Eid-ul-Adha: Economic Influence and Societal Contributions

Large amounts of transactions take place during Eid-ul-Adha which initiates a flurry of economic activities

Eid-ul-Adha also known as the Feast of Sacrifice is celebrated by all Muslims all over the world. It is one of the biggest festivals and holidays in the Islamic calendar. It is not only a solemn religious occasion but also holds a major socio-economic impact. In the honor of Prophet Ibrahim’s test of faith, animals are slaughtered and sacrificed. 

Large amounts of transactions take place during Eid-ul-Adha which initiates a flurry of economic activities. The wealthy donate zakat while the working class employees receive bonuses, substantially increasing remittance inflow. All of this leads to an increase in the money flow and which in turn creates an additional demand for goods and services. This increase in consumer spending gives the economy the much-needed boost it needs during this difficult time. On the other hand, other experts worry that it could further increase the inflammation rate.

The Eid festival has a direct impact on the cash flow within the economy due to the influx of consumer expenditure, tourism activity and businesses. The circulation of money is accelerated among individuals and enterprises with the increased turnover rates and higher liquidity in the market. Acting as catalyst to the dynamics of the flow of money during the Eid periods. 

The accurate flow of money is difficult to track as most of the transactions that occur during the festival go unrecorded. Overall, it’s estimated that the size of the Eid-ul-Adha economy is around $6 billion (Tk800 billion), with the majority of the monetary transaction revolving around cattle and other livestock sales. During Eid the animal business is central and the main source of the increase in the economy but the occasion also spikes a demand in other sectors of goods and services.

All the different kinds of activities related to the festival have a major impact on how it affects the economy. The Hajj (pilgrimage) to Mecca is performed by the financially able Muslims on the occasion of Eid-ul-Adha. About 110,000 pilgrims from Bangladesh have planned a trip to Saudi Arabia to perform hajj. Each individual is set to spend $4200 (Tk 5 lakh) which will total to an expenditure of $415 million (Tk500 billion). For the Saudi economy, hajj has been the source of income since the start of its introduction. It is said to be an important source of foreign currency exchange for other economies too. 

Eid-ul-Adha is mainly focused on the sacrifice of animals along with other purchases as well. The major trades include electronics, spices, clothing and confectionery. As per the Department of Livestock Services the sales of animals like cows, goats, sheep, buffaloes and camels used for sacrifice reached $55,39,456 (Tk65,000 crore) in 2023, last year. With an increase of 54% from 2017 when the market was $34,94,118 (Tk42,000 crore). 

This bolsters the national economy and significantly ensures the meat requirement all year round. In Bangladesh, around 23 million cows, goats, sheep and buffaloes are slaughtered every year and approximately 50% of them are raised specially for slaughtering. 

The main season for procuring rawhide is during the festival of Eid-ul-Adha. The requirement of leather and leather goods increase by 60% during the season.  80% of the animal skin is sourced from sacrificed animals and annual availability of 15 million animal skin is estimated by traders in Bangladesh. 

The rawhide market was earlier valued at $340 million (Tk4,000 crore) which has now experienced a decline because of a significant drop in leather prices. In many instances these hides are given away for free despite the regulations on pricing set by the Government before the sacrifice. However, the market for other leather-dependent products remains robust, exceeding $850 million (Tk10,000 crore) annually.

The Hajj performance, rawhide trade and cattle sacrifice during Eid-ul-Adha generate cash flow, promote trade and many businesses, increase employment and overall create a positive effect on the global economy.