Fintech
Analysis: Fintechs dominate the list of “Top 30 Digital Islamic Economy Startups” | Salaam Gateway
Salaam Gateway, in collaboration with DinarStandard, has published the list of the top 30 startups in the digital Islamic economy for the first time.
The list includes 30 digitally-focused, consumer-facing startups that serve — in whole or in part — a market based on an Islamic values-based lifestyle in sectors ranging from financial technology to media, travel to fashion.
Its aim is to highlight the growing importance of digital startups serving the Islamic/Halal lifestyle market and to serve as a benchmarking tool for its continued development.
Industry growth
From an industry perspective, Islamic fintech emerged as the clear winner with 20 companies, including two unicorns. Muslim-friendly media came in second with five companies, followed by three ventures from the modest fashion sector.
Fintech is booming on the back of its post-Covid exponential growth and continues to gain traction, especially in emerging markets. The growing adoption of e-commerce has led to the emergence of Buy Now Pay Later companies, while Islamic Insurtech and wealth management players are growing in number and importance.
Meanwhile, Muslim-friendly platforms, including matrimonial ones, are becoming quite popular in the media ecosystem. Modest fashion, one of the top three sectors on the list, is on the rise due to its online growth and global appeal.
Saudi Arabia leads the pack
Saudi Arabia, the Middle East’s largest economy, tops the list with five companies. The United Kingdom and the United Arab Emirates are close behind, with four companies each. Indonesia, Malaysia, Turkey, and the United States each host three startups.
Saudi Arabia is advancing its diversification agenda to develop an economy beyond oil and has emerged as a global hub for digital Islamic economy players, thanks to high-level support, a large market, financing and regulatory simplicity.
Meanwhile, the UK has become a prime location for halal economy startups, thanks to a strong Islamic finance ecosystem, robust digital infrastructure and an attractive entrepreneurial atmosphere.
The UAE is also gaining prominence due to its global appeal and supporting infrastructure, while a sizeable domestic market and proximity to the wider European region have made Turkey a popular destination for startups.
“The list of the top 30 startups in the digital Islamic economy highlights a vibrant mix of startups globally. In the evolution of the global digital ecosystem of modern Islamic/halal lifestyle, these are the first major cohorts that are maturing with proven business models and social impact,” said Rafi-uddin Shikoh, managing partner of DinarStandard.
“Given these early successes and the significant gap in serving the vast addressable market, this space is poised to see the number of players multiply and expand,” he added.
The top 30 Islamic Digital Economy startups were ranked based on five criteria, including the companies’ Islamic positioning, aggregate funding, workforce, traffic ranking, and media mentions.
To view the complete list, click on Here.