Halal Industry Islamic Finance Islamic Lifestyle

$2.02 tln consumer spending in Islamic Economy sectors forecasted for a 8% drop in 2020: State of the Global Islamic Economy Report 2020/21

  • Despite the COVID-19-triggered drop, all sectors, except tourism, are to rebound by end 2021
  • Investments in Islamic economy-relevant companies totalled US$11.8 billion in 2019/20, a decline of 13 percent over the previous year
  • Global Muslim spend on food and beverages forecast to hit US$1.38 trillion by 2024
  • Islamic finance assets expected to reach US$3.69 trillion by 2024
  • 33 key signals of opportunities identified including: tokenization of sukuks, supply chain shifts, food security investments, nutraceutical demand, domestic tourism, and accelerated digital transformations


Dubai, November 16th, 2020 - Dubai Islamic Economy Development Centre (DIEDC) has announced the results of the State of the Global Islamic Economy Report (SGIE) 2020/21 with a theme of ‘thriving in uncertainty’.  Launched in 2013, the eighth edition of the report presents an annual update on the Islamic Economy - encompassing halal products, Islamic finance, and lifestyle sectors and services – pre and post-COVID-19.

This year’s SGIE report, produced by DinarStandard, a US-based research and advisory firm, estimates that Muslims spent US$2.02 trillion in 2019 on food, pharmaceuticals, cosmetics, modest fashion, travel, and media. While this spending reflects 3.2 percent year-on-year growth, Muslim spending in 2020 is forecast to contract by 8 percent due to the impact of the pandemic. However, spending, excluding travel, is forecast to rebound by end 2021, and is slated to reach US$2.3 trillion by 2024, at a cumulative annual growth rate (CAGR) of 3.1 percent. Islamic finance assets are estimated to have reached US$2.88 trillion in 2019 and are estimated to remain at the same level in 2020.

In the report’s Global Islamic Economy Indicator that covers 81 countries this year — Malaysia, Saudi Arabia, the UAE, Indonesia, and Jordan lead the rankings.  Saudi Arabia and Indonesia moved up in the rankings while Nigeria, Sri Lanka, and Singapore were new entrants to the top 15.

Investments in Islamic economy-relevant companies slowed in 2019/20, following a record year in 2018/19, dropping by 13 percent to US$11.8 billion. Over 54 percent of investments were within the halal products category, while Islamic finance and Islamic lifestyle attracted 41.8 percent and 4 percent of the investments respectively. Such figures reflect corporate-led mergers and acquisitions, venture capital investments in tech start-ups, and private equity investments.

Abdulla Mohammed Al Awar, CEO of Dubai Islamic Economy Development Centre (DIEDC), said: “The SGIE Report is an annual publication that has gained traction as a trusted and ready reference on the global Islamic economy, and contributes to strengthening Dubai’s position as the global capital of Islamic economy. In these uncertain times, the Islamic economy, with its ethical and transparent ecosystem, remains a pillar of strength and a guarantee for a better future. As we look ahead, the values and principles the Islamic economy is based on, coupled with the carefully identified ‘signals of opportunities’ and the clear recommendations within the Report, provide a roadmap for governments and companies to navigate challenges seamlessly, continue along their path to recovery, and stay on course for long-term prosperity.”

Rafi-uddin Shikoh, CEO and Managing Director of DinarStandard, said: “This year’s SGIE Report highlights the emerging opportunities that stand out amidst the repercussions of COVID-19, such as global supply chain disruptions, job losses, health services crises, and food security challenges. The Report also offers recommendations for governments, businesses, and investors to enable them to navigate the challenges, build resilience and continue to thrive.  The 33 ‘signals of opportunities’ that cover all Islamic economy sectors, include the tokenisation of sukuks within Islamic fintech and accelerated digital transformations across all sectors prompted by the COVID-19 pandemic. Other signals identified pertain to halal products, supply chain shifts, food security investments, and nutraceutical demand.” 

The SGIE report also continues to highlight Islamic economies’ social impact developments in addressing the United Nations’ Sustainable Development Goals (SDGs) including initiatives addressing the exacerbated poverty and food security crisis from the COVID-19 pandemic.

The SGIE report 2020/21 has been produced in partnership with SalaamGateway.com, the largest Islamic economy news and media platform. Strategic partners of this year’s SGIE Report include The Islamic Food and Nutrition Council of America (IFANCA) and CIMB Islamic, the CIMB Group’s Islamic banking and financial services franchise.

The full State of the Global Islamic Economy Report 2020/21 is available for download at www.salaamgateway.com/SGIE20-21.

Copyright Press Releases 2020


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SGIE 2020/21