The global halal economy is estimated to be worth $3.2 trillion by 2024, according to a new guide issued by the Dubai Airport Freezone (DAFZA) and The Dubai Islamic Economy Development Centre (DIEDC) Tuesday, UAE news agency WAM reported.
The global Islamic economy was valued at $2.2 trillion already in 2018 and accounted for 12 percent of all spending in food, pharmaceutical and lifestyle sectors, according to estimation from the State of the Global Islamic Economy Report for 2019/2020, WAM said.
Halal food and beverage account for the vast majority of this share, valued at $1.4 trillion, which is expected to grow to $2 trillion by 2021. Modest fashion holds the second largest share, valued at $283 billion.
The report, titled Dubai – A Global Gateway for Halal Industry: A Step-by-Step Guide, follows the guide’s first edition in 2017.
“In recent years, the UAE has intensified efforts aimed at expanding the economy with several initiatives and growth plans that have ensured a more diverse and vibrant Halal sector,” Amna Lootah, assistant director general, DAFZA, said, WAM reported.
“Such activities have established Dubai and the wider UAE as one of the world’s most important business hubs and facilitated the progress of various industries including the emirate’s Islamic economy. So much so that investments in the Halal economy have recorded growth of 399 percent in 2018/19, with a value of $1.2 billion,” Lootah explained.
The guide also examined the impact that the coronavirus pandemic had on the Islamic economy. In particular, it identified travel, Islamic finance, and modest fashion as the sectors that were most challenged by COVID-19.