Indian businesses and exporters may steer a course towards GCC countries to circumvent steep US tariffs, according to analysts.  

US President Donald Trump signed an executive order in August, imposing an additional 25% tariff on imports from India, in addition to other duties, fees, taxes, exactions, and applicable charges.

The White House cited India’s continued purchase of Russian oil, as the rationale for the move, calling it a counter to Russia’s threat to US national security and foreign policy. Russia accounts for about 34% of India’s crude imports. 

Indian exports to the US fell 11.93% year-on-year in September, and a whopping 20.39% on the previous month, as the impact of the tariffs began to take shape. 

The steepest impact will fall on labour-intensive sectors where the US accounts for a large share of India’s exports - including carpets (58%), textiles and garments (35%), gems and jewellery (39%), and shrimp (32%), Ajay Srivastava, founder of the Global Trade Research Initiative, a Delhi-based think tank, tells Salaam Gateway. 

“These industries have thin margins and little room to absorb a 50% tariff shock.” 
The impact may drive Indian companies to veer towards other lucrative markets, including the GCC. 

“Several Indian firms, particularly in gems and jewellery and electronics assembly, are exploring a shift of production and processing bases to the UAE and other GCC countries to remain cost competitive. The region’s low-tariff access to key markets and strong logistics networks makes it an attractive fallback option,” adds Srivastava. 

“Sectors where production and finishing facilities can be quickly established are best positioned to reroute exports via the GCC.” 

Krishna Bhimavarapu, an economist at US-headquartered State Street investment Management adds that while there is a lot of uncertainty, there is a good chance for Indian firms to explore the GCC markets, especially given the positive trade dialogue that has been happening.

India has strong economic and diplomatic ties with the Gulf countries with bilateral trade worth $178.56 billion in FY2024-25. 

Indian exports to the UAE soared 24.33% year-on-year in September, rising from last year’s $2.8 billion to $3.5 billion last month. Exports to Saudi Arabia increased 14.2% last month, too, according to data released by the Indian ministry of commerce and industry.   

“Dubai and Abu Dhabi, already major re-export hubs, are emerging as natural staging points for Indian firms diversifying away from direct US shipments,” says Srivastava. 

The six-nation GCC hosts north of nine million Indian expatriates, making it an invigorating market for the Indian diaspora and products.  The influx of Indian businesses into the GCC has continued to gather momentum, with over 9,000 joining Dubai Chamber of Commerce during the first six months of the year.

Meanwhile, over 40 Indian companies have established regional headquarters in Saudi Arabia.

The UAE will also be home to Bharat Mart, a huge facility spread across 2.7 million square feet designed to provide new market opportunities to Indian manufacturers and exporters.

Trade alliances are in the ascendant, too - India signed a comprehensive economic partnership agreement (CEPA) with the UAE in May 2022, to reduce or eliminate tariffs on the vast majority of products. The Southeast Asian country has recenty concluded CEPA negotiations with the sultanate of Oman and is aiming to lock in a free trade agreement with Qatar by third quarter of next year to push bilateral trade to $30 billion by 2030.

Among reports of an imminent US-India trade deal, will such a pact, if realized, stall the influx of Indian companies looking to step up shop in the GCC? 

“I don't think so,” says Bhimavarapu. “Because there is also a trade dialogue with the GCC countries alongside with the US.”

Indonesia will intensify oversight of halal-certified products imported from China through closer coordination between the Halal Product Assurance Agency (BPJPH) and the Indonesian Embassy in Beijing, officials announced on Wednesday.

The initiative will involve joint inspections of Chinese companies supplying halal goods to Indonesia, including reviews of production facilities, supply chains, and slaughterhouses across several Chinese provinces.

“This collaboration reflects our commitment to strengthening halal assurance on imports from China,” said Parulian Silalahi, deputy chief of mission at the Indonesian Embassy in Beijing. “Our team will work alongside BPJPH inspectors to ensure all certified producers meet Indonesian standards.”

According to Chuzaemi Abidin, BPJPH’s deputy for monitoring and guidance, the partnership is designed to ensure that halal integrity is maintained throughout the production and distribution process.

“This cooperation demonstrates BPJPH’s commitment to safeguarding the rights and confidence of Muslim consumers in Indonesia,” Abidin said. “Continuous verification is essential to guarantee that certified products remain compliant with halal principles.”

Indonesia, home to the world’s largest Muslim population, has increasingly focused on strengthening halal certification for imports, particularly from major trading partners such as China, to ensure full compliance with domestic regulations and consumer expectations.

Bangladesh plans to offer Pakistan a Special Economic Zone (SEZ) for investment during the ninth Joint Economic Commission (JEC) meeting scheduled for October 27 in Dhaka, according to officials from the Economic Relations Division (ERD).

The meeting, the first in nearly two decades, is expected to focus on enhancing bilateral trade and cooperation, particularly in textiles, agriculture, and halal food production, sectors where both countries see strong potential for collaboration.

“This is a warm-up meeting between the two nations after almost 20 years,” said Dr Mizanur Rahman, additional secretary at the ERD. “We hope Dhaka and Islamabad will reach a consensus on boosting trade, investment, and overall economic cooperation.”

Bangladesh’s delegation will be led by finance adviser Dr Salehuddin Ahmed, joined by special assistant to chief adviser Dr Anisuzzaman and ERD secretary Shahriar Kader Siddiky, while Pakistan’s delegation will be headed by federal minister for economic cooperation Ahad Khan Cheema, officials confirmed.

Officials said the two countries are expected to discuss joint ventures in halal food production aimed at expanding exports to overseas markets. The Bangladesh Standards and Testing Institution (BSTI) and the Pakistan Halal Authority (PHA) are also likely to sign a cooperation agreement to promote halal certification and industry growth.

According to ERD officials, reducing the trade imbalance will also be a key discussion point. In fiscal year 2025, Bangladesh imported $787 million worth of goods from Pakistan but exported only $80 million, highlighting a significant deficit.

Bangladesh will seek duty- and quota-free access for key products including jute, pharmaceuticals, ready-made garments, electronics, and tea, in a bid to diversify and strengthen exports to Pakistan.

The JEC meeting marks a thaw in bilateral relations after years of political distance. The last such meeting took place in September 2005, but subsequent sessions were postponed as ties cooled under the Awami League government, which took power in 2009.

Relations began to improve following the fall of the Awami League government in 2024, after which several high-level Pakistani delegations visited Dhaka. 

Officials in Dhaka say the renewed engagement and the upcoming JEC meeting could set the stage for deeper trade, investment, and industrial cooperation between the two South Asian nations.

Muslim-led small and medium enterprises (SMEs) across the United States raked in $46.9 billion in 2024, as a new generation of young American Muslims seize entrepreneurial opportunities and growing market opportunities. 

The Thrive 2025 - North America Muslim Market Report, produced by DinarStandard, revealed that 49,973 SMEs based in the US garnered close to $47 billion last year.

Firms based in California, Toronto CMA (census metropolitan area), Florida and New York comprised 67.2% of the top 10 regions. 

Infrastructure and support services firms comprise nearly half of the total SME pool (44%), whereas other firms are concentrated across lifestyle, wellness and consumer markets (35%), followed by finance and impact each with ~9–10%, and media, with ~3–4%.

The report estimates that US-based Muslim households spent $170.8 billion in 2024, while Muslims in the Toronto CMA spend $15.8 billion, based on the study’s estimated 2024 population of 7.47 million Muslims in America, and approximately 725,432 in the Toronto CMA.

American Muslims have a notably younger age profile than the overall US population, with 77% under the age of 50. The community also showcases a layered immigrant-origin profile, combining first-generation representation with substantial second- and third-generation cohorts. 

“The proliferation of high-quality Yemeni coffee shops like Qahwah House, Haraz and Qamaria are a manifestation of uniquely American style, third space coffee shops. American-made Habibi Oud perfumes, modest fashion brands VELA and Haute Hijab, fintech companies such as Zoya and Manzil, and crowdfunding platform LaunchGood all exemplify a new level of original Muslim entrepreneurial confidence and maturity,” the report read. 

Halal, has become a uniquely health-conscious and ethical trend, going mainstream through outlets like Halal Guys and other nationally expanding chains. Halal offerings from brands such as Crescent Foods and Saffron Road have owned shelf space in retail arenas, from Whole Foods to Costco.

The emergence of alternative national media platform Zeteo and Boycat, a platform for ethical alternative products, is also reflecting a rise in ethical consumer activism driven by Muslims. These are besides the thousands of small businesses such as clinics, convenience stores, gas stations, and investment platforms, owned and operated by Muslims. 

Key report findings also revealed housing finance, investments/savings, and personal insurance and pensions as the top three unmet needs across the American Muslim diaspora, indicating demand for transparent, compliant financial products and affordable care pathways. 
 

Global fintech platform Fasset has received regulatory approval from Malaysia’s Labuan Financial Services Authority (FSA) to offer digital banking services, marking a major step in its transition from a digital asset platform to a full-service, Shariah-compliant financial institution.

The approval allows Fasset to operate within Malaysia’s regulated sandbox for Islamic fintech innovations, enabling it to offer deposit-taking, lending, and investment services powered by stablecoin infrastructure. The company’s new model positions it as the world’s first stablecoin-backed Islamic digital bank, serving a global user base of over 500,000.

The license expands Fasset’s operations beyond digital asset investing into on-chain, asset-backed banking. Users will be able to access zero-interest banking products alongside investments in U.S. stocks, gold, and cryptocurrencies through the company’s all-in-one financial superapp.

Founded in 2019, Fasset serves both retail and institutional clients across 125 countries, recording $6 billion in annualized transaction volume, a figure projected to reach $24 billion by 2026.

The new approval builds on Malaysia’s ambition to position itself as a regional hub for Islamic fintech. It also strengthens Fasset’s goal of addressing the lack of access to Shariah-compliant financial products across regions where traditional banking remains limited, such as Asia and Africa.

Fasset’s upcoming offerings will include asset-backed savings products, instant cross-border payments, and a crypto debit card that can be used globally through Visa, Google Pay, and Apple Pay. The company also plans to launch Own, an Ethereum Layer 2 network built on Arbitrum to facilitate settlement of real-world assets from regulated institutions.

Fasset’s expansion comes as the global Islamic finance industry surpasses $5 trillion in assets, with projections suggesting it could double by 2030, underscoring growing demand for modern, faith-aligned financial solutions.