Global spend on Islamic food and lifestyle is projected to hit $3 trillion in five years as the Islamic finance sector, which has assets currently worth $2 trillion, is poised reach $3.3 trillion by 2021 on the back of growing awareness about its product offerings, according to a forecast.
The Dubai Islamic Economy Development Centre estimates in its 'State of the Global Islamic Economy Report' prepared in partnership with Thomson Reuters and DinarStandard that global Muslim spending on food and beverages is expected to reach $1.9 trillion by 2021.
The report's findings show that global Muslim spend across sectors was over $1.9 trillion in 2015. Food and beverage tops Muslim spend by category, at $1.17 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.
The study, being released in the lead-up to the Global Islamic Economy Summit 2016 (GIES), set to take place on October 11 and 12 at the Madinat Jumeirah in Dubai, also estimated 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. Upgrades in regulations are also occurring, with the introduction of accreditation to oversee certifiers set to reduce complexity and encourage more players to enter the halal food industry," said the report.
The Islamic economy continues to evolve, driven by young Muslims asserting their values, and requiring companies to provide products and services that meet their faith-based needs and no longer being considered niche segments in the global economy.
"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. This is where the Global Islamic Economy Summit can play a productive role, gathering decision makers and key stakeholders in one high-profile event to exchange knowledge and insights, enabling them to synergistically work together to drive the sector forward and achieve sustainable economic growth," said Majid Saif Al Ghurair, chairman of Dubai Chamber, and board member of the Dubai Islamic Economy Development Centre.
Abdulla Mohammed Al Awar, CEO of the Dubai Islamic Economy Development Centre, said for the fourth consecutive year, the report presents new facts that further strengthen conviction in Islamic economy's ethical and regulatory framework and its ability to drive global economic growth.
"A core challenge for the Islamic economy is the need to motivate more Muslims across the globe, especially 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 Al Awar.
"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," said Nadim Najjar, managing director, Middle East and North Africa, Thomson Reuters.
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.
Modest fashion is gaining mainstream interest. Spend on modest fashion is projected to reach $368 billion by 2021.
Muslim spend on pharmaceutical and cosmetics products is expected to reach $213 billion by 2021 in aggregate.
Halal media and recreation is driving a positive reinforcement of Muslims. As new genres are addressed, Muslim spend is expected to reach $262 billion by 2021.
By Isaac John
Copyright © 2020 Khaleej Times. All Rights Reserved.