- What is really meant by the term ‘Islamic Economy’ - How can Dubai play a real leadership role? - What are the implications for the global markets?

1. What is the Islamic Economy?
~ and why Dubai?
Sayd Farook, Global Head Islamic Capital Markets, Thomson Reuters
Abdalhamid Evans, Editorial Director, Global Islamic Economy Summit

2. • The Islamic Economy is emerging as a new economic paradigm that will be driving
economic growth over the coming decade.
• Bringing together diverse elements across various industry sectors, spanning
geographic regions and crossing cultural boundaries, this inaugural Summit will be
the defining event of the Global Islamic Economy.
• The Global Islamic Economy Summit is organized by Thomson Reuters and Dubai
Chamber of Commerce & Industry, held under the patronage of HH Sheikh
Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE
and Ruler of Dubai, on November 25-26th 2013 at Madinat Jumeirah, Dubai, UAE.
• The Global Islamic Economy Summit will create the context in which the various
Islamic Finance sectors and Halal Food, Travel, Lifestyle, SME Development and
Infrastructure converge, creating a new landscape of economic opportunity.
Islamic Economy

3. Six pillars of the Islamic Economy
Islamic Finance & Insurance
• Islamic banking
• Islamic asset management
• Takaful
• Retakaful
• Sukuk and capital markets
• Waqf endowments
Halal Food
• Agriculture, ingredients and manufacturing
• Retail
• Logistics
• Research and product development
• Food services
Halal Lifestyle
• Cosmetics
• Personal care
• Pharmaceuticals
• Fashion
• Entertainment
• Art and design
• media / news media
Halal Travel
• Hospitality
• Tourism
• Meetings, incentives, conferences and events
(MICE)
• Healthcare
• Hajj / Umrah
SME Development
• Technology and innovation
• Venture capital financing
• Incubation
• Training
Islamic Economy Infrastructure
• Training and education
• Compliance
• Standardization
• Research
• Muslim consumer marketing and research
• Government services
Islamic economic sectors are diverse, each with its own challenges and
unique opportunities

4. Islamic Finance & Insurance
Key Features of the Islamic Finance and Insurance Sector
72% of Muslims are non-banked Sukuk market is expected to grow by 10% or more
Global Islamic banking assets of $1.3trillion in 2011,
expected to reach $2 trillion by 2014
Average annual growth of 19% over the last four
years
Growing 50% faster than overall banking sector in
several core markets
Over 50% of the growth will come from emerging
Islamic finance markets
Top 20 Islamic banks make up 55% of the total
Islamic banking assets, concentrated in 7
countries, (GCC, Malaysia and Turkey)
The global Takaful business will reach $20bn by
2017, with 62% of current premiums coming from
the GCC
Islamic finance and insurance is the most prominent sector in the Islamic
economy, with impressive growth rates and a global spotlight
Is Islamic finance making an positive impact on the markets it is operating
in? Is it making a difference to ordinary consumers?

5. Halal Food
Key Features of the Halal Food Sector
The global market for Halal foods is estimated at
$685bn a year
Muslim countries’ food industry imports are valued at
$126bn, 12% of global food imports
GCC food market was worth $83 billion in 2012,
expected to rise to $106bn by 2017 (AT Kearney)
According to IFANCA, US consumers spent $15bn on
Halal products in 2011
Food production dominated by non-Muslim countries
such as Australia, New Zealand, Brazil, USA, EU,
India
The Halal food sector is an influential sector within the global food
industry, with its own challenges and issues across the entire supply chain
With food production dominated by non-Muslim countries, how can we
ensure the quality of Halal standards for consumers?

6. Halal Lifestyle
Key Features of the Halal Lifestyle Sector
The Halal Lifestyle market was valued at $2.1 trillion
in 2011.
The Muslim population of 1.6 billion is growing at
twice the rate of the global population
Global Muslim apparel market at USD $96 billion
Muslims represent ‘the fastest growing consumer
segment in the world’ (AT Kearney)
Over the next 30 years, 70% of global population
growth will be in Muslim countries (The Future
Report) University of Malaysia estimates the halal cosmetic
& personal care market to be worth between
US$5 bn and $14bn in Muslim-populated
countriesThere is increasing preference for natural and organic
beauty and personal care products, which are
considered halal-friendly.
Halal lifestyle is a sector gaining in prominence as Muslim consumers
around the world are increasing identifying with their Islamic roots
Are multinationals appropriately targeting this economic segment? Is there
an opportunity for SMEs in this high-growth segment?

7. Halal Travel
Key Features of the Halal Travel Sector
With growing economic prosperity in Muslim countries, Halal travel is
becoming a major segment of the global tourism industry
In a challenging global economic environment, how can travel sector
stakeholders
address this lucrative, yet underserved, market segment?
MENA markets represent 60% of total global tourism
expenditure
Muslim tourists globally represent a major niche
market worth $126.1 billion in 2011 (excluding Hajj
& Umrah)
Muslim tourism growing at 4.8% through 2020, higher
than the global average of 3.8%
Global Muslim tourist spending is 12.3% of the
worldwide total
Halal travel to grow 20% over next decade (Global
Futures and Foresight)

8. SME Development
Key Features of the Islamic SME Development
62% of the Muslim world is under the age of 30,
compared to 51% globally
Muslim countries rank much lower (avg 117) in
getting credit for SMEs, compared to developing
countries (avg 89)
The Halal food sector in non-Muslim countries is
primarily driven by small businesses, plus the
presence of some MNC’s
Arab youth unemployment is 35% for men and 45%
for women (Nasser Saidi June 2013)
Arab world needs 60 million new jobs by 2020
(Nasser Saidi June 2013)
Only 10% of MENA SME’s get bank financing
SMEs play a major role in most Muslim countries and their development is
vital to the overall growth of their respective economies
Are SMEs being supported to become major players in their respective
economies? What support should governments provide to SMEs?

9. Infrastructure Development
Key Features of the Islamic Economy Infrastructure Sector
Of the 300 Halal certification agencies worldwide,
only 30% are registered legal entities (IHI Alliance
2011)
There are no global standards for Halal food or an
international regulatory framework for the Halal
market
No mandatory Shariah rules for Islamic finance
either, only three set of standards:
At the Central bank level – the Islamic Financial
Services Board (IFSB) develops best practice
standards and regulations that central banks can
adopt
On the industry level - the AAOIFI develops Shariah,
Accounting Auditing and Governance that
individual financial institutions can adopt
On a bank level – Shariah scholars and in house
Shariah review teams regulate the day to day
activities of each institution
Islamic economy infrastructure is scattered, with limited convergence on
Halal standards across markets
How important is standardization and convergence for the Islamic
economy? Is the current scattered landscape a hindrance for growth?