Shedding light on state of global Islamic economysqwcgadmin
14th May, 2015
A KEYNOTE presentation entitled ‘The State of the Islamic Economy’ was yesterday delivered by the Head of Research and Product Development of Islamic Finance at Thompson Reuters, Mustafa Adil, on the second day of the International Food & Biotech Investment Conference held at The Empire Hotel & Country Club.
The aim of the presentation is to inspire and empower business leaders, entrepreneurs, government officials and industrial bodies to evaluate and develop practical and high-impact market strategies.
The presentation featured the 2014-2015 State of the Global Islamic Economy report as a reference to the growing momentum of Islamic economies.
“This report represents the core sectors of global Islamic economy with ecosystems structurally affected by Islamic values-driven consumer lifestyle and business practices.” Mustafa said.
According to the report, collectively these major sectors comprise Islamic finance, the Halal food industry and lifestyle such as modest fashion, travel, pharmaceuticals and cosmetics as well as media and recreation.
In the food market, global Muslim spending has increased 10.8 per cent to reach $1,292 billion in 2013. This takes the potential core Halal market to be 17.7 per cent of global expenditure in 2013 compared to 16.6 per cent the year before. This expenditure is expected to grow to a $2,537 billion market by 2019 and will account for 21.2 per cent of global expenditure. Top countries for Muslim food consumption are Indonesia ($190 billion), Turkey ($168 billion), Pakistan ($108 billion) and Iran ($97 billion) based on 2013 data.
Meanwhile, Malaysia, the United Arab Emirates (UAE) and Australia lead the Halal Food Indicator, in which all indicators represent the health of the Halal food ecosystem a country has relative to its size. A special focus report on Halal food logistics estimates costs for the potential global Halal food market in 2013 to be $151 billion.
In the fashion market, global Muslim consumer spending on clothing and footwear has increased 11.9 per cent to reach $266 billion in 2013. This makes the market to be 11.9 per cent of global expenditure and is expected to reach $488 billion by 2019. Top Muslim consumers in this market are – based on 2013 data – Turkey ($39.3 billion), United Arab Emirates ($22.5 billion), Indonesia ($18.8 billion) and Iran ($17.1 billion).
Meanwhile, the UAE, China and Italy lead the Modest Fashion Indicator and given the importance of digital platforms to this space, a special Muslim Fashion E-Commerce focus report looks at this segment’s developments and hotspots across the globe. DinarStandard estimates Muslim consumers’ e-commerce expenditure at $4.8 billion in 2013.
In the travel market, global Muslim spending (outbound) has increased 7.7 per cent to reach $140 billion in 2013 (excluding Haj and Umrah). This is 11.6 per cent of the global expenditure and is expected to reach $238 billion by 2019. Top countries with outgoing Muslim tourists based on 2013 data were Saudi Arabia ($17.8 billion), Iran ($14.3 billion), UAE ($11.2 billion), Qatar ($ 7.8 billion), Kuwait ($7.7 billion) and Indonesia ($7.5 billion).
Meanwhile, Malaysia, UAE and Singapore lead the Halal Travel Indicator. A special focus report covering religious pilgrimages – Haj and Umrah – estimates there were a total 5.7 million pilgrims with total expenditure reaching $16.2 billion in 2013.
In the media and recreation market, global Muslim spending on recreation and culture has grown 7.3 per cent to reach $185 billion in 2013. This represents 5.2 per cent of global expenditure and is expected to reach $301 billion by 2019. Countries at the top for Muslim consumers’ focus on recreation, based on 2013 data, are Turkey ($30.3 billion), Indonesia ($9.4 billion), the United States of America ($9.1 billion), Iran ($9 billion) and France ($8.4 billion.)
Meanwhile, Singapore, the UAE and the United Kingdom led the Halal Media and Recreation indicator. A special focus report on Islam-themed Broadcast Media, highlights the Ramadhan-drama series ‘Musalsalat’ and various broadcast channel developments driven by much higher projected TV advertising growth for member countries of the Organisation of Islamic Cooperation (9.9 per cent) between 2013 and 2018, compared with the global average of 5.5 per cent for the same time period.
In the pharmaceuticals and cosmetics market, global Muslim consumer spending increased 2.1 per cent to reach $72 billion in 2013. This makes the market 6.6 per cent of global expenditure and is expected to reach $103 billion by 2019. Top countries for this sector 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. This spending makes up 6.78 per cent of global expenditure and is expected to reach $73 billion by 2019. Top consuming countries are the UAE ($4.9 billion), Turkey ($4.4 billion), India ($3.5 billion) and Russia ($3.4 billion) – based on 2013 estimates.
Malaysia, Egypt and Singapore lead the way for the Halal Pharmaceuticals and Cosmetics Indicator.
The report states that the 56 mostly Muslim-majority countries of the world that represent a Gross Domestic Product of $6.7 trillion in 2013, have a 1.7 billion population that is growing at twice the rate of the global population, with some of the fastest-growing global economies stretching from Indonesia in the east to Turkey in the west with Arabian Gulf states at their centre.
Its influence stretches beyond Muslim-majority countries as more than 350 million Muslims reside as minority groups in many adopted nation-homes. The most affluent of these communities live in the West, with other populations residing in emerging nations such as India, China and Russia.
General objectives of the report are to present key business and consumer drivers of the Global Islamic Economy and provide a global view of the Islamic economic landscape and annual updates on this landscape.
More specific objectives include presenting specific market opportunities for each sector including current challenges and the criteria for success as well as providing annual updates and frameworks for businesses so that governments and industrial bodies can evaluate and engage in opportunities within the global Islamic economy.
Source: Borneo Bulletin