Iran has been ranked as the fifth-largest economy in the Islamic world, based on its Gross Domestic Product (GDP) measured by Purchasing Power Parity (PPP), estimated at around 1.7 trillion US dollars.

This ranking places Iran among the top five economies out of the 53 member countries of the Organization of Islamic Cooperation (OIC).

What does this mean?

GDP (PPP) measures the real size of an economy by adjusting for differences in price levels and cost of living between countries.

It reflects actual production capacity and domestic economic strength, not just international market prices.

Because prices in Iran are relatively lower than in many countries, PPP provides a clearer picture of Iran’s real economic scale.

Countries ranked above Iran

The four economies ranked ahead of Iran in the Islamic world are:

1. Indonesia

2. Turkey

3. Egypt

4. Saudi Arabia

Iran follows them closely in fifth place, ahead of countries such as Pakistan, Bangladesh, Malaysia, Nigeria, and the UAE.

Why this ranking is important

It highlights Iran’s large internal market, industrial base, and energy resources.

It shows that despite sanctions and economic pressure, Iran remains one of the key economic powers in the Muslim world.

Iran’s economy accounts for roughly 6% of the total economic output of the Islamic world.

Key takeaway

This ranking does not mean Iran is wealthy in terms of per-capita income, nor does it reflect GDP measured at market exchange rates. Rather, it shows that Iran is one of the largest and most capable economies in terms of real production and domestic economic power.