15 Most Powerful Islamic Countries in the World in 2024

In this article, we will discuss the 15 most powerful Islamic countries in the world. You can skip our detailed discussion of the Muslim world and population and head directly to the 5 Most Powerful Islamic Countries in the World.

Muslim Population Growth Trends Around the World

According to a Pew Research study, in 2017, there were an estimated 3.45 million Muslims in the United States, and this number is projected to more than double to 8.1 million by 2050. The increase is driven by high levels of immigration and a younger, higher fertility rate within the Muslim community. By 2040, Muslims could become the second-largest religious group in the US.

Despite this growth, Muslims still represent a small fraction of the overall US population. In 2020, the Christian population was projected to be around 252.97 million, and even though the Muslim population is increasing, it will only account for 2.1% of the population by 2050.

It is interesting to note that India is projected to be the country with the largest Muslim population by 2050, estimated at 311 million. Pakistan is expected to follow closely as the second-largest Muslim population, at 273 million.

On the other hand, the 2023 census of Albania revealed that for the first time in over 200 years, Muslims no longer make up the majority of the population in the country. The Muslim population dropped to 45.7%, while the nonreligious segment grew to 23.4%, and the Orthodox Christian community expanded to 20%.

Beyond demographics, let’s look at the economic strength of the Muslim world.

The Islamic Economies in 2024

The global Islamic economy is projected to reach a size of $7.7 trillion by 2025, as reported by Al Jazeera. This is more than double the $3.2 trillion projected in 2015 and is significantly higher than the $5.7 trillion recorded in 2021. The growth is largely attributed to a rising demand for halal, or sharia-compliant, investments and opportunities, as Muslims are looking for financial practices that align with their faith.

The Islamic funds market has also seen remarkable expansion, with a 300% increase over the past decade, and nearly $200 billion now under management globally. Halal investments prohibit interest (riba), investments in unlawful (haram) assets like alcohol and pork, and highly uncertain transactions (gharar).

Also See 7 Best Halal Stocks to Buy.

Technology, particularly fintech, is key in making halal investments more accessible. Despite Muslims constituting nearly a quarter of the global population, only about 1% of financial assets are sharia-compliant. Fintech innovations are bridging this gap by providing convenient and transparent investment solutions. As a result, revenues in the fintech sector are expected to grow almost three times faster than traditional banking between 2023 and 2028.

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On the other hand, Saudi Arabia, the top oil exporter, has raised the price for its flagship Arab Light crude sold to Asia in September by 20 cents, making it $2 per barrel above the Oman/Dubai average. This increase, which marks the first price hike in three months, was less than market expectations of at least a 50-cent rise due to weak refining margins in Asia and impending annual term supply negotiations. Prices for Arab Medium and Arab Heavy crude to Asia remained unchanged.

In contrast, Saudi Arabia has largely reduced prices for other regions. Prices for all crude grades to Northwest Europe and the Mediterranean were slashed by $2.75 per barrel. For the United States, prices were cut by 75 cents per barrel across different grades.

Also, see 15 Countries that will have the Most Powerful Militaries by 2030 and 15 Most Powerful Militaries in Latin America.

The Growing Interest of Multinationals in the Islamic Countries

Speaking of Saudi Arabia, it is worth highlighting that Dell Technologies Inc (NYSE:DELL) is set to expand its presence in Saudi Arabia with a new merger and logistics fulfillment hub in Riyadh. Scheduled to begin operations by the end of 2024, this facility will oversee all Dell Technologies Inc (NYSE:DELL) product lines in the Kingdom, including notebooks, desktops, servers, storage, and networking. The center aims to meet the increasing demand for Dell Technologies Inc (NYSE:DELL)’s consumer and enterprise solutions. Moreover, the relocation of Dell Technologies Inc (NYSE:DELL)’s Flat Panel Monitor Hub to Riyadh will enable same-day or next-day shipments which will also streamline inventory management.

This expansion is essentially Dell Technologies Inc (NYSE:DELL)’s first facility in the Middle East, Turkey, and Africa (META) region, and the third in the Europe, Middle East, and Africa (EMEA) region, following Ireland and the Netherlands. The hub is expected to create local employment opportunities and provide training to Saudi talent, supporting Saudi Vision 2030’s goals of economic diversification and technological advancement.

On the other hand, Microsoft Corp (NASDAQ:MSFT) is expanding its AI innovation in the UAE through a strategic partnership with G42. This partnership includes a $1.5 billion investment for a minority stake in G42. The collaboration aims to capitalize on Microsoft Corp (NASDAQ:MSFT) Azure’s advanced AI solutions across different industries in the Middle East, Central Asia, and Africa. Additionally, Microsoft Corp (NASDAQ:MSFT) plans to establish a $1 billion fund to boost AI skills in the UAE and surrounding regions.

The partnership has a strong focus on ensuring secure and responsible AI development, backed by a binding agreement with the US and UAE governments. G42 will migrate its technology infrastructure to Microsoft Azure which will further enhance its scalability and security.

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Our Methodology

To identify the most powerful Islamic countries in the world, we considered 30 countries where at least 50% of the population is Muslim. We used two key metrics: real GDP and military strength. The GDP data was sourced from the World Bank for 2023, while the military strength rankings were obtained from Global Firepower Index of 2024. These metrics were chosen for their relevance in assessing economic prosperity and defense capabilities, both of which are critical aspects of national power.

We assigned weights to each metric to reflect their importance. Real GDP received a weight of 0.7 and military strength was given a weight of 0.3. After combining these weighted scores, we calculated an average score for each country. The countries were then ranked in descending order based on their average scores, with lower scores indicating higher ranks.

Please note that in the case of countries sharing a similar weighted average rank, countries with a higher economic strength were ranked higher.

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15. Oman

Economic Strength Rank: 15

Military Strength Rank: 78

Weighted Average Rank: 33.9

Oman largely benefits from strategic oil reserves contributing to 60% of its GDP and has implemented progressive reforms under Oman Vision 2040. Moreover, Oman maintains strong regional relationships and invests significantly in education and infrastructure, making it one of the strongest countries in the world in 2024.

14. Sri Lanka

Economic Strength Rank: 16

Military Strength Rank: 75

Weighted Average Rank: 33.7

With no major internal or external threats since 2009, the military in Sri Lanka is now focusing on restructuring, particularly in integrating women into higher leadership roles. Currently, women constitute only 3.4% of the army and can only rise to the rank of a major while retiring at 45.

13. Kuwait

Economic Strength Rank: 14

Military Strength Rank: 77

Weighted Average Rank: 32.9

The military strength of Kuwait is expanding with a projected defense budget of $8.1 billion by 2028. This investment includes major upgrades across all branches: $3.3 billion for air force enhancements, $2.1 billion for missile and defence systems, and $628 million for unmanned aerial vehicles.

12. Azerbaijan

Economic Strength Rank: 17

Military Strength Rank: 59

Weighted Average Rank: 29.6

Azerbaijan has recently integrated the Turkish military model as they conduct at least 10 joint exercises annually with Turkey to enhance their defence strength. The 2020 Second Karabakh War saw Azerbaijan reclaim over 300 settlements from Armenia. The recent “Mustafa Kemal Atatürk-2023” exercise involved approximately 3,000 personnel and different military assets, all of which confirm the military and economic strength of the country.

11. Qatar

Economic Strength Rank: 13

Military Strength Rank: 63

Weighted Average Rank: 28

Qatar has emerged as a major Islamic power on the global stage owing to its strategic use of wealth and influence. With a population of just 2.9 million, this small Gulf country wields considerable international clout through its vast energy resources and financial investments.

Qatar is the world’s largest exporter of liquefied natural gas (LNG) and contributes about 25% of the global LNG supply. The country’s sovereign wealth fund is valued at approximately $335 billion and has made it a major global investor as it holds stakes in iconic properties like the Empire State Building and major British land holdings. Qatar also made it to our list of the most respected countries in Asia.

10. Kazakhstan

Economic Strength Rank: 10

Military Strength Rank: 58

Weighted Average Rank: 24.4

Kazakhstan ranks 10th as far as GDP goes in Muslim countries but even after adjusting for military strength, the country retains its ranking when adjusted for our list.

9. Iraq

Economic Strength Rank: 11

Military Strength Rank: 45

Weighted Average Rank: 21.2

Iraq is undoubtedly one of the top 10 powerful Muslim countries in 2024. The Iraqi Armed Forces consist of 193,000 active personnel as of 2024. Their branches include the Ground Forces, Air Force, Air Defence, Army Aviation, Naval Forces, and the Counter Terrorism Service. With a defense budget of $10.3 billion in 2023, the military is supported by substantial annual imports worth $2.4 billion from countries like the United States, the United Kingdom, Russia, Germany, and France.

8. Malaysia

Economic Strength Rank: 8

Military Strength Rank: 42

Weighted Average Rank: 18.2

The economic power of the country can be judged by the fact that Malaysia attracts handsome foreign investments, as seen with Microsoft’s investment of $2.2 billion in the country for AI and cloud infrastructure that will train 200,000 people in Malaysia in the field. The investment was reported in May, 2024.

7. United Arab Emirates

Economic Strength Rank: 4

Military Strength Rank: 51

Weighted Average Rank: 18.1

Despite a population of under 10 million, only 12% of whom are Emiratis, the country has world-class infrastructure, a high literacy rate of 95%, and ranks 10th in the Global Competitiveness Report 2023. It chairs COP28, leads in technology, launched a Mars mission, and topped the Global Passport Power Rank Index 2023. With foreign direct investments surpassing $23 billion in 2022, and major global influence through extensive sovereign wealth funds, the United Arab Emirates justifiably makes it to our list.

6. Algeria

Economic Strength Rank: 12

Military Strength Rank: 26

Weighted Average Rank: 16.2

Oil and gas dominate Algeria’s economy, as they account for nearly 95% of export revenues and over 30% of GDP. Given the weighted average rank of 16.2, Algeria ranks sixth among the top powerful Muslim countries in the world in 2024.

5. Iran

Economic Strength Rank: 7

Military Strength Rank: 14

Weighted Average Rank: 9.1

Iran is one of the top 10 powerful Muslim countries in the world by military. We say this because as of 2024, the Iranian Armed Forces are the second largest in the Middle East, following the Egyptian Armed Forces, in terms of active troops. Iran’s military consists of approximately 425,000 active-duty personnel and an additional 100,000 reserve and trained personnel available for mobilization when needed, bringing the total military manpower to around 525,000.

4. Pakistan 

Economic Strength Rank: 9

Military Strength Rank: 9

Weighted Average Rank: 9

The Pakistan Armed Forces comprise the military forces of Pakistan and are the world’s sixth-largest in terms of active military personnel. The armed forces include three main branches: the Army, Navy, and Air Force, supported by several paramilitary units such as Rangers.

A critical element of the armed forces’ structure is the Strategic Plans Division Force, which is tasked with maintaining and securing Pakistan’s tactical and strategic nuclear weapons stockpile and related assets.

3. Saudi Arabia

Economic Strength Rank: 3

Military Strength Rank: 23

Weighted Average Rank: 9

The Saudi Arabian Armed Forces (SAAF) are among the world’s best-funded and have the sixth-largest defense budget globally. This stable financial backing ensures they maintain advanced military capabilities across their five branches: the Royal Saudi Army, Navy, Air Force, Air Defense, and Strategic Missile Force. The King of Saudi Arabia serves as the Supreme Commander-in-Chief and oversees military policy in coordination with the Ministries of Defense and Interior.

2. Indonesia

Economic Strength Rank: 1

Military Strength Rank: 13

Weighted Average Rank: 4.6

Indonesia’s economy is projected to grow steadily at an average rate of 5.1% per year from 2024 to 2026, per World Bank projections, which will be supported by increased public spending, rising business investments, and strong consumer demand.

1. Turkey

Economic Strength Rank: 2

Military Strength Rank: 8

Weighted Average Rank: 3.8

With a weighted average rank of 5.2, Turkey is the most powerful Islamic country in the world in 2024. Turkey’s defense industry has seen incredible growth, which truly began after the 1974 Cyprus intervention and led to embargoes from the US and other allies. These restrictions spurred Turkey to invest heavily in domestic defense production. From 1996 to 2021, Turkiye had a change of defense spending as a percentage of GDP of 2.1%, which translated to major achievements like the Altay tank in 2008, the T129 helicopter in 2014, and the renowned Bayraktar TB-2 drone in 2011. It is also worth highlighting that Turkey’s defense exports nearly tripled from 2014 to 2023. The country’s defense industry now ranks 11th globally in exports, just outside the top 10.

On the economic end, in the first quarter of 2024, Turkey’s GDP grew by 5.7% year-on-year, driven by strong domestic demand and net exports. Private consumption, though at its lowest since the pandemic, grew by 7.2% YoY. Investment increased by 10.3% YoY, adding 2.6 ppt, while public consumption rose 3.9% YoY, contributing 0.5 ppt. Despite inventory build-up reducing growth by 4.4 ppt, net exports improved GDP by 1.6 ppt.

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Disclosure: None. 15 Most Powerful Islamic Countries in the World in 2024 was originally published at Insider Monkey.