Halal economy forecast to reach $2.47 trillion

THE latest report, The State of the Global Islamic Economy 2013, forecasts the Halal food and lifestyle sectors worldwide to reach $2.47 trillion in value by 2018, from the current $1.62 trillion. Prepared by DinarStandard (DS) and produced by Thomson Reuters, this report charts a course for companies in these sectors, providing market potential and opportunities.

DS, a growth strategy research & advisory firm specialising in the global Islamic economies, says Muslim consumers consumed $1,088 billion worth in food and beverage in 2012, or 16.6% of global expenditure.  This expenditure will grow to $1,626 billion by 2018.

Senior partner and global leader/head Islamic Economy at DS, Rushdi Siddiqui refers to these sectors as “twins separated at birth” because of the lack of connectivity between them.

According to DinarStandard analysis, whilst the food and agriculture segment within OIC countries has seen 340 completed investment transactions (between 2011-2013) with total disclosed value of transactions at $14.9 billion, only 17 completed transactions relating to Halal food companies were reported worldwide with the seven disclosed deal amounts adding to $22 million only.

Mr Siddiqui who recently joined DS brings with him knowledge from Dow Jones indexes, Thomson Reuters and Azka Capital. “The Islamic economy needs a global, “go-to” five-star quality consulting firm, and DS has provided ‘McKinsey quality’ work for western companies, country tourism boards, OIC governments, private equity firms, SMEs, and non-profits.  In today’s fast moving and complex environment, the market values timely deliverables, with ground breaking and innovative ‘think work’,” he said.

The UAE is on the right track. Earlier this year, it announced the set up of the Halal clusters, an infrastructure that will cater to the needs of local and international Halal supply chains.

Top countries with Muslim consumer food consumption are Indonesia ($197 bill), Turkey ($100 bill), Pakistan ($93 bill) and Egypt ($88 bill) based on 2012 data. Collective global Muslim f&b market is larger than the largest food consuming national market of China, according to DS.