The global Halal market is witnessing a surge in strategic initiatives as nations vie for dominance. Two prominent players, the United Arab Emirates (UAE) and Indonesia, are charting ambitious paths to lead the Islamic finance and Halal production sectors, respectively. With the UAE’s recent unveiling of a national strategy targeting $2.56 trillion in Islamic bank assets by 2031 and Indonesia’s determined push to become the world’s leading Halal producer, the stage is set for a compelling contest.
UAE’s Financial Fortress
On May 6, 2025, the UAE Cabinet greenlit the National Strategy for Islamic Finance and the Halal Industry, signaling a robust commitment to strengthening its global position. This strategy aims to increase Islamic bank assets from Dh 986 billion to a staggering Dh 2.56 trillion within six years. Furthermore, it seeks to elevate the value of listed Islamic sukuk issuances in the UAE to over Dh 660 billion by 2031. A dedicated committee, led by the Governor of the Central Bank, will oversee the implementation, ensuring focused execution and accountability. The UAE’s strategy is not just about finance; it’s about establishing a comprehensive ecosystem that supports and enhances the Halal industry across various sectors.
Indonesia’s Production Powerhouse
Indonesia, home to the world’s largest Muslim population, is leveraging its demographic advantage to become a Halal production giant. On April 29, 2025, Indonesia’s Ministry of Industry declared its ambition to lead global Halal production. Highlighting the industry’s immense potential, with export transactions reaching US$64.11 billion in 2024, Indonesia is proactively boosting its domestic Halal industry. The Ministry is organizing the Halal Indonesia International Industry Expo (Halal Indo) 2025 in Tangerang, Banten, from September 25-28, 2025, to promote and brand Indonesian Halal products. Indonesia’s approach focuses on scaling up production capabilities and enhancing the competitiveness of its Halal products in the international market.
Afghanistan Joins the Fray
Adding another layer to the evolving Halal landscape, Afghanistan’s business sector is preparing to participate in the upcoming Kazan Halal Expo and Forum in Russia. This participation underscores the growing international interest in the Halal market and the opportunities it presents for economic collaboration and growth.
The Road Ahead
The Halal industry, encompassing food, finance, cosmetics, tourism, and pharmaceuticals, is projected to exceed $1.9 trillion in Muslim expenditure in the food and beverage sector alone. As countries strategically position themselves to capture significant shares of this burgeoning market, the competition will intensify. The UAE’s financial strategy and Indonesia’s production-focused approach represent distinct yet complementary paths to Halal hegemony. The next few years will be crucial in determining which nation, or perhaps both, will emerge as the dominant force in the global Halal economy by 2031.