Islamic Spending to Reach USD 2.4 Trillion

Expenditure across Islamic economy sectors excluding family-friendly travel is expected to reach USD 2.4 trillion by 2024.

The annual State of the Global Economy Report 2020/21 estimates that Muslims spent over USD 2.01 trillion on halal food, family-friendly travel, modest fashion, halal pharmaceuticals, halal cosmetics, halal media and recreation.

The reports ranked UAE among the top three countries in Global Islamic Economy Indicator 2020-2021. UAE also ranked first in two other sectors including modest fashion and halal media and recreation.

The data released by the report forecast the spending on halal food and beverages by Muslims will reach USD 1.3 trillion by 2024 while Islamic finance assets are expected to hit USD 3.69 trillion in 2024.

“While the figures reflect a 3.2 per cent year-on-year growth, expenditure in 2020 is expected to shrink by approximately eight per cent, due to the economic impact resulting from the coronavirus pandemic,” said the report unveiled by the Dubai Islamic Economy Development Centre (DIEDC).

In 2019, Global Islamic finance industry assets increased by 13.9 percent (USD2.88 trillion) from USD 2.5 trillion in 2018. The leading countries in 2019 were Iran ($698.2 billion), Saudi Arabia ($629.4 billion) and Malaysia ($570.5 billion). The industry is expected to reach a total of USD 3.69 by the end of 2024.

The overall Global Islamic Economy Indicator was one again achieved by Malaysia who also got the first in the Islamic finance sector, the family-friendly travel sector, halal food and beverages sector, halal pharmaceuticals and cosmetics sectors indicators.

According to the report, investments in 2019 witnessed a 13 percent drop to reach USD 11.8 billion. Of the total investments, Islamic finance and Islamic lifestyle sectors attracted 41.8 percent and four percent respectively while over 52 per cent were within the halal food and beverages sector.

“The Islamic economy, with its ethical and transparent ecosystem, remains a pillar of strength and a guarantee for a better future”, said Abdulla Mohammed Al Awar, CEO of DIEDC, in these uncertain times.

The annual State of the Global Islamic Economy Report 2020/21 was produced by DinarStandard, a US-based research and advisory firm, in partnership with Salaam Gateway, a leading news and media platform focused on the Islamic economy.