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Ramadan generates up to £1.3b for UK economy annually, groundbreaking report reveals

2 months ago
Ramadan generates up to £1.3b for UK economy annually, groundbreaking report reveals

Fatima Raza Hassan

A new report has quantified for the first time how Ramadan has become embedded in Britain’s economic and social fabric, generating up to £1.3 billion annually while strengthening community ties across the nation.

The comprehensive study by think tank Equi, titled Ramadan: Its Value to British Society and the Economy, reveals how the month-long observance now affects multiple sectors. Retail spending accounts for the largest share at £428-642 million, with supermarkets seeing particularly dramatic growth. Major chains now report Ramadan sales two to three times higher than a decade ago, with some locations even surpassing Christmas trading periods. This surge comes from both essential purchases like dates, halal meats and specialty flours, and Eid-related spending on clothing, gifts and travel estimated at £200-300 million.

Beyond consumer spending, businesses invest £159-274 million annually in Ramadan-specific preparations. This includes expanding halal supply chains, increasing inventory, and launching targeted marketing campaigns. Charitable giving during the holy month reaches £238-359 million, supporting both local food banks and international relief efforts. Perhaps most strikingly, UK mosques serve approximately 3.8 million free iftar meals during Ramadan — equivalent to 125,000 nightly — with an estimated £15 million flowing back to local food suppliers.

The report documents how this economic activity coincides with Ramadan’s growing visibility in British civic life. Over 300 large-scale public iftar events now occur annually at diverse venues including Premier League football stadiums, Windsor Castle, and university campuses. The East London Mosque alone serves 1,000–1,200 meals each night of Ramadan, while mosques nationwide average 13 volunteers daily to organize these community meals.

This represents a dramatic evolution from Ramadan’s early observance in Britain. The report traces its history from 16th century Muslim sailors (known as lascars) fasting in port cities, through the first English-language account of Ramadan in 1783’s Letters from Tripoli, to the inaugural public Eid celebration at Woking’s Shah Jahan Mosque in 1922. Today, with 2.6 million British Muslims fasting from the UK’s total Muslim population of 4 million, the observance has entered the mainstream. Modern developments include Birmingham’s annual Ramadan Streets festival and major retailers like Ikea launching dedicated Ramadan home collections.

Professor Javed Khan OBE, who contributed to the report, emphasizes the dual significance of these findings: “This isn’t just about religious observance anymore. Ramadan has become woven into Britain’s economic and social fabric, generating £1.3 billion while strengthening community bonds. These measurable impacts deserve recognition in national policymaking.”

The primary spiritual benefits of Ramadan are undoubtedly experienced by those who observe it with faith and self-reflection. However, as highlighted by Dr Mohammed Wajid Akhtar, Secretary General of the Muslim Council of Britain, sensible policy recommendations—such as those proposed by Equi—can help extend the wider societal benefits of the ‘Ramadan bump.’ “By fostering greater inclusivity and understanding, these measures ensure that the positive impacts of Ramadan, from community cohesion to economic activity, are felt more broadly across society,” said Akhtar.

The report concludes with seven evidence-based recommendations, including creating workplace guidance for fasting employees, supporting British halal food producers, and including Ramadan in economic planning. With the UK’s Muslim population projected to grow, analysts expect these impacts will continue expanding in coming years — potentially reaching £2 billion annually by 2030.

 

Total economic impact: £800m-£1.3bn

 

Supermarket sales growth: 200-300% over 10 years

Charitable meals served: 3.8m (£15m value)

Public iftar events: 300+ annually

 

Photo: Ramadan lights on Oxford Street in London (Credit: WikiCommons)

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