Dubai: Global spending of Muslim consumers on food and lifestyle sectors grew 9.5 per cent last year according to the State of the Global Islamic Economy Report (SGIE) for 2014-15.
The report was launched on Monday by Dubai Islamic Economy Development Centre (DIEDC), in partnership with Thomson Reuters and the Dinar Standard.
“The launch of the State of the Global Islamic Economy Report reiterates Dubai’s leading role as an incubator of knowledge for the Islamic economy industry. The report leverages the emirate’s ongoing endeavours to become the capital of Islamic economy,” said Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai.
The report estimates that global expenditure of Muslim consumers on food and lifestyle sectors grew 9.5 per cent from previous years’ estimates to $2 trillion in 2013 and is expected to reach $3.7 trillion by 2019 at a compound annual growth rate of 10.8 per cent.
According to the report Islamic finance assets reached $1.66 trillion in 2013. Islamic funds and sukuks led growth with 14 per cent and 11 per cent growth year-on-year, whereas Islamic banking experienced a 5 per cent drop in its assets.
The SGIE report estimates the potential universe of Islamic finance assets in its core markets to $4.2 trillion in 2014.
This year the report introduces a formal Global Islamic Economy Indicator (GIEI), a composite index that presents the current development health of Islamic economy sectors across 70 core countries. The UAE, Malaysia and Bahrain lead this inaugural composite Index.
The Indicator is not a ranking of current size and growth of each market, but evaluates the quality of the overall Islamic economy ecosystem including social considerations that each has relative to their size.
According to the report global Muslim spending on food and beverages (F&B) has increased 10.8 per cent to reach $1.29 trillion in 2013. The potential core halal food market registered 17.7 per cent of global expenditure in 2013 compared to 16.6 per cent the year before. The UAE, Malaysia and Australia lead the Halal Food Indicator.
Global Muslim consumer spending on ‘clothing and footwear’ has increased 11.9 per cent to reach $266 billion in 2013. Top countries with Muslim consumers clothing consumption (based on 2013 data) are Turkey ($39.3 billion), the United Arab Emirates ($22.5 billion), Indonesia ($18.8 billion), and Iran ($17.1 billion).
The UAE, China and Italy lead the Fashion Indicator that focuses on the health of the fashion ecosystem a country has relative to its size. In tourism Global Muslim spending (outbound) has increased 7.7 per cent to reach $140 billion in 2013 (excluding Hajj and Ummrah).
