Malaysia has retained its position as the world’s leading Islamic economy, topping the Global Islamic Economy Indicator (GIEI) in the State of the Global Islamic Economy Report 2025/26 amid growing halal trade, stronger certification capabilities and continued expansion of its Islamic finance ecosystem.
The report by DinarStandard ranked Malaysia first overall and placed it at the top in halal food, Islamic finance and halal pharmaceuticals and cosmetics. The country also ranked second in media and recreation, and fourth in both Muslim-friendly travel and modest fashion, underscoring the breadth of its Islamic economy ecosystem.
Malaysia’s halal trade performance remained robust, recording the highest import growth among the top 10 Organisation of Islamic Cooperation (OIC) halal-related importers. Imports rose 12.41% year-on-year to US$30.64 billion in 2024.
The report highlighted several major investments supporting Malaysia’s position as a regional halal manufacturing hub, including a US$29 million halal bakery plant by SPC Group, a US$12.3 million seasoning factory by Otafuku Sauce and an expanded halal-certified food facility by OTS Holdings.
In Islamic finance, Malaysia recorded a 12% increase in assets and a 13% rise in Islamic fund value during the year, supported by a US$300 million sukuk issuance by Permodalan Nasional Berhad (PNB).
Globally, Muslim consumer spending across halal food, pharmaceuticals, cosmetics, modest fashion, Muslim-friendly travel and media and recreation reached US$2.6 trillion in 2024 and is projected to grow to US$3.56 trillion by 2029. Islamic finance assets stood at US$5.99 trillion and are forecast to expand to US$9.72 trillion over the same period.
The report noted that halal food remained the largest segment with consumer spending of US$1.53 trillion in 2024, while Muslim-friendly travel is expected to be the fastest-growing sector, rising from US$249 billion to US$424 billion by 2029.
Malaysia was ranked ahead of the United Arab Emirates, Saudi Arabia, Indonesia and Bahrain in the overall GIEI standings.
