Halal Tech: How Muslim-Friendly Platforms Are Transforming the Digital Landscape in 2024

The tech landscape of 2024 witnessed a significant shift as the concept of Halal Tech took center stage, addressing the unique needs of the global Muslim community. 

From crowdfunding platforms to ethical payment systems and apps promoting socially responsible consumption, this movement has not only empowered Muslim consumers but also challenged traditional business norms. 

Amany Killawi

At the heart of this transformation is Amany Killawi, co-founder of the crowdfunding platform LaunchGood, a name synonymous with Muslim philanthropy. The platform, which has raised nearly $700 million over the past decade, faced systemic challenges from financial institutions unwilling to work with it due to perceived risks associated with its predominantly Muslim clientele.

 "People don’t realize Muhammad is the most sanctioned name," said Killawi, reflecting on the banking obstacles that almost brought LaunchGood to its knees. "If you can’t accept payments, you can’t exist as a company."

Repeated rejections by banks and payment processors like Stripe didn’t deter Killawi and her team. Instead, they created a network of backup financial systems to ensure LaunchGood's survival. Now, the platform is a household name, particularly during Ramadan, when it facilitates automated daily charitable donations. 

A 2022 study by the Institute for Social Policy and Understanding found that Muslims are disproportionately subjected to account closures and investigations at financial institutions. This exclusion not only challenges individual Muslims but also stymies businesses that cater to this demographic.

These systemic barriers inspired Killawi to step back from LaunchGood and establish PayGood, a payment processor designed to offer Muslim businesses and charities an equitable financial solution. “At some point, it felt so existential. Can you even survive if you don’t have financial access in this world?” Killawi said.

The recent devastation in Gaza has amplified a growing trend: Muslim consumers are increasingly aligning their spending with their values. “What happened in Gaza this past year hit a very different nerve,” Killawi observed.

 This heightened awareness has accelerated the demand for alternatives to mainstream services perceived as complicit in injustices. Companies like PayGood and apps such as Boycat have emerged as vital tools in this ethical shift. 

Adil Abbuthalha, the creator of Boycat app

Boycat, founded by Adil Abbuthalha, allows users to identify and boycott brands linked to Israeli occupation while recommending ethical alternatives. “To empower someone to make the right decision and vote with their wallet, we need to create a BDS-like tool,” Abbuthalha explained. The app, which has partnered with the Boycott, Divestment, Sanctions (BDS) movement, reached over a million users within a year, despite resistance from mainstream investors.

Similarly, Makani Homes, a home-swapping platform, has gained traction as a Muslim-friendly alternative to Airbnb. While initially focused on creating alcohol- and pork-free travel experiences, Makani’s timing coincided with consumer dissatisfaction with Airbnb's operations in occupied Palestinian territories.

“Our whole purpose is to let people know that just because companies exist and they’re huge doesn’t mean that you always have to give your money to them,” co-founder Nourin Abubaker said.

The halal market is booming, valued at over $2 trillion globally, spanning sectors like finance, fashion, and technology. Platforms like Wahed Invest and MoneeMint have revolutionized Islamic finance, offering interest-free banking and ethical investment options. Halal tech also extends to lifestyle apps like Muslim Pro, modest fashion marketplaces such as The Modist, and even curated entertainment platforms like Salam TV.

In the educational realm, apps like Quran Companion and Noor Academy are gamifying Quranic learning, while SeekersGuidance uses AI to expand access to Islamic courses worldwide. These innovations demonstrate the potential of Halal tech to integrate faith seamlessly with modern life.

The path for Halal tech is not without obstacles. Critics question the compliance of certain platforms with Islamic principles, and data privacy concerns have sparked debates. However, these challenges have only driven the industry to innovate further. Investors, once hesitant, are beginning to recognize the potential of Muslim-focused ventures.

Initiatives like Tech for Palestine, led by Paul Biggar, are supporting pro-Palestinian companies, including Boycat, to build infrastructure that aligns with their mission.

 As the industry grows, its influence reaches beyond Muslims, offering a model for ethical innovation that resonates universally. Halal tech is not just about meeting religious needs—it shows how technology can align with values to build a more inclusive and thoughtful digital world.