Analysis: Fintechs dominate 'Top 30 digital Islamic economy startups' list

Salaam Gateway, in partnership with DinarStandard, has released its first-ever list of Top 30 Digital Islamic Economy Startups.

The list features 30 digital-first, consumer-facing startups that are serving - wholly or partly - an Islamic values-based lifestyle market across sectors covering fintech, media, travel, and fashion. 

It aims to highlight the growing prominence of digital startups serving the Islamic/halal lifestyle market and serve as a benchmarking tool for its continued development.

Sector growth

From a sector standpoint, Islamic fintech emerged as a clear winner with 20 firms, including two unicorns. Muslim-friendly media was a distant second with five companies, followed by three enterprises from the modest fashion space. 

Fintech is on a tear in the wake of the Covid-19 pandemic and continues to find favour, especially in emerging markets.

Increased e-commerce adoption has led to an emergence of Buy Now Pay Later firms, while players across the Islamic insurtech and wealth management space are increasing in number and prominence. 

Meanwhile, Muslim-friendly platforms, including matrimonial ones, are becoming fairly popular across the media ecosystem. Modest fashion, one of the top three sectors in the list, is in the ascendant on the back of its online growth and global appeal. 

Saudi leads the pack

Saudi Arabia, the largest Middle Eastern economy, leads the list with five companies. The UK and the UAE ran it close, with four enterprises each. Indonesia, Malaysia, Turkiye and the US each host three startups.

Saudi Arabia is pursuing its diversification agenda to develop an economy beyond oil and has emerged as a global hub for digital Islamic economy players, on the back of top-tier support, an outsized market, funding and regulatory ease.

Meanwhile, the UK has become a preferred location for halal economy startups, led by a strong Islamic finance ecosystem, robust digital infrastructure and an appealing entrepreneurial vibe. 

The UAE is also gaining prominence due to its worldwide appeal and supportive infrastructure, while a substantial domestic market and proximity to the broader European region has enabled Turkiye’s popularity as a sought-after destination for startups. 

“The Top 30 Digital Islamic Economy Startups list highlights a vibrant mix of startups globally. In the evolution of the modern Islamic/halal lifestyle digital global ecosystem, these are the first major cohorts that are maturing with proven business models and societal impact,” Rafi-uddin Shikoh, managing partner of DinarStandard said. 

“Given these early successes and significant gap in servicing the large addressable market, this space is poised to see the number of players multiply and expand,” he added. 

The Top 30 Digital Islamic Economy Startups was compiled on five criteria, including the companies’ Islamic positioning, latest funding round value, employee strength, traffic ranking and media mentions. 

To view the entire list, click here.