In the latest ranking of the global Islamic economy, the UAE has risen to second place, surpassing several larger markets. This achievement comes as the global Islamic economy enters a new phase of growth, with the value of Islamic financial assets approaching the $10 trillion mark.

According to the report "State of the Global Islamic Economy 2025-2026," the UAE, which had been in fourth place for the past two years, is now in second place after Malaysia, standing above Saudi Arabia, Indonesia, and Bahrain.

This report indicates that the UAE is no longer just a regional financial hub; it has become one of the most important gateways connecting Islamic markets in Asia, Africa, and Europe. From Islamic banking and investment to halal trade, fintech, and consumer industries, the UAE ranks among the top three countries in nearly all sectors of the Islamic economy.

Its first-place position in the Islamic media and entertainment sector and second place in areas such as halal food, Muslim-friendly tourism, modest fashion, halal pharmaceuticals, and cosmetics explain part of this success. The UAE has also achieved the third position globally in the Islamic finance sector.

Behind this rise are years of investment in financial infrastructure, logistics, technology, and business regulations. In just the past year, the UAE hosted 94 investment, merger, and acquisition deals in sectors related to the Islamic economy, making it the most active investment destination in the world.

The country has also attracted $45.6 billion in foreign direct investment, equivalent to over five percent of its GDP; this statistic strengthens the UAE's position as one of the most attractive international investment destinations.

In trade, the UAE has become the seventh-largest exporter of goods to the member countries of the Organization of Islamic Cooperation, with its exports projected to grow by nearly eight percent between 2023 and 2024.

At the same time, the total global Islamic economy is expanding rapidly. Muslim consumer spending is expected to reach $2.6 trillion in 2024 and is projected to increase to $3.56 trillion by 2029. The value of Islamic financial assets is also expected to rise from the current approximately $6 trillion to nearly $9.7 trillion.

Experts believe that the next wave of growth in this market will not only depend on consumer demand but will belong to countries that can develop reliable ecosystems that include regulations, digital infrastructure, supply chains, and financial services.

Source: Gulf Times