Eid al-Adha 2025: How the festival fuels economic growth across the GCC and globally

Eid al-Adha, also known as the “Festival of Sacrifice,” is one of the most significant religious holidays in the Islamic calendar. Its economic footprint extends far beyond spiritual observance, influencing markets, trade, tourism, and various sectors across the GCC (Gulf Cooperation Council) and the world. We explore in this article the multifaceted economic impact of Eid al-Adha, drawing on recent trends, key statistics, and regional insights.

Understanding Eid al-Adha: Religious and economic context

Eid al-Adha commemorates the willingness of Prophet Ibrahim (Abraham) to sacrifice his son in obedience to God. The festival is marked by the ritual sacrifice of livestock—typically sheep, goats, cows, or camels—with the meat distributed among family, friends, and the needy. This tradition drives substantial economic activity, particularly in the livestock, food, and retail sectors.

Economic impact in the GCC region

1. Livestock and agriculture markets

• Surge in livestock demand: In the weeks leading up to Eid al-Adha, demand for sacrificial animals spikes dramatically. Livestock markets across the GCC—especially in Saudi Arabia, the UAE, Qatar, and Kuwait—see a significant influx of buyers, resulting in price increases and heightened economic activity.
• Price volatility:External factors such as global feed prices and supply chain disruptions can amplify costs. For instance, the Ukraine war caused a spike in animal feed prices, leading to higher costs for livestock and, in some cases, making sacrifices unaffordable for many families.
• Regional trade:GCC countries often import livestock from Africa, Australia, and Asia to meet the surge in demand, stimulating international trade and logistics sectors.

2. Tourism and hospitality

• Intra-GCC tourism: Eid holidays are a peak travel period within the GCC. Countries like Saudi Arabia, UAE and Qatar have become top destinations for regional tourists, offering a range of entertainment and cultural activities that boost hotel occupancy, retail sales, and local attractions.
• Event-driven spending: Major cities host festivals, concerts, and family-friendly events, attracting both residents and visitors, which translates into increased spending in hospitality, transportation, and retail sectors.

3. Retail and consumer goods

• Retail boom: Eid al-Adha is associated with gift-giving, new clothes, and home decorations. Retailers launch special promotions and sales, with malls and shopping centers experiencing some of their highest footfall and sales volumes of the year.
• Food and beverage: Grocery stores and food suppliers report a surge in sales of meat, spices, and other festive ingredients. Restaurants also see increased patronage as families dine out to celebrate.

4. Employment and temporary labor

• Seasonal jobs: The festival creates temporary employment opportunities in livestock handling, retail, logistics, and hospitality, providing an economic boost to lower-income workers and small businesses.

Global economic impact

1. Livestock trade and agriculture

• Massive market scale: In countries like Bangladesh, the livestock market around Eid al-Adha is valued at billions of dollars, with millions of animals sold for sacrifice. Similar trends are observed in Pakistan, Indonesia, and parts of Africa.
• Leather industry: Moreover, the surge in animal sacrifices supplies a significant portion of raw hides for the leather industry. In Bangladesh, for example, 50–60 percent of annual hide supply comes from Eid al-Adha, supporting both domestic and export-oriented leather sectors.

2. Charitable giving and social welfare

• Distribution of wealth: The ritual of distributing meat to the poor has a redistributive economic effect, supporting food security and social welfare in many communities.
• NGO and charity operations: Charitable organizations and NGOs mobilize substantial resources during Eid al-Adha, facilitating meat distribution and providing support to vulnerable populations.
• Hajj pilgrimage and international travel
• Economic boost from Hajj: Additionally, Eid al-Adha coincides with the annual Hajj pilgrimage in Saudi Arabia, which brings millions of pilgrims from around the world. This influx generates significant revenue for the Saudi economy through accommodation, transportation, food services, and retail.
• Foreign exchange: Countries with large numbers of Hajj pilgrims, such as Bangladesh and Indonesia, see substantial outflows of foreign currency, which impacts national balance of payments and banking sectors.

Challenges and emerging trends

1. Rising costs and accessibility

• Inflationary pressures: Global events like the Ukraine war have caused sharp increases in food and feed prices, making livestock more expensive and reducing the number of people able to participate in the traditional sacrifice.
• Affordability concerns: In many countries, families are forced to forgo or scale back sacrifices due to economic hardship, which can dampen the festival’s economic impact.

2. Sustainability and animal welfare

• Regulatory oversight: Growing awareness of animal welfare and environmental concerns has led to increased regulation and the promotion of sustainable practices in livestock management.
• Alternative giving: Also, some Muslims opt for symbolic sacrifices or donate the equivalent value to charity, reflecting evolving attitudes and economic realities.

3. Digital transformation

• Online livestock markets: The rise of digital platforms enables consumers to purchase sacrificial animals online, arrange for slaughter, and direct meat distribution, streamlining the process and broadening market access.
• E-commerce growth: Furthermore, retailers and food suppliers leverage e-commerce to capture Eid-related demand, offering home delivery and special online promotions.

Read more | Eid al-Adha 2025 holiday in UAE: Expected dates revealed

Case studies: Economic impact in select countries

Long-term economic significance

Eid al-Adha’s economic impact is both immediate and enduring. The festival stimulates cyclical demand across multiple sectors, supports employment, and drives social cohesion through charitable giving. For GCC countries, it is a linchpin of seasonal economic activity, while globally, it shapes agricultural, trade, and social welfare dynamics.

Final word

Eid al-Adha is not only a profound religious occasion but also a powerful driver of economic activity in the GCC and worldwide. From livestock markets and tourism to retail and charity, its influence is felt across industries and borders. While challenges such as inflation and accessibility persist, the festival’s enduring economic significance underscores its role as a catalyst for prosperity and social welfare.