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Halal Industry
Bridging Nutrition and Faith: Ensuring halal food access, one plate at a time

In today’s age of bite-sized nuggets of information constantly overloading our senses, critical issues that deserve our immediate attention sometimes get swept away. One such pressing issue is that of food insecurity and global hunger. The United Nations Food and Agriculture Organization defines food insecurity as the lack of regular access to enough safe and nutritious food for normal growth, development, and an active, healthy life. Based on this definition, the FAO estimates that in 2023, nearly 733 million people worldwide were impacted by hunger, approximately one in every eleven individuals globally and one in five across the African continent. Food insecurity is a silent pandemic that doesn’t differentiate.

It would be normal to associate food insecurity and hunger with third-world and developing countries. However, what’s often considered normal is not always backed by the truth. Food insecurity remains a significant issue in the United States, affecting millions of households, including those with children.

According to the ‘Household Food Security in the United States in 2023’ report by the US Department of Agriculture, approximately 13.5% of households experienced food insecurity. This comes out to around 47.4 million people, including 14 million children. The Map the Meal Report 2024 goes so far as to say that children are more likely than adults to suffer from food insecurity, resulting in poor health and long-term behavioral outcomes.

Breaking these numbers down further doesn’t make for pleasant reading. Among households with children under 18, (17.9% or 6.5 million households) were food insecure. In 8.9% (3.2 million households), both children and adults experienced food insecurity. Furthermore, approximately 1.0% (374,000 households) had children who experienced reduced food intake and disrupted eating patterns due to insufficient resources. These numbers also show a year-on-year progression, which hints at a lack of, or the very least, inadequate provisions and checks.

A growing crisis of access
While these numbers are alarming, the picture is even bleaker when it comes to Muslim households. While comprehensive data on food insecurity among Muslim children specifically is limited, available statistics highlight the broader challenges faced by Muslim communities in accessing adequate and culturally appropriate food. According to its 2022 report, the US Department of Agriculture states that 10% of Muslims reported “sometimes” or “often” not having enough to eat in the past week, a rate comparable to Black (8%) and Hispanic (10%) Americans.

Why halal matters
Behind these jarring numbers lies another dimension often overlooked: the need for food that aligns with specific cultural and religious values. According to data from the US Religious Consensus, Islam, at 1.34% of the total population of the US, is the third-largest religion in the country. For such a large population, halal, an Arabic term meaning “permissible,” goes beyond mere dietary guidelines. It encompasses the ethical treatment of animals, avoidance of certain ingredients, and strict cleanliness standards. In practice, halal ensures that every step from farm to table meets Islamic dietary rules. This isn’t a matter of preference; it’s a matter of necessity. For Muslims in low-income communities or refugee camps, it’s not uncommon to skip meals entirely rather than compromise
on religious values.

When these religious obligations are ignored, vulnerable families—especially children—often face an impossible choice between violating their faith or going hungry. According to the findings of a report by the Institute for Social Policy and Understanding (ISPU), a significant majority (83%) of Muslims in the US prefer or require a halal diet. The lack of access to halal-certified foods can exacerbate food insecurity, especially for children in school settings where such options are limited.

Health experts point out that such choices have dire consequences. Malnutrition among children, in particular, can trigger a lifetime of setbacks—from poor academic performance to long-term health issues and social marginalization. By neglecting halal requirements, society effectively puts an already vulnerable population at an even greater disadvantage. The situation seemed ripe for intervention by a body that could place the interests and potential of these young minds at the forefront. That’s where IFANCA came in.

Enter IFANCA
Since its inception in 1982, the Islamic Food and Nutrition Council of America’s (IFANCA) central focus has been enhancing access to halal products for those requiring them. By emphasizing that nutritional security is inextricably linked to the availability of halal-certified options, the organization’s mission has been to provide consumers with the guidance needed to navigate the myriad products found in grocery stores and identify those that align with halal dietary standards without compromising their
nutritional needs.

Today, with over four decades of experience, IFANCA stands as a leader in setting and upholding the best practices in halal certification. The IFANCA team, composed of industry experts and scholars in Islamic jurisprudence, has developed standards that have undergone extensive review and are widely endorsed by both Islamic scholars and the practicing Muslim community.

For IFANCA, spreading awareness and best practices is key. The organization has funded educational programs at places like Texas A&M University, focusing on ethnic and faith-based food systems. It also supports a permaculture garden at Zaytuna College that blends Islamic ethics with environmental stewardship.

These projects aren’t just about ticking boxes; they’re about shaping a new generation of leaders who appreciate how religious practices, ethical considerations, and sound environmental policies intersect. Yet IFANCA’s reach extends well beyond Illinois.

This globally recognized authority on halal certification works with clients in more than 70 countries—across the food, pharmaceutical, and cosmetics industries—to maintain standards of cleanliness, ethical sourcing, and transparency. Nationally, IFANCA has initiated pioneering projects in public institutions such as universities, correctional facilities, and food banks. It published the Handbook for Halal Campus Dining Food Service Programs, a comprehensive guide that provides best practices for institutional compliance with halal standards.

Their impact is evident in major initiatives, such as collaborations with Chicago Public Schools (CPS), Alliance to End Hunger, and food banks in Pennsylvania and Delaware, where they help distribute halal-certified products to diverse communities. One such example that crystallized the organization’s mission and brought the urgent need to provide halal meals to young minds was the “Faith by Plate Act.”

Illinois takes a bold step
A historic turning point arrived on March 28, 2025, when
Illinois became the first state in the US to require public schools, hospitals, and other state-run facilities to provide halal and kosher meal options upon request. Known as the “Faith by Plate Act,” this legislation reflects a growing understanding that access to culturally and religiously
appropriate meals is a matter of equity, not luxury.

Illinois has the country’s highest per capita Muslim population. For years, many observant families and community groups have voiced concerns that the lack of halal meals in public institutions is aggravating hunger and health disparities. Under the new law, schools and state agencies no longer decide if halal is “important enough” to warrant a menu item; they must now ensure that it’s available.

IFANCA played a central role in bringing the Faith by Plate Act to life. Drawing on four decades of experience, IFANCA helped draft the legislation’s technical details, ensuring that halal-friendly processes are feasible at scale. From clarifying dietary standards to guiding kitchen protocols, their input has been instrumental in making halal compliance second nature for big institutions.

A roadmap for inclusive food security
By showing that large institutions can incorporate halal-friendly systems at scale, Illinois’ example offers a blueprint for others grappling with food insecurity among Muslim populations. When states or organizations integrate faith-based dietary requirements into their offerings, they take a meaningful step toward inclusive and dignified access to nutrition.

Halal certification, in this context, is more than a religious seal of approval. It’s a powerful framework for addressing hunger in a way that respects cultural identity and ethical principles. With the right leadership and collaboration, initiatives like the Faith by Plate Act can be replicated everywhere, from bustling cities to remote refugee camps—anywhere people need both sustenance and a sense of belonging.

Toward a more equitable future
As the global hunger crisis intensifies, inclusive policies become increasingly urgent. Studies show that from short-term effects such as undernutrition, social exclusion, and psychological distress, unchecked food insecurity among children can lead to poor academic performance, reduced life expectancies, and socio-economic marginalization. When Muslim children are denied access to halal meals, they are effectively forced to choose between religious observance and sustenance—a decision that undermines both their rights and well-being.

The Faith by Plate Act exemplifies how public institutions can play a key role in bridging cultural gaps and meeting critical needs. Together with IFANCA’s global expertise, Illinois is illustrating that when faith and practicality converge, food insecurity doesn’t have to be an insurmountable problem.

Ultimately, the drive toward inclusive food security isn’t just about feeding people; it’s about respecting their values, preserving their dignity, and ensuring that no one is forced to choose between hunger and faith. As governments, nonprofits, and local communities unite to expand halal-friendly infrastructure, one thing becomes crystal clear: equitable food systems benefit everyone, whether you consider halal a necessary practice, a moral stance, or simply a better standard of care.

Islamic Finance
Indonesia to establish Islamic economy agency to drive Shariah sector growth

Indonesia is set to establish a new Islamic Economy Agency (BES) to replace the existing National Committee for Islamic Economy and Finance (KNEKS), aiming to enhance policy innovation and strengthen coordination across the country’s Shariah economic ecosystem.

Former vice president Ma’ruf Amin made the announcement during the launch of the State of the Global Islamic Economy 2024–2025 Report in Jakarta. “God willing, the national committee will soon be rebranded as the Islamic Economy Agency. I have spoken with Mr. President (Prabowo Subianto) to fast-track this process,” he said.

Amin said the BES would act as an umbrella body to synchronize efforts among government institutions, industry associations, academics, and civil society focused on the Islamic economy. “This country has many entities focusing on the Islamic economy, such as the Sharia Economy Society (MES) and the Indonesian Association of Islamic Economy Experts (IAEI),” he added.

He noted that Bank Indonesia and the Ministry of Finance already have dedicated work units handling Shariah affairs, and that BES would be tasked with orchestrating these efforts to maximize impact.

KNEKS currently has regional offices in 33 provinces, including minority-Muslim regions like North Sulawesi, a sign of the country’s wide-reaching commitment to developing a robust Shariah economy. The upcoming transition to BES is expected to deepen this engagement.

Amin urged all stakeholders to align efforts to ensure that the Islamic economy contributes more meaningfully to national economic resilience in a challenging global environment.

“Let us all move forward with optimism to present the best to Indonesia and the world,” he concluded.

Islamic Lifestyle
SGIE Report 2024/25: Halal cosmetics thrives, with Asian brands standing tall

Muslim consumer spending on cosmetics has grown at a steady pace, rising from $84 billion in 2022 to $87 billion in 2023, with projections to reach $118 billion by 2028, according to the State of the Global Islamic Economy Report 2024/25.

The spending underscores the persistent global interest in halal-certified beauty products. From a dollar-and-cent perspective, the halal cosmetics recorded eight deals across mergers and acquisitions, private equity or venture capital funding in 2023/2024, down from 10 recorded during the previous period. 

Asian brands, GCC markets steal spotlight
East Asian cosmetics brands, particularly from China and South Korea, are significantly influencing the global halal cosmetics market. 

Chinese brands like SHEGLAM and retail giants such as KKV Group are rapidly expanding their presence in Muslim markets. Meanwhile, South Korean companies are enhancing their halal credentials through strategic partnerships and certifications to strengthen their foothold in the Muslim market, supported by recent free trade agreements with the GCC.

Saudi Arabia is emerging as a prominent hub for beauty and fragrance investments, hosting IPOs such as Al Majed for Oud and online cosmetics retailer Nice One.

Funding activity, including strategic stakes acquired by Jadwa Investment and the Public Investment Fund’s backing of halal cosmetics companies, reflect the largest Arab economy’s strategic focus on the halal cosmetics sector, according to the SGIE report. 

Social, sustainability scores
The industry continues its transition towards sustainability, with companies investing in circular beauty practices. 

Indonesia's ERHA introduced the country’s first Cosmetics Reverse Vending Machine to tackle packaging waste. Global players like L'Oréal and Kiehl's are enhancing their supply chains and sustainability initiatives to alleviate their environmental impact and meet rising consumer demand for sustainable practices.

OIC nations have intensified regulatory actions and enforcement to combat counterfeit cosmetics.

Authorities across the UAE, Saudi Arabia, Nigeria, and Indonesia demonstrate increased vigilance against illicit products, while updated regulatory frameworks in countries like Malaysia, Indonesia, Thailand, and the EU are enhancing transparency, quality, and safety standards for cosmetics.

Social impacts, such as consumer boycotts, particularly related to geopolitical issues, continue shaping purchasing behavior within Muslim markets. Brands such as UAE-based Magically Holistic have seen significant sales increases as consumers seek ethical alternatives. 

Advanced technologies drive innovation across the sector, with artificial intelligence (AI) helping enhance personalization and product differentiation. Companies like Cosmax and Unilever are developing AI-based solutions to improve consumer experience, while brands such as Wardah leverage AI for personalized beauty recommendations. 

Overall, the continued evolution in consumer preferences, investment dynamics, regulatory enhancements, and technological advancements positions the halal cosmetics sector for sustained growth and increased global integration.

To download a copy of the State of the Global Islamic Economy Report 2024/25, click here.

Islamic Lifestyle
SGIE Report 2024/25: Content, collaboration remain central to media sector growth

Muslim consumer spending on media and recreation rose by 5.2% in 2023 to reach $260 billion, driven by significant investments, innovative content and expanding consumer demand.

Major investments highlighted the sector's momentum such as UAE-based HyperSpace securing $55 million, Türkiye’s Spyke Games raising $50 million, and Malaysia's Adilmart attracting $39 million, according to the State of the Global Islamic Economy Report 2024/25

Content remains king, collaborations seal the deal
Content innovation has developed, particularly through strategic partnerships enhancing educational and entertainment offerings for Muslim audiences.

StarTimes introduced tailored Ramadan programming while Majid TV collaborated with TwelveP Animation to broadcast family-friendly Islamic-themed animated content. 

Qalbox also partnered with platforms like NoorKids, Durioo+, and Astro to significantly expand its educational offerings, resulting in a 30% growth in subscriptions and amassing a content library exceeding 10,000 hours.

Innovative products like UAE’s Muslim Blocks have blended educational play with Islamic culture. Saudi Arabia’s $100 billion "Project Transcendence" is set to position the nation as a global leader in AI and data analytics. 

Meanwhile, Media City Qatar’s collaboration with Fadaat Media and Saudi Arabia’s partnership with Qualcomm have introduced AI-driven content and advertising innovations. King Abdulaziz City for Science and Technology’s partnership with Ericsson has established cutting-edge gaming research and development infrastructure.

Operationally, collaborations and initiatives are bolstering media capabilities and skills across regions. The UAE Media Council partnered with Google for advanced media training, while Qatar Insurance Company's edutainment project at KidzMondo Doha combined education with entertainment to promote financial literacy among young audiences.

Cross-border collaborations, such as between Azerbaijan and Turkey’s media agencies, are promoting Islamic cultural narratives widely.

National strategies lead the way
National strategies and trade developments have further bolstered the sector. 

Malaysia expressed intent to collaborate with Nigeria on Islamic media content, while Afghanistan expanded its Islamic education infrastructure. Saudi Arabia launched the AI Centre for Media, and the UAE signed a preliminary agreement with Korea’s Arte Museum. 

Policy and regulatory measures have become to shine through, with Kuwait launching an extensive Islamic education encyclopaedia, Nigeria introducing digital regulatory reforms, Saudi Arabia’s diversification focused-media strategy and the UAE’s new media regulations. 

Social impact remains integral, exemplified by UNESCO’s educational investment in Cameroon and Sharjah’s Holy Quran TV launching multilingual content.

The Islamic Development Bank’s digital preservation projects for Islamic manuscripts further reinforce the sector’s role in cultural conservation.

To download a copy of the State of the Global Islamic Economy Report 2024/25, click here.

All
Malaysia eyes trade expansion following multiple high-level bilateral talks

Malaysia is accelerating efforts to strengthen global trade and investment partnerships after Prime Minister Anwar Ibrahim held a series of high-level meetings with leaders from Australia, Pakistan, Turkiye, and Palestine.

According to Investment, Trade and Industry Minister Zafrul Tengku Abdul Aziz, the discussions focused on deepening economic ties through strategic reviews and expansion of key free trade agreements (FTAs), including those with Australia, Pakistan, and Turkiye.

“Our aim is clear: to drive economic growth that is inclusive, resilient and brings shared prosperity,” Tengku Zafrul said in a post on X. “We are also exploring high-impact opportunities in sectors such as renewable energy, the digital economy and the global halal market.”

The Malaysia-Turkiye FTA is set to be expanded to cover services and investment, while ongoing reviews are expected to enhance the Malaysia-Australia FTA and the Malaysia-Pakistan Closer Economic Partnership Agreement.

In a show of solidarity, Malaysia reaffirmed its support for the Palestinian economy and extended invitations to all four countries to participate in the Malaysia International Halal Showcase (MIHAS) 2025, billed as the world’s largest halal industry event.

The engagements mark a continued push by Malaysia to position itself as a regional hub for trade, innovation and halal industry leadership, while reinforcing its commitment to international cooperation across multiple regions.

Halal Industry
SGIE Report 2024/25: Enhancing local pharma capabilities, halal certification emerge as key trends

Muslim consumer spending on pharmaceuticals flatlined in 2023, increasing slightly from $106.9 billion in 2022 to $107.1 billion in 2023, according to the State of the Global Islamic Economy Report (SGIE) 2024/25. Spending is projected to grow at a CAGR of 6.8%, reaching $149 billion by 2028.

On balance, the halal pharmaceutical sector continues to demonstrate resilience and innovation. Localization of production, particularly insulin, has advanced, with Indonesia launching its first locally produced halal insulin, and Saudi Arabia aiming to localize over half of its insulin needs by 2027. 

Similarly, Egypt initiated local insulin production through collaborations while UAE’s Julphar established a licensing partnership to localize modern insulin analogues in the MENA region.

Halal certifications gain spotlight
Halal certification for supplements has continued to gain traction globally. Notable initiatives include South Korea's Cosmax NBT expanding into Indonesia, Haleon Pakistan preparing to manufacture Centrum multivitamins, and Australia's Blackmores obtaining halal certification from JAKIM. 

Nestlé Health Science and US-based ChromaDex have introduced halal-certified supplement ranges to address rising health consciousness among Muslim consumers.

The halal pharmaceutical ecosystem has further matured, with countries like Azerbaijan adopting OIC/SMIIC halal medicine standards and Indonesia introducing comprehensive halal manufacturing guidelines. 

Regulatory frameworks for herbal and natural products have also advanced in Malaysia, Indonesia, and Nigeria.

From a financial lens, the halal pharmaceutical sector recorded 23 deals across either mergers and acquisitions, private equity funding or venture capital raises in 2023/24, down 34.29% from previous year’s 35, according to the SGIE report. Despite the steep decline, the sector accounted for 11.36% of total investment across other sectors. 

Amplifying local capabilities 
OIC countries such as Saudi Arabia, Egypt, Iraq, and Kazakhstan have enhanced local pharmaceutical manufacturing capabilities to increase self-sufficiency. 

Collaborations between universities and industries, such as Duopharma Biotech with Universiti Kebangsaan Malaysia and Biofarma with Padjajaran University, have supported R&D initiatives crucial for halal pharmaceutical growth.

Humanitarian medical support has complemented regulatory initiatives, particularly in war-stricken regions. Initiatives in hotspots such as Gaza, Sudan, and rural areas through telemedicine solutions underscore the potential of digital health technologies to enhance healthcare accessibility.

Investments in AI-driven drug discovery have also accelerated, exemplified by UAE's Insilico Medicine, MERCK's integration of AI in drug synthesis, and Nvidia's strategic partnerships supporting healthcare startups in Southeast Asia. 

Regulatory sandboxes in Saudi Arabia, Abu Dhabi, and Indonesia continue to foster innovation by balancing technological advancement with appropriate regulatory oversight.

To download a copy of the State of the Global Islamic Economy Report 2024/25, click here
 

Islamic Lifestyle
SGIE Report 2024/25: Innovation, sustainability injects impetus in modest fashion 

The global modest fashion industry recorded tepid growth in recent months, with Muslim consumer spending on apparel and footwear rising 3% year-on-year to reach $327 billion in 2023, according to the State of the Global Islamic Economy (SGIE) Report 2024/25. 

Projections are optimistic though, with spending expected to reach $433 billion by 2028, at a CAGR of 5.8%. Iran, Türkiye, and Bangladesh lead in Muslim consumer spending on apparel, while OIC-based modest clothing businesses continue to expand internationally. Investments in the space were modest as well, accounting for close to 1% of the total investment pool across other sectors. 

Innovation, social commerce emerge as differentiators
Innovation is shaping the sector, with new products like hijab jewelry, 3D-printed hijab undercaps, and modest medical scrubs gaining traction. 

Modest activewear remains in high demand, while Ramadan collections continue to be a key focus for mainstream brands.

Premium modest clothing brands are leveraging experiential marketing to enhance brand engagement, while the second-hand clothing market is expanding due to sustainability concerns and evolving consumer preferences. 

Social commerce is thriving, predominantly across the Asian region, where platforms like Shopee Live and TikTok Shop are shaping engagement. Social media is also driving trends and increasing visibility of modest clothing stylists and influencers.

Events, programs back sector growth
The rise of modest fashion is evident in the increasing number of dedicated fashion weeks and events worldwide, according to the SGIE report. The presence of modest fashion in mainstream fashion weeks further underscores its growing influence.

Meanwhile, incubators, conferences, and training programs are enhancing business knowledge in the sector.  

Sustainability injects impetus 
Sustainable textile innovation is advancing, presenting multiple opportunities, such as leveraging artificial intelligence (AI) tools to enhance marketing, expanding sourcing beyond China, and addressing the demand for modest sportswear.

However, for the sector to witness continued momentum, stakeholders must take strategic action. Investors can shift their focus and funds on developing clothing manufacturing industries within OIC countries. Governments can drive progress through incentives such as schemes and tax reductions on sustainable apparel. 

For continued momentum, businesses should adopt AI-driven marketing strategies, explore alternative sourcing, invest in modest sportswear, and recognize the growing influence of modest fashion stylists. 

To download a copy of the State of the Global Islamic Economy Report 2024/25, click here
 

Islamic Lifestyle
SGIE Report 2024/25: Innovation, regional connectivity propel Muslim-friendly tourism

The travel industry across OIC (Organisation of Islamic Cooperation) countries continues to grow, propelled by tourism offerings, enhanced connectivity, and digital transformation. 

Muslim consumer spending on outbound travel surged by 43.2%, reaching $217 billion in 2023, with projections to hit $384 billion by 2028 at a CAGR of 12.1%, according to the State of the Global Islamic Economy (SGIE) 2024/25 Report. 

The study identified 17 deals across either mergers and acquisitions, private equity and venture capital funding during 2023/24. Transactions rose 30.77% on previous year’s 13 deals. 

Standardization efforts in halal tourism are advancing, though challenges pertinent to multiple standards remains. Meanwhile, post-conflict destinations such as Syria, Bangladesh, and Bosnia are expected to see renewed tourism interest.

Innovation becomes imperative 
AI-driven innovations are helping reshape the industry, with airlines, tourism boards, and hospitality providers conflating technologies for bespoke services, seamless travel experiences, and enhanced operational preparedness. 

Digital platforms and B2B marketplaces are also recording a surge in uptake, while digital payment solutions are ramping financial accessibility in travel. 

Saudi Arabia’s Nusuk Wallet, Thailand’s cryptocurrency payment initiative, and the EU’s Identity Wallet for secure travel transactions are prime examples of how financial ease is paving the way for greater accessibility. 

Meanwhile, the halal cruise sector is expanding with offerings from AROYA Cruises, Resorts World Cruises, and Antarctica’s first halal-certified voyage. 

Looking ahead, frontier technologies such as artificial intelligence will enhance traveller experiences through dynamic pricing, personalized itineraries, and service optimization.

Top-down approach reinforces sector
Governments are strengthening Muslim-friendly tourism through cross-border partnerships, national marketing campaigns, and infrastructure development. Businesses are following suit. 

Multi-destination travel is also gaining traction, with joint tourism campaigns. For instance, the unified GCC tourist visa is expected to enhance regional connectivity. GCC countries are also increasing investments in emerging markets, such as Indonesia, the Philippines, and Pakistan.

Medical tourism continues to attract investment, with new healthcare facilities and digital platforms supporting cross-border patient services.

Sustainability is also becoming a greater focus, with the UAE implementing a new law requiring travel businesses to report their carbon emissions, aligning with global climate goals.

Gold mine

The rise of Muslim hospitality as a distinct brand presents opportunities for hotels and tourism operators to offer culturally immersive, faith-aligned experiences, according to the SGIE report. 

Investors can explore emerging markets and mid-market hospitality, while governments can facilitate multi-destination travel and improve halal tourism standardization. 

To download a copy of the State of the Global Islamic Economy Report 2024/25, click here
 

Islamic Finance
SGIE Report 2024/25: Islamic finance is in the ascendant, driven by investments, innovations  

The Islamic finance (IF) sector experienced continued growth in 2023/24, driven by strategic investments, and innovation across multiple markets. 

Islamic assets grew 9.2% to reach $4.93 trillion globally, with Islamic banking representing 72% of the pool. Islamic assets are forecasted to reach $7.53 trillion by 2027/28, at a compound annual growth rate (CAGR) of 8.9%, according to the State of the Global Islamic Economy 2024/25 Report.     

Multilateral organizations played a pivotal role in facilitating this growth. The Islamic Development Bank’s (IsDB) $1.15 billion investment in Kazakhstan’s water project was complemented by $3.25 billion in sukuk issuances. An additional €500 million sukuk supported sustainable development projects globally. 

The segment recorded 59 deals across mergers and acquisitions (M&A), venture capital and private equity funding in the 2023/24 period with a total value of $1.98 billion. The number of deals dipped 35.16% from previous year’s 91.

Ramping up local ecosystems
Muslim-majority countries announced initiatives to strengthen their domestic ecosystems. Pakistan introduced regulatory reforms and alternative Sukuk structures to undergird its Islamic capital markets.

Kuwait created regulatory roadmaps to promote Sukuk and Islamic investments, while Saudi Arabia facilitated digital banking advancements and regulatory improvements aligned with Vision 2030 objectives.

Across Southeast Asia, Malaysia emphasized digital transformation by establishing its first Islamic digital bank while Indonesia enhanced regional Sukuk regulations. 

The SGIE report outlined significant growth in green and sustainable Sukuk issuances, such as Warba Bank’s $500 million green Sukuk and Indonesia’s $600 million issuance. Initiatives in Tanzania and Afghanistan also deployed Islamic finance for social development and sustainability projects. 

Innovation is key
The momentum in sustainable finance bolstered innovation in the sukuk market, reflecting in Russia's inaugural digital Sukuk issuance leveraging blockchain technology, and Saudi Aramco’s $3 billion issuance.

Türkiye’s wealth fund’s $750 million Sukuk issuance also illustrated healthy investor appetite for innovative and sustainable financial instruments, according to the SGIE report. 

Innovation fostered growth and developments within Islamic fintech, suggestive from Saudi Arabia’s fintech licensing expansions, blockchain-based stablecoins in Indonesia, and digital investment platforms in Malaysia and the UK.

Takaful advancements incorporated regulatory enhancements and digital innovations, particularly in Saudi Arabia, Malaysia, and Indonesia.

On balance, continued expansion, innovation and investments within the Islamic finance sector highlight its essential role in fostering sustainable economic growth, financial inclusion, and technological advancement across global markets.

To download a copy of the State of the Global Islamic Economy 2024/25 Report, click here.


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