Page 370 - Ministry of Economy - December 2017

12/25/2017 Muslim spending tops $2trn on halal economy - Retail,Culture & Society,Middle East - ArabianBusiness.com
The figures were revealed by Dubai Islamic Economy Development Centre (DIEDC) in its State of the

Global Islamic Economy Report 2017-2018 report published in collaboration with Thomson Reuters.

The report found Halal food to be the largest and most diverse sector of the Islamic economy. New
entrants have come into the market, and product offerings have firmly moved beyond being meat-

focused to include candy, ready-made meals, snacks and children’s food.

Established players are expanding at home and abroad, through franchising. Multinationals have also
made major investments in Muslim-majority markets, anticipating rising demand. Meanwhile, private

equity investment and sovereign wealth funds have been particularly active, and a number of Halal

investment funds are in development, the report added.

The International Halal Accreditation Forum, established in the UAE in 2017 and overseeing 19

certifiers globally, is a further positive development for the industry, it noted.

With Muslim spend on food and beverages is growing at nearly double that of global growth, expected
to reach $1.93 trillion by 2022.

The report said the Islamic finance sector continues to evolve and the sukuk industry continues to

mature, with a number of debut sukuk issuances over the past year and more in the pipeline. Assets
were estimated at over $2 trillion in 2016, and are expected to surge to $3.8 trillion by 2022.

Family-friendly travel is also getting its moment in the sun. The number of Muslims travelling is at an

all-time high, the report said, adding that Halal hotel chains are also emerging and family-friendly

attractions are being developed in the GCC.

Muslims spend on travel was $169 billion in 2016, and is forecast to reach $283 billion by 2022.

As for modest fashion, designer brands and boutiques are developing new lines and Ramadan

collections. Modest athletic apparel is a notably trendy segment, with Nike getting in on the act as well

as Danish label Hummel. Muslim spend on clothing was $254 billion in 2016, and is forecast to reach
$373 billion by 2022.

The report said Halal media and recreation is challenging perceptions and adapting to the needs of

Muslim millennials. New films are being released, TV channels are going on air, and mainstream
media is increasingly embracing Islamic content.

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