Malaysia is in the first place .. Turkey and Singapore jump to the fifth and seventh places

The UAE is third globally in the Global Islamic Economy Index 2022

"Economy and Tourism" launched the report during the bell-ringing ceremony at Nasdaq Dubai.

From the source

The UAE ranked third globally, for the third year in a row, in the Global Islamic Economy Index for 2022.

The report "The State of the Global Islamic Economy 2022" revealed that while the 81 countries included in the updated index this year, continue to build more robust Islamic economic systems, the top four positions in the general classification of the index remained unchanged, with Malaysia maintaining the first place for the year. The ninth, in a row, followed by Saudi Arabia, the United Arab Emirates, and Indonesia.

He pointed out that two new countries joined the first 15 places: the United Kingdom and Kazakhstan, while Turkey and Singapore advanced to the fifth and seventh places, respectively, and Nigeria and Sri Lanka fell, to graduate from the first 15 places.

Consumer spending

The report "The Reality of the Global Islamic Economy 2022" revealed that consumer spending of Muslims around the world reached two trillion dollars (7.3 trillion dirhams) in 2021, across sectors: halal food, medicines, and lifestyle.

The report, launched by the Department of Economy and Tourism in Dubai under the slogan: "Opening Opportunities", during the bell ringing ceremony at the Nasdaq Dubai Stock Exchange, expected that the volume of consumer spending would grow by 9.1% to reach $2.8 trillion (10.3 trillion dirhams) by 2025. At a compound annual growth rate of 7.5%.

Islamic Finance

It is estimated, according to the report, that the assets of Islamic finance in the world amounted to $3.6 trillion (13.2 trillion dirhams) in 2022. Investments in companies related to the Islamic economy increased by 118% during 2020/2021, to reach $25.7 billion (94.3 billion dirhams) from 11.8 billion dollars (43.3 billion dirhams) during the years 2019/2020.

Islamic transactions

The report pointed out that 66.4% of the total investments in companies related to the Islamic economy were covered by Islamic finance transactions, followed by 23.6% in halal products (food, pharmaceuticals, cosmetics and fashion), and 10% in Islamic lifestyle (travel and media). .

The numbers include corporate-led mergers and acquisitions, venture capital investments in tech startups, and private equity investments.

Imports of "Islamic Cooperation"

According to the report, the imports of OIC member countries of halal-related products decreased by 6.5% from $299 billion (1.10 trillion dirhams) in 2019 to $279 billion (1.02 trillion dirhams) in 2020.

The imports of the member countries of the Organization of Islamic Cooperation represent a large majority of the globally traded halal products, which include: foodstuffs, beverages, fashion (clothes and shoes), medicines and cosmetics.

Notable Developments

The report emphasized that despite the significant disruptions caused by the “Covid-19” pandemic to many companies, the Islamic economy witnessed many remarkable developments during the past year, foremost of which are the acceleration of digital transformation processes, the increase in trade deals between the Organization of Islamic Cooperation countries, and the concentration of Governments are increasingly investing in food security and health care.

supply chains

The report pointed out that the disruption to supply chains caused by the "Covid-19" pandemic, and climate changes that led to excessive floods and heat waves, had economically affected the 57 import-dependent OIC countries.

However, these disturbances provided opportunities to resettle and import products from locations closest to the country, which positively affected the production of some products such as: pharmaceutical preparations, clothing and cosmetics.

investment deals

Ali Ibrahim, Deputy Director-General of the Department of Economy and Tourism in Dubai, said: "The UAE's ranking among the top three in the Global Islamic Economy Index reflects the country's efforts to promote trade and investments in the global Islamic economy."

He added: "For the first time since 2018/2019, the country has risen to the first place in the number of investment deals related to the Islamic economy during the years 2020/2021, and it is also among the top 10 exporters in the Organization of Islamic Cooperation for halal-related products, with the value of exports reaching seven Billions of dollars (25.7 billion dirhams) in 2020.”

strategic priority

Ibrahim stressed that the Islamic economy is making great progress despite the global economic challenges that followed the pandemic, which is also an achievement for Dubai, as the emirate has proactively identified the Islamic economy as a strategic priority, as His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and President of the UAE Ministers Ruler of Dubai, Dubai Strategy: Capital of the Islamic Economy in 2013, and since then, the strategy has been a major driver of economic diversification, trade and investments in Dubai, and across the UAE.

quick recovery

For his part, the managing partner of Dinar Standard, Ravi El-Din Shikoh, said that “the report sheds light on some emerging global issues and their impact on the Islamic economy,” noting that it is clear that Islamic economies are recovering quickly from the pandemic, with the various turmoil that Opportunities drive digital acceleration and trade-driven investments.

He added, "Focusing on production in nearby geographic areas, and securing food and medicine has become a national priority," noting that the report provides opportunities and recommendations for governments, investors, and industry, to meet challenges and advance long-term prosperity.

4 countries topping

The State of the Global Islamic Economy Report, prepared by the US-based Dinar Standard for Research and Consulting, provides an annual update on the continued growth of the global Islamic economy, including halal products, Islamic finance, and related lifestyle sectors.

The methodology of the national benchmark report for the Global Islamic Economy Index was updated for the first time in eight years.

The UAE was ranked among the top three countries for the third year in a row.

Malaysia, Saudi Arabia, the United Arab Emirates and Indonesia continued to lead the ranking of 81 countries, while Turkey made the biggest jump from 12th to 5th place.

The UAE topped the ranking of the "modest fashion sector", within the sub-sector index.

• Consumer spending of Muslims in the world reached 7.3 trillion dirhams in 2021.

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