The economic turmoil in the Eurozone and the severe economic downturn in North America are balanced with a growing economic power in Muslim countries. A new "silk and spice trade route" is being opened.
Figures cannot be ignored: in 2030, it is estimated that a third of the world’s population will be Muslim. Asia is home to 65 % of the Muslims in the world: India, an economic giant, is the second largest Muslim country; there are more Muslims in China than in the GCC; according to the Pew Forum, the total number of Muslims in Europe is about 44 million (6%); and most of the N-11 countries (the next 11 emerging countries following the BRICS) are Muslim countries.
Looking at macroeconomics, there are two regions of growth in the world: Asia and Africa. These two continents cannot be looked at without "Islamic glasses", as the religious factor is omnipresent in those societies.
The international development of the Islamic investments and Sharia-compliant transactions make it a glocal phenomenon, impacting business both globally and locally.
The Islamic economy (also known as the halal industry) is one of the fastest-growing segments of the world economy. It encompasses all those sectors driven by the Muslim population’s adherence to faith-based values and consumption of products and services. It is a global phenomenon, as the actors of the Islamic economy are located around the world (consumers and producers) in Islamic and non-Islamic markets. Many Western corporations are tapping into this huge emerging market and creating a "halal capacity" or an "Islamic window". This new economic paradigm touches the daily lives of 1.65 billion Muslims and is worth $4.1 trillion.
Some of the key sectors of the Islamic economy are:
- Banking and finance
- Cosmetics & personal care
- Transport & logistics
- Travel, tourism and leisure
- Fashion & clothing
- Media & recreation
The growing interest for the Islamic finance industry has been supported by stellar growth figures. With an estimated 15% to 20% annual growth rate, Islamic finance challenges the conventional banking industry. Global Islamic assets held by commercial banks reached $1.35 trillion in 2013.
The galloping figures, a new regulatory framework, the expansion of Sharia-compliant investments and products on a global scale, the power of Sovereign Wealth Funds (SWFs) draw the interest of a growing number of market players.
The substantial investments and the downscaling of some Western banks’ Islamic subsidiaries demonstrate that the Islamic finance market is very active and consistantly more integrated to conventional reasoning.
Answer to the market
ISFIN offers a unique global multi-sector answer to:
- Western companies willing to target the specific demand of Muslim consumers
- Islamic companies seeking secure investments in Western countries
- Muslim companies willing to respond to the growing demand of their clients for an "Islamic consumerism"
Many talk about the Islamic economy. ISFIN makes it happen.