The Annual State of the Global Islamic Economy Report 2020/21 report was launched earlier this week by Dinar Standard, reporting on the global state of the Islamic economy during the global pandemic.
The report highlights the Islamic economy size is worth USD2.2 trillion of consumer spending across 1.9 billion Muslims across six sectors, and USD 2.88 trillion of Islamic finance assets.
However, due to the pandemic, the report estimates that the global Muslim consumer spending will decrease by 8% this year. This would mean that the estimated size of Islamic economy for 2020 will be USD2.0 trillion.
Nevertheless, the report anticipates that by 2021, all of the halal consumer sectors will return to their pre-pandemic levels, with the exception of the travel sector. The six sectors covered in the report, their respective sizes and growth rates (2019-2020) are:
- Halal food: USD1.17 trillion, at a rate of -0.2%
- Media and recreation: USD 222 billion, at a rate of -3.7%
- Modest fashion: USD277 billion, at a rate of -2.9%
- Halal cosmetics: USD66 million, at a rate of -2.5%
- Halal pharmaceuticals: USD 94 billion, at a rate of -6.9%
- Muslim-friendly travel: USD 194 billion, at a rate of -70%.
The Muslim-friendly travel sector is only expected to pick up again by 2023, back to its pre-pandemic level.
The global Islamic economy is driven by a growing global Muslim population and a growing adherence to Islamic values that drive consumer choices across many sectors of the economy. .
In terms of country rank, based on the Global Islamic Economy Indicator Score Rank, the report highlights Malaysia’s Islamic economy as the top ranked country for Islamic economy. Malaysia ranks top for four out of six sub-sectors of the consumer economy: Halal food, Islamic finance, Muslim-friendly travel and pharma & cosmetics.
A copy of the report is available for download at SalaamGateway.
Farah Ishak is a Content Writer at Halalop. She grew up in the United Kingdom where she obtained her Bachelor’s degree in Management. Later, she completed her MBA and held senior-level positions in Malaysian based MNC. She left the corporate world to be with her young kids. She is passionate about issues concerning Muslim women, Startups and Muslim businesses in general.