Strong thrust to Islamic economy crucial

Despite the market headwinds, Islamic economy is gaining traction. And
recent studies substantiate the fact that the segment offers hope to achieve economic stability.
Strong retail demand and proactive regulations have boosted the Islamic banking sector. According to rating agency Moody’s, the growth of Islamic banking is outpacing conventional banking. Another study said the compound annual growth rate or CAGR for Islamic banking assets in the UAE is expected to be about 17% over the period 2013-18.
A report released by Thomson Reuters in partnership with DIEDC and Dinar-Standard indicated that the Islamic economy, food and lifestyle would be worth $3 trillion by 2021. As the segment evolves, there are challenges galore that it is
encountering. Lack of awareness is the biggest among them. A lot of customers are still unaware about Islamic products that are being offered. This is diminishing the potential of the sector. It is imperative that all players and stakeholders devise a strategy to motivate the customers — mostly the young — to recognize the
importance of Islamic economy in bringing about sustainable development.
The online medium can generate awareness and play a crucial role in propelling Islamic economy to new heights. Since the sector has a wide canvas, social networking is vital to reach the variety of information to the customer faster and farther. This will also enhance their knowledge and dispel doubts — if any — around the various services that the sector provides.
Last year, the ‘Salaam Gateway’ was inaugurated. It is the only online platform for all Islamic economy-related industry intelligence, news, information and data. The platform is a superb business tool. More such initiatives are needed to ensure that the customer base solidifies.
One of the major aspects of the Islamic economy is Halal food. Such food needs to have proper certification so that more and more people opt for it. The groundwork to set up the world’s first Halal international accreditation network has been started by International Halal Accreditation Forum (IHAF). The by-laws that are being formulated will be discussed at a global meeting in November. Apart from regulation and certification, it is crucial that more players are encouraged to invest in this emerging industry. Private investments are also needed in Halal tourism — including food and beverage and recreation. The Muslim spend on outbound travel is likely to reach $243 billion by 2021. If the private players give impetus to Halal travel, it will not only ring in revenues for them but also help them to be well-placed in a niche zone. Similarly, the spend on Modest Fashion is expected to reach $368 billion by 2021, says the Thomson Reuters report. Tailor-made apparel will give a competitive edge to the makers. Brands like Dolce & Gabbana have already entered the Modest Fashion market and are doing roaring business.
The UAE’s business landscape is ideal to boost the Islamic economy. It has been judged No. 1 in GCC based on evaluation of its Islamic economy ecosystem. The opportunities that this domain presents are being harnessed through holistic planning, inclusiveness and strong development initiatives.
As the Global Islamic Economy Summit (GIES) kicks off on October 11, the
industry players must join hands and move towards bringing about integration among the various Islamic economy sectors. The Islamic economy can provide a lasting solution to the market volatility. It can make business smoother and our future more secure.
The theme of this year’s GIES is ‘Inspiring Change’. This change has to come from awareness, realization and insight.