Economic sovereignty is not limited to territory or capital control alone, but is rather shaped by those that control supply chains, standards, platforms and consumer loyalty.

Consequently, the global Islamic (or halal) economy is transitioning from demand growth to sovereignty-building, led by markets that can convert values into systems and systems into advantage, according to the newly released State of the Global Islamic Economy Report 2025/26. 

The global Islamic economy is no longer an emerging idea but a strategic economic ecosystem, operative across its seven sectors - halal food, Islamic finance, Muslim-friendly travel, modest fashion, halal pharmaceuticals, halal cosmetics, and media and recreation.

According to the latest SGIE report, governments and investors are industrializing halal value chains, digitizing trust infrastructure, and scaling Islamic finance rails. Meanwhile, consumer activism is no longer episodic as alternative brands sustain engagement beyond the boycott peak, turning values into market power.

The numbers back the scale, with the Islamic economy expected to peak to $3.56 trillion by 2029 from $2.6 trillion in 2024. Halal food remains the linchpin of this growth, rising from $1.52 trillion in 2024 to $2.05 trillion by 2029. Halal pharmaceuticals are projected to grow from $112 billion in 2024 to $146 billion in 2029, as are halal cosmetics, from $92 billion in 2024 to $124 billion in 2029. 

Modest fashion and Muslim-friendly travel sectors were worth $347 billion and $249 billion in 2024 and are projected to rise to $444 billion and $424 billion by 2029, respectively. Alongside consumer sectors, Islamic finance remains the major enabling force of the wider system, growing from $5.99 trillion in 2024 to $9.72 trillion by 2029.   

The rapidly rising global Muslim population remains a key driver of the global halal economy. Standing at over two billion and representing over 25% of the global population as of 2025, the Muslim consumer pool is projected to reach 2.2 billion (26.4%) by 2030 and 2.8 billion (29.7%) by 2050. The global median age for Muslims is nine years below the non-Muslim median. 

OIC economies leave a considerable impact on trade corridors, recording $421.5 billion in halal-related imports in 2024, with the market projected to reach $ 616.1billion by 2029, reflecting the depth of demand across food, pharmaceuticals, cosmetics, and fashion.

Despite promising numbers, OIC countries post a sizable halal products trade deficit, underlining the importance of stronger domestic production, regional industrial strategies, and deeper intra-OIC supply chains.

OIC nations dominate the top 10 destinations for Muslim women travellers due to their established halal-friendly infrastructure and services, a new report has revealed. 

Malaysia, Saudi Arabia and Indonesia remain the top three destinations for Muslim female travellers, with Turkiye and the UAE rounding off the top five countries, the Muslim Women in Travel 2026 report by Mastercard and CrescentRating, revealed. 

Two non-OIC countries - Singapore and South Korea - made it to the top ten list by leveraging targeted marketing campaigns and integrating specialized facilities, the study showed.  

Muslim women travellers grew substantially over the last decade, from 63 million in 2019 to 90 million in 2025, recording a three-percentage-point lift in segment share, and reflecting a significant shift toward independent and meaningful journeys. 

Muslim women are also primary decision-makers and planners, particularly within the Millennial and Gen Z cohorts. Meanwhile, solo travel has risen from 28% to 35% among Muslim women - led by 18-to-24s. Next-generation tools are also driving the momentum, with nine out of ten Muslim women travelers trusting AI for travel information.

Around 43.6 million MENA-based Muslim women travelled last year, making the region the biggest source market, followed by Central Asia (11 million), Western Europe (7.5 million) and South Asia (6.8 million). 
 

Abu Dhabi-based Islamic digital banking group Mal has received an in-principal approval from the Central Bank of the UAE to establish a licensed bank.

The approval will facilitate Mal Group’s advancement towards the launch of its global Shariah-compliant financial services platform, state news agency WAM reported. 

Mal aims to build a mobile-first, AI-native Islamic digital bank best place to serve underbanked communities globally.

The group’s approval follows its $230 million seed round, billed as the largest fintech seed round across the Middle East and Africa, to support product development and licensing efforts. 

“We are committed to working hard to launch the world's leading Islamic digital bank from the UAE with a mission rooted in ethical finance,” said Abdallah Abu-Sheikh, CEO and founder of Mal.

Mal Bank will operate through the wider Mal Group ecosystem, spanning banking, wealth, payments, and embedded finance, targeting the $7 trillion Islamic finance space.

The UAE has emerged as a prominent environment for digital financial services, driven by a young, mobile-first population and a conducive regulatory framework. 
 

Egypt has signed a $1.5 billion annual financing agreement with the International Islamic Trade Finance Corporation (ITFC) to fund imports of essential food commodities and petroleum products.

Under the 2026 Annual Work Program, the Egyptian General Petroleum Corporation (EGPC) will receive $800 million, while the General Authority for Supply Commodities (GASC), which manages state food procurement, will receive $700 million.

Planning and Economic Development Minister Ahmed Rostom said the agreement reinforced Egypt's ability to secure basic goods at a time of economic pressure.  He added that the ITFC is a strategic development partner for Egypt that supports the country in providing basic food commodities and petroleum products, backing food and energy security, particularly amid current economic challenges and global instability.

The deal extends a relationship dating to 2008, under which Egypt and the ITFC have signed five framework agreements worth a combined $24 billion. The current framework, first agreed in 2018 and renewed in 2022 for a further five years, covers financing across multiple development sectors as well as trade development, technical assistance, and capacity-building in export-related fields.

Mubadala Investment Company has committed $325 million to the Hornsea 3 offshore wind project in the United Kingdom, as part of its strategy to expand investments in global infrastructure and energy transition assets.

The investment is being made through a consortium led by funds managed by Apollo Global Management, following the firm’s acquisition of a 50% stake in the joint venture that owns the project.

Developed by Ørsted, which will retain the remaining 50% stake and continue to lead construction and operations, Hornsea 3 is located off the UK’s eastern coast in the North Sea.

Karim El Jazzar, head of EMEA infrastructure at Mubadala, said the investment reflects the company’s approach of partnering with established operators to back large-scale infrastructure projects that support the energy transition.

Hornsea 3 is expected to generate 2.9 gigawatts (GW) of electricity, with the capacity to power more than 3.3 million homes. The project forms part of the United Kingdom’s broader plan to expand offshore wind capacity to up to 50GW by 2030 as it works toward net-zero emissions targets.

Rising electricity demand, driven by electrification across transport, heating and digital infrastructure, is expected to support long-term growth in the sector.

The investment adds to Mubadala’s portfolio of renewable energy assets, which includes stakes in companies such as Tata Power Renewables, Skyborn Renewables, PAG Renewables and Rezolv Energy.

Earlier this month, Mubadala also acquired a minority stake in Power Factors to support its global expansion.

The sovereign wealth fund, which manages assets of around $385 billion, continues to expand its presence across infrastructure and energy sectors as part of a diversified global investment strategy.

Saudi Arabia has opened subscriptions for its May issuance of government-backed “Sah” savings Sukuk, offering an annual return of 4.56%, up from 4.50% in the previous month, according to the National Debt Management Center.

The subscription window opened on May 3 at 10:00 a.m. local time and will close on May 5 at 3:00 p.m., as part of the Kingdom’s 2026 Sukuk issuance programme aimed at encouraging personal savings and financial participation.

The minimum subscription amount is $266.56, with a maximum of $53,302 per investor. The Sukuk carries a one-year maturity and offers fixed returns payable at redemption.

The “Sah” Sukuk is part of Saudi Arabia’s Financial Sector Development Programme, which seeks to increase the national savings rate from around 6% to 10% by 2030.

The product is designed as a low-risk, Shariah-compliant savings instrument, offering fee-free participation, flexible redemption and returns linked to prevailing market conditions.

Subscriptions are available to Saudi nationals aged 18 and above through approved platforms, including SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest and Al Rajhi Capital.

The latest issuance follows continued activity in the Kingdom’s domestic debt market. In April, the NDMC raised SR16.94 billion through its riyal-denominated Sukuk programme across five tranches, with maturities ranging from 2031 to 2041.

The offering comes amid stable sovereign credit conditions, with Fitch Ratings reaffirming Saudi Arabia’s A+ rating with a stable outlook earlier this year, citing strong fiscal metrics and financial reserves.