Report: U.S. $ 1.35 trillion Islamic finance assets
Report: U.S. $ 1.35 trillion Islamic finance assets
Created on Monday, November 25 2 /forty-two past one p.m.
Dubai / Shafiq al-Asadi
Estimated the institution, “Thomson Reuters” Foundation “BD Standard” size of Islamic finance assets to 1.35 trillion dollars of total assets disclosed in 2012, recording an annual growth of between 15 and 20 percent in most major markets, as predicted to rise to 4.1 trillion by 2018 where there are favorable conditions.
And Rgehta in a joint report on the status of the economy of the Islamic World in 2013, was released on the eve of “World Summit on Islamic Economics –2,013″ in Dubai today, the volume of consumer spending Muslims in the world, numbering 1.6 billion people on the sectors of halal food and lifestyle of 1.62 trillion dollars in 2012, the amount expected to rise to 2.47 trillion by 2018, what would constitute a key market potential for halal food sectors and lifestyle.
The report predicted that the UAE occupies a convenient position to play a leadership role in the next stage of development for the Muslim sectors of the economy, due to the strategies adopted by the initiative, which was finally announced entitled “Dubai the capital of Islamic economics.” The other major centers in Islamic economics are Saudi Arabia, Turkey, Indonesia, and Malaysia after he was probably a phase of stagnation in terms of Bancharha and impact.
The report pointed to the head of the eight engines will determine the parameters of the growth and stature of Islamic economics, four of which are based on market forces, Islamic, and four to the global environment. The demographics of the most remarkable engines market-based Islamic Given that a large number of Muslims and consists mostly of young age group is growing at a rapid pace, 1.5 percent annually, compared with 0.7 percent for the rest of the world’s population. The second is the economic engine it is expected that the average GDP growth in the 57 countries members of the “Organization of Islamic Cooperation,” about 6.3 percent annually between 2013 and 2018, compared with 5.3 percent growth in global gross domestic product.
The report emphasized that the third factor is religion, since 87 percent of Muslims consider religion “very important” and 93 percent of them fasting month of Ramadan, while less than 30 percent of Europeans and 56 percent of Americans believe that religion is very important . The engine is based on the fourth to increase trade between the countries of the Organization of Islamic Cooperation, as it put the organization in 2005, a target to increase bilateral trade to 20 percent of the total foreign trade in 2015.
Insofar as the motor based on the global environment, Vtcodha post global multinational companies in Islamic economics. The second engine in the developing economies that are looking for markets for expansion, and the global engine that meets with the base of the ethical principles of Islamic economics is a growing global focus on business ethics and social responsibility. The engine of the Fourth World, which facilitates the growth sectors of the economy of the Islamic, especially the sectors of lifestyle, in the revolution of communication technologies globally. And contribute to social media, any techniques smartphones and broadband Internet services, in revolutionizing the business, such as social services, education, health, recreation and leisure.
The report also pointed out that Muslim consumers spent 1.088 billion dollars on food and beverages in 2012, which constituted 16.6 percent of global spending. He expected to increase this spending to 1.626 billion dollars by 2018, reflecting the potential and opportunities for Halal food market in the world within the main market for consumers Muslims. He added that the sector faces many challenges, including its size and lack of efficiency, and the absence of organized body, and the availability of raw materials and supply chain, and a lack of human capital, and low consumer confidence.
He estimated the size of the Islamic finance market with 1.35 trillion dollars of assets, which include commercial banking and investment funds, instruments, and solidarity, and others. Although the figure is considered very small, but a large segment to grow at a rapid pace percentage ranged between 15 and 20 percent per year in key markets. The witness slice Islamic finance assets younger estimated $ 628 million on growth even though it represents only 0.8 percent of the total market of Islamic finance smaller global estimated 78 billion dollars in 2011.
The Islamic finance industry is facing several challenges, most notably the need for a supportive regulatory environment for Islamic finance and better frameworks for insolvency and lack of consumer confidence and the lack of effectiveness of operations.
The report emphasized that conservative clothing inspired by Islam covers Indonesia to the United States, and form this market is an integral part of the clothing and accessories sector and the global value chain. It was estimated that the Muslims had spent 224 billion dollars on clothing and footwear in 2012, or 10.6 percent of global spending, while the figure is expected to rise to 322 billion dollars by the year 2018.
He pointed out that the Islamic spending in the travel industry reached 137 billion dollars last year, with the exception of travel due to his Hajj and Umrah, and is expected to rise to 181 billion. The tourists from GCC spenders, including 31 per cent of the total expenditure of the Muslims.
Insofar as the media and entertainment sector, the report pointed out that Muslims have spent 151 billion dollars on the “Recreation and Culture” in 2012, ie 4.6 percent of global spending, the amount expected to rise to 205 billion dollars by the year 2018. One of the challenges faced by the entertainment-oriented media companies to Muslim consumers, considering the media market Islamic “religious notification” only, finding funding and professional talent.
The report indicated that global spending on medicines for Muslims reached 70 billion dollars last year, and expected to reach 97 billion in 2018, or seven percent of global spending. Muslims spent on cosmetics and personal care products to $ 26 billion, could rise to 39 billion. And facing pharmaceutical companies and cosmetics that meet the needs of dealers Muslims challenges including barriers to entry of new companies into the market and finding financing, regulations, and compliance with, and low awareness among consumers.