Collaborate, complement, co-create: The global Islamic Economy comes together

Mentor and knowledge networks, fintech alliances, start-up spaces, and partnerships, the Islamic Economy is tapping into the potential of its global resources

Having established that the world’s 1.7 billion Muslim population is unified in many of its needs and practices, the Islamic Economy is now celebrating its diversity. Alliances are allowing a cross-section of participants to take advantage of collaborations across the world.

The announcement of a $250 million fund for seed and growth stage companies in October by U.S.-based Affinis Labs, in partnership with Malaysia Venture Capital Management Berhad (MAVCAP) and managed by Elixir Capital, was an embodiment of this idea.

As Shahed Amanullah, co-founder and Chief Technology Officer of Affinis Labs, announced the fund at a conference in Dubai, MAVCAP Chief Executive Jamaludin Bejung and Elixir co-founder and Managing Director Abrar Hussain Skyped in from Kuala Lumpur and Palo Alto, respectively.

“Muslims are as diverse as any population that you can possibly think of – different countries, different languages, different regions and even religious practices,” said Amanullah.

His call to action to join hands and strengthen Islamic start-ups in various sectors was also heard throughout the Global Islamic Economy Summit 2016 held in Dubai last month. Armin Osmancevic, CEO of MyBazar Global, spoke of creating a network of government and venture capitalists. “This is where the next unicorn will come from. We have to breed them. How come we don’t have our own Kickstarter? All of us can take and share the risk for bigger benefits.”

This call, this rallying cry, cuts across sectors.

Speaking to Salaam Gateway, Umar Munshi, founder of Singapore-based network of Islamic crowdfunding platforms Ethis Ventures, said, “We need to engage with existing players. In all our platforms our approach is that we are not here to disrupt and try to kill you, we are here to complement. The gaps that you cannot fill, we try to fill.”

Munshi is chairman of the Islamic Fintech Alliance (IFT Alliance) of nine crowdfunding platforms announced earlier this year, another example of the growing momentum of cooperation. 

ONE HALAL

In the halal food regulation sector, collaboration finds many champions. Replacing multiple certifications with a single global mark would give a boost to the industry, by reducing the costs associated with acquiring so many approvals, especially for exporters.

Mohammed Badri, Managing Director of Dubai-based International Halal Accreditation Forum likens it to “a Schengen passport.”

“Standardising these is a key problem right now. If this can be achieved, if we unify halal standards, you can take food from here to Brazil, for example, and not be challenged,” he said.

An ideal situation would be that there is only one certification agency in each country, preferably operating in the government sector. While the absence of relevant skills is a factor holding back the growth of the halal sector, partnerships are being seen as the answer.

“We need to invest in people, not just sites and technologies. We do not see collaborations with global universities to support research projects in the halal space,” said Saqib Mohammed, CEO of UK-based Halal Food Authority.

DESIGNING A BETTER WORLD

Food and fintech are not the only sectors growing together; artists and designers are finding strength in common ground and delighting in differences. Eric Broug, an educator and author of the book “Islamic Geometry and Design”, said that creative partnerships are integral to his work.

“I like to collaborate with people when it comes to design. I know my strengths and weaknesses. We are only able to create something because we are working together. It is much more motivating than if I was doing something alone,” he said.

Such associations have taken him around the world meeting Islamic designers. In Sharjah, Bourg has collaborated with Islamic art-inspired architectural products company, Nomad Inception, to create parquet floors with complex, geometric designs. In Indonesia, he has worked with modest fashion design label NurZahra.

Dr Yannick Lintz, Director of the Department of Islamic Arts at the Louvre Paris, speaks of creating a network of museums. “We have agreements to develop specific events with museums in the Islamic world such as the Cairo Museum of Islamic Art, the National Museum in Tehran. I think the time is coming to create an international network with directors of museums of Islamic art,” she said.

In modest fashion, where e-commerce has been an enabler bringing together customers from all over the world, cultural differences are now creating a richer palette. Kerim Türe, Founder of Turkey-based Modanisa, referred to the first-ever modest fashion week in Istanbul in May that gathered key industry players from around the world.

“You need to bring together experiences and create a better mixture for communities. The idea was to come together, inspire each other, see Indonesian or Pakistani patterns, for example, put them together and bring out something interesting and viable for the market to create new capabilities for our industry,” he said.

While in 2011, the challenge was to reach as many customers as possible, five years on, it’s about interactions. “Fashion is affecting each other. Earlier, for example, there were only two ways of wearing the head scarf. Now you can see tons of different types of head scarves. I see Turkish style scarves in Indonesia.”

SOCIAL GOOD

Another sector benefitting from this approach is social development, where individual philanthropists have taken note of the benefits of banding together – united by faith, resources, or a desire to change the world.

At the GIES, AbdulAziz Al Ghurair, Chairman of Al Ghurair Foundation, announced a launch of a network of philanthropists.

“We must shift from traditional charity to a new ecosystem with high-impact philanthropy.  This is why I am announcing the launch of the network of philanthropists in the Arab world and ultimately in the Muslim world. I am asking all my peers to join me in building this ecosystem we so desperately need,” said Al Ghurair, who last year declared his family would donate a third of its wealth, equivalent to $1.1 billion, over the next decade to philanthropic initiatives.

His words perhaps sum up these positive movements in the global Islamic Economy: “To achieve the biggest impact we need to shift away from individual and fragmented giving. If we join our efforts, the combined impact will be much greater than what we will achieve on our own.”

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