Abstract
<jats:p>Abstract:Tourism has emerged as a strategic sector for economic diversification and sustainable development in many Islamic countries, particularly in the context of declining dependence on traditional resource-based revenues. This article examines the economic potential of tourism in Islamic countries and analyzes the key structural, institutional, and developmental challenges that influence the realization of this potential. The study focuses on the role of tourism as a driver of employment generation, foreign exchange earnings, regional development, and inclusive economic growth, while also considering the cultural, religious, and institutional specificities of Islamic societies. The research adopts a qualitative and analytical approach based on the review and synthesis of contemporary academic literature, policy reports, and international tourism development frameworks. Particular attention is paid to the compatibility of tourism development strategies with Islamic values, socio-cultural norms, and ethical principles, as well as to the role of government policies, investment climate, infrastructure quality, and human capital in shaping tourism performance. The article highlights both opportunities—such as cultural heritage tourism, halal tourism, eco-tourism, and religious tourism—and persistent challenges, including regulatory inefficiencies, political instability in certain regions, inadequate infrastructure, and limited integration into global tourism value chains. The findings suggest that, when supported by coherent economic policies and institutional reforms, tourism can serve as a powerful instrument for long-term development in Islamic countries. The article concludes that strengthening governance frameworks, promoting sustainable and culturally sensitive tourism models, and enhancing regional and international cooperation are essential for maximizing the economic benefits of tourism while preserving social and cultural integrity.</jats:p>