Halal economy estimated to be worth 3.2 trillion USD by 2024

Jakarta (Indonesia Window) – The halal (permissible in the Islamic Laws) economy sector is estimated to be worth 3.2 trillion U.S. dollars by 2024, according to the newly launched second edition of the Halal Guidebook titled ‘Dubai – A Global Gateway for Halal Industry: A Step-by-Step Guide’.

The guidebook uncovers major long-lasting trends in the regional economy, and helps provide a clear picture of the national and international Islamic economy, according to the United Arab Emirates News Agency (WAM).

According to the State of the Global Islamic Economy Report 2019/2020, the Islamic economy was valued at 2.2 trillion U.S. dollars in 2018, which accounts for 12 percent of the global spend in the food, pharmaceutical and lifestyle sectors.

The spending power has also witnessed a significant increase and is set to grow by 6.2 percent compound annual growth rate.

Ranking first in the guide book is the food and beverage industry, with a total estimated value of around 1.4 trillion U.S. dollars, and is expected to grow to near 2 trillion U.S. dollars by 2021.

Modest fashion is the second most popular sector, valued at 283 U.S. dollars billion.

Islamic-themed media, halal pharmaceuticals and halal cosmetics have also been identified by the guidebook as key players in the economy.

Launched in 2017, the first edition of the guide has proven to be an asset in achieving the long-term plans for the Halal economy sought out by local and regional leadership.

Developed by DAFZA (Dubai Airport Free Zone) with the support of The Dubai Islamic Economy Development Centre (DIEDC), The Halal Trade and Marketing Centre (HTMC), and DinarStandard, the second edition of the guidebook outlines halal Islamic economy growth opportunities, including its enabling ecosystem, halal trade flow, and the halal certification and compliance process.

For companies looking to participate in the halal economy, DAFZA offers a wide range of services and capabilities to ensure a smooth set-up of business operations.

The free zone provides access to a wide variety of government and business services in a single centralised location.

It also provides companies within the Halal economy with advanced infrastructure for their operations, which boosts their growth.

Reporting by Indonesia Window