027, according to Straits Research. 

Food security drives next phase of growth

While consumer demand remains strong, Suratty believes a more pressing force is shaping the future of halal across the region.

“What’s really accelerating halal sector growth across Asia now is something more pressing: food security imperatives,” explains Suratty. “Covid-19 and recent geopolitical tensions have made supply chain diversification impossible to ignore.”

Innovations such as vertical farming, aquaculture, plant-based proteins, precision fermentation, and cultivated meat are increasingly intersecting with halal standards. “The halal angle makes these innovations market-ready not just locally, but regionally,” she adds.

18 Jun 2026
Insight
Salaam Gateway
SGIE Report 2026: Top 10 Islamic economy ecosystems in the world

The global Islamic economy, spanning halal food, Islamic finance, modest fashion, Muslim-friendly travel, halal pharmaceuticals, halal cosmetics, and media and recreation, recorded $2.60 trillion in consumer spending in 2024, with a view to reach $3.56 trillion by 2029, according to the State of the Global Islamic Economy (SGIE) 2025/26 report.

When Islamic finance assets of $5.99 trillion are included, the total market stands at nearly $9 trillion, making it one of the most significant and fastest-growing economic systems in the world.

The SGIE report assesses how countries are positioned to capture opportunities within the Islamic economy relative to their economic scale via the GIEI (Global Islamic Economy Indicators) index. The index comprises 52 metrics organised across five core components spanning the aforementionedseven sectors of the Islamic economy. 

Scores are normalised to ensure comparability across economies of different sizes, meaning the ranking reflects ecosystem quality and coordination rather than absolute market volume.

Below are the 10 strongest Islamic economy ecosystems in the world, ranked by their 2025 GIEI scores.

INDICATOR SCORES BREAKDOWN FOR TOP 10 COUNTRIES



1. Malaysia
 GIEI Score: 186.1

Malaysia retains its number one position for the twelfth consecutive year, ranking first in halal food, Islamic finance, and halal pharmaceuticals and cosmetics.

The country's ecosystem is anchored by the depth and global integration of its halal infrastructure: a fully digital certification system (MYeHALAL), expanded auditor capacity, and formal adoption of OIC/SMIIC halal standards for global alignment. In Islamic finance,

Malaysia recorded a 12% increase in assets and a 13% rise in Islamic fund value, with PNB's $300 million sukuk issuance among the headline transactions. 

2. United Arab Emirates
 GIEI Score: 137.5

The UAE climbs from the fourth to second slot, ranking in the top three across all six sectors. The country recorded the most active Islamic economy investment environment globally in 2025, with 94 transactions spanning venture capital, private equity, and M&A, and registered the second-highest FDI inflows among OIC countries at $45.6 billion.

Islamic finance expanded through a government Treasury Sukuk programme accessible from 4,000 Emirati dirhams, while digital innovation advanced through Shariah-compliant Bitcoin trading. 

3. Saudi Arabia
 GIEI Score: 107.9

Saudi Arabia ranks third overall, with particular strength in Islamic finance, halal food, and Muslim-friendly travel. Islamic finance assets grew 18%, outstanding sukuk rose 27%, and Islamic fund value increased 46%.

Tourism infrastructure is scaling rapidly, with Riyadh Air's inaugural international flights and $773 million in new tourism development fund projects signalling the kingdom's ambitions as a global halal travel destination.

4. Indonesia
 GIEI Score: 96.0

Indonesia ranks fourth overall and first in modest fashion, with top-three positions in halal food, media and recreation. A landmark development this year was the elevation of the Halal Product Assurance Organizing Agency to cabinet level, giving it a direct mandate over halal certification, accreditation, and export facilitation.

Indonesia has also expanded its halal connectivity through 92 mutual recognition agreements across 24 countries and stands as the third-largest FDI recipient among OIC countries at $24.2 billion.

With Indonesia also being the world's largest Muslim-majority country, its domestic halal food market alone stood at $165.4 billion in 2024.

5. Bahrain
 GIEI Score: 76.0

Bahrain holds its fifth-place position, ranking first in Muslim-friendly travel and fifth in Islamic finance. A small economy by OIC standards, Bahrain punches above its weight through regulatory excellence: the kingdom has been ranked first globally for Islamic finance regulatory frameworks, and its central bank's new Shariah-compliant stablecoin framework signals continued leadership in financial innovation.

Tourism is an expanding second pillar, with inbound visitors reaching nearly 15 million in 2024 — a near-20% year-on-year increase. 

6. Türkiye
 GIEI Score: 69.1

Türkiye ranks sixth, with its strongest performances in Muslim-friendly travel and halal food. The country is the third-largest modest fashion consumer market globally at $54.3 billion and the top halal pharmaceuticals consumer market among OIC countries at $11.2 billion.

Domestically, Türkiye's participation finance sector continues to deepen, with Istanbul increasingly positioned as a regional hub. On the investment side, Trendyol Go attracted a $700 million deal, the largest e-commerce transaction in the Islamic economy in 2025.

7. Pakistan
GIEI Score: 64.7

Pakistan enters the top 10 for the first time in the halal food GIEI sub-ranking and ranks seventh overall, reflecting rapid ecosystem maturation.

The country is home to the world's second-largest Muslim population and a fast-expanding Islamic banking sector that now represents a significant share of total banking assets.

Pakistan's media and recreation sector is also a notable strength, driven by the country's large and digitally engaged Muslim consumer base. 

8. Iran
GIEI Score: 63.5

Iran returns to the top 10, driven primarily by the scale of its Islamic finance sector — the largest by asset volume globally at $2.24 trillion — and its modest fashion consumer market, where spending of $59.2 billion places it first in the world.

9. Kuwait
GIEI Score: 55.8

Kuwait's banking sector is among the most Islamically penetrated in the GCC, with Islamic banks holding a substantial share of total sector assets.

Kuwait's Muslim-friendly travel sector is also a source of strength, supported by significant outbound spending — $14.7 billion in 2024 — making it the fifth-largest Muslim travel consumer market globally.

Investment activity is concentrated in Islamic finance platforms and consumer-facing digital ventures.

10. Jordan
GIEI Score: 52.0

Jordan benefits from a mature Islamic banking sector, active sukuk activity, and a well-regarded regulatory environment.

Jordan is also an active halal pharmaceuticals exporter within the OIC bloc, ranking 15th globally for intra-OIC pharmaceutical exports.

Its position in the top 10 reflects consistent, broad-based performance across the GIEI's sub-indicators rather than dominance in any single sector.

 

17 Jun 2026
Insight
OIC Economies
Gulf nations bet big on post-Assad Syria  

The Gulf nations have pledged tens of billions of dollars in partnership and investment deals in post-war Syria as they seek to become primary financial anchors, helping rebuild a country battered by economic disparities, political upheaval and social unrest. 

The GCC nations, particularly the UAE, Saudi Arabia and Qatar, were the among the first countries to endorse the new Syrian president Ahmad Al Shara when he succeeded Bashar Al Assad in December 2024. These same countries are now primary capital providers that partook in approximately $28 billion in capital inflows in the first six months of 2025 to seek early-mover advantages in a country characterized by extensive development and infrastructure needs. 

Saudi Arabia has inherently focused on Syria’s macro stability and strategic infrastructure development. In February, the two countries signed a slew of agreements valued at roughly $5.3 billion, covering investments across aviation, telecommunications and utilities.

The financial commitments will cover the development and operation of airports in Aleppo, establish a low-cost national carrier and launch a telecommunications initiative to build a 4,500-kilometre fiber-optic network, positioning Syria as an inter-continental digital corridor. The new agreements add to previously signed memorandums and deals between the two countries worth about $10.66 billion, bringing total Saudi investments in Syria to about $16 billion.

Saudi Arabia, alongside Qatar, also paid off approximately $15.5 million in arrears to the World Bank Group last May, enabling the lender to extend a $146 million grant to Syria for the reconstruction of the national grid infrastructure. Jean-Christophe Carret, World Bank Middle East division director stated that this project represented the first step in a planned increase in World Bank support to Syria. Saudi Crown Prince Mohammed bin Salman also played a widely appreciated role in US President Donald Trump’s decision to lift Syrian sanctions last May. 

Qatar has focused on reviving and developing Syria’s utility and aviation landscape. Last year, Syria signed a $7 billion deal with Qatar's UCC Holding-led consortium to add 5,000 megawatts to the national grid. The United Nations Development Programme estimates that Syria’s energy production has fallen by more than 80% from pre-war levels and that more than 70% of plants and transmission lines are damaged. Syria also inked a $4 billion deal with a consortium of companies led by UCC Holding to redevelop Damascus International Airport. 

The UAE is also viewing Syria strategically to strengthen trade networks beyond the Strait of Hormuz and secure a greater regional role. Mohamed Alabbar, the co-founder of e-commerce platform Noon, is planning to invest up to $18 billion in Syria in addition to launching an e-commerce platform, he announced in May.

Local port authorities are increasing their investment and operational footprint to support enhanced trade flows and long-term economic growth. Dubai’s DP World signed an $800-million preliminary agreement to develop the port of Tartous, while Abu Dhabi's AD Ports Group purchased a $22 million stake in a container terminal in Syria's main commercial port, responsible for 95% of the country’s container volumes. 

From January 2025 through February 2026, the GCC used a calibrated program of financial and political support that helped stabilize the Levant, writes Middle Eastern expert Norman Roule. 

“Saudi Arabia actively shaped the political and economic architecture of Syria’s reintegration into the Arab world; the UAE’s investment will enhance the Levant’s future as a strategic shipping center; Qatar combined solvency support with energy-centric statecraft.” 

However, despite all the money pouring in, the country’s reconstruction costs are disproportionately high, tenfold the size of its 2024 nominal GDP, according to World Bank’s last October estimates.

Moreso, the country will need $215 billion to reconstruct what thirteen years of conflict have destroyed, including $75 billion for residential buildings, $59 billion for non-residential structures, and $82 billion for infrastructure, according to the World Bank's Syria Physical Damage and Reconstruction Assessment 2011-2024 report. 

Best estimate for reconstruction costs by governorate as of December 31, 2024 (US$m)
Source: Syria Physical Damage and Reconstruction Assessment 2011-2024 report

Real GDP declined nearly 53% between 2010 and 2022 while nominal GDP contracted from $67.5 billion in 2011 to an estimated $21.4 billion in 2024. 

“The estimates of reconstruction costs are about 10 times nominal 2024 GDP, reflecting both the extensive damage caused by the conflict as well as the years of massive economic contraction. The disruptions due to the conflict and to economic sanctions have also led to a reliance on imports, depletion of foreign reserves, and heavily constrained fiscal resources,” the World Bank report read. 

Furthermore, despite the surge in investment interest, regional and international investors agree that the investment and regulatory regime need to be improved, Beth Morrissey, managing partner at Kleiman International Consultants, Inc., tells Salaam Gateway.  

“At the moment, investors note lack of transparency and predictability, and Syria's neighbours are well-placed to help the country. We understand the existing legal/regulatory environment, judicial system and current investment laws were key discussions at the May UAE-Syrian business forum. Already, Saudi is assisting with a foreign investment protection framework and has indicated investment will begin to flow. Gulf investors have noted that decision-making is still centralized at the top of the government due to lack of existing institutions.” 

“There is also some concern about last June's Investment Law 114, which amended but did not replace an earlier law, as it grants permanent concessions to investors, preserves the centralized system and could, in the future, imperil Syria's finances as, for example, export-oriented industries receive income tax reductions of up to 80 percent.”

15 Jun 2026
Insight
Islamic Lifestyle
How Saudi Arabia is reshaping Hajj and Umrah into seamless experiences

For decades, the global conversation around the annual Hajj pilgrimage has been around scale. Millions of pilgrims. Vast crowds. Endless logistics. But the most meaningful transformation in recent years has been less about scale and more about the experience. 

Increasingly, the kingdom is redesigning Hajj and Umrah as a unified process that begins long before a pilgrim reaches the holy city of Makkah and continues through every stage of the pilgrim’s worship and movement.

“Saudi Arabia is building a pilgrimage system that is not only bigger, but more organized, more responsive, and more aware of the person moving through it,” says Abdulrahman Alkheraigi, communication advisor at the Ministry of Hajj and Umrah.

At its core, this evolution reflects Saudi Arabia’s Vision 2030 ambition to make Hajj and Umrah journeys more seamless, while preserving the sanctity of the pilgrimage itself.

“If I had to pick the single most meaningful shift, it would be the move away from a fragmented, manual system to a more integrated journey,” Mohammed Binmahfouz, founder and CEO of digital platform Umrahme tells Salaam Gateway. 

Image Courtesy: Shutterstock

“That sounds obvious when you say it, but if you were operating in this space five or six years ago, you would know how far things have come.”

Fragmented to digital

For many pilgrims, the Hajj travel experience once began with uncertainty.

Applications were often handled through layers of intermediaries. Information could be inconsistent. Language barriers complicated planning. Pilgrims frequently relied on informal advice networks to navigate one of the most important journeys of their lives.

Saudi Arabia’s growing digital ecosystem is changing that.

Platforms such as Nusuk and Nusuk Hajj now allow pilgrims to access permits, accommodation, transportation information, and verified packages more directly. The system is still evolving, but the psychological impact is already significant.

“Better access to information, greater transparency, digital permits, and the ability to manage key parts of the journey without going through a chain of intermediaries are all significant,” says Binmahfouz, who has also worked with the Ministry of Hajj and Umrah to develop a digitalization roadmap.

“For pilgrims arriving from dozens of countries with different languages and expectations, that is more important than people outside the industry might appreciate.”

Behind the scenes, the improvements go beyond digital convenience. They reflect a broader restructuring of how the pilgrimage sector functions.

“What I find equally notable is how much work has gone into coordinating the ecosystem around the pilgrimage,” he says. “Government entities, transport providers, accommodation, health services, crowd management, and licensed operators are now working within a more joined-up framework.”

That coordination matters because Hajj remains one of the most operationally complex annual gatherings in the world.

“Hajj is unique because it’s not simply about bringing people to Makkah,” explains Binmahfouz. “It’s about safely moving very large numbers of pilgrims through a sequence of time-sensitive rituals.”

“Any improvement in flow, scheduling, medical response, transport allocation, or camp services has a direct impact on safety and comfort.”

The invisible infrastructure of care

Many of the biggest improvements to Hajj and Umrah are intentionally invisible.

Pilgrims may never see the command centers coordinating movement between Mina, Arafat, and Muzdalifah, holy places essential for completing Hajj rituals. They may not notice the predictive systems managing transport flows or the expanded medical preparedness operating in the background.

What they encounter instead is something simpler: shorter waits, clearer directions, and faster support when problems arise.

According to Alkheraigi, the transformation centers on reducing avoidable stress around the pilgrimage experience. “A pilgrim’s journey to Hajj rarely begins in Makkah. For many, it begins months earlier, at a desk or on a phone, with a set of questions that are practical but deeply personal.”

“How do I apply? Which package can I trust? Where will I stay? How will I move between the holy sites? What happens if I get lost, fall ill, or cannot understand the instructions around me?”

“These are not small concerns,” he adds. “For a pilgrim preparing for one of the most important journeys of a lifetime, uncertainty can weigh almost as heavily as the physical demands of Hajj itself.”

Reforms to Hajj increasingly attempt to address that anxiety. Health services, shaded areas, hydration infrastructure, emergency response systems, multilingual guidance, and accessibility measures have all expanded over the past few years. 

At the two Holy mosques located in Makkah and Medinah, new services — including interactive maps, free luggage storage, and childcare centers — are intended to improve comfort and peace of mind.

“I would also highlight the growing attention given to elderly pilgrims and people with disabilities,” says Binmahfouz. “Better accessibility, dedicated support services, wheelchair arrangements, improved mobility planning, and stronger medical readiness are all contributing to a more dignified and inclusive journey.”

One of the latest initiatives involves the deployment of 6,000 wheelchairs and 400 electric carts throughout the Grand Mosque to facilitate the movement of worshippers.

Language access has also become a critical layer of the infrastructure.

Image Courtesy: Shutterstock

“Multilingual guidance, translation tools, and wider access to the Arafat sermon have helped worshippers feel less isolated in the crowd,” says Alkheraigi. “To understand what’s being said, where to go, and what comes next is not merely a practical advantage; it allows a pilgrim to remain calm enough to focus on worship.”

Building a resilient ecosystem

The overhaul of Hajj and Umrah services is closely tied to Saudi Arabia’s larger tourism ambitions.

In 2025, the Kingdom recorded over 122 million domestic and international tourists, a 5% increase year-on-year. The figure included nearly 19.5 million Hajj and Umrah pilgrims arriving from abroad.

Image Courtesy: Haramain website

That growth is changing how the ecosystem connects to the wider Saudi economy.

“The broader destination picture matters too,” says Binmahfouz. “AlUla, Jeddah, Riyadh, Taif, Asir, the Red Sea, Diriyah, and the Eastern Province are all part of a wider story. Visitors increasingly have reason to experience more of the kingdom.”

Projects led by the Royal Commission for Makkah City and Holy Sites and the Madinah Region Development Authority are also reshaping how pilgrims experience historic and religious landmarks beyond the core rituals, according to Binmahfouz. 

Among them is the recently rehabilitated 157-kilometer Badr Historical Path west of Madinah, designed to revive sites connected to prophetic history.

Meanwhile, infrastructure projects such as the Haramain High Speed Railway and the Makkah Route Initiative have improved connectivity and reduced congestion.

The Makkah Route has emerged as one of the kingdom’s most consequential reforms. The program allows visitors to complete visa processing, health checks, and baggage coding at airports in their home countries before flying to Saudi Arabia and proceeding to their accommodations without lengthy arrival procedures. Since its launch in 2017, the initiative has served more than 1.2 million pilgrims.

The next phase: Delivering a seamless experience

Despite the progress, industry leaders argue that the next phase of reform will be harder.

The challenge is no longer building infrastructure. It’s connecting the ecosystem so thoroughly that pilgrims barely notice the systems supporting them.

“The biggest opportunity right now is consistency,” Binmahfouz says. “The journey still has uneven patches depending on the arrival point, the operator, transport connectivity, guide quality, and how well services are coordinated on the ground.”

He argues that many operators continue to depend on traditional coordination methods that can create fragmentation during critical stages of the journey.

“Many businesses still rely heavily on manual processes and WhatsApp coordination,” he says. “Giving them proper digital tools for bookings, operations, supplier management, VAT-compliant invoicing, dynamic packaging, and guest support would raise the quality floor of the ecosystem noticeably.”

Artificial intelligence and predictive analytics are expected to play a larger role in the years ahead.

“There’s the longer-term opportunity around data and AI,” Binmahfouz says. “Predictive crowd management, smarter transport allocation, service monitoring, accessibility planning, personalised itinerary building, and real-time guest support will all matter more as the system becomes better connected.”

Still, both industry and government voices insist the future of pilgrimage services cannot be judged solely by technology or infrastructure.

For pilgrims, success is often measured in subtle ways. It’s finding the right bus without panic. Understanding instructions in a familiar language. Reaching the rites safely. Resting in shade. Receiving help before confusion becomes fear.

“The future of Hajj and Umrah services will not be judged only by the scale of infrastructure or the sophistication of technology,” Alkheraigi says.

“For pilgrims, success is felt in smaller, more immediate ways.”

02 Jun 2026
Insight
Islamic Finance
GDP-linked Sukuk: A tool for economic growth and stability

This article is produced and sponsored by IsDBI. It was first published in the State of the Global Islamic Economy 2025/26 report produced by DinarStandard. The report can be downloaded from here.


I.    Introduction 
The alarming rise in global public debt demands innovative, long-term financing solutions. For the Global South, the “Looming Debt Crisis” highlights the need for transformative approaches beyond temporary relief. Among these, GDP-linked bonds are emerging as a promising pathway for sustainable development financing. 

First proposed in the 1980s and gaining renewed support after successive debt crises, GDP-linked debt aligns repayment with economic performance. Supported by leading economists and the IMF, this model offers a sustainable way to manage debt and promote sustainable growth. 

Islamic finance principles, rooted in risk-sharing, make GDP-linked Sukuk a natural fit for development finance. By tying obligations to GDP, these Sukuk provide equitable and resilient solutions that align with Islamic ethics. 

This article explores the potential value of this model and the role of blockchain technology in supporting implementation. Blockchain ensures secure and transparent tracking of economic data, while smart contracts enhance the efficiency of execution. 

II.    Structure 

The coupon and principal in GDP-linked bonds rise and fall in proportion to the issuing country’s nominal GDP. Robert Shiller has called these instruments “GDP shares” as they allow governments to raise funds while linking repayments to the resources of the economy. In this model, sovereign obligations adjust in line with economic performance.

Shiller has argued that replacing part of conventional national debt with claims linked to economic output could help governments better manage financial obligations, reduce the risk of future crises, and potentially lower borrowing costs over time.

Interest in the indexing of debt servicing to GDP first emerged in the 1980s and received fresh support after frequent debt crises. The idea was supported by several distinguished economists, including Joseph Stiglitz and has also received favorable consideration from the IMF. 

III.    Features 

In their Foreword to the book Sovereign GDP-Linked Bonds: Rationale and Design (2018), Andy Haldane of the Bank of England and Maurice Obstfeld of the IMF, note the following appealing features of GDP-linked bonds: 

  • They can provide the issuing government with debt relief when growth weakens and tax receipts decline. 
  • Investors gain a route out of being locked into low-interest rates through exposure to the real economy while the debt-stabilizing effects of issuance mean default risks become more remote. 
  • They also allow risk to be shared across borders more efficiently, ultimately reducing the need for sovereign bailouts and limiting moral hazard. 

The “automatic stabilizer” role of GDP-linked instruments reduces the need to resort to procyclical policies. When economic growth slows, GDP indexation can ease debt pressures, lower the probability of default, and help reduce financial distress and rising unemployment. 

In periods of low GDP growth, the GDP-linked instruments can reduce debt-servicing costs and reduce the need for more borrowing or taxes. This would help to smooth the tax rate and reduce uncertainty for consumption and investment. Conversely, higher payments during stronger GDP growth may discourage governmental overspending. As a result, sovereigns may gain greater short-term budget flexibility while maintaining long-term solvency and resilience to financial turmoil.

A key element for the success of GDP-linked bonds, Griffith-Jones remarks is to identify the proper set of investors interested in this kind of bond. Given their equity-like features, they may appeal to equity investors as well as those interested in hybrid instruments. Moreover, since GDP-linked bonds are directly linked to the overall economy, they have elements of Development Impact Bonds. 

Arshadur Rahman of the Bank of England suggests issuing GDP-linked Sukuk. To the extent that GDP is correlated with government income, then the GDP-linked Sukuk will represent a form of partnership between the government and investors. From a Shari’ah perspective, this structure potentially emulates musharakah arrangements. 

IV.    Blockchain networks 

A serious challenge for GDP-linked instruments is the reliability of the data on which investors’ returns depend. Conventional economic statistics rely on samples intended to represent the entire economy, but these may create inaccuracies requiring revision in subsequent releases. In addition, given the centralized nature of the process, data are exposed to the risks of manipulation and interference. These challenges limit the appeal of GDP-linked instruments to investors. 

Issuing GDP-linked papers requires establishing an effective system for collecting verifiable and consistent data. Blockchain technology can be very helpful in this regard. This can be done as follows: 

1.    A group of blockchain networks of consumers, producers, wholesalers, and retailers, among others, can be established with the verifiable identities of each member of each network. Each network would be dedicated to a particular sector of the economy.  


2.    Data from sector-specific networks can be aggregated into a national blockchain network, providing a comprehensive and real-time estimate of GDP. 


3.    This unified approach ensures consistency and avoids duplication or gaps in data collection. 


4.    Members of each network could report: 
a.    Current price of a pre-identified set of goods and services within their respective sectors.  
b.    Expected prices over defined future periods. 

5.    Reported data are verified by members following blockchain verification and consensus algorithms. The IsDB Institute developed the patented “Proof of Use” algorithm as a more economically sustainable alternative to Proof of Work. 

6.    Members could be rewarded tokens issued by the networks’ sponsors such as the central banks or relevant authorities. 

This process would help ensure that the collected data are transparent, observable, easy to compute, and non-manipulative. Since the technology requires only an internet connection and smartphones, the data collection process requires minimal upfront costs. 

The Blockchain network can be used to collect various kinds of data including indicators related to financial inclusion and broader development outcomes. 

Digital GDP-linked Sukuk could be issued and distributed through the Blockchain network. These Digital Sukuks would represent a tokenized form of the Sukuk certificates and their underlying contractual terms.  

Smart contracts can be used to link the periodic Sukuk payments with the data collection network. Using blockchain on both sides, data collection and Sukuk issuance are likely to make the entire process seamless, transparent, and efficient. This allows the Sukuk to be accessible to a wider range of investors, particularly retail investors. 

V.    Issues and challenges 

While the Digital GDP-linked Sukuk might be conceptually appealing, there are many issues that need to be addressed before implementation. For example: 

  • Managing the blockchain networks would be demanding and may involve some centralized control. Although the risks of manipulation are much lower than the centralized approach, some risks remain. 
  • Developing countries, which stand to benefit most from GDP-linked Sukuk, may face challenges in implementing and maintaining blockchain networks due to limited infrastructure and technical expertise. 
  • Ensuring that all economic actors, including those in remote or underserved areas, can participate in the blockchain network will require extensive outreach and capacity building. 
  • GDP-linked Sukuk are suitable for most middle-income countries with promising growth prospects. 
  • Very-low-income countries could issue sector-specific Sukuk tied to growth in sectors such as agriculture, mining, or oil & gas. 
  • Although the GDP-linked Sukuk of a single country may carry higher risk, a diversified portfolio of such instruments could reduce risks. 

VI.    Conclusion 
Islamic finance is, at its core, a risk-sharing system with the capacity to absorb and manage various economic risks. This will not make the economy risk-free, but it will make these risks manageable and self-stabilizing. However, when debt becomes excessive, these risks can become destabilising. 

GDP-linked Sukuk offers an innovative approach to sustainable financing by aligning debt obligations with a country's economic performance. This instrument can help curb excessive debt accumulation while promoting a more stable and inclusive growth, reflecting the risk-sharing principles of Islamic finance.  

Author: Dr. Sami Al Suwailem Acting Director General, IsDBI
 


This article is produced and sponsored by IsDBI. It was first published in the State of the Global Islamic Economy 2025/26 report produced by DinarStandard. The report can be downloaded from here.

© State of the Global Islamic Economy 2025/26 All Rights Reserved

 
 

02 Jun 2026
Insight
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