(MENAFN- Gulf Times) The global halal food and lifestyle sector is expected to grow around 6% by 2020, according to findings from the soon-to-be-released State of the Global Islamic Economy Report 2015/2016.
The report is commissioned and supported by the Dubai Islamic Economy Development Centre (DIEDC) in partnership with Thomson Reuters, and in collaboration with DinarStandard.
The report noted that the demand for ethical treatment of animals alone would result in a $100bn 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 Global Islamic Economy Summit (GIES) to be held in Dubai next month, 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 the 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 spending in the pharmaceutical industry reached $72bn and is expected to grow to $103bn by 2019. One of the major challenges facing the pharmaceuticals and personal care sector today is the lack of funding for research and development.
Majid Saif al-Ghurair, chairman, Dubai Chamber, said, "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, DIEDC, 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, Thomson Reuters (MENA) 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."
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.