ISLAMABAD – According to a new report, the global spending inIslam-inspired ethical consumption sectors will increase by 45%, reaching$3.2 trillion by 2024.
The report titled “7th Annual State of the Global Islamic Economy” wascompiled by Dinar Standard, a US-based research and advisory company.
As per the report, Malaysia, the UAE, Bahrain, and Saudi Arabia havedominated the Global Islamic Economy Indicator rankings. Indonesia hasimproved significantly by jumping five places to 5th position from lastyear’s 10th. Pakistan ranks 8th ahead of Kuwait and Qatar in the GlobalIslamic Economy Indicator rankings.
The Global Islamic Economy Indicator Rankings cover 73 countries and focuson 49 various metrics like governance, supply, and demand from 7 differentsectors. These sectors are Islamic finance, halal food, modest fashion,pharmaceuticals, cosmetics media and recreation, and Muslim-friendly travel.
Malaysia is ranked 1st in Islamic finance and Muslim-friendly travelsectors. The remaining five sectors are dominated by the UAE. Islamicfinance is the biggest sector at $2.5 trillion and Halal food is the secondbiggest sector, valued at $1.4 trillion last year.
Sultan Al Mansouri, Minister of Economy and Chairman of the Dubai IslamicEconomy Development Centre, said:
The UAE’s consistent rank among the top three in the Global Islamic EconomyIndicator year after year is a key outcome of the Dubai: Capital of IslamicEconomy initiative and its positive impact on the nation’s economy.
Read Top Stories
In 2018, the spending of Islamic economies in six sectors excluding Islamicfinance increased by 5.2%. During the next five years, the spending isprojected to increase at a compound annual growth rate (CAGR) of 6.2%.
The report predicts a CAGR of 5.5% in the Islamic finance sector. At thisrate, the Islamic finance sector will reach $3.4 trillion in the next fiveyears.
The investment in the top 18 Islamic economies grew by 400%. A total of 63investment deals worth $1.2 billion were signed last year. The halal foodsector saw 54% of the investment while the Islamic finance sector received42% of the total investment. The remaining 4% was made in the other fivesectors.
Countries in the Organization of Islamic Cooperation (OIC) can add 3% totheir GDP by fulfilling the global demand for Sharia-compliant and halalproducts.
The report highlighted the large Muslim population, increased wealth,digital connectivity, religious affinity, and ethical consumerism as thedriving forces behind the Islamic economy.
