Muslims spent $2.2 trillion in 2018 across the food, pharmaceutical and lifestyle sectors that are impacted by Islamic faith-inspired ethical consumption needs, according to a new report.

Dubai Islamic Economy Development Centre (DIEDC) has announced the results of the State of the Global Islamic Economy Report (SGIE) 2019/20.

The report, produced by DinarStandard, a US-based research and advisory firm, said the 2018 spending reflects a 5.2 percent year-on-year growth and is forecasted to reach 3.2 trillion by 2024 at a cumulative annual growth rate (CAGR) of 6.2 percent.

In addition, Islamic finance assets are estimated to have reached $2.5 trillion in 2018. On the Global Islamic Economy Indicator, comprising 73 countries, Malaysia, the UAE, Bahrain and Saudi Arabia continue to lead the ranking, with Indonesia making the biggest jump from number 10 to number five. The UAE also tops five of the seven Islamic economy sector rankings.

The report also highlighted growth in Islamic economy investment activity which reached $1.2 billion in 2018, growing 399 percent on a like-to-like basis compared to the prior year.

Almost 54 per cent of these investments were recorded within the halal products category, while Islamic finance and Islamic lifestyle attracted 42 percent and four percent of the investments respectively.

Essa Kazim, governor of the Dubai International Financial Centre (DIFC) and secretary general of DIEDC, said: “The Islamic economy continues to achieve remarkable year-on-year growth across its sectors… These numbers indicate the critical role of the Islamic finance sector in the overall Islamic economic system. Successful adoption of modern technologies, such as fintech and digital banking, has created new opportunities for the sector and the wider Islamic economy.”

Source: Arabian Business

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