World Economy

Islamic Economy Summit Opens

Islamic Economy Summit OpensIslamic Economy Summit Opens

The second edition of the Global Islamic Economy Summit opened on Sunday at Madinat Jumeirah with participation from more than 2,000 policymakers, business leaders and finance professionals.

The Summit organized by Dubai Chamber, Dubai Islamic Economy Development Center and Thomson Reuters will examine the changing dynamics of the Islamic economy.

The event aims to examine the seven core “pillars” within the Islamic economy. They are: Islamic Finance, Halal Industry, Family Tourism, Islamic Knowledge, Islamic Arts and Design, Islamic Digital Economy, and Islamic Standards.

Islamic economy is one of the fastest growing sectors in the world, growing at nearly twice the rate of the global economy and Muslim consumer spending in excess of $1.8 trillion. Islamic banking assets hover at some $1.3 trillion and are expected to double in just five years from today.

A recently published State of the Global Islamic Economy report by DIEDC and in partnership with Thomson Reuters and DinarStandard shows data that highlight the significant progress achieved by the Islamic economy in its seven sectors, and the promising opportunities offered by Islamic markets worldwide.

“In light of the insights provided by the report into this multifaceted sector, we look forward to what will be two days of prolific discussions and brainstorming among innovators and Islamic industry experts from around the world. This platform is essentially a breeding ground of ideas that will positively shape the Islamic economy in the years to come,” said Nadim Najjar, Managing Director of Thomson Reuters, Middle East and North Africa.

The event is significant for Dubai as it aims to position itself as the global capital of the Islamic economy. Globally, the Muslim population is growing at twice the rate of the global population, and Muslim consumer spending across the different sectors of the Islamic economy is expected to reach Dh9.55 trillion ($2.6 trillion) by 2020, compared to Dh6.6 trillion ($1.8 trillion) in 2014.

At a time when the global economy recorded growth of just 2.6% in 2014, with growth estimates increasing to 3.1 and 3.3% in 2015 and 2016 respectively, the Islamic economy is seeing steady expansion overall, particularly in Islamic banking and finance as international financial institutions increasingly look to apply Sharia-compliant financial practices to investments that meet requirements for sustainability and economic development.