Iran received more than a million medical tourists in 2024, reflecting the nation’s tourism push to compete on a global scale and diversify its sources of revenue. 

The country welcomed 1.2 million tourists who received medical treatments across Iranian hospitals last year, Mehr News Agency reported, citing an Iranian official. Medical tourists made up 16.2% of the 7.4 million visitors last year. 

A 2020 study found that medical treatments in Iran cost up to 65% less than in the United States and 40% less than in Western Europe, making the country a leading destination for affordable, high-quality healthcare.

"Health, medical or therapeutic tourism is one of the key competitive advantages that the country's tourism has over others," said Muslim Shojaei, director general of the Foreign Tourism Marketing and Development Office at the Iranian Ministry of Cultural Heritage, Handicrafts and Tourism. 

“Along with pilgrimage and historical-cultural tourism, this area is one of our three main products in which we can compete with many countries in the world”.

Treatments such as hair transplants, cosmetic surgeries, transplants, and infertility treatments topped the list of medical services given to foreign tourists.

The global medical tourism market is worth around $47 billion, with each health tourist spending an average of $2,500 to $3,000. 

"Iran's share [of the global market] is not bad despite the current conditions, although the situation was better before Covid-19 pandemic and in 2019," added Shojaei. 

More than 60 million people visited the Grand Mosque in Mecca and the Prophet’s Mosque in Medina during the month of Muharram in the Islamic year 1447 AH, according to the General Authority for the Care of the Affairs of the Grand Mosque and the Prophet’s Mosque.

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.

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.

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. 

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.