Bahrain among top Islamic economy markets

Manama : Bahrain, Malaysia and UAE are the top Islamic economy markets in the world, according to the Global Islamic Economy Indicator (GIEI) 2016/2017. 

This was revealed in a study by Thomson Reuters in collaboration with Dubai Islamic Economy Development Centre (DIEDC) and Dinar Standard. The study was conducted to understand the trends across different sectors of the Islamic economy, including the halal food sector, Islamic finance, halal lifestyle, Islamic education and healthcare.

The report, which included 73 countries, also examined how young Muslims are affecting the evolution of Islamic economies.  

“The Islamic Economy continues to evolve, driven by young Muslims asserting their values, and requiring companies to provide products and services that meet their faith-based needs and no longer being considered niche segments in the global economy. The Islamic Economy estimated to be worth $1.9 trillion and Islamic Finance sector has around $2trn in assets in 2015,” the report stated.

Food and beverage tops Muslim spend by category, at $1.17trn in 2015. This was followed by clothing and apparel at $243 billion, media and recreation at $189bn, travel at $151bn, and spending on pharmaceuticals and cosmetics at $78bn, the report stated. 

“Halal food, the largest Islamic Economy Pillar by revenue, 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 halal food industry. Muslim spend on food and beverages expected to reach $1.9trn by 2021,” the report said. 

Speaking about the report, Majid Saif Al Ghurair, Chairman of 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.”

Nadim Najjar, Managing Director, Middle East and North Africa, Thomson Reuters, said, “The convergence between the Islamic economic sectors is strongly expected to enhance the Islamic economy space going forward. This annual report is now a point of reference for professionals and industry players looking at the current and forecasted trends in this area.”