UAE among top halal nations
The halal cosmetics sector in particular is growing quickly in the Asia-Pacific through smaller brands.
Dubai - Global expenditure of Muslim consumers forecast to reach $3.7 trillion by 2019.
The UAE is among the top three countries for the global Islamic indicator in many sectors such as halal food, travel, fashion, media, recreation and Islamic finance among others.
It is estimated that the global expenditure of Muslim consumers on food and lifestyle sectors is expected to reach $3.7 trillion by 2019 at a compound annual growth rate of 10.8 per cent compared to $2 trillion in 2013.
The halal food market is expected to reach $2.54 trillion in 2019 compared to $1.29 trillion in 2013, accounting for more than 17 per cent of the global market size. The UAE ranked second in this market.
The UAE ranked third after Malaysia and Bahrain in Islamic finance; the sector is estimated to cross the $4 trillion mark in 2019 compared to $1.21 trillion in 2013.
The Dubai Islamic Economy Development Centre, in partnership with Thomson Reuters and in collaboration with DinarStandard, has announced initial trends from the 2015-16 edition of the "State of the Global Islamic Economy" report and the accompanying Global Islamic Economy Indicator, ahead of the Global Islamic Economy Summit that will run in Dubai from October 5-6.
The report, which is being compiled for the third consecutive year, is set for release in the fourth quarter of 2015. The report focuses on categories such as Islamic finance, halal food, tourism, clothing and fashion, media and recreation, and pharmaceuticals and cosmetics.
The report will also feature an update to the Global Islamic Economy Indicator, which was introduced in 2014. The indicator is a composite index that presents the current outlook of the Islamic economy sectors across 70 countries beyond the growth of its assets, focusing on awareness, governance and social metrics. Furthermore, a special focus report on the Islamic digital economy will be launched this year alongside the State of the Global Islamic Economy Report.
Islamic Finance: New markets are emerging, with African countries launching debut sovereign sukuk and East Asian countries enabling their domestic markets to tap into Islamic financing. Meanwhile, European banks in Russia and Germany, for example, are also investing in Islamic finance through debut sovereign sukuk and Islamic banking windows.
Halal food: As the demand for safe, wholesome and humane food grows around the world, producers of halal food who truly adhere to the concepts of halal and tayyib foods have an opportunity to become the global standard for this segment.
Tourism: There have been many success stories in the ever-burgeoning halal travel sector. HalalBooking.com, a travel search and booking website for halal-conscious traveklers, has achieved tremendous success. This is in addition to other success stories such as Yamsafer, a hotel booking start-up from Palestine that raised $3.5 million from Global Founders Capital.
Clothing and fashion: In stark contrast to the pressures the mainstream fashion industry faces in the aftermath of the global recession, the modest fashion space continues to expand. Muslim fashion e-commerce platforms such as Hijup and Modanisa are receiving further investments to grow their user base, while mainstream fashion players such as Uniqlo, Mango and Tommy Hilfiger are following the lead of haute couture houses such as DKNY in tapping into the modest fashion market.
Islamic digital economy: A new frontier in the Islamic economy is its digital component.
This segment has woven itself into the lives of many Muslims worldwide as an integral part of their lifestyle. From Qur'an and halal travel mobile apps to online Islamic education services and tools for locating the nearest halal restaurants, the Islamic digital economy has emerged as a high growth segment.
Pharmaceuticals and cosmetics: This sector offers several success stories and opportunities for growth. The halal cosmetics sector in particular is growing quickly in the Asia-Pacific through smaller brands, forcing large companies such as Unilever to start looking at halal cosmetics to ensure they maintain their strong presence in this region.
Abdulla Mohammed Al Awar, chief executive officer of the DIEDC, said: "We are confident the report will inspire and empower entrepreneurs, industry leaders and investors from within the Arab world and beyond to evaluate and develop an actionable, practical and high impact market strategy focused on growing the opportunities for Islamic economy in their own geographies."