Global Muslim spend across sectors of the Islamic economy surpassed $1.9 trillion in 2015, while the Islamic Finance sector has around $2 trillion in assets, according to a new report.
The State of the Global Islamic Economy Report showed that food and beverage topped Muslim spend by category, at $1.17 trillion last year, 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.
It also said that revenue generated by Halal certified food and beverage companies worldwide reached $415 billion.
The report added that halal food 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 market.
The study, by Thomson Reuters in partnership with the Dubai Islamic Economy Development Centre (DIEDC), and in collaboration with DinarStandard, predicted that Muslim spend on food and beverages is expected to reach $1.9 trillion by 2021.
It added that the Islamic Finance sector has shown robust growth and increasing sophistication. Despite being held back by a lack of awareness of Islamic Finance product offerings, there is considerable opportunity for sector growth to reach $3.3 trillion by 2021.
Halal travel is expected to grow with Muslim spend on outbound travel expected to reach $243 billion by 2021 while modest fashion is gaining mainstream interest with several retailers and brands such as Dolce & Gabbana, Uniqlo and Burberry entering the industry. As the sector gains traction, spend on Modest Fashion is projected to reach $368 billion by 2021, the report said.
Halal pharmaceutical and cosmetics continue to expand as awareness about ingredients rises and new product development, such as permeable nail polish, the development of Halal vaccines and new ranges of nutraceuticals. Muslim spend is expected to reach $213 billion by 2021 in aggregate.
According to the report, halal media and recreation is also driving a positive reinforcement of Muslims. As new genres are addressed, Muslim spend is expected to reach $262 billion by 2021.
The report has been released ahead of the Global Islamic Economy Summit 2016, set to take place on October 11-12 at Madinat Jumeirah in Dubai.
Majid Saif Al Ghurair, chairman, Dubai Chamber and Board Member of the Dubai Islamic Economy Development Centre, said: “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.”
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