The Global Islamic Economy

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25-26 November 2013 was the Global Islamic Economy Summit held in Dubai. I was part of a panel discussion on controlling supply chain and logistics integrity. As I have attended various Islamic and Halal conferences all over the world, this Summit was of a different order. This summit brought together global halal industry and Islamic finance experts, well orchestrated by the organisers, and about 3,000 people attending. From this summit it is clear that the Middle East, led by Dubai, want to take a more active role in developing and shaping the Global Islamic Economy. Dubai has drafted a strategic roadmap to become the global hub of the Islamic economy, wanting to capture 10% of the global halal trade. It was also clear from the various speakers at this summit, that halal requires an integral supply chain approach, something which is slowly recognised by the brand owners and manufacturers of halal food, cosmetics and pharmaceutical products.

According to the State of the Global Islamic Economy 2013 Report by Thomson Reuters, the halal industry USD 1.62 trillion in 2012, is expected to reach USD 2.47 trillion by 2018. Islamic financial assets are currently estimated to be USD 1.35 trillion in total disclosed assets (2012) and growing 15-20% a year in most core markets according to this report. The key drivers according to the Thomson Reuter report are both global market drivers and Islamic market drivers. Global market drivers are the participation of global companies, growth of emerging markets, growth of ethical consumption and the role of internet, social media and mobile revolution. Islamic market drivers are the large/young/growing Muslim population, importance of Islamic values driven consumption, emerging/frontier markets, and growth of intra-OIC trade.

The Islamic Economy consist of the following pillars: 1) halal food; 2) halal cosmetics; 3) halal pharmaceuticals; 4) halal logistics; 5) Islamic finance; 6) clothing & fashion; 7) travel; and 8) media & recreation. It is important for companies active in the halal industry to recognise that halal goes through an evolution and that halal needs to be addressed all the way. A tradition product orientation (get the product halal certified) is not sufficient anymore, but requires a halal supply chain and value chain approach in order to give the Muslim consumer what he really wants. This would allow companies in the halal industry/Islamic economy to strengthen their brand and increase their business. The Global Islamic Economy is a large and fast growing economy that few companies can afford to ignore.




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