STRONG FOUNATION

With Muslim consumers across the world seeking out faith-based products and services, the Islamic economy is seeing robust growth among all its different verticals

- ZAINAB MANSOOR

As 1.8 billion Muslim consumers seek to fulfil their faith-inspired needs, creating a formidable consumer base, worldwide spending across the Islamic economy is estimated to grow further.

Affinity and affluence among Muslims worldwide, growing engagement from eminent brands, increased investor focus, marketing campaigns and branding tied to faith-based needs are rallying the sector’s growth.

In 2018, Muslims spent $2.2 trillion across the food, pharmaceutical and lifestyle sectors, representing a 5.2 per cent year-on-year growth. That figure is forecast to reach $3.2 trillion by 2024, the State of the Global Islamic Economy Report found.

The report revealed 10 core drivers spurring the growth of the Islamic economy: growing population; increasing affluence; increasing religious affinity; digital connectivity; ethical consumerism; multinational growth; economic diversification and development; halal trade; regulations and investor returns.

Measuring the strength of the Islamic economy across 73 countries based on supply and demand drivers and other considerations, Malaysia led the Global Islamic Economy Indicator (GIEI) ranking with a score of 111, followed by the UAE (79), Bahrain (60), and Saudi Arabia (50.2). In terms of business opportunity, halal ingredients, Islamic fintech, and luxury modest clothing were among the key sectors for growth in 2020.

Locally, Dubai is seeking to establish itself as the capital of the Islamic economy and has taken several steps towards achieving that goal.