Halal Tourism and its growth within the Global Islamic Economy

Presented at:

Sep 22-23, Andalusia, Spain

Halal Tourism in the Growth of the Global Islamic Economy

Presented by:

Rafi-uddin Shikoh

1 Defining Islamic Economy Context

2 Halal Travel Sector

3 Halal Travel & Islamic Economy Opportunities

© DinarStandard 2005-2014 2

Outline



‘Islamic Economy’ encompasses following 3 segmentsAs viewed and served by DinarStandard


2014 Business Plan

1) .

2) .

3) . OIC* Economies: US$ 6.4 trillion, ‘12 GDP

US$ 2 trillion+ ‘Halal’ consumer market

US$ 1.2 trillion (Banking), 15-20% growth/year

http://www.dinarstandard.com/marketing/AlIslami051510.html

http://1.bp.blogspot.com/_EXeS_5B4IUg/SxMQH4VE53I/AAAAAAAAA20/kEAqZ_FoyeY/s1600/indofood-logo.jpg


Islamic Finance Convergence & OIC Connectivity


• DinarStandard estimates the potential universe of Islamic finance assets in its core markets (assuming optimal scenario) to be $4.1 trillion.

• Specific opportunity exists in convergence of Islamic finance with the $1.62 trillion Halal Food & lifestyle sectors as well as growth in OIC markets across all sectors.


Global Halal Food & Lifestyle markets: $1.62 trillion in 2012/ expected to reach $2.47 trillion by 2018



Global Halal Food & Lifestyle markets: $1.62 trillion in 2012/ expected to reach $2.47 trillion by 2018



Emerging Islamic Economies (OIC*)

57 mostly Muslim majority countries

Attractive young demographic

Growing economies

Inter-connected by:

Intra-OIC trade mandates 12%-20%

Muslim Lifestyle Market℠:US$ 2 trillion+ ‘Halal’ consumer market

Islamic Finance:US$ 1 trillion, 15-20% growth/year



Emerging Islamic Economies

• OIC economies represented 8.9% of the global GDP in 2012 which is US$ 6.4 trillion. These economies are also growing at a faster rate than the global economy. The projected growth of the OIC markets 2013 through 2018 is expected to be an average of 6.3% compared to the global GDP growth averaging 5.3% (based on IMF projections) during that period.

• These economies are interconnected economically by their core relevance to Islamic Finance/Capital, Halal food & lifestyle markets, as well as Intra-OIC trade development targets and trade agreements.



Consumer Brands of the Top 100 Companies of the OIC (from DinarStandard’s DS100 Ranking)

*57 OIC (Organization of Islamic Conference) member countries

Consumer Brands of the Top 100 Companies of the OIC (from DinarStandard’s DS100 Ranking) Select Innovative Brands

Finance:

Transportation

Food:

Education:

Hospitality:

Media:

Top 100 Companies of OIC Countries






Outline


11Download free copy at:DinarStandard.com


Centers of Islamic Economy






Outline



Islamic Lifestyle Economy Opportunities

1. CONVERGENCE: Islamic finance/ investments in Halal

lifestyle economy

2. OIC Emerging Economy Investments



Islamic Economy: Convergence Opportunities



Convergence Opportunity - Islamic Capital to Islamic Lifestyle Sectors

Islamic Finance Islamic Lifestyle Sectors

• Working capital• Debt from convention to Sharia compliant• Takaful from conventional• Sukuk issuance• Zakat management• …


• Growing global innovation best practice: Complementary business operations no longer need to be in close proximity to each other. Rather, a complimentary set of competencies within various regions combine to deliver a more robust Cluster.

Traditional Close Proximity Linked Cluster

• Infrastructure

• Testing

• Talent

• Services

• R&D

• Distribution

NEW - Multiple Region LinkedIndustry Cluster

Region A

• Manufacture

Region A

Region B

Region C Region F

Region D

Region E

Region G

Region H

Region I

Hub Node


Region-wide Industry Clusters



OIC-wide Industry Clusters

• Eczacibasi, Turkey

• PT Kalbe Farma, Indonesia

• Hikma Pharma., Jordan

Source: DinarStandard OIC Clustering Model, *Diagram illustrative

• Within the OIC member countries, different strengths in the value-chain of an Industry exist within a set of OIC wide special economic zones/ regions.

E.g. OIC-wide Pharmaceutical Cluster

TURKEY

Dubai

INDONESIA

Malaysia

Amman

Saudi Arabia

Syria

Karachi

Palestine

Cairo

• Zuellig Pharma Bhd, Malaysia

• Tabuk Pharmaceutical, Saudi Arabia

• Egyptian Int. Pharma. Ind. Co., Egypt

Construction Srvcs.

Auto Manufacturing

Travel/ Logistics

Iran

Select Corporations:



OIC Industry Cluster – Value Chain

OIC Industry ClustersIndustry Sub-sectors

Sub-Sector Value Chain

Halal Value Chain Alliances

RawInputs

Marketing Distribution EndCustomer

Production/Operation

New Growth Markets

Investment Opportunities

Source: DinarStandard OIC Clustering Model



Challenges

Operational & Product excellence (quality, competitive,

innovative, efficient, and profitable solutions)

Regulations/standards/compliance

Human capital development and training

Consumer education

Global positioning (sharia-compliant, halal, Muslim-

friendly, family-friendly, other?)

SME/Venture financing


“O mankind! Lo! We have created you male and female,

and have made you nations and tribes that ye may know one another.

Lo! the noblest of you, in the sight of Allah, is the best in conduct. Lo! Allah is Knower, Aware.”

(Surah al-Hujurat (49:13)


Inspired by an inclusive mission.


E: [email protected]: www.dinarstandard.com

G R O W T H S T RAT E GYR E S E A RC H & A D V I S O RY

Halal/EthicalLifestyle

Islamic /Ethical Finance

OIC Emerging Economies

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