Source: Halal Focus

Kawaguchiko, Japan – The economic contribution of Ramadan to the UK has expanded dramatically over the past decade, potentially reaching £1.3 billion annually according to new research from the thinktank Equi. This represents a fourfold increase since 2015, significantly outpacing the UK’s overall economic growth.

Breaking Down the “Muslim Pound”

A comprehensive breakdown of this “Muslim pound” reveals that British Muslims spend approximately £642 million yearly on food, travel, and clothing during Ramadan, while contributing an additional £359 million in charitable donations. Furthermore, mosques across the nation provide about 3.8 million free iftar meals valued at £15 million.

Retail Sector Benefits

“This is the first comprehensive study of its kind,” notes Dr. Mamnun Khan, who authored Equi’s report “Ramadan: Its Value to British Society and the Economy.” The research highlights that supermarket Ramadan sales alone have tripled since 2015, now estimated between £228-342 million, with retailers investing an additional £159-274 million in their supply chains.

The stark contrast between Ramadan’s economic growth and the broader UK economy is noteworthy. While the Ramadan economy has quadrupled in a decade, the UK economy has grown approximately 11.8% since 2015, with recent quarters showing sluggish performance—0.9% growth in Q4 2024 following a quarter of zero growth.

Calls for Government Action

Professor Javed Khan OBE, managing director of Equi, has called upon the government and businesses to better harness the economic and social benefits of the holy month. His recommendations include integrating the Ramadan economy into national economic planning, supporting British Muslim businesses, and incorporating British halal products into initiatives like “Buy British” campaigns.

The Ramadan economy, valued between £800 million and £1.3 billion, now potentially exceeds the UK sea fishing industry, which was worth £1.1 billion in 2023. Mainstream retailers have increasingly recognized this opportunity, developing more inclusive brands that appeal to Muslim consumers.

While Business Secretary Jonathan Reynolds acknowledged the “remarkable surge in donations from Muslim communities” during a recent iftar celebration, the Department for Business and Trade and the Department for Work and Pensions have not yet responded to Equi’s policy recommendations.

Original Articles:

halalfocus.com. (n.d.). Ramadan is worth up to £1.3bn to UK economy — and growing fast. Retrieved April 3, 2025, from https://halalfocus.com/ramadan-is-worth-up-to-1-3bn-to-uk-economy-and-growing-fast/