Halal tourism has gained significant traction as a global phenomenon. In recent years, Halal tourism has been increasingly recognized as one of the most robust export markets within the tourism industry. This study explores how Halal coastal tourism can boost financial inclusion and economic growth. The study delves into the challenges and opportunities of developing Halal tourism to promote sustainable growth in the global tourism industry. The research identifies several critical challenges, including the lack of standardized Halal certification, gaps in stakeholders’ understanding of Islamic principles, and infrastructural deficiencies in emerging Halal tourism destinations. These issues are compounded by limited community engagement and resistance from local populations in non-Muslim majority regions, which hinder the widespread adoption and growth of Halal coastal tourism. A detailed framework for developing and maintaining Halal coastal tourism is presented by analyzing its challenges and opportunities. The framework highlights the importance of industry-wide standardization, community engagement, infrastructure development, and technological innovation in overcoming barriers and maximizing the economic potential of Halal tourism. Through a detailed analysis of stakeholder collaboration, the study identifies critical areas for intervention, such as the alignment of Islamic principles with tourism practices, the enhancement of local cultural integration, and the strategic use of digital tools to promote sustainability. The insights benefit policymakers, industry leaders, and researchers, enhancing strategies to utilize Halal coastal tourism for socio-economic advantages.