The UAE has been ranked among the op three Islamic Economy countries in the world, according to the 2020-2021 State of the Global Islamic Economy Report.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, and General Supervisor of the ‘Dubai: Capital of Islamic Economy Initiative’ said that the UAE has accumulated extensive expertise in the field of Islamic economy and established a robust fintech infrastructure that places it in a strong position to become a global leader in developing the sector.
Sheikh Hamdan’s remarks came on the occasion of the announcement of the results of the 2020-2021 State of the Global Islamic Economy Report today.
Speaking about the global impact of the Covid-19 pandemic, the Crown Prince pointed out that the Islamic Economy sector has the potential to lead post-pandemic global economic recovery. He stressed the need to take advantage of fresh opportunities that can open new economic horizons and help both the region and the world overcome the repercussions of the pandemic.
Sheikh Hamdan called for strengthening channels of cooperation with partners around the world, and harnessing the potential of the ‘Dubai: Capital of Islamic Economy Initiative’ to attract investment and capital into the Islamic Economy sector, which in turn will enhance both Dubai and the UAE’s roles as major players in expanding regional and global growth opportunities post-Covid-19.
Speaking on the results of the SGIE Report 2020/21, Sultan bin Saeed Al Mansouri, Chairman of DIEDC, said:
“The Dubai: Capital of Islamic Economy initiative is a key contributor to the UAE’s top rank in the Global Islamic Economy Indicator year after year. Disruptions resulting from the coronavirus outbreak have forced nations across the globe, including the UAE, to reprioritise and enhance focus on sectors such as food security. In doing so, it reinforces the UAE’s Islamic finance regulatory framework and drives robust Islamic finance activity, such as leading the unified global legislative framework for Islamic finance.
The UAE’s progress can be attributed to the commendable efforts of DIEDC and its strategic partners in successfully implementing the Centre’s initiatives. Such consistent efforts have contributed to the significant growth of the Islamic economy in Dubai, boosting the industry’s contribution to Dubai’s GDP, in addition to supporting sustainable development in the UAE and advancing its economic diversification drive.”
State of the Global Islamic Economy Report
The Dubai Islamic Economy Development Centre (DIEDC) today announced the results of the annual State of the Global Islamic Economy Report 2020/21 (SGIE Report 2020/21), produced by DinarStandard, a US-based research and advisory firm, in partnership with SalaamGateway, a news and media platform focused on the Islamic economy.
First published in 2013, the report serves as an annual update on the Islamic economy, encompassing the halal food and beverages, Islamic finance, and lifestyle sectors.
The UAE was ranked one of the top three countries in the report’s much-anticipated Global Islamic Economy Indicator, which covered 81 countries this year. New entrants, Nigeria, Sri Lanka, and Singapore joined the top 15 rankings while Saudi Arabia and Indonesia moved up in the rankings compared to last year’s SGIE Report.
Malaysia once again topped the overall Global Islamic Economy Indicator as well as the Islamic finance sector, the family-friendly travel sector, halal food and beverages sector, halal pharmaceuticals and cosmetics sectors indicators. The UAE ranked in first place in the remaining two sectors – Modest Fashion and Halal Media and Recreation.
Following a record year of investments in Islamic economy-relevant companies in 2018, investments in 2019 registered a 13 per cent drop to reach $11.8 billion.
Of the total investments, over 52 per cent were within the halal food and beverages sector, while the Islamic finance and Islamic lifestyle sectors attracted 41.8 per cent and 4 per cent, respectively. These figures can be attributed to corporate-led mergers and acquisitions, venture capital investments in tech start-ups, as well as private equity investments.
The SGIE Report 2020/21 shows that Islamic finance assets reached a value of US$2.88 trillion in 2019 and are expected to hit US$3.69 trillion in 2024. The Report also identifies the successful adoption of modern technologies, such as tokenisation of sukuks, as a sign of opportunity, that will enhance the sector and the wider Islamic economy.
Abdulla Mohammed Al Awar, CEO of DIEDC, said: “The SGIE Report is an annual publication that has gained traction as a trusted and ready reference on the global Islamic economy, and contributes to strengthening Dubai’s position as the global capital of Islamic economy.”
Hamed Ali, Chief Executive of Nasdaq Dubai and Deputy Chief Executive of Dubai Financial Market, said: “We will build further on Dubai’s role as one of the world’s largest listing centres for Sukuk, currently at $74.3 billion, to support issuers, investors and all market participants in the Sharia’a-compliant financing sector.”
As with previous editions, the SGIE Report 2020/21 highlights the Islamic economy’s role in addressing the UN’s Sustainable Development Goals (SDGs) including initiatives that address poverty and food security that the ongoing pandemic has further highlighted.
Strategic partners of this year’s SGIE Report include The Islamic Food and Nutrition Council of America (IFANCA) and CIMB Islamic, the CIMB Group’s Islamic banking and financial services franchise.
Source Khaleej Times