So as per a new report, it has been found that the global spending in the Islam-inspired ethical consumption sectors is set to see an increase of an astounding 45% and it ha been projected that the Islamic states will see an increase in revenue by $3.2 trillion by 2024.The report that has come forward with this info is titled as the “7th Annual State of the Global Islamic Economy” and it has been compiled by Dinar Standard, a US-based research and advisory company. New Report shows that the economy of Islamic countries will reach 3.4 Trillion by 2024.
Now,according to the report, Malaysia, the UAE, Bahrain, and Saudi Arabia have dominated the Global Islamic Economy Indicator rankings. Indonesia has improved significantly by jumping five places to 5th position from last year’s 10th. Pakistan ranks 8th ahead of Kuwait and Qatar in the Global Islamic Economy Indicator rankings.In addition to that, the Global Islamic Economy Indicator Rankings have included about 73 countries with the main focus on 49 various metrics which include governance, supply, and demand from 7 different sectors. Moreover,these sectors are Islamic finance, halal food, modest fashion, pharmaceuticals, cosmetics media and recreation, and Muslim-friendly travel.
Malaysia is currently ranked 1st in Islamic finance and Muslim-friendly travel sectors. In the remaining five sectors,those are being dominated by the UAE. Islamic finance is the biggest sector at $2.5 trillion and Halal food is the second biggest sector, valued at $1.4 trillion last year and when all 7 factors are accounted for, the result is astounding.
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Sultan Al Mansouri, Minister of Economy and Chairman of the Dubai Islamic Economy Development Centre, said:
“The UAE’s consistent rank among the top three in the Global Islamic Economy Indicator year after year is a key outcome of the Dubai: Capital of Islamic Economy initiative and its positive impact on the nation’s economy”
.It should be noted here that in 2018, the spending of Islamic economies in six sectors excluding Islamic finance increased by 5.2%. During the next five years, the spending is projected to increase at a compound annual growth rate (CAGR) of 6.2%.The report has forecasted a CAGR of 5.5% in the Islamic finance sector. If things remain at this rate, the Islamic finance sector will see a hike of about $3.4 trillion in the next five years.
Moreover, it is also worth noting here that the investment in the top 18 Islamic economies grew by 400%. A total of 63 investment deals worth $1.2 billion were signed last year. The halal food sector saw 54% of the investment while the Islamic finance sector received 42% of the total investment. The remaining 4% was made in the other five sectors.Countries in the Organization of Islamic Cooperation (OIC) can add 3% to their GDP by fulfilling the global demand for Sharia-compliant and halal products.The report highlighted the large Muslim population, increased wealth, digital connectivity, religious affinity, and ethical consumerism as the driving forces behind the Islamic economy.
