RDS_181105 Modest Fashion 10
UAE based shoppers came out on top when it comes to spending on 'modest fashion'. Image Credit: Supplied

Dubai: Muslims the world over spent a combined $2 trillion on food, medicines and on lifestyle needs based on Sharia-based ethical consumption. That’s from a healthy 8.9 per cent gain year-on-year, and which sets up such spending to reach $2.8 trillion by 2025.

The UAE ranks among the Top 3 nations in such spending for a third consecutive year, with Malaysia and Saudi Arabia holding the top two spots. Indonesia is at fourth, while Turkey made had the most significant gain, landing in fifth from 12th a year ago.

These are based on the ninth edition of the ‘State of the Global Islamic Economy Report 2022’ launched by Dubai’s Department of Economy and Tourism.

State of the Global Islamic Economy Report 2022
The occasion was to mark the release of the latest Islamic economy report.

Islamic-linked finance assets will reach a combined $3.6 trillion this year. Investments in Islamic economy-relevant companies increased 118 per cent in 2020-21 to $25.7 billion from $11.8 billion in 2019-20. About 66.4 per cent of these investments were covered by Islamic finance transactions, followed by 23.6 per cent in halal products (food, pharmaceuticals, cosmetics, fashion) and 10 per cent in Islamic lifestyle (travel and media). (The figures include corporate-led mergers and acquisitions, venture capital investments in tech start-ups, and private equity investments.”

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UAE's exports of halal-related products during 2020

Consistent showing

“The UAE’s consistent rank amongst the Top Three in the Global Islamic Economy Indicator is a key outcome of the country promoting the global Islamic economy trade and investments," said Ali Ibrahim, Deputy Director-General of Department of Economy and Tourism. "For the first time since 2018-19, the UAE has moved up to the first position in the number of Islamic economy-relevant investment deals in 2020-21.

"It is also among the Top 10 OIC (Organisation of Islamic Co-operation) exporters of halal-related products, with exports worth $7 billion in 2020.”

The SGIE report represents an annual update on the global Islamic economy, encompassing halal products, Islamic finance and related lifestyle sectors. It is put together by DinarStandard, a US-based research and advisory firm.

Islamic investment opportunities
The biggest possibilities in the medium-term would be in sovereign sukuks, near-shore production, travel tech investments, convenient- and nutritious meals.

"It’s clear that the Islamic economies are recovering fast from the COVID-19 pandemic, with the various disruptions driving opportunities in digital acceleration and trade driven investments as ‘near shoring’ (sourcing products closer to home) and food/medicine security becomes national priorities," said Rafi-uddin Shikoh, Managing Partner of DinarStandard.

"The report presents ‘signals of opportunities’ and recommendations for governments, investors and industry to navigate challenges and drive long-term prosperity."