⛵Dhow Dispatch │ The Global Islamic Economy 2024–25: Where the Money’s Moving

We went through SGIE’s 250+ page STATE OF THE GLOBAL ISLAMIC ECONOMY REPORT. Before diving in, some key words:

OIC = Organization of Islamic Cooperation; GIEI = Global Islamic Economy Indicator; CAGR = Compound Annual Growth Rate; MENA = Middle East & North Africa; BNPL = Buy Now, Pay Later; ID-MY = Indonesian-Malay (language grouping)

Now here’s what we found:

We also want to shout out our friends at MP Market Watch - a crisp, chart-first newsletter that surfaces timely market moves and practical takeaways for builders and investors in our Muslim ecosystem. If you like Dhow’s deep dives, you’ll love their weekly market analysis and research. Check it out here.

The State of the Global Islamic Economy (SGIE) 2024/25 reads like a structural re-rating of the “ethical consumption” trade. The baseline is big and getting bigger: $2.43T of Muslim spend in 2023 (ex-finance) heading to $3.36T by 2028; Islamic finance at $4.93T → $7.53T in the same period, providing fuel and rails for the real economy.

What changed is not “a boycott flash.” It’s measurable substitution at scale: the report’s cross-language social analysis shows 15.6% of tracked discourse explicitly nudging buyers to alternatives, especially in Food & Beverage, Tech, Fashion, and Cosmetics, and then names the local winners riding that wave.

Food is the anchor. Muslim food spend grew 2.6% in 2023 to $1.43T and is projected to $1.94T by 2028 (6.2% CAGR). Indonesia leads spend; Bangladesh and Egypt follow. Gulf states are localizing capacity (e.g., JBS $50M plant in Saudi Arabia; UAE poultry processing), while OIC governments and multilaterals step in with food-security projects.

Why it matters: Food sits at the intersection of trust (halal integrity), affordability, and national resilience. The localization wave + brand switch-over gives domestic and regional players a structural tailwind.

Islamic finance assets hit $4.93T (2023) and are projected to $7.53T by 2028 at 8.9% CAGR - with fintech momentum (e.g., Tamara at a $1B valuation) and policy harmonization as accelerants. Expect deeper linkages into real-economy sectors (embedded finance for food, pharma, travel).

Why it matters: Finance is the plumbing for this shift by lowering friction for compliant products and scaling new entrants.

Travel is rebounding on a 12.1% CAGR path to $384B by 2028 (from $217B in 2023). Despite a funding dip, 2024 still saw $1.37B in travel investments (IFC in GoTo; UAE’s Beond airline). Infrastructure, digital planning, and Muslim-friendly service layers are compounding.

Why it matters: Young, upwardly mobile travelers want values-aligned options; supply is catching up.

Spend at $327B (2023) heading to $433B (2028) at 5.8% CAGR. Investment cooled, but demand is steady via e-commerce and mainstream adoption of modest silhouettes. Indonesia leads design/brand velocity; global houses are responding with inclusive lines.

Why it matters: Aesthetics + ethics: a durable, cross-market category less sensitive to short-term cycles.

Cosmetics spend $86.7B (2023) → $117.8B (2028) at 6.3% CAGR, led by Southeast Asia and the Gulf. Digital-first brands (e.g., Wardah) scale with halal certification and clean-label positioning.

Why it matters: Cosmetics shows the “ethical premium” effect, where consumers will pay more for local/sustainable: 18% in Saudi say, +11–20%.

Pharma spend $107.1B (2023) → $148.9B (2028) at 6.8% CAGR. Tailwinds: telehealth adoption, halal-compliant vaccines, and GCC investment in biopharma capacity; Indonesia/UAE/Malaysia act as innovation hubs.

Why it matters: Health categories convert trust into stickiness where once customers switch, they rarely churn.

A young demographic is pushing halal-aligned digital entertainment, gaming, education. Investment reached $451.3M, with spend tracking from $259.7B (2023) to $336.5B (2028) at 5.3% CAGR. The Gulf and Southeast Asia are building platforms with regional IP.

Why it matters: Culture is distribution as content normalizes the broader halal stack.

OIC imports across halal-related sectors totaled $407.8B; 2023/24 deal share skews to Islamic Finance (34.4%), Travel (23.8%), Food (22.5%), followed by Pharma and Media. The top 5 exporters account for 31.7% of exports to OIC. Expect ongoing regionalization and multipolar trade (BRICS, reshoring).

Why it matters: Supply chains are being rebuilt both closer to the customer and to the regulator.

The graphic above shows where the switch really happens: right in the high-frequency aisles where habits live. In a read of 2,835 posts, 15.6% don’t just complain; they point people to specific substitutes, and barcode apps like Boycat/No Thanks remove the friction so the swap becomes a one-tap routine. You can see the receipts: McDonald’s logged its first global same-store sales dip since 2020, Starbucks comps fell (-3% North America, -6% rest-of-world), Western beverages slid across MENA, and Coca-Cola Egypt volumes dropped double digits. In other words, this isn’t chatter, rather it’s new routing rules for spend.

Malaysia tops the GIEI for the 11th straight year (strong across finance, food, travel), with Saudi Arabia, Indonesia, UAE, and Bahrain rounding out the top five. Indonesia leads modest fashion; Malaysia/UK lead media & recreation; UK & Singapore are the only non-OIC in the top-15; providing an edge born of regulatory clarity and innovation depth.

Why it matters: The “where” behind the growth story: Gulf + Southeast Asia ecosystems are tuned to execute.

The focus of Muslim-market consumption is evolving from passive acceptance to active engagement. This shift creates opportunities for new leaders in various sectors such as food, finance, fashion, travel, beauty, health, and media. As Muslim markets grow rapidly, local champions are beginning to emerge. That's exactly why we're building Dhow: we’re linking Muslim capital with the ventures driving this growth and helping transform that momentum into sustainable, scalable businesses.

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Footnotes

All data in this issue: DinarStandard, State of the Global Islamic Economy Report 2024/25 (2024), PDF (“SGIE 2024_25 Report.pdf”).