UAE leads Islamic economy index

Abdul Basit – Chief Reporter / 8 December 2014

• Global report iterates Dubai’s role as an incubator of knowledge for the industry 

The State of the Global Islamic Economy Report on Sunday iterated Dubai’s leading role as an incubator of knowledge for the Islamic economy industry.
Dubai Islamic Economy Development Centre (DIEDC), in partnership with Thomson Reuters and in collaboration with the Dinar Standard launched the 2014-2015 report for the second consecutive year, and introduced the ‘Global Islamic Economy Indicator (GIEI).
The GIEI presents the current development health of Islamic economy sectors across 70 core countries. The UAE, Malaysia and Bahrain lead this inaugural composite Index.
The report, which indicates the continuing build-up of the Islamic economy momentum, estimates that global expenditure of Muslim consumers on food and lifestyle sectors grew 9.5 per cent from previous years’ estimates to $2 trillion in 2013 and is expected to reach $3.7 trillion by 2019 at a compound annual growth rate of 10.8 per cent. This forms the potential core market for halal food and lifestyle sectors.
In addition, this report estimates Islamic finance assets at $1.66 trillion in 2013. Islamic funds and sukuks led year-on-year growth with 14 per cent and 11 per cent, respectively, whereas Islamic banking experienced a five per cent drop in its assets. The report estimates the potential universe of Islamic finance assets in its core markets to be $4.2 trillion in 2014.
Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, said: “Dubai has achieved great milestones in key sectors of the Islamic economy with the support of DIEDC and other major players in the field. The growth is testimony to the wisdom and vision of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, who has provided Dubai’s economy with a roadmap for a sustainable development, in line with the UAE Government’s strategy to become one of the leading countries in the world by 2021.”
Mohammed Abdullah Al Gergawi, chairman of the DIEDC Board, said: “The launch of the… report reiterates our commitment to nurture a knowledge-based Islamic economy... We in the UAE are proud of the leading role played by our institutions in supporting the development of the Islamic economy locally and globally.
Essa Kazim, Secretary General of DIEDC, said: “The purpose of the report is to inspire and empower entrepreneurs, industry leaders, and investors to evaluate and develop an actionable, practical, and high impact market strategy focused on growing the opportunities for Islamic economy in their markets.”
Abdulla Mohammed Al Awar, CEO of DIEDC, said: “The key findings of the report and the 2014 index are an important value addition to our ongoing efforts in developing the Islamic economy across strategic sectors.”
Nadim Najjar, managing director, Middle East and North Africa, Thomson Reuters, said: “Thomson Reuters has harnessed the power of its enterprise in partnership with the DIEDC and Dinar Standard, to provide groundbreaking insights on the available opportunities in Islamic economy and the possibilities for advancement of this rapidly emerging market segment.”
Although still in its early days, the report focuses on core sectors of the global Islamic economy and their ecosystem that have through Islamic values structurally impacted consumer lifestyles and
business practices. Collectively these majors sectors are: Islamic finance, halal food and lifestyle sectors (fashion, travel, pharmaceutical and cosmetics, media and recreation).
Food market: Global Muslim spending on food and beverages has increased 10.8 per cent to reach $1,292 billion in 2013.
The potential core halal food market registered 17.7 per cent of global expenditure in 2013 compared to 16.6 per cent the year before.
Top countries with Muslim consumer food consumption are Indonesia ($190 billion), Turkey ($168 billion), Pakistan ($108 billion) and Iran ($97 billion), based on 2013 data.
Meanwhile, the UAE, Malaysia and Australia lead the Halal Food Indicator that focusses on the health of the halal food ecosystem a country has relative to its size.
A special focus report on Halal Food logistics estimates logistical costs for the potential global halal food market to be $151 billion in 2013. Global Muslim spending on outbound tourism has increased 7.7 per cent to reach $140 billion in 2013 excluding Haj and Umrah. This is 11.6 per cent of global expenditure and expected to reach $238 billion by 2019.
The UAE, Malaysia and Singapore lead the Halal Tourism Indicator that focuses on the health of the family-friendly tourism ecosystem a country has relative to its size.
Global Muslim consumer spending on pharmaceuticals has increased 2.1 per cent to reach $72 billion in 2013.
Top countries with Muslim pharmaceutical consumers are Turkey ($8.9 billion), Saudi Arabia ($5.9 billion), Indonesia ($4.9 billion), and Iran ($3.7 billion.)

Global Muslim spending on cosmetics increased one per cent to reach $46 billion in 2013. Top countries with Muslim cosmetics consumers are the UAE ($4.9 billion), Turkey ($4.4 billion), India ($3.5 billion), and Russia ($3.4 billion), based on 2013 estimates.

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