DUBAI, UNITED ARAB EMIRATES, September 22, 2015 - The global Halal food and lifestyle sector is expected to grow by 6% by 2020, according to selected findings from the State of the Global Islamic Economy Report 2015/2016, which will be released in full at the end of this month. The report is commissioned and supported by the Dubai Islamic Economy Development Centre
(DIEDC) in partnership with Thomson Reuters
, and in collaboration with DinarStandard.
In partnership with the Dubai Islamic Economy Development Centre and Dubai Chamber, Thomson Reuters, the world's leading source of intelligent information for businesses and professionals, is organising the second edition of the Global Islamic Economy Summit (GIES). Taking place on October 5th and 6th, the Summit is expected to bring together over 2,000 business leaders to discuss issues and opportunities in the growing Islamic economy. The Summit will tackle challenges in family tourism, Halal food, pharmaceuticals and personal care, fashion, media and recreation, as well as other important aspects of the Islamic economy.
The global Muslim market spent $142 billion on travel in 2014, and is expected to reach $233 billion by 2020. The most popular destination countries for Muslim tourists are Malaysia, Turkey and the UAE, which is outpacing other countries in terms of hotel development. To meet that growth, new channels are being created, such as HalalBooking.com, a travel search and booking website for Halal-conscious travelers. The website expects their bookings for their Turkey-based hotels to reach 10 million per hotel by the end this year and in 2016.
Although the Halal travel sector, also known as "Shariah-compliant", is expected to grow by 8.6% by 2020, some investors are still reluctant to invest in "Muslim-friendly" hotels, for fear of revenue loss associated with not serving alcohol. Banqueting, however, is considered a viable alternative revenue-generating option for dry hotels. According to Riyanto Sofyan, CEO of Sofyan Hotels, "The Halal tourism industry is not limited to Muslims, but rather extols Islamic values that are universal and inclusive, helping to broaden our market reach and attract a wider customer base, regardless of religion."
The Halal food sector is expected to grow by 5.8% by 2020, with the demand for ethical treatment of animals alone resulting in a $100 billion organic food market. Although the principle of treating animals is embodied within Halal food, educating Organisation of Islamic Cooperation (OIC) countries about the Halal sector and its standards and accreditation continues to be a challenge.
The Muslim media and recreation sector, another topic of discussion at the 2015 GIES, has also seen an increase in demand, with new emerging media channels tailored for Muslims. An example of this is "Muslim Face", a new social media website initiative developed by Muslim entrepreneurs and aimed at bringing young Muslims together. This sector, expected to grow by 5.5% by 2020, is still facing a number of challenges because of public perception that Islamic content is restricted to the religious or educational.
Contrary to the rest of the fashion industry, which is facing financial pressures as a result of global recession, the modest or Islamic fashion sector continues to expand. The Islamic fashion sector accounts today for about 11% of the global fashion industry, and is expected to grow by 6% by 2020. Some of the key challenges facing the sector are the need to adopt a wider perspective when incorporating Islamic values throughout the modest fashion value chain, the lack of unified payment platforms, and variations in customs rules and regulations across countries.
In 2013, global Muslim spend in the pharmaceutical industry reached $72 billion, and is expected to grow to $103 billion by 2019. One of the major challenges facing the pharmaceuticals and personal care sector today is the lack of funding for research and development.
H.E. Majid Saif Al Ghurair, Chairman, Dubai Chamber, commented: "Through the years we have seen how Islamic finance has grown to become a mainstream offering at financial institutions, and a similar pattern is unfolding within the halal lifestyle sector of the wider Islamic economy. From clothing, to food to pharmaceuticals, the demand is steadily growing and what is really needed, at this point, is information for the average Muslim consumer on what is available and where. This is where the 'State of the Global Islamic Economy' Report will serve the discerning Islamic finance and halal lifestyle consumers."
Abdulla Mohammed Al Awar, CEO of Dubai Islamic Economy Development Centre, said: "Muslims across the world are increasingly receptive to the diverse and sophisticated Muslim-friendly products and services that have become available over the years, especially in Western countries and multicultural societies. Ideas to help Muslims better navigate this growing market and live a more balanced and content life carry huge business potential."
Nadim Najjar, Managing Director of Thomson Reuters, Middle East and North Africa, said, "Thomson Reuters is proud to spotlight the rapidly-growing and multifaceted Islamic economy in the inaugural edition of the 'State of the Global Islamic Economy' Report. With impressive growth figures predicted over the next five years, diverse sectors within the Halal lifestyle market are asserting themselves in the global economy, boosted by Muslim consumer buying power. This report will provide an invaluable tool for key stakeholders in navigating emerging trends in the industry."
Held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, the Global Islamic Economy Summit this year will bring together thinkers and business leaders to address these issues. These include Temel Kotil, CEO, Turkish Airlines; Simon Coombs, CEO, Shaza Hotels; Abdulla Al Maini, Director General, ESMA; Alia Khan, Ch.airwoman, Islamic Fashion Design Council; and Hourya Mohamed Laarabi, Experience Development Professional, , among many others.
The full State Global Islamic Economy Report will be revealed before the Summit. For more information about GIES 2015, please visit: www.giesummit.com/en/gie-summit/
About Dubai Islamic Economy Development Centre
'Dubai Islamic Economy Development Centre (DIEDC) was established in December 2013 to transform Dubai into the 'Capital of Islamic Economy', as envisioned by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, supervises the efforts of the DIEDC and its Board to bolster Dubai's bid to become a global hub for the Islamic Economy, encompassing a wide array of sectors through harnessing the projected US$6.7 trillion Islamic economy market.
DIEDC is equipped with the financial, administrative and legal tools to promote economic activities compatible with Islamic law in Dubai's goods and financial services sector, as well as the non-financial sector. In this capacity, it will conduct research and specialist studies to determine the contribution of sharia-compliant activities to the emirate's gross domestic product, and explore how to extend this contribution to boost the economy. DIEDC is also mandated to create new products and lines of service to law firms specializing in finance structuring.
About Dubai Chamber
Established in 1965, Dubai Chamber of Commerce & Industry is celebrating its milestone anniversary of 50 years empowering vision in Dubai's business community. A non-profit public entity, Dubai Chamber supports Dubai's vision as a global player by empowering businesses, providing innovative value added services and access to influential networks. Its mission is to represent, support and protect the interests of the business community in Dubai by creating a favourable business environment, supporting the development of business, and by promoting Dubai as an international business hub. For more information visit: www.dubaichamber.comAbout Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world's most trusted news organization. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI). For more information, go to www.thomsonreuters.com.
Tarek S. Fleihan
Head, Corporate Communications & Public Relation
Middle East, Africa & Russia / CIS
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© Press Release 2015