Indonesia's Position Drops in Global Islamic Economy Rankings, Now Fourth

Indonesia’s position in the global Islamic economy map has declined by one rank. According to the State of the Global Islamic Economy (SGIE) Report 2025/2026, Indonesia occupies fourth place in the Global Islamic Economy Indicator (GIEI), trailing behind Malaysia, the United Arab Emirates (UAE), and Saudi Arabia, with Bahrain following in fifth.

Despite dropping from third place in the previous edition, Indonesia continues to demonstrate strong competitiveness across several halal industry sectors. Indonesia is ranked as the best in the world in the modest fashion sector, third in the halal food, media, and recreation sectors, and fourth in the halal pharmaceuticals and halal cosmetics sectors.

Indonesia is notably the only country to hold the top position in the modest fashion sector, outperforming the UAE, Turkey, Malaysia, and Italy. This achievement reinforces Indonesia’s position as one of the world’s primary hubs for the Muslim fashion industry.

In the halal food sector, Indonesia ranks third globally, following Malaysia and the UAE, and ahead of Thailand and Brazil. Similarly, in the media and recreation sector, Indonesia holds third place globally, behind the UAE and Malaysia, and ahead of Singapore and China.

Indonesia’s performance is also highly competitive in the halal pharmaceuticals and halal cosmetics sectors, where it ranks fourth globally. In halal pharmaceuticals, Indonesia follows Malaysia, the UAE, and Singapore. In the halal cosmetics sector, Indonesia ranks behind Malaysia, the UAE, and Singapore, but ahead of France.

However, Indonesia has yet to break into the global top five for Islamic finance or Muslim-friendly travel. The top five for Islamic finance consists of Malaysia, Saudi Arabia, the UAE, Iran, and Bahrain, while the top five for Muslim-friendly travel includes Bahrain, the UAE, Saudi Arabia, Malaysia, and Turkey.