Dubai: Among the key components of Islamic economy, food and beverage segment tops Muslim spend by category, at $1.17 trillion (Dh4.29 trillion) in 2015, followed by clothing and apparel at $243 billion, media and recreation at $189 billion, travel at $151 billion, and spending on pharmaceuticals and cosmetics at $78 billion.
“A core challenge for the Islamic economy is the need to motivate more Muslims across the globe, especially the youth, to participate in developing this ecosystem and play an integral role in the production process. In doing so, Muslims can transform from being the largest consumer base in the world to a sizeable production base capable of achieving a more sustainable future,” said Abdullah Mohammad Al Awar, Chief Executive Officer of Dubai Islamic Economy Development Centre.
The State of the Global Islamic Economy Report (SGIE) report estimates that the revenue generated by Halal Certified Food and Beverage companies worldwide to be at $415 billion. Halal Food, the largest Islamic Economy Pillar by revenue has shown clear signs of maturity with increased private equity investments in the sector. Muslim spend on food and beverages expected to reach $1.9 trillion by 2021.
While Halal Travel is a niche sector building momentum, it is expected to grow with Muslim spend on outbound travel expected to reach $243 billion by 2021. The report shows that modest fashion is gaining mainstream interest with several retailers and brands such as Dolce & Gabbana, Uniqlo and Burberry entering the industry and several notable investments driving the sector forward. As the sector gains traction, spend on Modest Fashion is projected to reach $368 billion by 2021.
The Halal Pharmaceutical and Cosmetics sector continues to expand as awareness about ingredients rises and new product development, such as permeable nail polish, the development of Halal vaccines and new ranges of nutraceuticals. Muslim spend on Pharmaceutical and Cosmetics products is expected to reach $213 billion by 2021 in aggregate. Halal Media and recreation is expected to generate Muslim spend if $262 billion by 2021.
“Islamic Economy is one of the fastest growing tranches of the global economy. The convergence between the Islamic economic sectors is strongly expected to enhance the Islamic economy space going forward. This annual report is now a point of reference for professionals and industry players looking at the current and forecasted trends in this area,” said Nadim Najjar, Managing Director, Middle East and North Africa, Thomson Reuters.
The Islamic economy continues to mature, growing more complex and more stable each passing year. The sector is proving itself to be one of the most viable solutions to the stagnation that is plaguing global markets.
