State of the Global Islamic Economy Report


This report delves into the dynamic landscape of the global Islamic economy, showcasing significant growth, investment trends, and socio-economic impacts across various sectors. Highlighting the role of sovereign wealth funds, venture capital, and private equity, it underscores the active involvement of global conglomerates and development agencies in fostering Islamic market opportunities.

Key Insights from the Report

  1. Sovereign Wealth Funds: Led by Saudi Arabia's PIF, actively investing in the Islamic economy. 
  2. National Strategies: Malaysia, Indonesia, and Saudi Arabia integrating Islamic economic policies.
  3. Entrepreneurship Support: VCs and PE funds backing ventures like Wahed (Fintech) and Modanisa (fashion e-commerce).
  4. Global Conglomerates: Companies like Nestle, BRF, and Nike investing in Islamic markets.
  5. OIC Ecosystem: Organizations like IsDB and ICDT focusing on Islamic/Halal economic opportunities.
  6. Development Agencies: UNHCR and World Bank leveraging Islamic social finance for funding. 

Sector-Specific Insights

    1. Halal Food:
      • Food security remains a priority amidst climate and geopolitical challenges.
      • Investment in food tech, cultivated meat, and hybrid seeds.
      • Muslim spending on food forecasted to grow from US$1.4 trillion in 2022 to US$1.89 trillion by 2027. 
    2. Islamic Finance:
      • Post-pandemic recovery driving growth and investment in digitalization and sustainable finance.
      • Total Islamic finance assets increased to US$3.96 trillion in 2022/2023, projected to reach US$5.94 trillion by 2025/2026.
    3. Travel & Tourism:
      • Post-pandemic recovery with significant investments by Saudi PIF.
      • Advancements in travel technology enhancing security and bookings.
      • Muslim travel spending projected to grow from US$133 billion in 2022 to US$174 billion by 2027.
    4. Modest Fashion:
      • Growth in omnichannel marketing and e-commerce.
      • Increasing presence at mainstream fashion events.
      • Spending forecasted to grow from US$318 billion in 2022 to US$428 billion by 2027.
    5. Pharmaceuticals:
      • Addressing challenges from inflation and supply chain disruptions.
      • Significant growth in Muslim spending on pharmaceuticals, projected to reach US$142 billion by 2027.
    6. Cosmetics:
      • Industry rebound with innovations in AI and AR for virtual try-ons.
      • Spending on cosmetics expected to rise from US$84 billion in 2022 to US$129 billion by 2027.
    7. Media & Recreation:
      • Doubling of investment value in media and entertainment.
      • Regulatory changes and increased production of Muslim-centric content.
      • Spending in this sector projected to grow from US$247 billion in 2022 to US$344 billion by 2027.

Recommendations and Vision

    • Strategic Recommendations:
      • Governments, businesses, and investors should leverage identified opportunities for growth and development.
    • Aspirational Vision:
      • Aiming for the Islamic ethical economy to significantly contribute to global socio-economic prosperity over the next decade.

The report encapsulates the evolving trends and future potential of the global Islamic economy, offering a comprehensive guide for stakeholders to navigate and capitalize on emerging opportunities.

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