The Islamic art market emerged in the early 20th century and expanded through independent dealers in Paris, London, and New York. Many of these dealers, who were also collectors, imported valuable artworks directly from Iran, Egypt, and other regions. The secondary market for Islamic art matured by the 1920s, coinciding with the enforcement of restrictions on the export of historical artifacts from source countries. In the 21st century, renewed interest in Islamic art, particularly after 9/11, led to significant investments by museums and international auction houses. The introduction of specialized evening auctions and regional sales played a crucial role in the market’s growth and dynamism. During this period, the Neo-Traditionalist art movement, which reinterprets historical traditions within a modern framework, gained prominence in Middle Eastern auctions. Since the early 2000s, Iranian and Arab artists have played a central role in this movement. Auction house data indicates that demand for these artworks remains strong. This article provides a comprehensive analysis of the historical evolution, economic growth, and current status of these two interconnected markets.