Graph and download economic data for Non-Oil Real GDP Growth in Constant Prices for Iran, Islamic Republic of (IRNNGDPXORPCHPT) from 2000 to 2025 about non-oil, Iran, REO, real, GDP, and rate.

Iran’s gross domestic product (GDP) inclined by 3.33 percent in 2020 after adjusting for inflation. This figure fell from 13.4 percent growth four years ago, which had been a reaction to sanctions lifting after the Joint Comprehensive Plan of Action (JPCOA) regarding Iran’s nuclear program. United States president Donald Trump ended that country’s participation in the deal, imposing new sanctions.

Political influence on the economy

Political tensions have hampered the economy of Iran, keeping growth low in spite of the country’s considerable oil reserves. The effect of these sanctions becomes obvious when looking at Iran’s oil exports to Europe over the past decade. Some analysts have blamed the new sanctions for the increase in Iran’s inflation rate, as well as the currency depreciation that has accompanied it.

Iran’s options

Although Iran’s main export partners are largely in Asia, many of the transactions are carried out using U.S. dollars. Even though other means of payment are possible, some countries worry about political ramifications of continuing trade relations with Iran. Iran’s greatest strength at the moment may be its low national debt, meaning that it can borrow a substantial amount of money if it can find a willing lender. However, given the instability of the political situation worldwide and regionally, it is difficult to assume that such a borrower exists at the moment.

Key information about Iran Real GDP Growth

• The Gross Domestic Product (GDP) in Iran expanded 5.0 % YoY in Mar 2022, following a growth of 6.7 % in the previous quarter.
• Real GDP Growth YoY data in Iran is updated quarterly, available from Jun 1989 to Mar 2022, with an average rate of 3.9 %.
• The data reached an all-time high of 22.7 % in Jun 1992 and a record low of -16.0 % in Sep 2008.

CEIC calculates Real GDP Growth from quarterly Real GDP. The Central Bank of the Islamic Republic of Iran provides Real GDP in local currency, at 2016-2017 prices. Real GDP Growth prior to Q1 2020 is calculated from Real GDP at 2011-2012 prices. Real GDP Growth prior to Q2 2005 is calculated from Real GDP at 1997-1998 prices.


Related information about Iran Real GDP Growth

• In the latest reports, Nominal GDP of Iran reached 429.4 USD bn in Mar 2022.
• Its GDP deflator (implicit price deflator) increased 51.5 % in Mar 2022.
• GDP Per Capita in Iran reached 11,557.0 USD in Mar 2021.
• Its Gross Savings Rate was measured at 36.8 % in Mar 2022.
• For Nominal GDP contributions, Investment accounted for 32.9 % in Mar 2022.
• Public Consumption accounted for 18.0 % in Mar 2022.
• Private Consumption accounted for 45.2 % in Mar 2022.

Graph and download economic data for Constant GDP per capita for the Islamic Republic of Iran (NYGDPPCAPKDIRN) from 1960 to 2024 about Iran, per capita, real, and GDP.

According to Cognitive Market Research, the global Islamic Financing market size will be USD 2514.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 10.50% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 1005.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.7% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 754.26 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 578.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.5% from 2024 to 2031.
The Latin American market will account for more than 5% of global revenue and have a market size of USD 125.71 million in 2024. It will grow at a compound annual growth rate (CAGR) of 9.9% from 2024 to 2031.
The Middle East and Africa held the major markets, accounting for around 2% of the global revenue. The market was USD 50.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.2% from 2024 to 2031.
The Individual held the highest Islamic Financing market revenue share in 2024.

Market Dynamics of Islamic Financing Market

Key Drivers of Islamic Financing Market

Growing Muslim Population to Increase the Demand Globally

The growing Muslim population globally is expected to significantly increase the demand for Islamic financial products and services in the coming years. With Muslims comprising a substantial portion of the world's population, estimated to reach nearly 30% by 2050 according to demographic projections, there is a natural market for Sharia-compliant banking and investment solutions. As incomes rise and financial literacy improves in Muslim-majority countries and beyond, more individuals and businesses are seeking financial services that align with their religious beliefs and ethical values. Moreover, the increasing affluence and urbanization among Muslim populations contribute to a greater demand for sophisticated financial products, including Islamic mortgages, savings accounts, and investment funds. This growing demand is wider than in Muslim-majority countries. Still, it extends to Muslim communities and individuals residing in non-Muslim-majority countries, as well as non-Muslims who are attracted to the ethical principles and risk-sharing mechanisms inherent in Islamic finance.

Economic Development in Muslim-majority Countries to Propel Market Growth

Economic development in Muslim-majority countries is poised to propel significant growth within the Islamic finance market. As these countries experience robust economic growth, driven by factors such as population growth, urbanization, and natural resource wealth, a corresponding demand for sophisticated financial services that comply with Islamic principles emerges. This demand stems from both individuals and businesses seeking ethical and Sharia-compliant financial solutions to meet their diverse needs. Moreover, the expanding middle class within these countries signifies an increasing appetite for diverse banking and investment products, including Islamic mortgages, savings accounts, and investment funds. As disposable incomes rise and financial literacy improves, more people are turning towards Islamic finance as a viable alternative to conventional banking, recognizing its alignment with their religious beliefs and ethical values.

Restraint Factors Of Islamic Financing Market

Limited Product Offering to Limit the Sales

The limited product offering within the Islamic finance market poses a significant challenge, potentially constraining sales and market growth. Compared to conventional banking, Islamic finance products and services are often more specialized and may only cover part of the spectrum of financial needs for individuals and businesses. This limited range of options can deter potential customers who require a broader array of financial solutions. One of the primary reasons for the limited product offering is the adherence to Sharia principles, which prohibit certain financial activities such as interest (riba) and speculative transactions (gharar). While Islamic finance emphasizes ethical and socially responsible investing, it also imposes constraints on product innovation and development, particularly in areas where conventional finance has mo...

The purpose of this paper is to contribute to the existing literature by investigating the determinants of the profitability of Islamic and conventional banks in the Middle East region and revealing the most important factors for these two types of banks. Few papers have studied the performance of Islamic banks and compared their performance with conventional banks. The results from these limited research papers are also various, mainly because the sample sizes are small, or they have analysed data only from one country. Our research used a fixed effect panel data analysis on a sample of 270 banks (111 Islamic and 159 conventional banks) from 12 Middle East countries. We used an unbalanced annual panel of data covering the period 2012–2020. The results show that bank size, equity to assets, annual GDP growth, and annual average oil price have a significant positive effect on Islamic banks’ profitability, while non-performing loans to total gross loans and cost of running operations to operating income have a significant negative effect on both bank types. The results also show that non-performing loans to total gross loans and annual GDP growth contribute more to conventional banks profitability, while oil price contributes only to Islamic banks performance. Inflation and net loans to total assets have no effect on bank profitability for either Islamic or conventional banks. Furthermore, we also found that the Islamic banking industry had a more competitive structure. Our findings have important implications for managers, policy makers, investors and other stakeholders. They can help them to make decisions regarding investments, plans, budgeting, evaluation and the management of business operations.

Graph and download economic data for Constant GDP per capita for the Islamic Republic of Afghanistan (NYGDPPCAPKDAFG) from 2000 to 2023 about Afghanistan, per capita, real, and GDP.

Islamic Clothing Market Outlook

The global Islamic clothing market size is projected to witness substantial growth from 2023 to 2032, with market figures standing at approximately USD 100 billion in 2023 and expected to reach USD 170 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of around 6%. The increasing demand for modest fashion across the globe acts as a significant growth driver for the Islamic clothing market. This segment of the fashion industry has seen a surge in popularity, not only among Muslim populations but also among non-Muslims who appreciate the aesthetic and ethical aspects of modest fashion.

One of the primary growth factors for the Islamic clothing market is the rising preference for modest attire influenced by cultural and religious sentiments. This is particularly prevalent among Muslim-majority countries but is also gaining traction in Western countries where multiculturalism and diversity are celebrated. There is an increasing tendency among Muslim women to balance their religious traditions with modern fashion trends, leading to a higher demand for contemporary designs in Islamic clothing. The fashion industry has also seen a shift towards inclusivity and diversity, with many mainstream brands launching modest fashion lines, thereby reaching a broader audience.

The internet and social media platforms have played a crucial role in influencing the growth of the Islamic clothing market. With the increasing penetration of smartphones and the internet, consumers now have easier access to a variety of styles and trends from around the world. Influencers and fashion bloggers focusing on modest fashion have amplified the reach of Islamic clothing, encouraging a more expansive audience to explore this segment. This digital exposure helps bridge the gap between traditional and modern fashion, making Islamic clothing more mainstream and accessible.

Economic growth in key markets with significant Muslim populations is also contributing to the market's expansion. Countries in the Middle East, Southeast Asia, and parts of Africa are experiencing higher disposable incomes, leading to increased spending on fashion and lifestyle products, including Islamic clothing. Additionally, tourism has also played a role, where travelers visiting Muslim-majority regions tend to purchase local attire as part of their cultural experience, further boosting the market.

From a regional perspective, the Middle East and Africa hold a prominent share of the Islamic clothing market, driven by a large Muslim population and strong cultural ties to traditional attire. However, North America and Europe are projected to witness significant growth due to the increasing acceptance and popularity of modest fashion among diverse populations. Asia Pacific, with its large Muslim demographic in countries like Indonesia and Malaysia, continues to offer lucrative opportunities for market players. These regions are expected to exhibit varying growth rates, with regions such as Asia Pacific showcasing higher CAGR owing to its growing population and increasing urbanization.

Product Type Analysis

The Islamic clothing market encompasses a diverse range of product types, including abayas, hijabs, thobes, kaftans, and others. Abayas, primarily worn in the Middle East, have evolved from traditional wear to fashion statements, incorporating modern designs and fabrics. Fashion designers are innovating with abayas, integrating contemporary styles while maintaining their modest appeal. This ongoing evolution is making abayas popular not only in the Middle Eastern countries but also among Muslim women worldwide who seek modest yet stylish attire.

Hijabs, another significant segment, have seen a surge in demand due to the increasing number of women embracing this form of headscarf as a part of their daily attire. The hijab market has expanded with an array of styles, colors, and fabrics, catering to the diverse preferences of Muslim women. The growing awareness and acceptance of hijabs in non-Muslim countries have further propelled their demand. Brands are increasingly launching hijab lines, recognizing the economic potential and cultural significance of this product type.

Thobes, traditionally worn by men in Arab countries, are now gaining attention as lifestyle fashion. They are known for their comfort and simplicity, and recent trends have seen thobes being adapted for casual and formal occasions alike. The design innovations in thobes are making them appealing to younger generations who are keen on preserving cultural attire w

Graph and download economic data for Population Growth for the Islamic Republic of Iran (SPPOPGROWIRN) from 1961 to 2024 about Iran, population, and rate.

Graph and download economic data for Financial System Deposits to GDP for Islamic Republic of Iran (DDDI08IRA156NWDB) from 1961 to 2016 about Iran, deposits, financial, and GDP.

Graph and download economic data for Life Insurance Premium Volume to GDP for Islamic Republic of Iran (DDDI09IRA156NWDB) from 1992 to 2018 about premium, Iran, life, insurance, and GDP.

Graph and download economic data for Gross Domestic Product for Islamic Republic of Iran (MKTGDPIRA646NWDB) from 1960 to 2024 about Iran and GDP.

Graph and download economic data for Deposit Money Bank Assets to Deposit Money Bank Assets and Central Bank Assets for Islamic Republic of Iran (DDDI04IRA156NWDB) from 1961 to 2016 about Iran, deposits, assets, banks, and depository institutions.

Determinants of profitability measured by ROAE, RE estimation.

Halal Packaging Market Outlook

The global halal packaging market size was valued at approximately USD 38 billion in 2023 and is projected to reach around USD 65 billion by 2032, growing at a steady compound annual growth rate (CAGR) of 6.5% during the forecast period. This significant growth is driven by the increasing demand for halal products, not only within the Muslim population but also among non-Muslim consumers who associate halal with high-quality and ethical products. The expanding global Muslim population, along with rising consumer awareness regarding the benefits of halal-certified products, is a major growth factor fueling this market's expansion.

One of the primary growth factors in the halal packaging market is the rising global Muslim population, which is anticipated to reach nearly 3 billion by 2060, representing over 30% of the world’s population. This demographic shift is creating a burgeoning demand for halal products, including packaging that meets halal standards. Furthermore, as more countries adopt halal certification for food and non-food products, manufacturers are compelled to comply with halal packaging requirements, driving growth in this sector. The increasing disposable income of Muslim consumers is also enhancing their purchasing power, further boosting the demand for halal products and, consequently, halal packaging solutions.

Another crucial growth factor is the heightened consumer awareness about the health benefits and ethical considerations of halal-certified products. There is a growing perception that halal products are cleaner, safer, and ethically produced, which appeals to health-conscious consumers globally. This trend is not limited to Muslim-majority countries but is also gaining traction in Western regions. Companies are increasingly marketing their products as halal to tap into this lucrative market segment. This shift in consumer preference is encouraging more companies to adopt halal certification, thereby propelling the demand for halal-compliant packaging solutions.

Technological advancements in packaging materials and processes are also contributing to the growth of the halal packaging market. Innovations such as biodegradable and recyclable packaging materials align well with the ethical and environmental considerations valued by halal consumers. These advancements not only meet halal requirements but also cater to the growing demand for sustainable packaging solutions, which is becoming a critical factor for consumers worldwide. The integration of technology in logistics and supply chain management ensures the integrity of halal products throughout the distribution process, which is essential for maintaining consumer trust in halal certifications.

Regionally, the Asia Pacific is expected to lead the halal packaging market, driven by the large Muslim population in countries like Indonesia, Malaysia, and Pakistan. These countries are experiencing rapid urbanization and economic growth, leading to increased consumption of halal products. In North America and Europe, the market is witnessing growth due to the rising awareness and acceptance of halal products among non-Muslims. These regions are seeing a growing trend of halal certification in pharmaceutical and cosmetic industries, further boosting the demand for halal packaging. The Middle East and Africa, being predominantly Muslim regions, are naturally significant markets for halal packaging, with substantial growth opportunities as countries in these regions continue to enhance their halal certification standards.

Material Type Analysis

The material type segment of the halal packaging market consists of various materials such as plastic, metal, glass, paper & paperboard, and others. Plastic remains the most widely used material in halal packaging due to its versatility, cost-effectiveness, and suitability for a wide range of products. The demand for plastic packaging is particularly high in the food & beverage sector, where it offers excellent barrier properties and is lightweight, thus reducing transportation costs. However, the environmental concerns associated with plastic are pushing manufacturers towards more sustainable options, which could affect this segment over time.

Metal packaging, though not as prevalent as plastic, plays a significant role in the halal packaging market, especially for products requiring high protection and long shelf life, such as canned foods and beverages. Metals like aluminum and steel are favored for their robustness and ability to protect contents from contamination. The recyclability of metal packaging is ano

With almost all major religions being practiced throughout the country, India is known for its religious diversity. Islam makes up the highest share among minority faiths in the country. According to the Indian census of 2011, the Muslim population in Uttar Pradesh more than ** million, making it the state with the most Muslims.

Socio-economic conditions of Muslims
Muslims seem to lag behind every other religious community in India in terms of living standards, financial stability, education and other aspects, thereby showing poor performance in most of the fields. According to a national survey, 17 percent of the Muslims were categorized under the lowest wealth index, which indicates poor socio-economic conditions.

Growth of Muslim population in India
Islam is one of the fastest-growing religions worldwide. According to India’s census, the Muslim population has witnessed a negative decadal growth of more than ** percent from 1951 to 1960, presumably due to the partitions forming Pakistan and Bangladesh. The population showed a positive and steady growth since 1961, making up ** percent of the total population of India . Even though people following Islam were estimated to grow significantly, they would still remain a minority in India compared to *** billion Hindus by 2050.

Graph and download economic data for Outstanding Total International Debt Securities to GDP for Islamic Republic of Iran (DDDM07IRA156NWDB) from 2003 to 2007 about Iran, issues, debt, and GDP.

Graph and download economic data for Private Credit by Deposit Money Banks and Other Financial Institutions to GDP for Islamic Republic of Iran (DDDI12IRA156NWDB) from 1961 to 2016 about Iran, finance companies, companies, credits, finance, deposits, financial, banks, depository institutions, private, and GDP.

ROAE (%) comparison among Islamic banks and conventional banks 2012–2020.

Graph and download economic data for Population Growth for the Islamic Republic of Afghanistan (SPPOPGROWAFG) from 1961 to 2024 about Afghanistan, population, and rate.