Islamic Apps and Websites Growth Trends in 2024

The digital landscape is rapidly evolving, and within it, a distinct and dynamic ecosystem is emerging: Muslim-centric technology. This burgeoning sector encompasses a wide range of Islamic Apps and digital platforms designed to cater to the specific needs, values, and ethical considerations of the global Muslim community. The story of LaunchGood, a crowdfunding platform, serves as a powerful illustration of the challenges and remarkable opportunities within this space.

Co-founded by Amany Killawi, LaunchGood’s initial struggles to secure reliable payment processing due to discriminatory practices highlight the hurdles Muslim entrepreneurs often face. This experience, however, became a catalyst for innovation, ultimately leading to the creation of a more inclusive and ethically aligned digital world.

This article delves into the fascinating world of Islamic Apps, exploring how Muslim founders are building innovative solutions that address the diverse needs of their communities. We will examine the rise of Islamic finance, the growing importance of ethical consumerism, and the increasing demand for technology that not only aligns with Islamic principles but also actively supports causes important to Muslims, such as the Palestinian cause.

From Breakup Playlists to Building a Financial Lifeline

Amany Killawi’s journey to becoming a leading figure in the Muslim-centric tech space began not with a grand business plan, but with a series of frustrating rejections. Every time LaunchGood was denied services by a bank or payment processor, Killawi, then the Chief Operating Officer, would create a “breakup playlist,” a coping mechanism for the near-existential threat these rejections posed to the platform. “If you can’t accept payments, you can’t exist as a company,” Killawi explained.

These rejections weren’t arbitrary. As Killawi discovered, some financial institutions cited concerns about working with organizations involved in international humanitarian work in sanctioned regions like Syria, a common area of focus for Muslim charities. Others cited the difficulty of screening numerous Muslim and Arabic names for potential links to sanctioned individuals. “People don’t realize Muhammad is the most sanctioned name,” Killawi noted, highlighting the inherent bias and lack of understanding within the traditional financial system.

This repeated experience of being “dumped” by financial institutions forced Killawi and her co-founders, Chris Blauvelt and Omar Hamid, to develop a workaround: a network of payment providers and banks. This strategic move ensured that if one provider withdrew services, LaunchGood had backups in place, preventing a complete shutdown of their operations. This resilience and ingenuity ultimately transformed LaunchGood from a fledgling startup into a thriving platform.

Today, more than a decade since its inception, LaunchGood has become a household name within the global Muslim community, facilitating nearly $700 million in fundraising, primarily focused on charitable giving. It has become a crucial tool for many Muslims, especially during Ramadan, allowing them to easily automate daily charitable donations throughout the holy month.

The “Halal” Economy

The global “halal” economy, a market encompassing halal food, Islamic finance, modest fashion, and various other goods and services that cater to the needs and preferences of Muslims, is a force to be reckoned with. According to Dinar Standard, a leading research and advisory firm specializing in the Islamic economy, this market is estimated to be worth a staggering $2 trillion. This massive market reflects the growing global Muslim population, estimated at approximately 1.9 billion in 2023, and their increasing demand for products and services that align with their faith-based values.

Despite the significant size and growth of the halal economy, access to financial services remains a persistent challenge for many Muslims. A 2022 study conducted by the Institute for Social Policy and Understanding (ISPU) revealed a disturbing trend: Muslims in the United States are disproportionately likely to face difficulties opening bank accounts, obtaining loans, and accessing other essential financial services compared to members of other faith groups. This systemic issue highlights a critical area where Islamic Apps and fintech solutions can play a crucial role in bridging the gap and promoting financial inclusion within the Muslim community.

PayGood: A payment processor Built by Muslims

Killawi’s firsthand experience with LaunchGood’s payment processing challenges directly inspired the creation of PayGood, a sister company designed to address the systemic issues faced by Muslim businesses and charities. PayGood aims to provide a reliable, transparent, and discrimination-free payment processing system specifically tailored to the needs of the Muslim community. This initiative reflects a broader trend of Muslim entrepreneurs taking matters into their own hands, creating innovative solutions to address the challenges they have personally encountered within the existing financial and technological infrastructure.

The Rise of Ethical Consumerism

The conversation surrounding Muslim-friendly technology has evolved significantly in recent years. While initially focused on providing halal food options, interest-free financing, and other products and services that directly adhere to Islamic dietary and financial principles, the scope has expanded to encompass broader ethical considerations. The events of October 7, 2021, and the subsequent conflict in Gaza, catalyzed a renewed focus on ethical consumerism within the Muslim community.

Many Muslim consumers are now actively seeking out alternatives to major tech companies and brands that are perceived as not aligning with their values regarding the Israeli-Palestinian conflict. This shift in consumer behavior has led to the emergence of what can be termed “pro-Palestinian tech,” a growing segment of the Muslim-centric tech space dedicated to providing tools and platforms that support the Palestinian cause.

A Call for Ethical Alternatives

Apps like Boycat, founded by Adil Abbuthalha, are empowering Muslim consumers to make informed purchasing decisions by providing information on brands and their potential connections to activities that support the Israeli occupation of Palestinian territories. Boycat aligns with the growing Boycott, Divestment, Sanctions (BDS) movement, a global campaign advocating for Palestinian rights through economic pressure on Israel.

Makani Homes, a home-swapping platform founded by Nourin Abubaker and Yara Ourfali, also taps into this growing demand for ethical consumerism. While initially focused on providing Muslim-friendly accommodations that adhere to specific cultural preferences, such as alcohol-free or pork-free environments, the platform has evolved to become a viable alternative to major travel corporations with listings in occupied Palestinian territories. This strategic shift has resonated strongly with Muslim consumers seeking to align their travel choices with their ethical values.

From Hostile Fundraising to a Supportive Ecosystem

The fundraising landscape for Muslim-focused startups has undergone a remarkable transformation in recent years. Back in 2013, securing funding for LaunchGood was a considerable challenge, as few investors were willing to take a chance on a Muslim-focused crowdfunding platform. However, the success of companies like Muzz, a halal dating app backed by Y Combinator, and Wahed, a halal investment platform valued at $300 million, has demonstrated the immense potential of the Muslim consumer market.

This shift in investor sentiment has fostered the development of a more supportive ecosystem for Muslim-run and pro-Palestinian companies. Initiatives like Tech for Palestine, founded by Paul Biggar, provide crucial mentorship, resources, and networking opportunities for startups working to advance the Palestinian cause through technology.

Navigating the Future of Islamic Apps

Despite the significant progress made, challenges persist for Muslim-centric tech companies. Boycat, for example, has faced difficulties in securing venture capital funding due to its overt pro-Palestinian stance. However, the app’s rapid user growth, exceeding one million downloads in less than a year, and its partnership with the official BDS movement demonstrate the strong demand for such ethically aligned solutions.

The future of Islamic Apps and Muslim-centric technology is bright. Amany Killawi emphasizes the immense potential of businesses that cater to the needs and values of the Muslim community. The increased awareness of ethical consumerism, the growing demand for Sharia-compliant financial services, and the emergence of pro-Palestinian tech initiatives are all contributing to the growth and diversification of this dynamic sector.

As Muslim entrepreneurs continue to innovate and create solutions that address the specific needs of their communities, the digital landscape will become more inclusive, equitable, and reflective of the diverse values and beliefs of the global Muslim population. The growing availability of Islamic Apps is not just a commercial trend; it’s a reflection of a community asserting its presence and shaping the future of technology to better reflect its values.