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Home / Insights

Featured Insights

Halal Industry

Australia must act now to secure its place in the global Islamic economy

04 Aug 2026
Insight

Halal Industry
 Australian halal cosmetic and pharma industries outpace global growth
03 Aug 2026
Insight

OIC Economies
The Gulf’s green hydrogen wager
29 Jul 2026
Insight

Halal Industry
How Vietnam's HALCERT is helping realize the nation's halal ambitions
26 Jul 2026
Insight

OIC Economies
Top 10 largest OIC capitals by population in 2025
21 Jul 2026
Insight

OIC Economies
How a Türkiye–Saudi rail corridor could redraw the Islamic world’s economic map 
15 Jul 2026
Insight


All Other Insights
Halal Industry
Australia must act now to secure its place in the global Islamic economy

Australia has the foundations to become a significant player in the global Islamic economy, but stronger collaboration between government, industry and investors will be essential if it is to capture a greater share of one of the world's fastest-growing markets.

That was the central message from the launch of The State and Future of the Australian Islamic Economy, held in Sydney on Monday, 3 August, where government representatives, industry leaders and researchers gathered to discuss Australia's growing role across halal manufacturing, Islamic finance, tourism, technology and professional services.

The report, jointly produced by Salaam, DinarStandard and Salaam Gateway, argues that Australia's Islamic economy has reached a new stage of maturity, driven by a combination of demographic growth, export capability and changing consumer preferences that increasingly favour ethical, values-based products and services.

Opening the event, Salaam's Head of Investments, Mas Harris, said the report was intended to begin a national conversation, "The Australian Islamic economy sits at the intersection of government, finance, academia and community. Unlocking its potential will require stronger collaboration across all of these sectors."

A global opportunity on Australia's doorstep

Presenting the report's findings, DinarStandard board director Dr Sayd Farook described the Islamic economy as "a global megatrend.”

Valued at more than US$5 trillion globally and serving a consumer base of more than two billion people, he said the opportunity was increasingly relevant to Australia because many of its largest trading partners are located across Southeast Asia and the Middle East.

"This opportunity is literally in our backyard," Farook said.

With Australia already blessed with the ingredients required to compete internationally, including a trusted regulatory system, advanced manufacturing capability and a strong reputation for quality. The next phase of growth is ready for the taking. "The opportunities are across the board, from finance to food, fashion, cosmetics and even education.” Farook added. 

Farook also challenged traditional perceptions of the Islamic economy, explaining that it should not be viewed solely through the lens of religion.

Rather, he described it as an economy shaped by values, where ethical production, transparency, trust and responsible business practices increasingly align with mainstream consumer expectations.

Western Sydney emerging as an economic driver

The event also highlighted the growing contribution of Australia's Muslim business community, particularly across Western and south-west Sydney.

NSW Minister for Industrial Relations and Member for Canterbury Sophie Cotsis said the report reflected decades of work by entrepreneurs and community leaders who have helped build businesses that now contribute significantly to Australia's economy.

Representing one of Australia's most culturally diverse electorates, Cotsis said the Islamic economy was not simply about religious identity but about jobs, skills, innovation and economic opportunity.

"This is about the skills of the future," she said.

She praised the report for recognising the contribution of multicultural communities to Australia's economic growth and encouraged continued collaboration between government and industry to unlock further opportunities.

Halal becoming a mainstream value proposition

The changing perception of halal products was a theme that resonated with the audience with panellists noting halal is increasingly associated with quality, ethical sourcing and transparency rather than religious observance alone, which in turn broadens halal’s appeal among mainstream consumers.

This trend is particularly evident across pharmaceuticals, nutraceuticals and cosmetics, where Australian manufacturers have successfully entered international halal markets by leveraging the country's strong regulatory standards and manufacturing reputation.

Australia's emerging Muslim-friendly tourism sector was also highlighted as another area with considerable growth potential, particularly as international travel continues to recover and destinations compete to attract high-value Muslim travellers.

Policy and certification remain key challenges
While speakers were optimistic about Australia's long-term prospects, they also warned that the country's competitive position is not guaranteed.

One of the strongest themes to emerge from both the report and the panel discussion was the need for greater policy coordination and regulatory consistency.
Halal certification was repeatedly identified as a major challenge facing Australian exporters, with businesses often required to navigate multiple certification systems across different export markets.

Panellist Ahmad Fettayleh, from Fettayleh Food argued that greater alignment between certification frameworks would reduce complexity, strengthen international confidence and improve Australia's competitiveness.

The discussion also extended beyond certification to broader policy settings. Dania Zinurova, Head of Infrastructure Funds at Dexus believes Islamic finance, taxation and investment structures could encourage greater capital flows into Australian businesses.

Examples from overseas jurisdictions demonstrated how targeted regulatory reforms have helped accelerate Islamic finance markets and attract investment, providing potential lessons for Australia.

From conversation to strategy
Perhaps the strongest message from the launch was that Australia has moved beyond asking whether an Islamic economy exists.

Instead, the discussion focused on how the country can better coordinate its existing strengths to compete internationally.

Australia already possesses globally recognised expertise in halal food, advanced manufacturing, research, education and financial services. Combined with a young, entrepreneurial Muslim population and strong institutional frameworks, speakers argued these capabilities provide a platform for sustained long-term growth.
The challenge now is execution.

As global competition intensifies, Australia will need to move beyond fragmented initiatives towards a more coordinated national strategy that aligns industry capability, investment, regulation and international engagement.

For many attending the launch, the report represented not the conclusion of a conversation, but its beginning.

As panellist Dean Gillespie, CEO of the Islamic Finance and Investment Association stated Australia has a once-in-a-generation opportunity to become the Islamic finance hub for Asia-Pacific, but it needs coordinated leadership, regulatory reform and greater public awareness to realise that potential.

Whether that opportunity is realised will depend on the willingness of government, industry and investors to work together to build on the strong foundations that already exist.

The State and Future of Australia’s Islamic Economy can be downloaded here.
 

04 Aug 2026
Insight
Halal Industry
 Australian halal cosmetic and pharma industries outpace global growth

Australia's halal pharmaceutical and cosmetics industries have grown at almost twice the pace of the global average over the past five years and are expected to maintain that momentum, emerging as a key driver of Australia's increasingly sophisticated Islamic economy.

The finding is among the headline insights of The State and Future of the Australian Islamic Economy, the first report of its kind launched today in Sydney by Salaam and DinarStandard, with Salaam Gateway as media partner.

The report finds that Australia's Islamic economy has evolved well beyond its traditional reliance on halal food exports to become a strategically important part of the country's domestic economy and international trade ambitions.

While halal food remains Australia's largest Islamic economy sector, pharmaceuticals, nutraceuticals and cosmetics have emerged as some of its fastest-growing industries. According to the report, these sectors demonstrate Australia's ability to compete in increasingly sophisticated global halal markets while laying the foundations for broader growth across finance, technology, tourism, education and other Islamic economy sectors.

Islamic Finance and Investment Association, CEO, Dean Gillespie says, “The Australian Islamic economy is no longer a peripheral conversation. It is a measurable, growing and strategically relevant part of Australia’s domestic market and export landscape.”

The halal-economy is forecast to exceed A$10 billion, a small drop in the ocean compared to the global US$5 trillion market. However, the report concludes that Australia’s growth trajectories in certain industries outpaces global comparisons thanks to demographic growth and increasing demand for Aussie made products that reflect ethical sourcing, transparency, sustainability and trust.

As halal increasingly intersects with ESG principles and impact investing, Salaam, Head of Investments and Product Mas Harris says, “There is clear demand for a broader range of halal-compliant offerings across all sectors and Australia is well positioned to deliver on this demand already having internationally recognised manufacturing standards, robust regulatory systems, strong traceability and world-class research capability, supported by a young, entrepreneurial and digitally connected Muslim community.

These strengths are particularly evident in Australia's pharmaceutical and cosmetics sectors. Over the past decade, Australian manufacturers have established themselves among the world's leading producers of halal-certified health and wellness products, successfully navigating complex international certification requirements while exporting to high-growth Muslim consumer markets across Southeast Asia and the Middle East.

Australian vitamin and supplement manufacturers have led much of this expansion.

Blackmores, for example, has secured halal certification from Malaysia's Department of Islamic Development (JAKIM), one of the world's most recognised halal authorities, enabling greater access to Southeast Asian markets and demonstrating Australia's ability to meet stringent international halal standards.

Australia's manufacturing capability is also attracting overseas investment. Global supplement companies are increasingly using Australia as a production base for halal-certified pharmaceuticals, nutraceuticals and wellness products, drawn by the country's regulatory credibility, advanced manufacturing expertise and established export infrastructure. Together, these strengths position Australia as a potential regional hub for halal health and wellness manufacturing.

A similar trend is emerging across Australia's cosmetics industry. Halal-certified skincare and personal care brands are benefiting from growing consumer demand for products that prioritise ethical sourcing, ingredient transparency and clean manufacturing. Increasingly, halal certification is resonating with consumers beyond Muslim communities, reflecting broader purchasing trends centred on quality, trust and responsible production.

For Mariam El Houli, Founder of Eve's Skin, that shift is already evident.

"Halal is now seen beyond religious context, it represents trust, purity and quality.”

Her experience reflects one of the report's central findings, halal certification is increasingly viewed as a mark of quality assurance as much as religious compliance, broadening its appeal across mainstream consumer markets.

The report argues that Australian businesses should therefore move beyond viewing halal as simply a compliance requirement. Instead, it should be integrated into broader strategies focused on long-term value creation, ethical production and international competitiveness. This diversification will further strengthen Australia's long-term competitiveness by building expertise, attracting investment and creating new export opportunities across multiple sectors.

However, the report cautions that Australia's competitive advantage cannot be taken for granted.

As countries compete for leadership in the global Islamic economy, those that align government policy, industry capability, branding, investment and regulation will be best placed to capture future growth. For Australia, one issue remains central to achieving that ambition: consist, uniform halal certification.

Despite Australian exporters' success in international markets, the domestic halal certification landscape remains fragmented. Multiple certifying bodies, inconsistent standards and limited regulatory oversight continue to create complexity for manufacturers and uncertainty for international buyers.

El Houli believes this remains one of the industry's biggest barriers to future growth, describing Australia's certification landscape as "fragmented, with limited government oversight and inconsistent standards."

The challenge comes as exporters face rising freight costs, higher tariffs and tightening margins. For many small and medium-sized businesses, navigating multiple certification systems across different export markets adds significant cost and administrative burden.

The State and Future of the Australian Islamic Economy, report concludes that Australia's halal cosmetics and pharmaceutical industries have demonstrated the country's capacity to compete at the highest levels of the global Islamic economy. However, unlocking the next phase of growth will require a more coordinated, internationally recognised and strategically aligned halal certification framework.

Rather than being viewed solely as a compliance obligation, halal certification must become a strategic national capability if Australia is to strengthen its position as a trusted global producer of halal products and services.

The State and Future of Australia’s Islamic Economy can be downloaded at www.salaam.com.au 

03 Aug 2026
Insight
OIC Economies
The Gulf’s green hydrogen wager

Oil-producing economies of the Gulf are rapidly emerging as global centres for green hydrogen production, propelled by pioneering decarbonization strategies, abundant solar energy and substantial capital reserves. The momentum is encouraging regional governments to successfully transition from hydrocarbon dominance to a post-oil era with long-term sustainability and comparable financial returns. 

The GCC nations are positioning themselves as key players in the global hydrogen economy, said Atif Rehman, Director Energy Infrastructure Solutions, EMEA at Enerflex Ltd said in a LinkedIn post. 

With abundant renewable energy resources and ambitious sustainability goals, these countries are investing heavily in hydrogen production, particularly green hydrogen derived from renewable energy sources, he added. 

Saudi Arabia granted local utility giant ACWA Power the exclusive right to export green hydrogen and its derivatives to global markets, confirming its ambition to establish an intercontinental renewable energy export value chain. 

Dr. Samir J Serhan, ACWA CEO, said that the mandate defines the next architecture of Saudi Arabia’s energy export strategy.

"Green hydrogen and renewable electricity exports represent the next chapter in the kingdom's energy leadership, creating new opportunities for economic growth while contributing to global energy security and the energy transition."

The under-construction NEOM Green Hydrogen Project, billed as the world’s largest, is another strong indicator of the kingdom’s clean energy ambition.

The initiative which will produce 600 tonnes per day of clean hydrogen and up to 1.2 million tonnes per year of green ammonia upon completion next year, will help mitigate the impact of five million metric tonnes of carbon emissions annually.

Green hydrogen is generated through the process of electrolysis using electricity from renewable sources. Ammonia is an efficient way to transport hydrogen and after reaching its destination, it can be used as is or converted back to hydrogen. 

The kingdom is simultaneously developing a multi-billion-dollar green hydrogen and ammonia production facility at the Red Sea port city of Yanbu, which will produce 400,000 tonnes of green hydrogen or up to 2.2 million tonnes of green ammonia annually. Its developer ACWA Power signed a MoU with several German counterparts to create a green ammonia corridor, stretching from its origin to the German port of Rostock. 

Neighbouring UAE’s green hydrogen strategy targets producing 1.4 and 15 million tonnes per annum by 2031 and 2050, respectively. The country mirrors Saudi Arabia’s ambition to segue from a conventional oil giant to a dominant supplier of clean fuel to Europe and Asia, looking to targeting 25% market share of low-carbon hydrogen key export markets by 2030.

The country’s first solar-driven green hydrogen facility at the Mohammed bin Rashid Al Maktoum Solar Park was commissioned in 2021. Meanwhile, Abu Dhabi’s ADNOC is developing large-scale green hydrogen projects in partnership with Mubadala Investment Company, and formed the Abu Dhabi Hydrogen Alliance along with sovereign wealth fund ADQ back in 2021 to construct a substantial green hydrogen economy in the country.

However, multiple countries are vying for a slice of the global export landscape amid rising demand for low-carbon fuels.  

S&P Global analysts Brian Murphy, Matthew Hodgkinson and Katherine Leydon said in a November 2024 report that with the Middle East region having become a large producer of low-carbon fuels, there was a possibility of a competition between the US and Middle East for export markets in Japan and South Korea. 

Meanwhile, Oman is looking to plough $50 billion in total investments to establish itself as a pre-eminent hotspot for green hydrogen and ammonia. The sultanate established Hydrom in 2022 as the main entity tasked with developing its green hydrogen sector – two years later, Hydrom signed two new green hydrogen projects for Dhofar worth $11 billion. Indian renewables developer Acme has also committed $4.2 billion to Oman’s hydrogen and ammonia project in the Special Economic Zone at Duqm this year.   

Qatar and Kuwait have taken a more measured approach to green hydrogen – state-owned Kuwait Oil Company contracted engineering firm KBR in 2024 to develop a strategy for building out 25GW of green hydrogen production capacity, as well as 17GW of renewables, by 2050.

The Qatari government has committed over $1.5 billion to develop green hydrogen projects in future, while a pilot hosted at the Qatar Science and Technology Park successfully produced green hydrogen directly from wastewater and sunlight. 

29 Jul 2026
Insight
Halal Industry
How Vietnam's HALCERT is helping realize the nation's halal ambitions

Vietnam made a decisive move earlier this year when Decree 127 came into effect, giving the country its first comprehensive legal framework for halal certification, labelling, and traceability. At the centre of that effort is HALCERT, the government body tasked with building Vietnam's halal industry and securing international market access by 2030. 



Salaam Gateway spoke with HALCERT Director Ramlan Osman about the sectors driving Vietnam's halal export push, the infrastructure gaps that still need to be closed, and how the country is positioning itself as a credible halal hub in Southeast Asia.

This interview has been edited for length and clarity.

What is HALCERT's role within Vietnam's broader halal ecosystem, and how does its certification scheme align with international standards to ensure Vietnamese halal products gain cross-border acceptance? 

Osman: HalCert was established on 24 April 2024 as a government body under the Ministry of Trade, based on decision (10/QD - FT), dated February 14, 2023.  The objective behind the creation of HalCert is to strengthen international cooperation, and to build and develop Vietnam's Halal Industry by 2030. As for alignment with other certifications and standards, Decree 127 provides the emphasis on prioritising references to OIC/SMIIC and from widely recognised international standards such as Jakim, BPJBP etc. This is important for Vietnamese products in gaining international acceptance.

What are the main sectors driving Vietnam's halal export ambitions, and what gaps currently exist in infrastructure, supply chain, or producer awareness that HALCERT is working to address?

Osman: The three key areas that need to be focused are agriculture, top 20 producers meeting the OIC importation needs, food manufacturing (ready-to-eat snack ingredients), and Muslim-friendly services (accommodation, tour sites, service providers, and agents).

There are also improvements needed in the infrastructure to accommodate halal requirements such as qualified manpower, structured learning programmes, development centre, and grassroots programmes.  As for supply chain, we need to build halal logistics capabilities including trace and trace from farm to fork.

Some other areas where work still needs to be done:
Coordination with colleges on learning and development for halal and manufacturing courses;  coordination with provinces on introducing certified halal courses to logistics provider companies as a start and working on having more players embrace halal at coastal ports in order to take on a bigger role in halal logistics.

What is Vietnam's strategic vision for positioning itself in the global halal economy, and how is HALCERT collaborating with government bodies, foreign certification authorities, and industry players to build a credible and competitive halal hub in Southeast Asia?

Osman: 18 Memorandums of understanding (MOUs)s have been signed, including a G2G with Brunei, Singapore, UAE, Kuwait, Saudi Arabia, Iran, Bahrain, and Turkiye. Furthermore, Vietnam is now also a member of the ASEAN halal Council and is hosting a conference in Vietnam from 8 -9 July on "An Emerging Destination for Halal Tourism." We are also discussing with SMIIC to be an observer member during SMIIC general meetings, and finally, we are in talks with local developers and manufacturing entrepreneurs to develop a halal manufacturing zone at the port city of Hai Phong, which would be spread over an area comprising 30 hectares of land.
 

Ramlan Osman, Director HALCERT
Ramlan Osman, Director HALCERT

Although Vietnam is not a Muslim-majority country, its strategic location connecting China, ASEAN, and the Pacific is part of its value proposition to halal markets. How is HALCERT building credibility with Muslim-majority importing countries?

Osman: Although Vietnam's Muslim population is estimated at 50,000 to 60,000 out of 1.2 million, making it a minority Muslim nation, similar in profile to Japan, Korea, and Taiwan, the country has bigger ambitions of positioning Vietnam as a regional — and ultimately global — halal food hub. As a result, HALCERT is pursuing an international partnership strategy, signing memorandums of understanding with the UAE's MOIAT, Saudi Arabia's SASO, and the GCC's GAC. 

What are some of the structural bottlenecks that HALCERT sees as preventing Vietnam from expanding its halal industry? 

Osman: Two challenges continue to hamper halal commercialisation in Vietnam. The first is a lack of awareness. Despite HALCERT having presented its work to close to ten provinces from north to south, many provincial authorities are not doing enough to help farmers and rural communities adopt halal standards in a commercially meaningful way. The second challenge is of cost: many micro-enterprises and SMEs find the $1,000 certification and audit process difficult to absorb. Decree 127, however, has begun to address this directly, instructing the Ministries of Industry and Trade, Agriculture and Environment, and Culture, Sports and Tourism to provide financial assistance to help businesses obtain halal certification, achieve Muslim-friendly status, and participate in overseas halal trade expos.

Prime Minister Pham Minh Chinh approved a project in February 2023 to strengthen international cooperation and develop Vietnam's halal industry through 2030. With Decree 127 now in effect, how does HALCERT measure progress, and are the 2030 targets still realistic?

Osman: Halcert started on April 24, 2024, one year after the Prime Minister’s declaration on the setting up of halal development and the promotion of halal economy and commercialisation of agriculture, aquaculture, and food manufacturing in the country. Since the inception of Halcert, we have travelled across the country to promote halal and Muslim-friendly activities to more than 3,000 entrepreneurs, exporters, government officials, university students, academicians, and the public over the last two years. 

Ministry of Science and Technology has been given a central role under Decree 127 in coordinating the halal sector by setting quality standards, shaping development policy, and ensuring that exporters, traders, researchers, trainers, and consultants operate in line with both domestic law and internationally recognised halal standards. Based on the number of events organised across different provinces over the past year — with strong involvement from both the public and private sectors — I am confident that Vietnam's halal Vision 2030 targets are not only achievable but could well be surpassed.

26 Jul 2026
Insight
OIC Economies
Top 10 largest OIC capitals by population in 2025

The Organisation of Islamic Cooperation’s 57 member states are home to some of the world’s fastest-growing urban centers, and their capitals capture much of the demographic weight of the Muslim world.

From South Asian megacities absorbing millions of rural migrants to Gulf capitals transformed by labour migration and petrostate investment, these cities illustrate how population and power are increasingly concentrated in large urban agglomerations. Taken together, the ten largest OIC capitals account for well over 100 million people in their contiguous built‑up areas.
 

1. Jakarta, Indonesia — 41.9 million


Jakarta ranks as the largest capital city in the OIC and the most populous city in the world in the UN’s 2025 dataset. Its huge urban footprint reflects the long-term concentration of population, investment, and government activity on Java, as well as the growth of the wider Jabodetabek metropolitan region.

2. Dhaka, Bangladesh — 36.6 million


Dhaka is the second-largest OIC capital and one of the fastest-growing large cities in the world. Its expansion has been driven by rural-to-urban migration, garment-sector employment, and the city’s role as Bangladesh’s political and economic core.

3. Cairo, Egypt — 25.6 million


Cairo is the largest city in Africa and the only non-Asian city among the world’s top ten urban areas in the UN’s 2025 release. Its scale reflects long-running demographic concentration along the Nile corridor and persistent migration from other parts of Egypt into the capital region.

4. Tehran, Iran — 9.2 million


Tehran remains one of the largest capitals in Western Asia and a major administrative, financial, and cultural center. The city’s growth has been shaped by internal migration, centralization of state functions, and the pull of the national capital on surrounding regions.

5. Kuala Lumpur, Malaysia — 8.4 million


Kuala Lumpur is one of the most economically significant capitals in the OIC and a major hub for trade, finance, and the Islamic economy. Its urban growth reflects Malaysia’s sustained urbanization and the wider expansion of the Klang Valley metropolitan region.

6. Riyadh, Saudi Arabia — 6.9 million


Riyadh has grown rapidly from a small desert settlement into a major metropolitan capital. Oil-driven development, labor migration, and large-scale state investment have transformed the city into one of the fastest-expanding capitals in the OIC.

7. Khartoum, Sudan — 6.8 million


Khartoum’s urban agglomeration, which includes Khartoum, Omdurman, and Khartoum North, is the largest capital area in sub-Saharan Africa within the OIC. Its population estimate should be treated cautiously because Sudan’s conflict has likely altered settlement patterns and displacement flows since 2023.

8. Amman, Jordan — 6.4 million


Amman’s growth has been shaped by successive waves of displacement, including Palestinians, Iraqis, and Syrians, alongside natural increase. The city’s size is unusually large relative to Jordan’s overall population, giving the country a strong concentration of people and services in the capital.

9. Baghdad, Iraq — 6.4 million


Baghdad remains one of the largest Arab capitals in the UN dataset and has long been a major center of political power and urban settlement. Its current size reflects historic centrality, post-2003 migration, and ongoing reconstruction and demographic pressure.

10. Kabul, Afghanistan — 5.6 million


Kabul’s rise into the upper tier of large capitals has been driven largely by internal displacement and the concentration of opportunity and services in the capital. Despite political uncertainty, the UN’s 2025 estimate still places Kabul among the largest OIC capitals.

Methodology
This ranking uses the United Nations World Urbanization Prospects 2025 capital-city file, which reports mid-2025 population estimates for capital cities defined by the Degree of Urbanization. That means the figures describe densely populated urban areas and are not limited to administrative city boundaries.

For consistency, the list includes capitals of all 57 OIC member states and uses the UN’s capital-city designation as the basis for comparison. In conflict-affected cases such as Khartoum and Kabul, the figures should be treated as modelled estimates rather than precise counts because population movement and damage to administrative systems can affect accuracy.

Why it matters
The list underscores a central fact about the OIC world: political capitals are often also giant demographic magnets. In South Asia and parts of the Middle East, capital-city growth is tied not only to national governance but also to labor migration, regional inequality, displacement, and the concentration of infrastructure and services.

It also shows that the Islamic world’s largest urban centers are overwhelmingly Asian, with Cairo standing out as the only African capital in the global top ten. That pattern matters for understanding everything from housing pressure and transport demand to labor markets and urban policy.

Source note
This article is based on the UN World Urbanization Prospects 2025 capital-city dataset and the UN’s summary release on the 2025 revision. The ranking should be cited as: United Nations, Department of Economic and Social Affairs, Population Division, World Urbanization Prospects: The 2025 Revision, Online Edition.

21 Jul 2026
Insight
OIC Economies
How a Türkiye–Saudi rail corridor could redraw the Islamic world’s economic map 

Since the early 20th century, the Ottoman-built Hejaz Railway has stood as a monument of Middle Eastern history and a symbol of imperial reach. What was once a vital pilgrimage route from Damascus to Madinah is now inspiring a vastly different modern vision.

The newly signed railway cooperation agreement between Türkiye and Saudi Arabia could pave the way for one of the most ambitious geo-economic corridors in the Islamic world. Designed to connect the two countries via Jordan and Syria over the next three to four years, the architecture promises to secure regional supply chains and reduce dependence on volatile maritime chokepoints by ultimately establishing an overland trade route linking the Gulf to Europe.

While the memorandum of understanding is still in its early stages, analysts agree that the project's significance extends far beyond transportation. It reflects a changing Middle East where infrastructure is increasingly seen as a source of geopolitical influence, strategic resilience, and regional integration.

Source: Anadolu Agency

This rail pact is part of a larger trend of growing collaboration between the two nations, arriving on the heels of a recent MoU between the Saudi Food and Drug Authority and the Turkish Halal Accreditation Agency to advance joint research, training, and development in the halal sector.

Born from geopolitical shifts, morphed into economic resilience 

The timing of the initiative is no accident. Years of conflict across Middle Eastern countries, coupled with repeated disruptions to global shipping and growing anxieties over the Strait of Hormuz, have accelerated interest in alternative overland trade routes.

According to Turkish Transport Minister Abdulkadir Uraloğlu, the proposed network is designed to create a flexible logistics web capable of adapting to regional instability, rather than relying on a single, vulnerable trade artery. 

Geopolitical analyst James M. Dorsey notes that this announcement reflects a broad Middle Eastern transformation: "A Turkish-Saudi agreement to revive the Ottoman-era Hijaz Railway tells the story of geopolitical realignment in the wake of the wars in Gaza, Lebanon and Iran."

However, despite comparisons to the original Hejaz Railway, experts argue that the similarities end with geography. While the Ottoman system primarily transported pilgrims along a north-south axis, the new corridor is designed to move manufactured goods, industrial inputs, agricultural products, and investment capital across Europe, the Middle East, and Asia.

Majed Elmedawar, a strategic adviser specializing in Middle Eastern economic integration, emphasizes that modern railways should be viewed as economic institutions. 

He stresses that the bilateral initiative is part of a sweeping regional infrastructure push that includes the planned 2,177-kilometer GCC Railway, Iraq's $17 billion Development Road project connecting the Gulf to Türkiye, and the India-Middle East-Europe Economic Corridor (IMEC) announced in 2023.

"The Türkiye-GCC railway should be understood not as a revival of the historic Hejaz Railway but as a fundamentally different category of infrastructure,” Elmedawar notes. 

“Infrastructure does not only connect economies; it creates economies. A railway corridor generates industrial clusters, logistics hubs, manufacturing links, labor mobility, investment concentration, and urban growth."

What does it mean for OIC countries & the broader Islamic economy 

Perhaps the project's greatest promise lies in what analysts call cooperative sovereignty. Rather than diluting national independence, shared infrastructure can strengthen it. By managing transnational flows of goods and capital, states can participate in the global economy from a position of strength.

For members of the Organization of Islamic Cooperation (OIC), this means replacing reliance on vulnerable shipping routes with robust, localized supply chains. Countries located directly along the corridor - including Türkiye, Saudi Arabia, Jordan, and eventually Syria - would likely see the greatest immediate benefits through expanded logistics industries, manufacturing investment, and tourism, according to Elmedawar.

Longer-term, the network could extend commercial opportunities to Egypt, Pakistan, Central Asia, and Southeast Asian nations through wider Eurasian transport links.

One of the most transformative impacts of the corridor could be on the rapidly expanding halal economy, which now encompasses pharmaceuticals, cosmetics, finance, and tourism. Currently, fragmented transport systems inflate costs and bottleneck trade between OIC markets.

A modernized rail network has the potential to change this by offering reduced transit times for perishable halal goods, providing temperature-controlled freight movement combined with digital tracking, and encouraging harmonized certification systems across borders.

"A halal-certified product is only as competitive as its ability to reach consumers at a reasonable price and in a timely manner," Elmedawar notes. 

Integrated rail would turn isolated national markets into a massive, interconnected halal industrial cluster. Beyond trade, the project carries significant cultural and diplomatic implications. Ahmet Akalin, assistant director at the Iran-based Economic Cooperation Organization Cultural Institute, sees transportation as a crucial tool for international influence.

By reducing logistical barriers, Akalin argues, the corridor would reinforce Türkiye's role as a strategic bridge between Europe, Asia, and the Arab world while bolstering regional cooperation. Furthermore, he believes the railway may become the backbone of a trusted halal logistics network.

Drawing on insights from his book, The Appeal of Nations - International Cultural Institutes in Türkiye in the Context of Soft Power, he notes that the halal industry extends beyond mere religious compliance. “Halal also represents hygiene, quality, traceability and consumer confidence. Hygiene itself is a source of soft power because it builds trust.”

Reconnecting pilgrims at its core 

The original Hejaz Railway was built chiefly to serve Muslim pilgrims traveling to Islam's holiest sites. Although freight and logistics dominate today's discussions, experts believe the passenger dimension could eventually become equally significant.

As Elmedawar notes, expanded connectivity could make Hajj and Umrah substantially more affordable, accessible, and environmentally sustainable. 

"Easier rail travel would enable millions of Muslims from different countries to meet more frequently during Hajj and Umrah. In this way, the railway would connect not only cities but also people, cultures and shared values.”

Stumbling blocks 

For all the optimism surrounding the initiative, the project faces enormous practical challenges. Bringing this vision to life requires synchronizing cross-border customs, digital freight systems, regulatory frameworks, and technical standards across multiple sovereign nations. The physical and financial obstacles are formidable. In Syria, rebuilding costs exceed $200 billion, with reconstruction focused on basic utilities rather than international rail, alongside ongoing security concerns. 

Additionally, significant infrastructure gaps remain, including a missing 400-kilometer segment between Syria and Jordan that requires construction, and a $100 million restoration project needed to link Türkiye to Aleppo and Damascus, according to Elmedawar.

Financing these gaps presents another major hurdle. The total investment is estimated at $5.5 billion. While the Asian Infrastructure Investment Bank has committed $750 million to Turkish rail lines, a comprehensive cross-border funding model is still lacking.

As Elmedawar observes: "The principal constraint is no longer engineering. It is institutional coordination."

He suggests the Islamic Development Bank (IsDB) - a consistent backer of regional transport projects across the OIC - could provide the institutional framework necessary to unlock the corridor's full potential through direct financing, technical assistance, or institutional support.

Whether the project can be completed within the optimistic timeframe suggested by Turkish officials remains to be seen. But even at the memorandum stage, the railway signals an important change in regional thinking. 

Governments increasingly view mobility projects as instruments for expanding geopolitical influence, fostering regional integration, and strengthening economic resilience. If political will and financial backing align, the Türkiye - Saudi corridor could catalyze a newly connected, economically resilient Islamic world.

15 Jul 2026
Insight
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.”
 

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
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