Some 22,000 Muslims live in Wales, with a near-3m population
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Muslims are more likely to live in the most deprived parts of Wales than the rest of the population, an official study has found.
But while more Muslim men and women were long-term unemployed, they were also more likely to be in top professional and managerial jobs.
Muslim Council of Wales secretary Saleem Kidwai said improving education was key to reducing inequality.
He said a partnership between the community and government was needed.
The report, A Social Audit of the Muslim Community in Wales, for the Welsh Assembly Government, found that poor housing, including overcrowding, was much higher amongst Muslim households than the general population.
It found higher reported levels of long-term illness and poor health than average amongst the older working population, but lower levels amongst 16-49-year-olds.
The report observed that many more Muslims were classed as economically inactive "almost entirely due to the low inactivity rates amongst Bangladeshi and Pakistani women".
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We must eradicate poverty wherever it is, whether Muslim or non-Muslim, Jewish, Christian or anyone else
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The study was based on census and other statistical information.
It found that, in 2005, Pakistani and Bangladeshi pupils achieved a lower than average points score at Key Stage 4 and a "relatively low" proportion gained five or more A* to C GCSE grades.
Assistance at home
Mr Kidwai suggested improving Muslim children's school performances would help them to play their full part in society in later years.
He warned that many were not getting the assistance at home that some of their classmates were enjoying.
"They drop out because their parents are unable to help them with their school work because they are poorly educated.
"Education is the most important thing."
Mr Kidwai said transforming the situation was "a tough but not impossible task" and required a response from both the Muslim community and "the establishment".
"We don't expect the government to do everything," he added.
Mohammad Asghar, the first Muslim member of the Welsh assembly, who represents Plaid Cymru in the South Wales East region, said poverty and deprivation were spread throughout the area.
"We must eradicate poverty wherever it is, whether Muslim or non-Muslim, Jewish, Christian or anyone else," he said.
"We are all in the same boat".
Mr Asghar suggested that marking the various cultural celebrations in schools would help develop better understanding between different communities.