Malaysia Ranked No. 1 Islamic Economy In The World — Again
Malaysia topped the 2025 global Islamic economy rankings with a score nearly double Saudi Arabia’s — built not on oil or religion, but on decades of policy, with Indonesia closing in fast.Malaysia has once again been ranked the world’s leading Islamic economy, topping the State of the Global Islamic Economy (SGIE) Report 2024/2025 with a score of 165.1 — nearly double that of second-placed Saudi Arabia, which scored 100.9.
The report, published by growth strategy research and execution management firm DinarStandard, measures countries not solely by wealth but by the overall strength of their Islamic economy ecosystem — covering Islamic finance, halal industry development, regulatory frameworks, and global trade integration.
Malaysia’s lead over the rest of the field is significant.
Saudi Arabia, Indonesia, and the UAE follow in second, third, and fourth place with scores of 100.9, 99.9, and 95.8, respectively — all trailing Malaysia by a considerable margin.
Malaysia has been ranked as the number one country in the SGIE for nine consecutive years, showcasing its leadership in this sector.
Built On Solid Foundations
Analysts point to several factors behind Malaysia’s consistent dominance.
The country has spent decades building a robust Islamic banking and finance system, backed by Bank Negara Malaysia’s (BNM) regulatory framework and the Malaysia International Islamic Financial Centre (MIFC).
Its halal certification infrastructure, overseen by the Department of Islamic Development Malaysia (JAKIM), is widely recognised internationally and has become a benchmark for other nations.
The SGIE reports have maintained consistency in top-line data and analyses on Muslim spending since their inception in 2013.
This consistency contributes to their reliability.
Small Nation, Big Footprint
Government policy has also played a central role, with successive administrations embedding Islamic economy development into national planning — giving Malaysia a structural advantage that wealthier Gulf states, despite their oil revenues and religious significance, have yet to match on this particular measure.
Bahrain’s appearance at fifth place — ahead of larger economies like Kuwait, Pakistan, and Türkiye — reflects the small island nation’s outsized role as a regional Islamic finance hub.
Indonesia, ranked third with a score of 99.9, is widely seen as the most significant long-term challenger to Malaysia’s position.
With the world’s largest Muslim population of approximately 280 million, Indonesia has been accelerating investment in its halal and Islamic finance sectors in recent years.
The SGIE Report is considered one of the most comprehensive annual assessments of the global Islamic economy, and Malaysia’s continued hold on the top position reinforces its standing as the world’s primary reference point for Islamic economic development.