Global Islamic Economy Report

STATE OF THE
GLOBAL ISLAMIC
ECONOMY REPORT
2016/17
SUPPORTED BY: DEVELOPED AND PRODUCED BY:
IN COLLABORATION WITH:
30 / 100 / 100 / 50
0 / 100 / 100 / 0
0 / 80 / 100 / 0
TABLE OF CONTENTS
4 | Executive Summary
9 | The Global Islamic Economy Indicator (GIEI)
12 | Global Islamic Economy Drivers
16 | Millennial Consumer Insights – Social Data Analysis Interactions
20 | Industry Insights – Islamic Economy Leaders Survey
25 | Halal Food Sector
53 | Islamic Finance Sector
81 | Halal Travel Sector
105 | Modest Fashion Sector
133 | Halal Media and Recreation Sector
159 | Halal Pharmaceuticals and Cosmetics Sector
184 | Special Brief: Healthcare
192 | Special Brief: Education
200 | Introductory Overview: Islamic Culture and Arts Economy
202 | Acknowledgements
204 | Report Purpose and Methodology
214 | Appendix
In the name of God, the Most Merciful, the Most Beneficent
Executive Summary
The Islamic Economy continues to evolve, driven by young Muslims asserting

their values, and requiring companies to provide products and services that meet
their faith-based needs. Indeed, the statistics speak for themselves, with the
Islamic Economy estimated to be worth $1.9 trillion in 2015. The State of the
Global Islamic Economy Report 2016/17 brings you the latest developments
and trends from this economy whilst also highlighting specific opportunities
for you to engage with this sector.
We have listened to the industry and millennial revenues from Modest Fashion clothing purchased
consumers for the first time in this report by Muslim women to be $44 billion and revenues
series and sentiment on the Islamic Economy is derived from Muslim Friendly Tourism services to be
overwhelmingly positive. In a first for this Report, $24 billion, in 2015.
172 industry participants were surveyed on their
sector’s performance. Businesses confirm that Each and every sector has evolved substantially,
the aggregate Islamic Economy is a high-growth evidenced by new products, new players, and the
segment, with 69 percent considering sector maturing of existing players.
performance to be good or excellent for them, and
86 percent of respondents either optimistic or very Halal Food, the largest Islamic Economy pillar
optimistic about future prospects (indicating future by revenue has shown clear signs of maturity
intent to continue to invest in this space.) with increased private equity investments in the
sector, including $30 million invested in UK’s Janan
Separately, another first for this report series has Meat, and Malaysia’s Dagang Halal undertaking an
been millennial consumer sentiment about the IPO on the London Stock Exchange. Upgrades in
Islamic Economy using social media data analysis. regulations are also occurring, with the introduction
From 425k interactions analyzed, 76 percent of of accreditation to oversee certifiers set to reduce
sentiments were positive. complexity and encourage more players to enter
the Halal Food industry. However, the sector
This report estimates global Muslim spend remains fragmented, and the lack of standardized
across sectors at over $1.9 trillion in 2015, while regulations has inhibited mainstream multinational
the Islamic Finance sector has around $2 trillion food and beverage companies from entering the
in assets. Food and beverage tops Muslim spend Halal Food industry. Real opportunities exist for
by category, at $1.17 trillion in 2015, followed by multinationals and private equity firms to acquire
clothing and apparel at $243 billion, media and existing Halal Food companies and create leading
recreation at $189 billion, travel at $151 billion, global brands, with Muslim spend on food and
and spending on pharmaceuticals and cosmetics beverage expected to reach $1.9 trillion by 2021.
at $133 billion. Another first in this report, we
have estimated the revenues from Halal Certified The Islamic Finance sector has shown robust
Food and Beverage products to be $415 billion; growth and increasing sophistication. This has
p.4 State of the Global Islamic Economy 2016

Executive Summary
Dubai skyline.
been coupled by the emergence of crowdfunding The Halal Pharmaceuticals and Cosmetics
platforms, such as Human Crescent and a greater sector continues to expand as awareness
push towards social impact investing with the about ingredients rises fostering new product
launch in Dubai of the Mohammed bin Rashid Global developments, such as permeable nail polish,
Center for Endowment Consultancy (MBRGCEC). the development of Halal vaccines and new
While the sector has been held back by a lack of ranges of nutraceuticals. With increasing
awareness of Islamic Finance product offerings, certification activity in the sector, and as more
there is considerable opportunity in particular in the mainstream players provide Halal products,
Awqaf and Crowdfunding sectors, with the sector Muslim spend on pharmaceuticals and cosmetics
expected to reach $3.5 trillion by 2021. products is expected to reach $213 billion
by 2021 in aggregate.
Halal Travel continues to broaden its reach with
tremendous growth in Halal beach resorts, the Halal Media and Recreation is driving a positive
launch of several dedicated airlines and the launch reinforcement of Muslims, be it in publishing,
of the Muslim answer to Airbnb, Bookhalalhomes, new magazines or new offerings such as Muslim
and TripAdvisor, Tripfez. While Halal Travel is a niche Kids TV and notable technological innovations
sector building momentum, the sector is expected to such as Quran Academy. As new genres are
undergo rapid growth, with Muslim spend on outbound addressed, Muslim spend is expected to reach
travel expected to reach $243 billion by 2021. $262 billion by 2021.
Modest Fashion is gaining mainstream interest However, there are substantial opportunities
with several retailers and brands such as Dolce in adjacent sectors including Healthcare and
& Gabbana, Uniqlo and Burberry entering the Education, estimated at $436 billion and
industry and several notable investments driving $402 billion in 2015 respectively, to address
the sector forward, including Qatar’s Mayhoola the needs of Muslims with tailored offerings,
investment fund buying French luxury label Balmain with convergence opportunities in particular in
and crowdfunding being used to develop a climate- Islamic Economy education and medical tourism.
adapting hijab. As the sector gains traction, spend For current and prospective Halal industry
on clothing and apparel from Muslims is projected to players, government agencies, and investment
reach $368 billion by 2021. firms, the time is ripe to participate in the Islamic
Economy across all key pillars, and to generate
substantial returns.
GLOBAL ISLAMIC ECONOMY
ISLAMIC ECONOMY OVERALL SIZE
Millennial Engagement1
2015 2021
$1.9 Tn $3 Tn 452,600
Food & Lifestyle Projected Market Facebook interactions
Sector Expenditure Size (8% CAGR Growth)
Top countries Indonesia
millennials 126k
engaged with Malaysia
Islamic 84.7k
Economy Pakistan
topics: 55.9k
Most active Islamic finance

Islamic 157k
Economy Modest fashion
sectors for 101k
millennials Media/recreation
99k
ISLAMIC FINANCE ASSETS MARKET SIZE Islamic economy sentiment:

76% Positive
2015 2021 17% Negative
$2 Tn $3.5 Tn 7% Neutral
Total Islamic Projected Market

Finance Assets Size (9.5% CAGR Growth)
Industry Insights2
172 Industry executives surveyed
across all Islamic Economy sectors
Performance:
69%
consider sector performance to be “good” or
“excellent”
Halal Food respondents most optimistic – 80% saying

performance “good” or “excellent”; 37.5% rating their
sector as “excellent”
Optimism:
TO P 1 0
Global Islamic 86%
either “optimistic” or “very optimistic” about
Economy Indicator future prospects, with 42% “very optimistic”
Score
Financing:
49% 59%
1 MALAYSIA 6 Pakistan
2 UAE 7 Kuwait
3 Bahrain 8 Qatar using Shariah need financing for
financing either fully either working capital
4 Saudi Arabia 9 Jordan
or most of the time trade finance or
5 Oman 10 Indonesia long-term expansion

Executive Summary
0 500 1,000 1,500 2,000 2,500 3,500
$415 Bn
Estimated
revenues from $7,049 Bn
Halal Certified Food
$1,173 Bn $1,914 Bn and Beverage 2015 Total Global
products, 2015 Spend on Food
Halal Food 2015 Muslim 8.5% CAGR Growth
Spend on Food (2015-21)
and Beverage
$24 Bn
Estimated
revenues derived
from Muslim
$1,347 Bn
Friendly Tourism 2015 Total Global
$151 Bn $243 Bn services, 2015 Spend on Outbound
Halal Travel 2015 Muslim 8.2% CAGR Growth Travel
Spend on (2015-21)
Outbound Travel $44 Bn
Estimated revenues
from Modest
Fashion clothing
$2,213 Bn
purchased by 2015 Total Global
$243 Bn $368 Bn Muslim women, Spend on Apparel
Modest 2015 Muslim 7.2% CAGR Growth 2015
Fashion and Footwear
Spend on Apparel (2015-21)
and Footwear
$3,690 Bn
2015 Total Global
$189 Bn $262 Bn
Spend on Recreation
Halal Media 2015 Muslim 5.6% CAGR Growth and Culture
& Recreation Spend on Recreation (2015-21)
and Culture
$1,172 Bn
$78 Bn $132 Bn 2015 Total Global
Halal Spend on
2015 Muslim Spend 9.3% CAGR Growth
Pharma- Pharmaceuticals
on Pharmaceuticals (2015-21)
ceuticals
products
$750 Bn
2015 Total Global
$56 Bn $81 Bn Spend on Cosmetics
Halal 2015 Muslim 6.5% CAGR Growth
Cosmetics Spend on Cosmetics (2015-21)
Products $1,451 Bn $2,716 Bn
0.9% of Total 11% CAGR Growth
Islamic Banking Assets Global Market (2015-21)
$ 162,000 Bn
$2,004 Bn $3,461 Bn Total Global
Islamic Finance Assets
9.5% CAGR Growth
Commercial
Islamic Banking Assets
Finance (2015-21)
Existing Muslim Market* (2015, US$ Bn) Potential Market Size (2021, US$ Bn)
Islamic Finance current estimates are based on Thomson Reuters 2015 data. The GIE Indicator model can be found at: http://www.zawya.com/GIEI/ All other
estimates by DinarStandard are as follows: Muslim spend projections are determined by regressing historical annual growth of the relevant industry metrics
on GDP growth for each country. The regression determined a line of best fit that, using IMF 2015 GDP forecasts, projected industry growth. DinarStandard
Muslim market estimates and analysis were overlaid on projections. Actuals estimates were determined primarily by: Interviewing certification bodies and
reviewing trade map data (Halal Food); Reviewing national clothing market estimates and Pew Forum estimates (Modest Fashion) and leveraging travel survey
results on close to 1,000 respondents undertaken by COMCEC on travel (Muslim Friendly Travel).
1
Millenials (aged 18-34) Islamic economy related world-wide Facebook interactions tracked during a 3-week time period (July 27-Aug 17, 2016).
2
Industry survey undertaken based on 172 respondents across sectors and primarily senior-level individuals.
Cityscape view of Petronas Twin Tower at KLCC City Center.
IKMAL PHOTOGRAPHY / SHUTTERSTOCK.COM

The Global Islamic Economy Indicator (GIEI)
The Global Islamic Economy Indicator
(GIEI)
The purpose of the Global Islamic Economy Indicator (GIEI) is to show the current health and development of
the Islamic Economy ecosystem (Halal Food, Islamic Finance, Halal Travel, Modest Fashion, Halal Media and
Recreation, and Halal Pharmaceuticals and Cosmetics). The indicator does not focus on the overall size and
growth trajectory of a country across the Islamic Economy sectors; instead it evaluates them on relative
strengths of the ecosystem they have to support the development of the Islamic Economy.
The GIEI is a composite weighted index comprised of six sector level indicators across 73 core countries.
The ranking is weighted towards Islamic Finance and Halal Food given that their economic impact is
comparatively larger than other sectors.
Malaysia, UAE and Bahrain continue their dominance
As with previous years, Malaysia, the United Arab Emirates and Bahrain continue to lead the index, mainly
due to their strong performances in the Islamic Finance and Halal Food indexes.
METHODOLOGY SUMMARY
Following are key methodology highlights. The full methodology is presented in the Appendix.
↘↘ A total of 73 countries were evaluated which included 57 OIC and 16 non-OIC countries.
↘↘ To evaluate the health of the GIE ecosystem per country, each sector was evaluated based on the
following key metric categories, which were equally weighted: 1) supply/demand drivers relative to
country size, 2) governance, 3) awareness, and 4) social considerations. (The governance criteria did
not apply to Fashion and Halal Media and Recreation sectors.) A total of 49 metrics were utilized.
↘↘ The aggregate indicator and overall rank is weighted to each sector’s proportional economic size
(Islamic Finance and Halal Food are weighted heavily in the ranking given their relative sizes: 46 percent
and 35 percent respectively).
Below are the top 15 countries in the GIE indicator overall as well as for individual Islamic Economy sectors.
TOP 1 5 COU N TR IE S
GIE Indicator
Score
TO P 10 TO P 10 TO P 10
Halal Food Islamic Finance Halal Travel
MALAYSIA 121 1 UAE 1 MALAYSIA 1 UAE

2 Australia 2 UAE 2 Malaysia
UAE 86 3 Pakistan 3 Bahrain 3 Turkey
4 Brazil 4 Saudi Arabia 4 Singapore
Bahrain 66 5 Malaysia 5 Oman 5 Jordan
6 Oman 6 Kuwait 6 Maldives
Saudi Arabia 63
7 Somalia 7 Pakistan 7 Iran
8 Saudi Arabia 8 Qatar 8 Lebanon
Oman 48
9 Bahrain 9 Indonesia 9 Oman
Pakistan 45 10 Qatar 10 Jordan 10 Saudi Arabia
Kuwait 44
Qatar 43
TO P 10
TO P 10 TO P 10
Modest Fashion Halal Media Halal
Jordan 37 Pharmaceuticals
and Recreation
and Cosmetics
Indonesia 36 1 UAE 1 UAE 1 UAE
2 Turkey 2 Singapore 2 Malaysia
Singapore 32 3 China 3 Bahrain 3 Singapore
4 India 4 Lebanon 4 Egypt
Brunei 32
5 Italy 5 United Kingdom 5 Pakistan
6 Sri Lanka 6 Qatar 6 Jordan
Sudan 28
7 Bahrain 7 France 7 Saudi Arabia
Iran 28 8 France 8 Germany 8 Indonesia
9 Singapore 9 Kuwait 9 Oman
Bangladesh 26 10 Togo 10 Australia 10 Brunei
GIE Halal Halal

Islamic Halal Halal Modest
Top 15 Countries Indicator Media and Pharmaceuticals
Finance Food Travel Fashion
Score Recreation & Cosmetics
Malaysia 121 189 55 70 25 38 61
United Arab Emirates 86 92 75 81 67 137 78
Bahrain 66 90 45 30 26 58 36
Saudi Arabia 63 83 50 35 17 33 48
Oman 48 51 54 36 16 40 40
Pakistan 45 47 56 11 19 8 52
Kuwait 44 51 43 29 13 45 29
Qatar 43 47 45 35 15 46 32
Jordan 37 35 45 39 19 31 49
Indonesia 36 38 40 35 21 9 41
Singapore 32 22 39 44 26 75 56
Brunei 32 27 45 22 12 30 39
Sudan 28 30 33 23 5 17 23
Iran 28 30 29 36 10 20 27
Bangladesh 26 31 26 10 25 3 25

The Global Islamic Economy Indicator (GIEI)
Malaysia Pakistan
Malaysia once again leads the GIE indicator, 35 points Pakistan is a large OIC economy with robust food,
ahead the UAE, showing the extent to which its finance, clothing, pharmaceuticals and media sectors
ecosystem is developed, relative to other countries. that continued to show strong performance in the
Its position is mainly due to its strong performance in related Islamic/Halal economy sectors as the 6th ranked
the Islamic Finance indicator, which is because of its most developed ecosystem for Islamic Economy
large asset base, advanced governance, and by far the development. Even though it has dropped one spot in
highest awareness scores. Although its ranking this the ranking there is strong momentum of increased
year has regressed slightly in the Halal Food indicator to awareness around the Halal economy.
fifth place, it still ranks second in both the Halal Travel
and Halal Pharmaceuticals and Cosmetics indicators,
reflecting a strong tourism sector and advanced Jordan and Indonesia
certification of Halal products.
Jordan and Indonesia occupy 9th and 10th places,
respectively. This is due to relatively strong
United Arab Emirates (UAE) performance in most indicators, with Jordan especially
benefitting from a relatively strong tourism sector
The United Arab Emirates (UAE) maintains second place despite political uncertainty in some surrounding states,
in the GIEI rankings, also showing second place in the and Indonesia from an improvement in the Halal Travel
Islamic Finance indicator and taking the first spot in indicator, where it improved three places place by virtue
all other indicators (Halal Food, Modest Fashion, Halal of a strong government drive to promote Indonesia as a
Travel, Halal Media and Recreation and Pharmaceuticals/ Halal Travel destination.
cosmetics.) Indeed, relative to its size the UAE has
established a very healthy ecosystem for Islamic
Economy companies. The strong Government-led Brunei
Islamic Economy development initiatives has given
the UAE a strong platform for the development of all Brunei made it to the top 15 list for the first time
Islamic Economy sectors. moving up five spots replacing Egypt. It had a big
jump in the Halal Travel ranking (10 spots) and strong
performance in Halal Food ecosystem development.
Bahrain Its Halal certification led Halal food product lines have
made strong entrance in the UK market and Brunei
Bahrain maintains third place in the GIE rankings. Halal is getting due recognition as a result. Brunei
Although it was overtaken by the UAE in the Islamic also continues to benefit from being in the vicinity
Finance rankings, it has improved and made its way of Indonesia and Malaysia, two of the largest Halal
into the top ten in the Halal Food rankings, claiming sensitive Muslim travel markets.
9th place. In Modest Fashion it is ranked 7th, while also
climbing in the Halal Media and Recreation rankings from
7th to 4th place, suggesting a growing interest in the
Islamic Economy sectors.
GCC
All GCC economies as a whole have maintained their

position in the top ten, illustrating their continued
strong performance as Islamic Economy hubs, and
driven mainly by their strong performance in the
Islamic Finance and Halal Food indicators. This is
particularly promising for the region given the drop
in oil and gas prices.
Global Islamic Economy Drivers
Overview
The inaugural State of the Global Islamic Economy Report in 2013, presented a set of eight
global and Islamic Economy market trends that were collectively driving growth across the
Islamic Economy pillars.
Based on the combined assessment of the Report authoring team of Thomson Reuters/
DinarStandard, in 2016 the major growth drivers of the Islamic Economy mostly remain the
same with only the nature of some of them having evolved. There are four major global market
drivers and four major Islamic market-based drivers that continue to shape the growth of
the identified Islamic Economy sectors. Specific growth challenges are addressed in the
respective sector sections. Nevertheless, these eight major macro-drivers continue to drive
Islamic Economy growth.
Four key Islamic market-based growth drivers
1. LARGE, YOUNG AND FAST-GROWING GLOBAL MUSLIM DEMOGRAPHIC:
↘↘ One of the strongest drivers for the continued growth of the Islamic Economy sectors
is the fast growing, young, and large Muslim population worldwide. The global Muslim
population is expected to rise from 1.7 billion in 2014 to 2.2 billion by 2030 (26.4 percent),
according to Pew Research Center’s Forum on Religion & Public Life.1
↘↘ The Pew study also projects the Muslim population globally to grow at about twice the
rate of the non-Muslim population over the next two decades — with an average annual
growth rate of 1.5 percent for Muslims, compared with 0.7 percent for non-Muslims. By
2030, 29 percent of the global young population (15-29) is projected to be Muslim. Despite
the significant economic challenges (job creation, training, social services. etc.) this
demographic trend presents its economies, it also reflects the significant proportion of a
young consumer market and an entrepreneurship engine.
2. LARGE AND FAST GROWING GLOBAL ISLAMIC ECONOMIES:
↘↘ The 57 mostly Muslim-majority member countries of the OIC had a GDP (PPP based) in
2015 of $17 trillion which represented 15 percent of the total global GDP (PPP based) of
$113 trillion in 2015.
↘↘ Even in a climate of slow global economic growth, these economies are growing at a faster
rate than the global economy. Based on the latest IMF growth projections (April 2016), the
average projected growth of the OIC markets between 2015-21 is expected to be 4.19
percent compared to the rest of the world’s GDP growth, averaging 3.6 percent during that
same period, with 21 of the OIC countries projected to have a higher growth rate than IMF’s
“emerging market and developing economies.”
1 Derived from 2010 baseline and 1.5 percent growth estimated by “The Future of the Global Muslim Population report”, Pew Research Forum,
January 2011.

↘↘ However, a notable development is that the 3. ISLAMIC ETHOS/VALUES INCREASINGLY DRIVING
fastest growth OIC economies are demographic LIFESTYLE AND BUSINESS PRACTICES:
rich industrial OIC economies such as Indonesia,
Bangladesh, Pakistan, Uganda, Malaysia, rather than ↘↘ Islam as a ‘way of life’ for many Muslims continues
oil-dependent countries to guide all aspects of their lives, including their
consumption behavior. Indeed, the practice and
adherence to Islam varies greatly among Muslims
OIC growth economies based on their age group, geographic region/
country, cultural influences and other factors.
Avg. % GDP Growth (2015-2021)
↘↘ Nevertheless, the number of Muslims identifying
Mozambique 11.57 and adhering to Islam is quite high. According to
Côte d’Ivoire 7.70
a 2015 Pew Global Attitudes survey of select 42
countries, 83 percent of respondents from Islamic
Senegal 6.87
countries considered “religion as very important
Bangladesh 6.73 in their lives.” Comparatively, only 21.5 percent
from European countries said the same while the
Djibouti 6.57
percentage was higher at 53 percent in the U.S.
Niger 6.17
Uzbekistan 6.07 ↘↘ In an earlier comprehensive study from 2012 by

the Pew Forum found that 87 percent of Muslims
Uganda 5.81
globally considered religion ‘very important’
Burkina Faso 5.53 and 93 percent fast in the month of Ramadan.
Libya 5.53 Comparatively in Europe, less than 30 percent
people surveyed rated religion as ‘very important’
Turkmenistan 5.50
while only 56 percent of those surveyed in the U.S.
Indonesia 5.47 rate religion as ‘very important’ in their lives.
Benin 5.34
↘↘ Anecdotally, we see a growing prominence in the
Togo 5.33 media of Muslim women wearing hijab as Olympic
Brunei Darussalam 5.31 athletes and professionals are asserting their
rights through Modest Fashion clothing. All the
Guinea-Bissau 4.94
startup growth stories in this report are another
Mali 4.94 reflection of this continued trend. Many of these
Pakistan 4.94 values do have a universal appeal, and thus many
products and services do not have to be exclusively
Cameroon 4.90
positioned for Muslims.
Guinea 4.90
Malaysia 4.84
BENCHMARKS
Emerging market and developing economies 4.67
Global Average 3.6
OIC overall 4.19
Source: IMF Outlook, April 2016

4. OIC ECONOMIES GROWING ISLAMIC/HALAL ↘↘ Saudi Arabia’s Vision 2030 and the National
MARKET DEVELOPMENT FOCUS: Transformation Program 2020 has made
Islamic heritage and Hajj/Umrah based travel
↘↘ As the Islamic Finance sector matures across most as major area of focus
OIC member countries, many OIC governments
have launched initiatives that expand into other ↘↘ The Emirate of Dubai’s Islamic Economy
Halal market sectors. While the earlier driver of the initiative, being led by the Dubai Islamic
Islamic Development Bank led effort to increase Economy Development Center (DIEDC), has
intra-OIC trade (modest growth of 15.5 percent put a new life into the growth of the global
in 2005 to 19.8 percent in 2015) and contribute Halal/Islamic Economy. (This report is part
to the Halal/Islamic sector development, it is the of a whole ecosystem of Islamic Economy
recent focus on the various sectors of the Halal/ initiatives across the different entities in Dubai
Islamic Economy that is now a major driver. being supported by DIEDC.)
↘↘ Many OIC countries are now recognizing the ↘↘ The Emirate of Abu Dhabi has also invested in
significance of this opportunity for their economic the development of the Halal Travel market by
development covering food, travel/tourism, initiating an annual global Halal Travel industry
clothing, media, recreation and other sectors. As event and travel marketing programs
a result, a major boost is being seen in support
of Islamic Economy companies in the form of ↘↘ Malaysia continues its focus on investment in
regulatory initiatives, economic incentives, and growing its pioneering role in Islamic Finance
marketing programs. Below are select recent and Halal sectors development through
initiatives by OIC member countries in developing major conferences, Halal hub initiatives and
Halal market economies: incubation of startups
↘↘ The Standing Committee for Economic ↘↘ Turkey has been supporting the development
& Commercial Co-operation of the OIC of its Halal Food sector growth by
(COMCEC), has now commissioned three strengthening its Halal certification processes
studies in the past year on the development among other initiatives
of the ‘Halal Travel’ market to support member
countries in developing this space ↘↘ The Standards and Metrology Institute
for the Islamic Countries (SMIIC), an OIC
↘↘ The new government of Indonesia has initiated body, has developed Halal sector
made Islamic Finance, Halal Food, and Halal standards for food and other sectors that
Travel markets a strategic focus area for its many member countries are either adopting
growth and development or will be leveraging

Global market-based growth drivers and grew at 11.5 percent from the previous year.
Ethical finance, which covers many areas of
5. PARTICIPATION OF GLOBAL MULTINATIONALS: socially responsible investment, ethical funds,
microfinance, social crowdfunding, and social
↘↘ Top global brands from food, finance, fashion, travel, entrepreneurship, is a multi-trillion dollars fast
pharmaceuticals and cosmetic sectors continue to growing space. In the U.S., the Socially Responsible
not only engage in the Halal/Islamic Economy space Investment space had a total of $6.57 trillion in
but are helping innovate products and services assets in 2014 which increased 76 percent from
given their global R&D and marketing capabilities. $3.74 trillion identified in 2012.3 These trends
Major global food suppliers such as BRF from are only expected to further grow as millennials
Brazil to top global food processor Nestle, to top worldwide are seeking purpose filled careers,
retailers Carrefour, Walmart, and Whole Foods have lifestyles, and experiences.
all significantly engaged in the Halal Food market.
Mastercard has launched a Halal benefits program ↘↘ These socially conscious business trends are
for its Shariah-compliant card holders in Southeast starting to find Islamic Economy sectors a natural
Asia. In travel many major hotel operators (IHG fit given their underlying socially responsible
Group, Marriot, Fairmont) among others are motives. As profiled in this Report, many Halal
ensuring they create experiences that fit some of Food, Islamic Finance and other Islamic Economy
the unique requirements of Muslim leisure travelers. products are positioning and benefiting from the
Their engagement continues to drive global global conscious consumerism trends.
credibility and boost Islamic Economy sectors.
8. TECHNOLOGY AND CONNECTEDNESS:
6. DEVELOPED ECONOMIES SEEKING
GROWTH MARKETS ↘↘ Communication and transactional technologies of
mobile internet, broadband, secure ecommerce,
↘↘ The OIC countries are projected to be growing at digital media, augmented reality experiences,
a faster rate than the rest of the world. The IMF communication and marketing tools continue
projects advanced economies to see a low 1.9 to democratize economic development and
percent average GDP growth 2015-21. All major entrepreneurship worldwide. Islamic Economy
economies seek growth market opportunities. start-up entrepreneurs are benefiting tremendously
The significant and fast growing Islamic Economy from the continuous technology developments
sectors provide a strong opportunity for growth. which has given a big boost to further develop
Government initiatives in Spain for example have the globally-distributed and fragmented market
been facilitating travel and tourism promotion to for Halal Food, Modest Fashion, Islamic Finance
the Muslim travel market in addition to preparing and related lifestyle services. Indeed, Muslim
its food sector for Halal market growth. In addition, consumers are a big part of this digital revolution.
developed economies are some of the key source The cellular subscription base of Muslims globally is
markets for Halal products (U.S., France, Brazil, 1.3 billion, which is 21 percent of the global figure
and Australia are major Halal meat exporters to with countries like Saudi Arabia and Indonesia
OIC member countries). representing among the largest numbers of social
media users globally.
7. GROWING SIGNIFICANCE OF ETHICAL BUSI-
NESSES IN FOOD, FINANCE, FAIR-TRADE,
EDUCATION AND ENVIRONMENT:
↘↘ Global sentiment around healthy/organic food,

ethical finance, humane treatment of animals, fair-
trade, eco-tourism, and other socially-conscious
businesses continues to grow. The global organic
food market is estimated at $72 billion in 2014,2
2 “Growth continues: Global organic market at 72 billion US Dollars with 43

3 “Global Sustainable Investment Review Report 2014”, Global Sustainable million hectares of organic agricultural land worldwide”, FiBL Excellence for
Investment Alliance, February 2015. Sustainability, February 2015.
Millennial Consumer Insights –
Social Data Analysis Interactions
Introduction
MILLENNIALS?
‘Millennials’ are shaping the future and nature of business services world-wide. Defined as those
born between 1980 and 2000,4 the millennials represent a powerful economic demographic.
There are currently 2 billion millennials in the world, with 86 percent living in emerging markets,
and they will form 50 percent of the entire workforce in 2020. They are generally divided
into two sub-groups—18-24-year-old and 25-to 34-year old. Raised in a post-world war/
cold-war era driven by fast communication technology developments, millennials do have
many characteristics in common. In particular, they are more technologically oriented than
previous generations, are more brand loyal, and generally expect instant access to information
among other attributes.
MILLENNIALS CRITICAL RELEVANCE TO THE ISLAMIC ECONOMY

Millennials role in the development of Islamic Economy is critical given the young global
demographic of Muslims. Muslims are the youngest (median age of 23 years old in 2010) of all
major religious groups world-wide, seven years younger than the median age of non-Muslims5.
By 2030, 29 percent of the global young population (15-29) is projected to be Muslim. Besides
distinct millennial characteristics, Muslim millennials are also forging their own identity, with
terms such as ‘Mipsterz (Muslim hipsters)6,’ ‘GUMmies’ (Global Urban Muslim consumers)7
defining the young trend setting Muslims, confident of their Muslim identities and asserting
their needs in travel, food, education, fashion, and increasingly demanding the attention of
mainstream players.8
So how are these millennials viewing Islamic Economy sectors? What is their behavior and
perception of Halal Food, Halal Travel, Modest Fashion, Islamic financing etc.? Do male and
female interact with these sectors distinctly? What are the most used terminology and
discussion topics? In this SGIE 2016 Report, we are introducing a new feature on millennial
behavior with the Islamic Economy sectors. Reflecting the digitally savvy nature of this
audience, we have conducted a social media listening research exercise to data mine
millennials interactions on Islamic Economy sectors worldwide.
4 “PwC’s NextGen: A global generational study: Evolving talent strategy to match the new workforce reality”, PwC, 2013.
5 “Muslims and Islam: Key Findings in the U.S. and around the World.” Pew Research Center, 22 July 2016.
6 “Mipsterz: a space for Muslim hipsters”, CNN, June 2015.
7 “The Next 1.7 Billion Consumers; Selling To The Muslim world”, Forbes, April 2015.
8 “H&M’s latest look: Hijab-wearing Muslim model stirs debate”, CNN, 2015.

Millennial Consumer Insights – Social Data Analysis Interactions
Social media listening – mining analysis. The coverage was global including all languages,
millennials Islamic Economy interactions although keywords and hashtags were in English so other
language interactions were captured only if the English
APPROACH & METHODOLOGY hashtag or keyword were mentioned. Another limitation
To gather millennials social media based insights on the on the sentiment analysis was that other language
Islamic Economy, data from the most popular social media interactions, even when captured, could not be used for
platform, Facebook, was utilized. All ‘posts’ and ‘comments’ automatic sentiments analysis.
related to Islamic Economy sectors were tracked during
a 3-week time period (July 27-Aug 17, 2016). A total of AGGREGATE ISLAMIC ECONOMY MILLENNIAL INSIGHTS
452,600 interactions were captured for this social media Geography & Sector interactions: In aggregate,
analysis. The interactions were spread across six distinct the top countries where millennials were engaged
sector dashboards. The posts were from users in the 18-35 with Islamic Economy sector topics are Indonesia
yrs. millennial age group. Specific keywords and hashtags were (126k interactions), Malaysia (84.7k interactions),
used to identify Islamic Economy related interactions. Pakistan (55.9k interactions) and USA (14.6k
interactions.) Southeast Asian countries Indonesia
The reason for just focusing on Facebook posts, was 1) and Malaysia together represent 47 percent of the
Facebook (FB) dominates the social media landscape. FB had interactions captured.
1.59 billion active users worldwide (Jan 2016.)9 Meanwhile
Twitter has 320 million and Instagram 400 million active It is also insightful to see the sector topics that
users. 2) For data analysis, Facebook data is the only major were prominent in these top markets. 54 percent of
social platform whose data could be reliably segmented by Indonesia millennial interactions related to the
age groups, which was necessary for this analysis. Modest Fashion sector. In Malaysia, 71 percent of
millennial interactions were related to the Islamic
Nuvi (nuvi.com), a social media data aggregation platform, Finance sector. In Pakistan, 87 percent of millennial
was used to collect Facebook data for the purpose of our interactions were Halal Media and Recreation
sector related and in U.S., 46 percent of millennial
9 http://newsroom.fb.com/company-info/, accessed on 15 July 2016. interactions were Halal Food sector related.
Volume of millennial interactions recorded by country & sector
Halal Halal
Islamic Modest
Halal Food Halal Travel Media and Pharmaceuticals Total
Finance Fashion Recreation and Cosmetics
Indonesia 37,500 4,200 68,500 4,600 4,200 7,800 126,800
Malaysia 60,600 7,400 5,300 1,900 1,400 8,100 84,700
Pakistan 4,000 1,200 1,500 500 48,500 200 55,900
USA 2,500 6,800 1,100 1,500 2,200 500 14,600
Philippines 400 7,700 1,200 100 200 4,300 13,900
India 1,800 2,500 500 300 5,200 – 10,300
Saudi Arabia 900 600 900 100 5,300 – 7,800
UK 600 2,700 400 300 1,000 100 5,100
Turkey – – – – 4,900 – 4,900
UAE 300 300 200 – 3,000 – 3,800

A halal label is on display at a restaurant in Kuala Lumpur,
Malaysia. REUTERS/BAZUKI MUHAMMADD

Millennial Consumer Insights – Social Data Analysis Interactions
Overall, the most active Islamic Economy sectors Men/Women millennial interactions
where Millennials interacted were Islamic Finance with Islamic Economy sectors
(157k interactions), Modest Fashion (101k
interactions), Halal Media and Recreation related
Sector Male Female
(99k interactions). Halal Food (54k interactions) and
Halal Travel (15k) surprisingly were lower relative to the Islamic Finance 41% 30%
other sector interactions.
Halal Food 10% 12%
Gender profile: Men (205k interactions) and women Halal Travel 3% 3%
millennials (206k) were equally engaged on social Modest Fashion 12% 32%
media interactions. This is a big indication of the
Halal Media and Recreation 32% 14%
equally strong voice of the millennial Muslim women. It is
Pharmaceuticals and
insightful to also see that across the sectors, Millennial Cosmetics
2% 10%
women were most engaged in Modest Fashion (65k)
Total/ Percentage 204.8K/100% 206.5K/100%
and Islamic Finance (61k) sector topics. Millennial
men were most engaged with Islamic Finance (83k)
and Halal Media and Recreation (66k) sectors. Sentiment across sectors & in total
Sentiment analysis: Analysis of all the millennial Sector Positive Neutral Negative
interactions captured for this analysis has been
analyzed for their general sentiment. Based on an Islamic Finance 26% 18% 37%
algorithm that factors in the conversational tone and Halal Food 28% 45% 33%
words used in the interactions, a ‘positive’, ‘negative’
Halal Travel 4% 5% 7%
and ‘neutral’ sentiment score is given to interactions
(English language ones only.) From all the interactions Modest Fashion 8% 7% 6%
that were able to be analyzed for sentiment across all Halal Media and
23% 20% 15%
sectors, an overwhelming 76 percent of millennial Recreation
interactions were with positive sentiment, 17 Pharmaceuticals and

10% 5% 3%
percent were negative, and 7 percent were neutral. Cosmetics
Total/ Percentage 48.3K/100% 4.4K/100% 10.6K/100%

In terms of variations within sectors, ‘Halal Travel’ had
the highest negative sentiment interactions although Aggregate of all sectors keywords
still at a low 25 percent followed by Islamic Finance and hashtags
with 23 percent. Halal Pharmaceuticals and Cosmetics,
Modest Fashion, and Halal Media and Recreation
Keywords & Hashtags
had the most positive sentiment interactions. The
specific sector sections go into the topics and Halal 5.1K
themes of discussions.
#Halal 2.2K
#Projekstg 2K
Top keyword & hashtags: From across all the
interactions captured across sectors, the most Muslim 1.9K
common terms and hashtags were: #Halal, (Hijab) ‫حجاب‬ 1.7K
#Projekstg (a part-time work initiative in Malaysia),
#halalfood 1.4K
Muslim, Hijab, #Halalfood, #Bilal (a new upcoming
movie), Food, and Zakat. Food 1.2K
#Bilal 1.2K
#elitkingdom 1.2K
Zakat 900
#Takaful 800
#Iqra 800
Islamic banking and finance 700

Industry Insights –
Islamic Economy Leaders Survey
Summary the sector continues to be held back by

lack of standardization.
↘↘ A strong Islamic Economy industry leaders
survey conducted: A global survey was ↘↘ Infrastructure sukuk and SME financing
undertaken across each core pillar of the represent strong frontiers of growth for Islamic
Islamic Economy to measure current business Finance. However, lack of public of awareness and
sentiment. 172 responses were received monetary policy regulations are restricting growth.
across core geographies and sectors, with
Malaysia, the UK, the U.S. and the UAE
accounting for just under 50 percent of total Key findings across all sectors
responses. Halal Food and Islamic Finance
were strongly represented in the survey, at 1. THE MAJORITY OF ISLAMIC ECONOMY BUSI-
close to 60 percent of responses. Over 50 NESSES SURVEYED FEEL THAT THEIR SECTORS
percent of respondents had annual revenues HAVE SHOWN STEADY OR TREMENDOUS
of less than US$5 million, but there was a GROWTH:
robust representation of larger companies,
with 22 percent of respondents having ↘↘ Strong performance to date: 69 percent of
revenues exceeding $100 million. 41 percent respondents assessed the performance of their
of respondents were either owner, president or respective Islamic Economy Pillars as either good
CEO of the companies they represented. or excellent, with 19 percent rating their respective
sector performance as excellent.10
↘↘ Industry leaders Islamic Economy outlook is
strong: Businesses confirm that the aggregate ↘↘ Halal Food leading the pack: Halal Food
Islamic Economy is a high-growth segment, with represented the strongest sector in terms
69 percent considering sector performance of optimism, with 80 percent of respondents
to be good or excellent, and 86 percent of assessing performance as good or excellent,
respondents either optimistic or very optimistic with a staggering 37.5 percent rating their
about future prospects. sector as “excellent”.
↘↘ Halal Food leads not only by size, but by 2. AN EVEN BIGGER MAJORITY OF RESPONDENTS
performance: With 80 percent of respondents ARE OPTIMISTIC ABOUT THE FUTURE OF THEIR
rating performance as at least good, and with RESPECTIVE PILLARS
87 percent at least optimistic about the future,
businesses confirm the tremendous and ↘↘ Strong cause for optimism: 86 percent of
leading growth potential of Halal Food. respondents were either optimistic about the
further growth potential of their respective pillars,
↘↘ The time is ripe to enhance Shariah finance with 42 percent very optimistic
product offerings for smaller businesses:
With only 49 percent of respondents using ↘↘ Halal Food once again leads the pack: Halal Food
Shariah financing most of the time, and with outperformed other sectors in terms of optimism,
close to 60 percent of businesses needing with 88 percent of respondents at least optimistic
long-term expansion, working capital or trade about their sector, with 55 percent very optimistic.
finance, there are substantial opportunities
to introduce new, cost-effective products
across high-growth sectors
10 Good means respondents have seen steady benefit from their businesses’
Halal proposition, while Excellent means respondents have experienced
↘↘ Healthy eating and ingredients are top tremendous growth in their Halal propositions. Similarly optimistic was
interpreted as good future potential for Halal propositions, while Very optimistic
Halal Food growth opportunities. However, was interpreted as very strong future potential.

Industry Insights – Islamic Economy Leaders Survey
3. HOWEVER, LACK OF SHARIAH-COMPLIANT ↘↘ Core needs for financing: The top two needs
FINANCE REMAINS A KEY CHALLENGE, for financing included working capital financing,
WITH THE LIMITED USE OF ISLAMIC identified by 22 percent of respondents, followed
FINANCING AND WITH BUSINESSES FACING by trade finance, identified by 19 percent of
HIGH COST AND RED TAPE WHEN TRYING respondents, and long-term expansion finance,
TO RAISE FINANCING identified by 17 percent of respondents
↘↘ Mixed use of financing: 49 percent of ↘↘ Main constraints: High cost, long loan processing
respondents confirmed they either fully use times, and cumbersome documentation
Shariah financing or most of the time, while requirements were the top three challenges noted
32 percent respondents noted only using with raising financing, together accounting for 46
conventional financing percent of responses.
Survey responses to questions on sector sentiment

HOW WOULD YOU RATE THE HOW DO YOU FEEL ABOUT THE FUTURE
PERFORMANCE OF YOUR SECTOR? POTENTIAL OF YOUR SECTOR?
Excellent Very pessimistic

18.6% 2.3%
Pessimistic
Optimistic
1.2%
Poor 44.2%
Good 3.5% Neutral
50% 10.5%
Average
14.5%
Not Sure Very optimistic

12.8% 41.9%
Core survey responses to Islamic Financing questions

HOW MUCH OF YOUR BUSINESS FINANCING IS ADDRESSED
BY SHARIAH-COMPLIANT PRODUCTS? MAIN FINANCING NEEDS
Trade financing
Working capital 18.9%
100% Islamic Majority Islamic 21.7%
41.7% (70%)
9.3%
Expansion capital
Insurance 17.3%
Equal Islamic
5.6%
/ conventional
100% 10.2% Machinery
Conventional 6.5%
Majority conventional Other short term
31.5% Other
(70%) 15.3%
14.7%
7.4%
Source: Analysis based on survey responses

Key findings across Halal Food and 5. ISLAMIC FINANCE RESPONDENTS EXPECT
Islamic Finance THE STRONG GROWTH OPPORTUNITIES IN
INFRASTRUCTURE SUKUK AND SME SUPPORT
4. HALAL FOOD, THE LARGEST SECTOR BY REVENUE INITIATIVES, WITH LACK OF PUBLIC AWARE-
SIZE, FACES THE STRONGEST OPPORTUNITIES IN NESS THE MAIN LIMITING FACTOR FOR SECTOR
HEALTHY PRODUCTS AND HALAL INGREDIENTS, GROWTH:
WITH SECTOR DEVELOPMENT STILL HELD BACK
BY A LACK OF STANDARDIZATION: ↘↘ Key opportunities: The top opportunities for
growth includes sukuk for infrastructure financing
↘↘ Key opportunities: The top opportunities for (20 percent of respondents), followed by the
growth comprise the “healthy” branding of convergence opportunity through funding SMEs
Halal products (19 percent of respondents), across the Islamic Economy, accounting for 16
capitalizing on the broader shift towards healthy percent of respondents. Other opportunities
eating, followed by Halal ingredients (16 percent include social development support and
of respondents). Organic and e-commerce also Shariah-compliant pensions
represent strong expansion opportunities
↘↘ Key challenges: Major limitations include low
↘↘ Limitations: However, the lack of standardization levels of public awareness and limitations on
across the different Halal markets is seen as a sector growth imposed by monetary policy
major challenge for over 20 percent of respondents, formulation, together accounting for almost 50
followed by the lack of global Halal brands. percent of responses.
Major growth opportunities and challenges in Halal Food

MAJOR GROWTH OPPORTUNITIES MAJOR CHALLENGES
Halal ingredients Lack of Lack of OIC Halal

Halal branded 16% Brands
standarization
as healthy 18%
23%
19% Halal Organic
Food
13%
Halal labelling
B2B and retail fraud
ecommerce 17%
Other
Other 13% 31%
29% Halal-compliant Lack of SME
testing methods shariah-compliant funding
11% 12%
Major growth opportunities and challenges in Islamic Finance

MAJOR GROWTH OPPORTUNITIES MAJOR CHALLENGES
Sukuk for Increased SME Monetary policy formulation

infrastructure growth initiatives and implementation
financing 16% Other 18%
23% 21%
IF supporting
social Underdeveloped
development safety nets
Other 15% 17%
21%
Low levels
Shariah-compliant of public
Disruptive finance: Finitech pensions awareness Central bank
and Crowdfunding 12% 29% governance changes
12% 15%

Industry Insights – Islamic Economy Leaders Survey
Milan 2015 Universal Exposition. Big monitor

displayed Stock market of food. CHICCODODIFC /
SHUTTERSTOCK.COM
A man arranges strawberries at his roadside stall in an outdoor
market in Islamabad, Pakistan. REUTERS/FAISAL MAHMOOD

Halal Food Sector
Halal Food Sector
Within the Islamic tradition, a person’s spirituality and the purity of one’s soul are very much
tied to the food and drink we consume. In an age of increasing commercialization, the food
we consume can be devoid of God’s presence and the reverence for God’s creation that Islam
requires. It is this gap that much of the Halal Food sector seeks to fill.
With the Quran not only calling for food to be Halal but also Tayyib, or pure, this has led to
segments of the Halal Food sector creating produce of the highest quality, as can be seen in
the rise of Halal organic food. Consequently, non-Muslim demand for such quality food is also
increasing. This demand has led to this report to estimate spending on food and beverages
to be $1.17 trillion in 2015, with revenues from Halal Certified Food and Beverage products
estimated at $415 billion in 2015.
However established this sector becomes, there seems to always be further room for growth and
opportunity. For example, there has recently been a rise in Halal online meal takeout and delivery
platforms, particularly in non-OIC countries. The UK-based HalalEat, Halalonclick in Singapore
and the Russian HalalEda.me, are just a few examples that also highlight the transnational
potential of the Halal Food sector.
Several notable private equity investments have occurred in the past year, signaling
increasing investor appetite for Halal Food investments. ESP Capital and Kingsley Capital
Partners invested $30 million in Janan Meat, a leading UK-based Halal lamb and mutton
supplier, while Abraaj Capital and Texas Pacific Group invested $400 million in Saudi
Arabia-based fast-food chain Kudu.
Unfortunately, there still remains much misunderstanding around Halal meat within non-Muslim
majority societies. Some European countries have even moved to ban Halal and kosher methods
of slaughter. Further financing and work is needed in the marketing and sales area in order to
create a better understanding of the principles of Halal Food.
Nevertheless, the Halal Food sector’s growth shows no sign of slowing down as this report
estimates Muslim food and beverage expenditure to grow to $1.9 trillion by 2021. With creative
innovations taking place such as the Ramadan Energy Bar and many opportunities to tap into
high potential segments such as Halal baby food, the Halal Food sector proves it will remain a
flourishing sector for many years to come.
HALAL FOOD
MA R KET SIZ E 1 BE N CH M AR K
How much does the How does global
global Muslim market Muslim spend
Estimated
spend on food? compare to total revenues from Halal
global spend on Certified Food and
food and beverage? Beverage products
$415 Bn
in 2015
2015
2015
$1,173
$1,173
Bn Bn $854 Bn $771 Bn $380 Bn $341 Bn $316 Bn
Global Muslim
Global
Market
Muslim Market China United States Japan India Russia
16.6% of
16.6%
Globalof Global
Expenditure
Expenditure
(2015 est., US$ Bn)
2021
(Potential)
$1,914 Bn
18.3% of Global Expenditure
THE HA L A L F O OD I ND I CATOR
Which countries have the best developed ecosystem
for Halal Food and Beverage?
Bahrain 9
q Qatar
Saudi Arabia 8 3 Pakistan
6 Malaysia
Oman
Somalia 7 5
1
1
United
4 Brazil Arab Emirates
Australia 2
*CRITERIA (From a total of 73 select countries)
1. Trade OIC Food Trade Relative to its size
2. Governace Regulation/Certification requirements
3. Awareness Media/Events
4. Social Food Price Index
Selected Meat Suppliers Ingredients Distribution Channels Regulatory

BRF (Brazil) Manufacturers McDonalds (U.S.) Emirates Intnl. Accreditation Council
key players Cargill (USA) Aromco Ltd. (UK) Dagang Halal (Malaysia) GCC Accreditation Council
Allanasons (India) Bidara Herba Zilzar (Malaysia) Pakistan Ntnl. Accreditation Council
American Foods Group (USA) Niaga (Malaysia) Halaleat.com (UK) JAKIM (Malaysia)
Maret (Turkey) Halal Dining Club (UK) MUIS (Singapore)

Halal Food Sector
F OO D TRA DE BY O I C COU NT R I E S 2
What do OIC member
countries import most?
18.9% 47.8% 33.3%

Animal and animal products Vegetable products Food processing / Manufacturing
$35 Bn $16 Bn $88 Bn $68 Bn $61 Bn $37 Bn

Imports Exports Imports Exports Imports Exports
TOP MA R K ETS
Issues and
Top Muslim consumer opportunities map
Consumer needs
ecosystem
food expenditure markets
Halal food Non-
Indonesia $154.9 B2B & retail Muslim
commerce consumers
Turkey $115.5
 Negative
Pakistan $106.3
Products media
Egypt $77.5 & Markets Backlash
Bangladesh $68.5
Halal  Halal
ingredients labelling
Iran $59.0 manuf. fraud
Saudi Arabia $47.9 Emerging  Influence / 
exporters Social
Nigeria $41.2 Media
 
Russia $37.0 Lack of Testing &
global OIC detection
India $34.8 brands advancement
(2015 est., US$ Bn)
Halal  
organic Halal
growth Parks
 
Halal Food
sukuk / Accreditation
debt roll-out
Halal  Lack of
food equity standarization
investments
Halal Food markets Lack of SME
 Halal
‘Tayyab’ cross-over global Shariah- company
verification
opportunity3 Halal
compliant

funding
company High cost
Global organic food and beverages  operations
IPOs
market expected to reach  Policies,

$105 Bn in 2015 Regulations
Financing & Investment
High Impact Issues  Challenges  Opportunities
1
Covers food & non-alcoholic beverage expenditure; Expenditure data baselined from 2011 International Comparison Program + National Statistics Agencies.
See Report for full methodology. DinarStandard Muslim market estimates & analysis; Sector correlated IMF Outlook Oct 2014 Database for projections.
2
Source: DinarStandard Industry value chains; aligned with International Harmonized Code (HC) Covers animal products, vegetable products, and processed
food minus swine, spirits, tobacco. Not included: retailers/other distribution channels, machinery, supporting inputs, logistics, support services (eco-system).
3
Source: Global Organic Foods & Beverages Market Analysis By Products, Geography, Regulations, Pricing Trends, & Forecasts (2010 – 2015), MarketsandMarkets.
Halal Food Indicator
The 2016 State of the Global Islamic Economy Report revisits the Halal Food Indicator (HFI)
to evaluate countries’ health and development of their Halal Food ecosystem. The indicator
does not focus on the overall size and growth trajectory of a country in the Halal Food
sector; instead it evaluates them on relative strengths of the ecosystem they have for the
development of the sector.
The United Arab Emirates, Australia and Pakistan lead the Halal Food indicator ranking that
focuses on the health of the Halal Food ecosystem a country has relative to its size and
including its related social considerations.
The Indicator equally weights fours metric categories and has the following metrics for each:
(Full methodology is presented in the Appendix.)
↘↘ Supply drivers relative to country size (meat/live animal exports to OIC countries)
↘↘ Governance (Halal regulations and certification requirements)
↘↘ Awareness (number of related news articles and events)
↘↘ Social (food pricing index)
Below are the top 10 countries in the Halal Food Indicator.
TO P 1 0
Halal Food
UAE 75
Australia 63
Pakistan 56
Brazil 56
Malaysia 55
Oman 54
Somalia 51
Saudi Arabia 50
Bahrain 45
Qatar 45

Halal Food Sector
Meat Export Governance Awareness
Halal Food Sector Score Social Score GIE Ranking
to OIC Score Score
United Arab Emirates 75 41 100 115 45 2
Australia 63 103 67 58 26 19
Pakistan 56 15 100 37 74 6
Brazil 56 146 33 10 36 23
Malaysia 55 2 100 61 58 1
Oman 54 42 100 19 57 5
Somalia 51 118 33 NA NA 29
Saudi Arabia 50 21 100 25 53 4
Bahrain 45 0 100 28 54 3
Qatar 45 4 100 26 49 8
United Arab Emirates (UAE) Pakistan
The UAE overtakes Malaysia as the leader in the Halal Although overtaken by Australia, Pakistan nevertheless
Food indicator, due to a significant strengthening of still occupies a strong position in 3rd place in the rankings.
its regulatory oversight of the Halal Food industry, and This is due to the country maintaining its scores in all sub-
a vast improvement in its awareness score, driven indicators, including maintaining low food prices, relatively
by strong publicity. strong regulation and a growing certification ecosystem.
Australia and Brazil Ups and Downs
Australia improves its strong position, moving from 4th Azerbaijan and Egypt, were in 8th and 9th place in last
to 2nd position and overtaking Pakistan in the rankings. year’s rankings, but dropped from the top ten and are
This is due to it maintaining its high level of exports, replaced by Bahrain and Qatar. Both Bahrain and Qatar
while also increasing awareness and publicity of Halal exhibited strong regulatory and compliance scores, in
Food. Brazil also improves its ranking, from 6th to 4th. This addition to maintaining relatively low food prices.
is almost wholly driven by an increase in meat exports
to the OIC, in addition to maintaining its position in
other sub-indicators.
Halal Food Market Sizing
Market size and profile — Global Muslim consumer spending on Food and Beverage
$1.17 trillion in 2015 (17 percent of global expenditure), and, representing a first of its
kind for this report series, the 2015 Halal Certified Food and Beverage Market has been
estimated at $415 billon.
This Report estimates Muslim populations globally to have spent a total of $1.17 trillion on food
and beverages (F&B) in 2015, representing between 17 percent of the global market spend of
$7 trillion. This is a growth of 3.4 percent from the previous year, and is slightly higher than the
global market growth of 3.3 percent. Muslim spending on food and beverage is expected to
reach $1.9 trillion by 2021, a CAGR of 9 percent from 2015.
The Muslim consumer expenditure for food and beverage is ranked first, ahead of China ($854
billion), the United Sates ($770 billion), Japan ($380 billion), and India ($341 billion).
Muslim countries with the highest spend on food and beverage in 2015 were Indonesia ($155
billion), Turkey ($116 billion), Pakistan ($106 billion), Egypt ($78 billion), Bangladesh ($69 billion),
Iran ($59 billion), and Saudi Arabia ($48 billion).
The revenues for Halal Certified Food and Beverage products globally have been estimated
at $415 billion in 2015, which represents the total estimated sales of food products across
the Food and Beverage value chain. This estimate includes spend by both Muslims and non-
Muslims on Halal Food and beverage products. The estimation was based on detailed interviews
with a selection of certification bodies as well as a review of independent estimates, with
further detail included in the Methodology section towards the end of this report.

Halal Food Sector
Customers shop at a grocery store in Dubai.

REUTERS/JUMANA EL HELOUEH
Social Listening –
Consumer Sentiment
Approach
Earlier in the Report, our methodology and aggregated insights from millennials (18-35 age
group) using social media listening based research was introduced. Here we present specific
insights from millennials social media interactions on Halal Food. A total of 53,600 Halal Food
related Facebook ‘posts’ and ‘comments’ from the millennial age group are analyzed here.
Geography interactions
In aggregate, the top countries where millennials were engaged with Halal Food sector
topics were Philippines (7.7k interactions), Malaysia (7.4k interactions), United States
(6.8k interactions), and Indonesia (4.2k.) Millennials from Non-Muslim majority countries of
Philippines, USA, UK, India and Australia seemed to be prominently interacting on Halal Food.
Volume of millennial interactions on Halal Food by country
Number of Number of
Country Country
Interactions Interactions
Philippines 7.7K Pakistan 1.2K
Malaysia 7.4K Saudi Arabia 600
United States 6.8K Canada 600
Indonesia 4.2K Nigeria 600
United Kingdom 2.7K Thailand 400
India 2.5K UAE 300
Australia 2.1K Japan 300
Singapore 1.4K
Sentiment analysis
Based on an algorithm that factors in the conversational tone and words used in the
interactions, a ‘positive’, ‘negative’ and ‘neutral’ sentiment score is given to interactions (English
language ones only.) From the interactions that were able to be analyzed for sentiment across
Halal Food interactions, an overwhelming 71 percent of millennial interactions were with
positive sentiment, 18 percent were negative, and 10 percent were neutral.
The majority positive sentiments by millennials are generally of the type of Halal ‘foodie’
experiences, Halal product announcements, and healthy & Halal announcements. The minority
negative sentiment interactions were generally Islamophobic related (mostly from the US,
Europe and some from Australia), or non-qualified Halal/fraud related concerns. Select actual
interactions are referenced below (these have been made anonymous for privacy purposes.).

Halal Food Sector
HEALTHY & HALAL THEMES PRODUCT ANNOUNCEMENT THEMES
Made in USA, Manufactured by NATURES WAY→ Frontrow International Products!!! The Most Trusted
USFDA, BFAD, HALAL & KOSHER approved.” and The Most Effective Food Supplements in the
Philippines! 100 percent made in U.S.A “ONTARIO
They are finally here! Try it:) We have an exclusive CALIFORNIA”; Approved by HALAL ( U.A.E )”
Partnership with the #BarleyQueen herself, Miss
Maritoni Fernandez, an actress, business owner and Halal Food and Nutrition Council Philippines, Inc.
our supplier. All products are Halal, FDA Approved signed a Memorandum of Understanding with Korea
and has CPR. #HealthandWellnessProducts” Halal Authority Corporation, the objectives of KHAC
and HFNCP, INC. are complementary and same as
Protect your baby from any form of sickness. the promotion, recognition and development of
Make them healthy and happy. Buah Merah Mix Halal trade and industry.”
is a healthy and refreshing juice drink, enriched
with Natural Anti-Oxidant (Beta-Cryptosanthin) Now our products are available at SAFANA HALAL
that boosts the immune system. 100 percent MEATS 3rd Parklands Avenue AMANI PLAZA”
ORGANIC, NON TOXIC, ALL NATURAL 100 percent
HALAL, FDA REGISTERED” Brazilian Beef Export! Product Halal and non Halal!
Meats of the highest quality and certified by the
most demanding agencies Health Surveillance! Just
HALAL FOODIES send us a Letter of Intent to Purchase (LOI) or ICPO
banked and updated that agilizaremos a quote and
Would love to see more and more Halal Japanese subsequent Trading closing quickly and safely.”
food available for muslim in Malaysia..”
Eating healthy without compromising on good food!! ISLAMOPHOBIC THEMES

#homemade #eatinghealthy #portioncontrol #Halal
#tryingsomethingnew #beefchowmien” This is not the first public school in America
that has become ‘sharia-compliant’ by
I just had to share my good news with you all. This removing pork products from its food
coming Saturday at 3pm, I’ll be cooking live at service, in order to accommodate Muslim
the London Halal Food Festival. This is a really big supremacist religious demands.”
event for me, so please do remember me in your
prayers. Let me know if you’ll be at the Festival as it Stop Halal and Kosher slaughter in the UK” –
would great to meet up ” Jetzt unterschreiben!..”
Great day at food fest. The intense heat aside Australia produces enough food to feed 80 million
we had a great time. Can’t wait for next year people.. and it only has 24 million population. Halal
Inshallah! Thanks to every one who came out certification will only open for new market and wider
and ISB for organizing the best Halal food acceptance to your closest neighbour.. which part
event on the east coast.” scared you about meeting the requirement?”
Finally got the opportunity to visit the mosque

in Changwon (South Korea). So,so,so happy! FRAUD THEMES
Able to pray tahiyatul masjid an isyak there. The
committees also offered dinner of spicy seafood, MUIS (Indonesia Halal certifier) certified with
yum! Also took the opportunity to buy some Halal posters approval only......can the authority
food to stock up at dorm.” look seriously into this... Note: Best to advise
the Makcik or Kakcik not to work there even
In the mood for some Halal food” though its stated No Pork No Lard.....nauzubillah
minzalik..astarghfirullah”
Halal Food Sector
Sentiment distribution of Halal Top Facebook keywords
Food related interactions and hashtags
Negative
18%
Neutral
10%
Positive
Halal
71%
Top keywords & hashtags
From across the Halal Food interactions captured,

the most common terms and hashtags were: Halal,
Muslim, #Halalfood, Food, #Halal, Food and Drug Muslim
Administration, #Food, and Meat.
Aggregate of all sectors #halalfood

keywords and hashtags
Keywords & Hashtags Food
Halal 5K
Muslim 1.8K
#halal
#halalfood 1.3K
Food 1.2K
Food and Drug
#halal 600 Administration
Food and Drug Administration 400 #food
#food 400
Meat
Meat 300
Allah
Allah 300
Pork
Chicken
Gender profile Islam

Carnitine
Millenial women (24.2k/ 45 percent) and men (20.7k Rice
interactions/ 39 percent) were both well represented The Halal Guys
on Halal Food related social media interactions with
women more prominent. Specific topics and hashtag
where women interaction was more prominent include:
#Halalfood, #homemade, and Halal. Facebook keywords Facebook hashtags
Current Landscape and Trends
Key players across the value chain
Select key players
Value Chain Segments

Mainstream Companies Islamic/
addressing Halal Halal Companies
Meat Suppliers Farms, abattoir, meat packaging BRF (Brazil) Maret (Turkey)
and supply Cargill (USA) Al Shaheer (Pakistan)
Allanasons (India)
American Foods Group (USA)
Organic meat Creekstone Farms (USA) Crescent Foods (USA)

Euro Quality Lambs (UK)
Willowbrook Farms (UK)
Halal Exotic Meats (UK)
Honest Chops (USA)
Ingredients Manufacturers Gelatin, sauces / marinades, other Kerry Group (Ireland) Aromco Ltd. (UK)
Royal DSM (Netherlands) Bidara Herba Niaga (Malaysia)
Prepared Meals Nestle (Switzerland) Al Islami (UAE)

Saffron Road (USA)
Al Safa (Canada)
Arman (China)
Tahira Foods (UK)
KKR Halal Foods / Halaloodies (UK)
Snacks/ Ready to Eat meals Nestle (Switzerland) Saahtain Foods (UAE)

Kraft (USA) Fajr Foods/ Ramadan Bar (USA)
Halal Select Snacks (USA)
Baby Food Gerber (USA) Nasim’s Halal Baby Food (UK)

Beech-Nut (USA) Aara’s Baby Foods (UK)
Distribution Channels Digital – E-commerce/ Booking Alibaba (China) Dagang Halal (Malaysia)
GrubHub (USA) Zilzar (Malaysia)
Halaleat.com (UK)
Halal Dining Club (UK)
Restaurants / Catering McDonalds (USA) Marrybrown (Malaysia)

KFC (USA) Kudu (Saudi Arabia)
Chicken Cottage (UK)
The Halal Guys (USA)
Grocery / Retail Tesco (UK) Aycan Supermarket (Australia)

Carrefour (France) Pak Supermarkets (UK)
BIM (Turkey)
Digital – Information and content Food Network (USA) Zabiha Halal (USA)
MyHalalKitchen (USA)
Halal Gems (UK)
Regulatory Accreditors JAS-ANZ (Australia/ New Zealand) Emirates International Accredita-

tion Council
GCC Accreditation Council
Pakistan National Accreditation
Council
Certifiers SGS (Switzerland) JAKIM (Malaysia)

MUIS (Singapore)

Halal Food Sector
High growth segments and DSM, however, a notable segment are
emerging in OIC countries.2
While the Halal Food industry is overall
considered a high-growth industry, there are ↘↘ Halal B2B is evolving as a number of key players
pockets of opportunity which represent lucrative have emerged to facilitate trade between Halal
opportunities for new entrants: Food manufacturers, suppliers, and distributors:
↘↘ There is growing demand for Halal organic and ↘↘ Dagang Halal, based in Malaysia, is a
Tayyib food, which is fueling rapid growth for public company founded in 2007 with over
individual players, and attracting new players: 21,000 Halal products from 4,000 sellers
across Southeast Asia3
↘↘ Across the U.S. and UK, there are now several
leading Halal organic meat suppliers, including ↘↘ Zilzar, based in Malaysia, founded in 2014,
Crescent Foods, a U.S.-based chicken has over 25,000 suppliers and 30,000
and meat supplier; Euro Quality Lambs, a products listed online4
UK-based lamb supplier serving Europe
↘↘ Aladdin Street, based in Malaysia, was
↘↘ Saffron Road is a well-documented success founded in 2015 and has secured $5 million
story and a rapidly growing U.S.-based in funding, but has not launched to date.
processed food manufacturer with revenues The company plans to accommodate 1,500
exceeding $40 million1 merchants and over 30,000 products.5
↘↘ However, the last two years have seen ↘↘ Premium restaurant chains are emerging to
notable new entrants in the meat supply address the Muslim demand for “farm-to-
market, including UK-based meat supplier fork” and “fine dining”:
Halal Exotic Meats and U.S.-based Honest
Chops, the first all-natural Halal meat store in ↘↘ Paramount Fine Foods, based in Canada,
Manhattan, New York. has established over 30 Middle Eastern
Halal restaurants and is one of the few Halal
↘↘ Halal ingredients manufacturers are seeking to companies that have addressed the “farm-
address a core OIC-wide and global opportunity: to-fork” experience6
↘↘ Halal ingredients are a growing necessity for ↘↘ UK-based La Sophia is a highly popular
Muslims given the widespread use of non-Halal Michelin-Grade restaurant in London that
ingredients in food products, including pork- is run by the UK’s premier Halal Chef,
derived gelatin, the use of pepsin (derived from combining French Mediterranean cuisine with
pork) in cheese, and carmine (derived from Palestinian ingredients.
insects) as a colorant in several food items
↘↘ To address this demand, over 300 Halal

ingredients manufacturers have been 2 http://www.salaamgateway.com/en/food/story/addressing_the_halal_
ingredients_opportunity_industry_developments-salaam13062016062959/,
identified globally, including leading global accessed on 8 August 2016.
ingredients manufacturers such as Cargill 3 http://digital.salaamgateway.com/en/digital/story/CASE_STUDYDaganghalal_

the_halal_ecommerce_pioneer_helping_create_global_Islamic_Economy_brands-
SALAAM08052016030221/, accessed on 8 June 2016.
4 http://digital.salaamgateway.com/en/digital/story/Zilzar_chasing_Alibaba-
SALAM04092015105123/, accessed on 8 June 2016.
5 “Aladdin Street, M’sia’s First Halal E-Commerce Platform, Sets Sight On The
World”, WebInTravel, March 2016.
1 http://www.salaamgateway.com/en/food/story/overviewthe_10_bln_us_halal_ 6 http://www.salaamgateway.com/en/food/story/creating_a_farmtofork_halal_
food_market-salaam20012016164056/, accessed on 9 August 2016. food_concept-salaam30112015091010/, accessed on 8 August 2016.
Current and emerging leaders in the The company is planning to establish
global Halal Food industry operations in Brunei.12
↘↘ BRF, one of the seventh largest food ↘↘ While Brazil, New Zealand and India remain the
manufacturers in the world and a major player top three meat exporters to the OIC, several
in the Halal meat industry, plans to expand into OIC countries have significantly boosted, or are
Malaysia and the Middle East. BRF plans to open poised to boost, their exports of Halal meat:
an office in Malaysia to access the Asia market,
following its acquisition in 2015 of Thailand-based ↘↘ Turkey is set to become a leading Halal
Golden Foods Siam,7 and also plans to expand exporter to the OIC, after establishing Halal
capacity at its UAE-based Kizad plant from 72,000 certification in 2009 through the Turkish Halal
to 100,000 tons by the end of 2016.8 Institute, with meat and live animal exports
increasing from $215 million in 2010 to
↘↘ Several key OIC manufacturers have $686 million in 201413
taken important steps towards becoming
global Halal Food brands: ↘↘ Pakistan has strengthened its Halal Food
ecosystem, having established the Pakistan
↘↘ Al-Islami Foods, the leading Halal Food brand National Accreditation Center in 2015 to
in the Middle East, has experienced significant oversee 14 certifiers and over 200 testing
growth over the last few years. The company laboratories. Pakistan’s efforts have enabled
established a foothold in France through it to significantly increase meat exports to
launching its Al Farooj Fresh brand, and opened OIC markets, from $81 million in 2009, to
a new factory in Dubai in 2015, tripling its $219 million in 201414
production capacity.9 In 2016, Al Islami Foods
opened an office in Brazil, with plans to build a ↘↘ Iran is seeking to significantly ramp up its
chicken processing facility to provide access export of Halal Food following the removal of
to Europe and the Americas10 international sanctions in 2016, with plans to
substantially increase exports of poultry to
↘↘ Brunei Halal, a Halal Food brand established GCC markets to 1 million tons.15
in 2009, is owned by the government of Brunei
via Ghanim International Group. The company ↘↘ Furthermore, several non-OIC markets are
has established operations in the UK, securing seeking to boost their Halal Food production:
distribution through leading retailer Tesco’s.
Following a recent leadership change in ↘↘ Thailand’s government has set aside $5.1
2015, and under new CEO Dr Nur Rahman, the billion to support the Halal Food industry
company is now seeking to expand into the through grants and certification subsidies.
Middle East, having had advanced discussions The country’s exports were estimated at $2.8
with Lulu supermarkets11 billon, including meat and processed animals,
according to government statistics16
↘↘ Saahtain Foods, a UAE-based Halal ready-
meals producer, has experienced rapid
growth since it was founded in 2014, to
provide convenient nutrition to poverty-
stricken consumers under its Tayyab brand.
12 “British banker dumps high life to produce halal food in Abu Dhabi for the poor”,
The National, February 2016.
13 http://food.salaamgateway.com/en/food/story/OverviewTurkeys_30_bln_halal_
food_market_opportunity_-SALAAM27012016105545/, accessed on 8 June
2016.
7 “BRF to “accelerate” expansion in SE Asia, Middle East”, Just-Food, April 2016.
14 http://www.salaamgateway.com/en/food/story/overviewhalal_opportunities_in_
8 “BRF to expand $160m food factory in UAE’s Kizad”, ConstructionWeekOnline. pakistans_100_bln_muslim_fb_market-salaam24022016034108/, accessed on
com, November 2015. 8 August 2016.
9 “Halal Al Farooj moved to France with Islamic finance”, Saphir News, September 15 http://food.salaamgateway.com/en/food/story/OverviewHalal_food_
2012. opportunities_in_Irans_61_billion_FB_market-SALAAM12042016112326/,
10 “Al Islami ponders Brazilian factory”, Foodnavigator.com, March 2016. accessed on 8 June 2016.
11 Brunei Halal Company Website, www.bruneihalal.com, accessed on 14 June 16 http://www.salaamgateway.com/en/food/story/overviewthailands_6_bln_halal_
2016. food_market-SALAAM17022016053825/, accessed on 8 August 2016.

Halal Food Sector
↘↘ South Korea plans to boost its exports ↘↘ ESO Capital and Kingsley Capital Partners
by a third to over $1 billion by 2017, and is invested $30 million in Janan Meat, a leading
facilitating this through the establishment of UK-based Halal lamb and mutton supplier
the Korean Institute of Halal Industry in 2014 founded in 1992. The investment was primarily
to oversee the industry, and with the help of provided as secured debt, but investors
JAKIM, developed the Korean National Halal also received an equity stake. The deal will
Food Standard, with over 200 South Korean help Janan Meat Limited refine its future
companies certified in 201617 strategy and help move the company to its
next stage of growth in becoming a premier
↘↘ China is also emerging as a key player in brand across Europe21
the Halal Food industry. Following concerns
of food quality, consumers are increasingly ↘↘ Leading global private equity firms Abraaj
preferring Halal-certified dairy products, Capital and Texas Pacific Group invested
considering it as safe for consumption.18There $400 million in Saudi Arabia-based fast-food
has also been substantial efforts to develop chain Kudu, which has over 200 restaurants
a Halal ecosystem in the country, with the across the country, to advance the company’s
establishment of the Wuzhong Industrial Zone next stage of expansion22
housing Halal companies.19
↘↘ Fajr Capital, a leading private equity investor
↘↘ There has been notable consolidation in the in the Middle East and Asia, acquired the Cravia
Halal Food industry, with 70 acquisitions Group in 2016, a UAE-based food and beverage
identified in the Halal meat value chain between platform founded in 2001, for an undisclosed
2012 and 2015, valued at a total of $2.1 billion. sum.23 Cravia currently operates over 85
An estimated 86 percent of the identified deals restaurants and is recognized for exceptional
were led by food companies, with the balance led by franchise operational management standards
private equity firms with a strong portfolio in the Middle East and
franchises including Cinnabon, Seattle’s Best
↘↘ Notable acquisitions by food companies Coffee, Carvel, and Five Guys.
include the acquisition of Kinxia Qinheyuan
Halal Food Company by Beijing Xinhua ↘↘ However, there have been notable
Agriculture for $267 million in 2015, developments in the use of shariah
and the acquisition in Turkey of meat financing on stock exchanges:
company Namet by competitor Maret for
$75 million in 2014.20 ↘↘ Dagang Halal became the first Halal company
to list in the UK, raising $6.1 million when
listing on London’s ISDX Growth Market
Investment and finance stock exchange in 201624
↘↘ Several notable private equity investments have ↘↘ Al Shaheer Corporation raised $22
occurred in the past year, signaling increasing million through listing on the Pakistan
investor appetite for Halal Food investments: Stock Exchange in 2015.25
17 http://www.salaamgateway.com/en/food/story/south_korea_aiming_ 21 http://food.salaamgateway.com/en/food/story/UK_halal_lamb_
to_boost_halal_food_exports_by_a_third_to_123_billion_by_2017- and_mutton_supplier_Janan_receives_205_mln_pound_investment-
salaam09052016012221/, accessed on 8 August 2016. SALAAM30052016044044/, accessed on 8 June 2016.
18 https://www.salaamgateway.com/en/food/story/domestic_demand_for_better_ 22 http://www.reuters.com/article/abraaj-tpg-capital-kudu-
food_standards_drive_chinas_17_billion_halal_sector-salaam17072016014334/, idUSL5N0X60DG20150409, accessed on 9 August 2016.
accessed on 8 August 2016. 23 “Fajr Capital completes acquisition of Cravia Group”, Gulf News, May 2016.
19 http://www.salaamgateway.com/en/food/story/overviewchinas_halal_food_ 24 http://www.salaamgateway.com/en/digital/story/case_studydaganghalal_the_
market-SALAAM10012016044949/, accessed on 8 August 2016. halal_ecommerce_pioneer_helping_create_global_islamic_economy_brands-
20 http://www.salaamgateway.com/en/food/story/global_ma_activity_and_ salaam08052016030221/, accessed on 8 August 2016.
potential_in_the_halal_food_sector-SALAAM07092015070923/, accessed on 9 25 Please change to “General public portion of Al Shaheer’s IPO oversubscribed”,
August 2016. The Express Tribune, August 2015.
Regulation and operations ↘↘ The Halal verified engine, designed to check
the Halal status of companies, and designed
↘↘ Accreditation bodies have begun to oversee by Malaysia’s Dagang Halal, is fueling rapid
Halal certification bodies in several key markets, growth in trade on the Dagang platform. The
signaling a major upgrade in how the Halal Food engine was launched in 2013, and allows users
industry will be regulated going forward: to search, view, and download Halal certification
documents for products and companies across the
↘↘ While this development is in its early value chain. The database will include companies
stages, the accreditation bodies would that have been certified by the 73 certification
accredit individual Halal certification bodies under JAKIM.30
bodies, ensuring those bodies are certifying
according to international standards,
similar to best practices followed in other Innovation
industries such as food safety
Several new product segments have emerged in the
↘↘ In a momentous step, the UAE launched the Halal Food industry over the last few years to address
International Halal Accreditation Forum in the unmet needs of Muslim consumers, primarily
2016, bringing together 10 founding members in non-OIC countries:
which intend to accredit and oversee Halal
certification bodies. Members include the Gulf ↘↘ Addressing the need for fresh Halal meals
Accreditation Center26 delivered on demand, dedicated Halal online
meal takeout and delivery platforms have
↘↘ Examples of certification bodies that emerged in non-OIC countries, going beyond
have already been accredited include the mainstream services such as GrubHub by verifying
Halal Feed and Food Inspection Authority the Halal certification of restaurants:
in the Netherlands, and the New Zealand
Islamic Development Trust.27 ↘↘ HalalEat, based in the UK, was founded
in 2013 and has acquired 280 restaurant
↘↘ Halal Food hubs have been set up in several signups across major UK cities and aims to
countries in free economic zones, encouraging crowdfund $220,000 in 2016.The company
Halal companies to co-locate and work closely has also launched in Melbourne, Australia and
together, facilitating compliance: registered domains across Europe and in South
Africa, with plans to scale globally31
↘↘ In Malaysia, the United Malayan Land and
Johor State Government have started to ↘↘ Halalonclick, based in Singapore, was
develop an Integrated Bio-Halal Industrial founded in 2014 and has acquired 18
Development to nurture bio-based Halal restaurant signups. The company serves over
research and development28 20 delivery areas in Singapore32
↘↘ The Thai Chamber of Commerce has ↘↘ HalalEda.me, based in Russia, was founded
established a Halal Industrial Center in Pattani in 2015 and currently offers food options from
province in Thailand to encourage the region to over 60 restaurants in 21 cities across Russia.
become a hub for Halal products in 2013.29 The company was launched by the Halal Guide
26 https://www.salaamgateway.com/en/food/story/new_international_halal_
accreditation_forum_in_dubai_to_harmonise_conformity_assessment_practices_- 30 DagangHalal company website, http://www.daganghalal.com/HalalNews/
SALAAM12052016011628/, accessed on 8 August 2016. HalalNewsDtl.aspx?id=2350, accessed on 8 August 2016.
27 Gulf Accreditation Council company website, www.gac-accreditation.org/cab- 31 http://food.salaamgateway.com/en/food/story/CASE_STUDYHalaleatcom_
list, accessed on 20 July 2016. bringing_freshlyprepared_halal_meals_to_Muslim_households_in_the_UK_-
28 “Halal Businesses For Everybody, Big Opportunities In Store For Johor Halal Park”, SALAAM11052016021756/, accessed on 8 June 2016.
MalaysianDigest.com, February 2016. 32 http://food.salaamgateway.com/en/food/story/OverviewOnline_halal_food_
29 “Incentives Offered to Investors in the Halal Industrial Center in Pattani”, The takeout_and_delivery_in_Muslimminority_countries-SALAAM05062016132157/,
Government Public Relations Department of Thailand, January 2015. accessed on 8 June 2016.

Halal Food Sector
Team, which raised $800,000 in 2012 in a recipe with black seed as the main ingredient. The
start-up competition.33 on-the-go breakfast bar is 100 percent natural,
with no sugar, no preservatives and is gluten-
↘↘ Catering to the unmet demand for Halal free. CURE bars are handed out to the hungry
alternative, low protein meats, such as venison, in local communities36
llama and camel meat, Halal Exotic Meats, a UK
based meat supplier, was launched in 2013, and ↘↘ Offering the Halal answer to Open Table, a
caters both to customers and restaurants and has leading reservation app, The Halal Dining Club,
leased its own farm34 based in the UK, helps individuals reserve a
space at top quality Halal restaurants. The online
↘↘ To address the need for Halal snacks catered service was launched in 2015, and features top
to the Muslim lifestyle, Fajr Foods, based rated restaurants based on reviews, offering a
in Switzerland, has launched the Ramadan loyalty rewards program for frequent customers37
Energy Bar, which is designed to provide lasting
energy for Muslims who are fasting during the holy ↘↘ Invention makes testing for porcine DNA
month. The low fat, caffeine free chocolate and risk-free, launched: GeneStat, an 8 kg portable
complex carbohydrate formula has been tested to device that detects traces of porcine DNA in
provide energy for up to nine hours and is primarily food samples, was developed in 2011 by a team
sold in the UK and U.S35 from Universiti Putra Malaysia (UPM). It has now
been commercialized and is being marketed
↘↘ CURE nutrition bar from black seed formula. in the Middle East, Europe, and in the U.S.
This nutrition bar, from the U.S., is based on a family through the company DxNA.38
33 http://www.salaamgateway.com/en/food/story/overviewonline_halal_food_
takeout_and_delivery_in_muslimminority_countries-salaam05062016132157/,
assessed on 9 August 2016.
34 Halal Exotic Meats company website, https://halalexoticmeats.co.uk/, accessed 36 CURE company website, http://cureyourworld.com/, accessed on 8 June 2016.
on 8 June 2016. 37 Halal Dining Club company website, http://halaldiningclub.com/, accessed on 8
35 https://www.mysalaam.com/en/story/Can-you-last-the-fast-Try-the-worlds- June 2016.
first-Ramadan-energy-bar/SALAAM16052016044634, accessed on 8 June 38 “Malaysian invention makes testing for porcine DNA risk-free”, Halal Focus,
2016. January 2016.
Key Challenges
Marketing and sales challenges Regulations and operations

challenges
↘↘ There remains significant resistance to Halal
Food among non-Muslin consumers and in non- ↘↘ There is a lack of common and unified
Muslim countries, with several key examples: standards globally, which causes confusion
for multinational companies seeking to
↘↘ Holland has moved to ban the export of both enter the Halal Food market. For example,
Halal and Kosher meat due to objections to there are notable differences between the
slaughtering methods used in both instances, standards of the Department of Standards
limiting the country’s overall participation in Malaysia (DSM) and the Emirates Authority for
high-demand OIC markets.39 Standardization and Metrology (ESMA). Unified
standards have failed to gain consensus
↘↘ There has been a significant backlash against within the industry.44
Halal certification in Australia, with several
senators conducting an inquiry into the Halal ↘↘ Accreditation bodies with Halal programs
industry, considering the cost of certification have emerged, but have not captured
and higher price of food as a tax.40 the full responsibility of overseeing
certification bodies in the global market,
↘↘ There is a prevalence of Haram ingredients in which can reduce quality and control over
food items with a lack of awareness among halal certifiers. Accreditation bodies have
Muslim consumers and importing OIC markets.41 not signed Mutual Recognition Agreements
to ensure peer review services and currently
operate independently. 45
Financing challenges
↘↘ Despite recent developments, the level of

equity investment in the Halal Food industry
remains low, limiting growth:
↘↘ Despite Muslim spend accounting for over

15 percent of the global Food and Beverage
industry, M&A deals in Halal Food accounted
for less than 2 percent of deal activity in the
Global Food industry in 2014.42
↘↘ Financing remains a challenge, with a lack of

Shariah-compliant debt financing options for
companies in the Halal Food industry to expand.43
39 “Holland to ban export of kosher and halal meat”, JTA, February 2016.
40 “Halal certification ‘creates more value than it costs’, says peak food body”, The
Guardian, August 2015.
41 http://www.salaamgateway.com/en/food/story/addressing_the_halal_
ingredients_opportunity_industry_developments-salaam13062016062959/,
accessed on 8 August 2016. 44 http://www.salaamgateway.com/en/food/story/resolving_the_current_
42 http://www.salaamgateway.com/en/food/story/global_ma_activity_and_ inefficiencies_in_the_global_regulation_of_halal_food-salaam13042016195204/,
potential_in_the_halal_food_sector-SALAAM07092015070923/, accessed on 8 accessed on 9 August 2016.
August 2016. 45 http://www.salaamgateway.com/en/food/story/resolving_the_current_
43 Based on conversations with Ahmed Adam, CEO of Crescent Halal (U.S.), and inefficiencies_in_the_global_regulation_of_halal_food-salaam13042016195204/,
Rizwan Khalid, Director of Euro Quality Lambs (UK). accessed on 9 August 2016.

Halal Food Sector
Opportunities
Opportunities by product/services segment
While the Halal Food industry is maturing, there are several high potential segments that remain
largely unaddressed across products and services.
Largely unaddressed product and service segments
Unaddressed
high potential Halal
product meat snacks Baby food Halal feed
segments

Unaddressed
high potential On-demand
consumer Premium
service
services dining
segments

Opportunities by stakeholders
Across stakeholder types, there are opportunities for key players to drive the development of
the Halal Food industry.
Opportunities by stakeholder type
Mainstream
or existing Acquire Develop a
Halal Food existing new Halal
players players offering

Pursue
On-demand
Private substantial value
consumer
equity creation
services
opportunities

Incubate/
Venture
invest in new
Capital
offerings

Converge
Develop standards and
comprehensive roll-out
Regulators training programs accreditation of
to adopt certification
 Halal bodies
Existing opportunities in Halal Food
Opportunity Explanation
Halal Meat Snacks Sub-segments with largely unaddressed Muslim demand:

↘ Meat snacks: Despite a few small-scale players, very few quality companies are currently
addressing the demand for Halal snacks, in particular for dried meat, with a select number of
players operating online in non-OIC countries46
↘ Deli meats: There is limited availability of deli meats in non-OIC markets, in particular in the U.S.,
where over 20 percent of surveyed respondents in a 2014 study felt that there was a major gap
in the market for deli meats.47
Potential:
↘ There is significant potential for mainstream and existing Islamic food brands to extend their
offerings to provide Halal meat snacks, with substantial growth prospects for market entrants,
with over 10 percent anticipated CAGR growth between 2015 and 2020 in the global meat
snacks industry48
Baby Food Largely unmet Muslim demand:

↘ There are notable players addressing Muslim demand, including Aara’s Baby Food and Nasim’s
Baby Food in the UK49
↘ However, many leading players in the baby food industry are not Halal certified, with gelatin and
other non-permissible ingredients included in popular products
Potential:
↘ There is an opportunity for start-ups and leading Halal products manufacturers to diversify into
the baby food industry, developing high quality products
Halal Feed Largely unmet opportunity:

↘ A largely unaddressed opportunity, Halal feed is likely to serve as a major growth area as Muslim
consumers become more aware of the Halal supply chain, and as certifiers strictly monitor the
product supply chain50
Potential:
↘ There is an opportunity for feed manufacturers to secure Halal certification, as well as
specialized new players to emerge to ensure Halal supply chain integrity
On-demand consumer Sub-segments with largely unaddressed Muslim demand:

↘ Fresh food delivery: Although several services have emerged, including Halal On-Click and Halal
Eat, these services are only available in a handful of cities, with substantial opportunity51
↘ Meat kit delivery: The leading meal-kit delivery providers do not provide a Halal option, however,
with the increasing demand for convenience among Muslim millennials52
Potential:
↘ Leading Halal products companies can address the meal-kit delivery opportunity, potentially
partnering up with food bloggers to develop offerings
Premium dining services Largely unaddressed Muslim demand in non-OIC markets:

↘ The Halal restaurants segment is beginning to diversify, going beyond fast food and ethnic
South Asian full-service restaurants, to incorporate a broader range of cultures
↘ However, despite several notable premium Halal restaurants, including Paramount Fine Foods
and La Sophia, there are very limited dining options in the premium full-service segment53
Potential:
↘ There are substantial opportunities to develop Halal fine dining concepts that can appeal to
high-income Muslim households and GCC tourists that are seeking premium options.
Source: Thomson Reuters and DinarStandard analysis
46. https://www.salaamgateway.com/en/food/story/halal_meat_snacks_the_
next_high_growth_opportunity_for_food_brands-SALAAM10072016025917/,
accessed on 9 August 2016.
47. “American Muslim Market Study”, American Muslim Consumer Consortium in 50. Conversation with Saqid Mohamed, CEO, Halal Food Authority (UK).
conjunction with DinarStandard, 2014 51. https://www.salaamgateway.com/en/food/story/overviewonline_
48. https://www.salaamgateway.com/en/food/story/halal_meat_snacks_the_ halal_food_takeout_and_delivery_in_muslimminority_countries-
next_high_growth_opportunity_for_food_brands-SALAAM10072016025917/, SALAAM05062016132157/, accessed on 9 August 2016.
accessed on 9 August 2016. 52. https://www.salaamgateway.com/en/food/story/the_rise_of_online_
49. https://www.salaamgateway.com/en/food/story/halal_baby_food_the_5_bln_ food_delivery_in_the_us_where_are_the_halal_food_companies-
high_growth_untapped_opportunity-SALAAM02112015103839/, accessed on SALAAM06032016072035/, accessed on 9 August 2016.
9 August 2016. 53. Conversation with Saqib Mohamed, CEO, Halal Food Authority (UK)

Halal Food Sector
Key stakeholder analysis
Stakeholders Action Analysis
Mainstream or Acquire existing Rationale:

existing Halal players ↘ Acquisition of existing players in the Halal Food industry will help drive consolidation and
Food players increase efficiency
↘ Through acquisition, companies can gain access to Muslim consumers, and cross-sell its broader
product range to Muslims
Main areas of opportunity:
↘ Key areas include acquiring high growth Halal Food brands, and acquiring and scaling Halal meat companies
Develop a new Rationale:

Halal Food ↘ There are several major gaps in the market for Halal Food products, especially in OIC countries which are
offering adjacent to product offerings by existing food players
↘ Key areas include largely unaddressed segments such as Halal meat snacks, baby food and Halal Feed
Private equity Acquire an Rationale:

existing player ↘ The Halal Food industry is highly fragmented and in significant need of capital to scale and expand to
address substantial demand
↘ Private equity firms are ideally positioned to provide equity financing in a Shariah-compliant manner and
are beginning to invest in Halal Food, evidenced by the recent acquisition of Janan Meat in the UK
↘ While the majority of Halal-focused players are small in size, there are numerous high-growth, high
potential firms across meat supply, food processing and food distribution.
Create Rationale:
substantial ↘ Once a company is acquired there are substantial value creation opportunities to scale a brand and
value creation diversify its business.
opportunities
↘ Examples of such a strategy includes Campbell Soup’s acquisition of Plum Organics to expand in the
U.S.,54 and Empire Kosher’s significant expansion in the U.S. once acquired by the Hain Celestial Group
in 201555
Main area of opportunity:
↘ Players can expand into multiple product categories, as well as geographically and in new distribution
channels
Regulators Develop Rationale:

comprehensive ↘ There are significant gaps in the provision of Halal training and a substantial shortage of skilled labor
training in the Halal industry56
programs to
adopt Halal Main area of opportunity:
↘ Private training providers, educational institutions and certification bodies can work together to develop
training programs and certifications to develop Halal capabilities in food professionals
Converge Rationale:
standards an ↘ There is a substantial variance in Halal standards globally, with limited use of officially developed
accreditation standards by Halal certification bodies.
roll-out
↘ The lack of convergence in standards and limited oversight of the industry serves to lower consumer
confidence in Halal
↘ There are opportunities for accrediting bodies to drive convergence and adoption of these standards by
certification bodies.57
54. “Plum Organics sales surge 44% in 2015 as ‘food-forward’ formulations tap 56. Conversation with Abdalhamid Evans, CEO, Imarat Consultants (UK).
into needs of Millennial shoppers”, Foodnavigator-usa.com, December 2015. 57. https://www.salaamgateway.com/en/food/story/resolving_the_
55. “Hain Celestial Announces Accretive Strategic Acquisition Of Empire Kosher current_inefficiencies_in_the_global_regulation_of_halal_food-
Foods”, PR Newswire, March 2015. SALAAM13042016195204/, accessed on 9 August 2016.
Interview
Imran Kauser, Co-Founder and Managing Director

Noman Khawaja, Co-Founder and Managing Director
Haloodies (UK)
What broader trends do you see How has the addressable market for
among consumers in the processed Halal Food processing performed
food industry globally and which growth-wise relative to the broader
product segments are poised Halal Food category, both in the UK
to benefit from this? and globally? Which sub-sectors in
Noman Khawaja: Life is getting faster and particular are performing well?
consumers are seeking convenience. “Food Imran Kauser: The Halal processed food
to Go” and “Food for Now” are key areas segment in the UK is still dominated by frozen
where consumers are seeking easy to prepare products or low quality, highly processed
meal options for all meal occasions with 18 meats resulting in a preference to cook from
percent of shoppers visiting a convenience scratch using raw ingredients or eating in
store for “Food to Go”. According to Him! restaurants. It is currently out-of-sync with
Consultancy, 44 percent of retailers say lunch Halal consumers’ needs and is still some
is their biggest meal occasion with £0.29 decades behind the mainstream offering.
($0.37) of every £1 ($1.3) spent on “Food to Brands like Haloodies have the opportunity
Go”. Consumers are becoming more savvy to capitalize on this gap. At a global level
and demanding more, which is driving food in the Halal marketplace, we expect to
producers to create more options. see protein-rich processed foods growing
Imran Kauser: Packaging innovations quickly, especially in the GCC where the
that optimize freshness and quality while bulk of calorific intake is from saturated
minimizing waste are also increasingly fats and sugar with average protein intake
important to consumers. Lab grown lower than global averages. As consumers
“Frankenfoods” have gained a lot of look towards wellness, the protein
attention recently. Another trend that has segment should outperform.
strongly emerged is the use of technology.
As smartphones become indispensable, The Halal Food products marketplace
Smart labels that can offer more product is maturing with increasing
information via a QR code offer a way to competition among all key segments,
inform increasingly inquisitive consumers. in particular processed food. How
Sharing of food pictures via social media has does Haloodies differentiate itself
become a norm for millennial consumers who from the numerous brands offering
often “eat and tweet” — this can influence processed Halal Food across the UK?
trends and offer opportunities for brands that Imran Kauser: Although there are a number
target those segments. of processed products available to Halal
consumers, the vast majority were developed
with first generation consumers in mind.
Currently, half of all Muslims in the UK are

Interview
under the age of 30 and don’t perceive those and expectations. Our focus on using data
brands as meeting their needs. Haloodies to inform our product development led us to
differentiates itself primarily by our in-depth developing a cooked chicken range. This range
understanding of our customer, through accounts for 17 percent of non-Halal poultry
formal and informal research, and by producing sales and is virtually absent in Halal. We
products that meet customer and retailer developed a range with our supplier that was
needs. A fundamental perspective that we made from 100 percent chicken breast and
hold is that the Halal consumer will, over ready-to-eat. Tesco moved rapidly to introduce
time, switch their shopping behavior from it onto shelves and we are confident that we
ethnic stores and towards mainstream can create a new core category. We expect
supermarkets. As such, we need to be able other major retailers to stock the range soon.
to address retailer’s expectations of quality,
brand appearance and price point. Since we What is your vision for the
launched in 2014 on Ocado, we have made company over the next five years,
sure our brand appearance could compete and what do you envisage to be
with mainstream brands. the next key steps?
Imran Kauser: Our vision is to create a global
What steps has Haloodies undertaken Halal brand. To achieve this, we shall focus
to expand both its product offering initially on our cooked chicken range that
and distribution channels? we have launched at Tesco and then expand
Imran Kauser: The Halal Food range in major into other ranges. Each range has to meet
UK supermarkets has only included fresh meat our internal criteria for market potential
since 2014. Prior to then major supermarkets and product quality. We have ambitions to
were not significant players in the Halal launch in other European countries over the
retail landscape. Our approach has been to next year and a half and into the Middle East
develop products that are aimed at customers too. In the UK we have a dual challenge of
shopping in supermarkets with a view that persuading retailers to devote more shelf
Halal customers would ultimately be driven space to Halal products in addition to meeting
into supermarkets by the convenience of a a clear consumer need. We anticipate getting
single shopping trip. So far, this has proven our brand into other major supermarket
correct with the Halal Food category growing retailers in addition to ethnic stores
100 percent year-on-year since 2014. Amazon and convenience stores.
approached us in 2015 to discuss a Halal
meat range on the new grocery platform that
they were developing. Our presence on Ocado,
our product quality and our brand appearance
were all in alignment with Amazon’s needs
What remain the major operational What do you consider to be major
and regulatory challenges faced unmet needs of Muslim consumers
by the industry overall, and in the Halal Food industry? And
to what extent do these affect how does this feature into your new
your company as well? product development?
Noman Khawaja: The main operational Imran Kauser: Choices for Halal consumers
challenges have been making sure we have are still some way off being optimal, meaning
a robust and short supply chain. We have there are still many gaps for the industry
visited the slaughterhouses and processing to capitalize upon. In Western markets,
plants for our fresh and cooked products most consumers have extremely limited
to make sure we reach and maintain high choice. In Eastern markets there is a
standards. Halal accreditation has also plethora of choice but a considerable lack of
been challenging with a largely consumer innovation and quality.
driven agenda of a Halal product being either
stunned or un-stunned. More recently, What role do you think investment,
some accreditation bodies have been in particular private equity,
pushing for hand slaughtered rather than as well as consolidation, will
machine slaughtered chicken. This has been have in shaping the Halal Food
challenging to give our brand mass appeal industry going forward?
when our position is to have a stunned Imran Kauser: Investment will play a crucial
product, and there is an obvious divide role in accelerating the growth of Halal
amongst Halal consumers. “Brexit” will also brands globally but it is not the only element
be challenging as the cost of goods could needed. Halal needs to learn lessons from
go up and consumer habits will change. technology ecosystems to genuinely create
Post-Brexit 54 percent of 18 to 34-year-old value, jobs and wealth. A combination
individuals said they wanted to save on of experienced investment, risk-taking
household expenses (Nielson 2016) so they mindset, creation of Halal hubs — where
will be spending less. The British pound could start-up companies can co-locate and grow
also devalue, although the economy grew 0.6 together — infrastructure planning and tax
percent in the quarter that included the Brexit relief would allow Halal companies to flourish
result. As some of our product is sourced from rapidly across all sectors, not just food.
Europe, the uncertainty around regulations will This is ultimately a job for governments and
lead to future challenges. policymakers and we have seen some moves
towards this in Malaysia and Dubai, however,
How have you been able to we are a long way off.
finance your business and do
you think access to Shariah-
compliant financing remains a
significant challenge?
Noman Khawaja: We have been able to
finance our business through a private
investor. He has a back ground in food
manufacture which has bought significant
experience to the table. Access to Shariah
compliant financing remains a challenge as
companies look to borrow without interest. To
find a lender willing to lend without interest
is very difficult and one that poses an ethical
dilemma for a Halal business who wishes
to not pay interest. With Brexit, investors
will seek to invest outside of the UK more,
meaning opportunities to find an investor
willing to back you will decrease.

Interview
Halal food is seen in a Coop supermarket chain in

Rome, Italy. REUTERS/ALESSANDRO BIANCHI
Interview
David Ventura
Sales and Marketing Director,
Grupo Carinsa (Spain)
What broader trends do you see new analytical systems such as E-Noise, DNA,
among consumers in the food Chromatography, among others, that can be
ingredients industry and which used by the authorities to detect possible
product segments are poised fraud. Carinsa also is also dedicating efforts
to benefit from this? to provide solutions in those fields through
The food ingredients industry is working our technological innovation programs.
mainly in the development of solutions in the
category of nutrition and health. The industry How has the addressable market for
is working hard on the development of new Halal Food processing performed
products that can improve the wellbeing of growth-wise relative to the broader
consumers, as well as the improvement of Halal Food category, both in
nutritional facts and the application of new Europe and globally?
ingredients. But we should not forget that The Halal Food market and global food market
we are talking about food products and not are converging in many product categories.
medicines. We have to develop appetizing The increasing interest by European and global
products. Our level of requirements for these consumers for healthy products and a dietary
food products must be the same to satisfy balance means that many products that are
the expectations of consumers. not Halal certified can be perfectly suitable
for the Muslim consumers and vice versa.
What would you consider to be We can see this situation in some sectors of
the major developments in the the food industry such as in the bakery and
Halal Food Industry over the meat processing industries. For example,
last few years and how has this the increasing consumption of processed
affected Grupo Carinsa? chicken and turkey products is suitable
I do not see many advances in food for all consumers. We can develop food
technologies. But in the case of colorants products for a global community. We need
there is an extra effort to provide new to take into consideration the expectations
natural colorants suitable for the different of the consumer in all the characteristics
categories of food products that can comply of the product — packaging, organoleptic,
with Shariah law. Moreover, the future technological — so why not Halal products for
challenge is research into new proteins to non-Muslim consumers or vegan products for
cover the food needs of the planet’s growing non-vegan consumers? It is easy to say but
population. We know thanks to population difficult to implement.
statistics that an important part of this
growth will be in Islamic countries. Therefore, A lot of companies globally are now
we have to work on developing new Halal seeking to enter the Halal Food
proteins. There is also the development of ingredients industry, with over 300

Interview
companies identified, many targeting to three years. Then we want to grow our
OIC countries. What strategic steps Halal offerings in Asian markets. I believe
has Grupo Carinsa taken to stay that these markets are not only the present,
ahead of the competition? but are the future.
We have to create our products with
each market in mind and what we want Given the large number of certifiers
to be addressed. We create and develop globally, what in your view remains
“tailor-made” flavors and technical as the major operational and
solutions, identifying the needs of the regulatory challenges faced by the
manufacturer and the consumer. industry overall, and to what extent
do these affect your company as well?
How did Grupo Carinsa determine My opinion is that we need to try to harmonize
that the Halal sector was a viable the different certifications. These certifiers
sector to address, and what steps have to try to find a standard that can
did you take to expand both product be acceptable by the majority of Muslim
offering and geographical coverage consumers. It is important to create the
for Halal consumers? appropriate controls in the different levels
We started by focusing on North Africa of the food value chain to guarantee the
because of its proximity to Spain. It enabled certification of these products.
us to learn about the importance of Halal
to Islamic culture. Our first two subsidiaries What do you consider to be the major
were in Morocco and Algeria, and we are unmet needs of Muslim consumers in
now located in more than 30 countries. With the Halal Food Ingredients industry?
regard to the Islamic community, the most How does this feature into your new
important exports markets for Carinsa are product development?
Morocco, Algeria, Turkey, Iran, Egypt and the If we talk about Muslim consumers, I think that
GCC. Of course within Europe we are offering consumers overall need to understand what
specific products for Muslims, working with we eat. Labeling is important, but the most
manufacturers in Spain, France and Germany. important is to understand it. Consumers have
to know that the industry is doing a big job to
What is your vision for the guarantee the quality of products, as are the
company over the next five years, authorities and Halal certifiers as well. If we
and what do you envisage to talk about ingredients, colorants are one of
be the next key steps? the challenges that we are working on.
We are planning to increase and consolidate
our position in the Europe, Middle East and
Africa (EMEA) markets over the next two
Bahrain World Trade Center. EUGENE SERGEEV /
SHUTTERSTOCK.COM

Islamic Finance Sector
Building on a rich history, the Islamic Finance industry continues to play a pivotal role in the
wider global economy. The existing Islamic Finance market stands at a $2 trillion in assets
based on 2015’s disclosed assets by all Islamic Finance institutions along with sukuk and
Islamic funds, with Islamic banking assets and sukuk continuing to dominate the industry.
There have been many positive developments such as rising profitability across the sector,
and new product introductions, such as Shariah-compliant pension funds, most notably,
Malaysia’s pension fund has announced a $26 billion Savings Plan, the largest in the world.
However, 2015 was also marked by a drop in Islamic Funds performance as a result of
negative equity performances underpinned by a global drop in oil prices.
The sector continues to be dominated by Malaysia, the UAE and Bahrain, who have set up
leading ecosystems to ensure that the industry thrives. Although Malaysia witnessed a
slight decline in reported Islamic financial institution assets in 2015 ($414 billion), impacted
by the country’s economic slowdown and the Malaysia Central Bank’s policy to cut back
on short-term sukuk issuances, it’s introduction to a pension scheme and the IPO of a
Malaysian Company, DagangHalal should help Malaysia contribute to the growth in Islamic
Finance’s total global projected assets to $3.5 trillion by 2021.
As with any industry, there are challenges, lack of awareness being one for Islamic Finance,
which in turn results in a low penetration level of Islamic banking, in particular in the GCC.
Despite this, the GCC remains Islamic Finance’s regional leader with assets totaling $922
billion. Strong balance sheets helped Islamic Finance institutions to pass the oil shock.
With the lifting of UN sanctions imposed on Iran in January 2016, its fully Shariah-
compliant financial market, the second largest globally ($434 billion), is expected to enter
the global economy. But externally, Iran still faces resistance from European and U.S.
banks. Internally, despite major technological changes in the country’s financial system,
MPs are calling to improve the weaknesses in the banking system including low liquidity
and outdated Basel requirements.
However, other countries are waking up to the potential of Islamic Finance, with Maldives,
Pakistan and Sri Lanka making a concerted effort to develop Islamic Finance capabilities,
and African nations, notably Tanzania and Nigeria, undertaking similar initiatives.
ISLAMIC FINANCE
MA R KET SIZ E 1 How large is the market for
How large is the market for Islamic banking assets?
Islamic finance assets*?
2015
2015 $1,451 Bn
$2,004 Bn Existing Global
Muslim Market
Existing Global
Muslim Market
2021
(Potential)
$2,716 Bn
2021 Projected Market Size
(Potential)
$3,461 Bn *Does not include undisclosed assets of most

Projected Market Size islamic windows
THE I S L A MI C F I NA NCE I ND I CATOR 6 Kuwait

Which countries have
the best developed
Jordan q 3 Bahrain
ecosystem for Saudi Arabia 4 7 Pakistan
5
Islamic Finance? Oman Malaysia
Qatar 8 1
2
United
Arab Emirates 9 Indonesia

Financial (Size Islamic Finance Assets and Number of Islamic Finance Institutions);
Governance (e.g. Regulations for Islamic Finance and Disclosure Index Score);
Awareness (Number of related News Articles, Islamic Finance Education Institutions, Research papers, and events);
Social (Value of Zakat and Charity and CSR Disclosure Index Score).
Selected Central Banks Commercial Banks Insurance/ Takaful Private Equity

Bank Negara Malaysia (Malaysia) HSBC (UK) Hannover Re Takaful (Bahrain) Amwal (Qatar)
key players Central Bank of Bahrain (Bahrain) Standard Chartered (UK) Crowdfunding Qalaa Holdings
Saudi Arabian Monetary Agency Al Rajhi Bank (Saudi Arabia) Crowdfunder (USA) (Egypt)
(Saudi Arabia) Mellat Bank (Iran) Crowdcube (UK) Fajr Capital (UAE)
Central Bank of the UAE (UAE) Dubai Islamic Bank (UAE) Blossom Finance (Indonesia) Arcapita (Bahrain)

Islamic Finance Segments — Current State (2015)
$1,451 Bn $37.7 Bn $342 Bn $66.4 Bn $106 Bn

Islamic banking Takaful / retakaful Value of Sukuk Net asset value of Other Financial
assets assets outstanding Islamic funds Institutions
ISLAMIC BANKS TAKAFUL (Insurance) SUKUK (Bonds) ISLAMIC FUNDS OTHER
TOP MA R K ETS
Top Islamic Finance Issues and opportunities map
markets
Iran $343.7 Increased role of

Islamic Finance
Saudi Arabia $342.7 in achieving
Social Finance Consumer / Business
Malaysia $230.3 goals needs and ecosystem
UAE $134.2 
Kuwait $95.5 Products

& Services Limited
Qatar $72.6 Opening Islamic Economy
up of Iran SME funding
Bahrain $69.2
support
Strong
Turkey $44.5  High levels of 
focus on the
MENA youth
Bangladesh $23.1 real economy
unemployment
Indonesia $23.0  Disruptive
 Regulatory
finance: Fintech
and halal reforms in
(2015 est., US$ bn Assets)
e-commerce MENA
Savings:  Central Bank 
Shariah-compliant Governance
Select Growth Indicators pensions Changes
 Global  Monetary
2014 2015 % change integration of policy and
OIC markets interest
# of Islamic Lower rates
Finance 1,113 1,291 0.16 Super- oil prices
 
Institutions abundance
of capital Macroeconomic
risks
# of Islamic Africa: Rising
 
Finance Shariah 1,163 1,403 0.21 Possible debut Islamic Bank
scholars sukuk from Profitability
Nigeria and
Emerging Ivory Coast 
Liquidity
# of Islamic Central Asian
243 305 0.26 Management
Finance events sovereigns and 
European banks Policies,

# of Islamic  Regulations
Finance news 23,911 22,524 -0.06 & Operations
items Financing
# of outstanding
2,092 2,354 0.13
Sukuk

# of Islamic
934 875 -0.06
funds
1
Source: ThomsonReuters Islamic Finance 2015-16 Data
Islamic Finance Indicator
The 2016 State of the Global Islamic Economy Report revisits the Islamic Finance indicator
to evaluate countries’ health and development of their Islamic Finance ecosystem. The
indicator does not focus on the overall size and growth trajectory of a country in this
sector; instead it evaluates them on relative strengths of the ecosystem they have for the
Malaysia, the United Arab Emirates, and Bahrain lead the Islamic Finance indicator ranking that
focuses on the health of the Islamic Finance ecosystem in a country relative to its size and
including its related social considerations.
The ranking was calculated according to four criteria:
↘↘ Financial (e.g. size of Islamic Finance assets and number of Islamic Finance institutions);
↘↘ Governance (e.g. regulations for Islamic Finance and disclosure index score);
↘↘ Awareness (e.g. number of related news articles, Islamic Finance education institutions,
research papers, and events); and
↘↘ Social (e.g. value of Zakat and charity and CSR disclosure index score).
Below are the top 10 countries in the Islamic Finance indicator.
TO P 1 0
Islamic Finance
MALAYSIA 189
UAE 92
Bahrain 90
Saudi Arabia 83
Oman 51
Kuwait 51
Pakistan 47
Qatar 47
Indonesia 38
Jordan 35

Governance Awareness
Islamic Finance Sector Score Asset Size Social Score GIE Ranking
Score Score
Malaysia 189 276 114 317 49 1
Bahrain 90 54 106 143 58 3
Saudi Arabia 83 111 28 47 148 4
Oman 51 7 70 74 53 5
Kuwait 51 63 50 49 44 7
Pakistan 47 19 72 76 22 6
Qatar 47 38 42 55 53 8
Indonesia 38 24 74 30 23 10
Jordan 35 8 39 49 44 9
Malaysia GCC Countries
Malaysia once again leads the indicator ranking, All GCC countries maintain their presence in the top
establishing itself as the global hub for Islamic Finance. 10, reflecting the countries’ the strength of the Islamic
This is mainly due to the country having a large IF asset Finance market. This is mainly due to relatively large
base, a large number of IF institutions and funds, in asset bases, as well as increased spending driven to a
addition to having the strongest regulatory framework great extent by public budgets. The countries have also
and highest awareness score of all countries. managed to maintain their presence in the top 10 in
spite of declining oil and gas revenues in recent years.
United Arab Emirates (UAE)

Ups and Downs
The UAE overtakes Bahrain in the rankings for this year,
occupying 2nd place. While its relative IF asset base is All countries from the previous year’s ranking have
low, its governance score indicates an improvement managed to stay in the top 10, with the exception of
in its regulations, while its improved awareness score Sudan, which has been replaced by Jordan, with the
illustrates its media and publicity drive to solidify its country managing to occupy 10th place due to relatively
status as a global IF hub. strong scores in the governance, awareness and
social sub-indicators.
Bahrain
Overtaken by the UAE, Bahrain nevertheless still

manages to maintain a strong position, occupying 3rd
place in the rankings. The country has improved in all
sub-indicators, showing particularly strong performance
in its IF governance and awareness scores.
Islamic Finance Market Sizing
This report estimates that the existing Islamic Finance market stood at an estimated $2 trillion
in assets in 2015, based on data disclosed by all Islamic Finance institutions (full Shariah-
compliant as well as those with Shariah ‘windows’) covering Islamic banking, Islamic funds,
sukuk, Takaful, and other segments.
Of this $2 trillion, Islamic banking was responsible for $1.451 trillion, the Takaful (insurance)
sector for $38 billion, sukuk (bonds) outstanding for $342 billion, Islamic funds for $66 billion,
and other financial institutions for $106 billion. Islamic funds and sukuk led year-on-year growth
at 15 and 14 percent, respectively. Takaful was close behind with a growth rate of 11 percent,
while Islamic banking experienced more modest growth of 6 percent.
Total Islamic Finance assets are expected to reach $3.5 trillion by 2021, a CAGR of 12 percent,
with Islamic banking responsible for most of this growth, and projected to reach $2.7 trillion
in assets by 2021.
Other industry ecosystem indicators showed, in line with the overall growth of the sector, a 16
percent increase in the number of Islamic Finance institutions, a 13 percent increase in the
number of outstanding sukuk, and a 20 percent increase in the number of Shariah scholars.

Investors monitor stock market prices in Kuala

Lumpur, Malaysia. REUTERS/BAZUKI MUHAMMAD
Consumer Sentiment
Approach
Earlier in the Report, aggregated insights from millennials (18-35 age group) using social
media listening based research was introduced, and methodology was discussed. Here we
present specific insights from millennials social media interactions on Islamic Finance. A total
of 157,100 Islamic Finance related Facebook ‘posts and ‘comments’ from the millennial age
group are analyzed here.
In aggregate, the top countries where millennials were engaged with Islamic Finance sector
topics were Malaysia (60.6k interactions), Indonesia (37.5k interactions), and Pakistan
(4k interactions.) Southeast Asian countries Indonesia and Malaysia together represent 62
percent of all Islamic Finance related interactions gathered.
Volume of millennial interactions on Islamic Finance

recorded by country
Country Number of Interactions
Malaysia 60.6K
Indonesia 37.5K
Pakistan 4K
Nigeria 2.6K
Saudi Arabia 900
United Arab Emirates 300
Bangladesh 200
Singapore 200
A man poses with a magnifier in front of a Facebook logo

on display in this illustration taken in Sarajevo, Bosnia
and Herzegovina. REUTERS/DADO RUVIC

Sentiment analysis Sentiment distribution of Islamic
Finance related interactions
Based on an algorithm that factors in the conversational
tone and words used in the interactions, a ‘positive’,
Negative
‘negative’ and ‘neutral’ sentiment score is given to 15%
interactions (English language ones only.) From the
interactions that were able to be analyzed for sentiment
across Islamic Finance interactions, an overwhelming Neutral
75 percent of millennial interactions were with 10%
positive sentiment, 15 percent were negative, and
10 percent were neutral.
The majority positive sentiments by millennials

observed were generally of the type of interactions on
the promise of Islamic Finance, heavy ‘takaful product
promotions by agents (mostly in Malay and Bahasa Positive
Indonesian languages), and some on Zakat topics. 75%
Select actual interactions are referenced below (these
have been made anonymous for privacy purposes.).
PROMISE OF ISLAMIC FINANCE TAKAFUL PRODUCT PROMOTIONS

...That is a testament to the rising global clout of Want to be a new takaful advisor, InshaAllah I
Islamic Finance, which adheres to Shariah principles will help anyone who want to increase revenue
such as a ban on interest, offering depositors a with us at Prudential BSN TAKAFUL Don’t
stake in investments instead. It is growing 50 be shy or reluctant to call me, I’ll guide you
percent faster than conventional banking and ok? Call / Whatsapp: [redacted]” (translated
weathered the financial crisis far better than from Bahasa Indonesia)
its traditional counterparts. Islamic Finance is a
One of our advantages in the Tone Group:
$1.2 trillion market www.economist.com/blogs/
Interested to continue to be covered by Etiqa
schumpeter/2013/11/islamic-finance?fsrc=scn/
Takaful? I am. Do not be embarrassed to ask.”
fb/te/bl/ed/islamicfinanceameccaforsukuk”
(translated from Malay)
“Islamic Banking popularly known as Non Interest
... Thank God the police arrived safely to
Financial Institution (NIFI) to me is the most
household.... congratulations [redacted] has
effective tool for agricultural revamping in Nigeria.
TAKAFUL protection at an early age.... you now
Most of our crude and even the mechanised
have the emergency medical fund of RM1 MILLION
farmers do afraid of going into interest inclusive
lifetime... Thank you for choosing Prudential Bsn
institutions as they required collateral and charges
Takaful and choose us as your agent.... I hope you
high interest rate. The story of this Islamic bank is
remain with sustenance and good health... aminnn...
fading as little or few individuals are interested in
Another example of young people who have early
it for the passion of inbuilt eagerness for making
awareness like him... Let me handle this for you...
easy money in their hearts. Our local farmers need
YOUR FINANCIAL CONSULTANT” (translated
Islamic Banks. State like Yobe need such.”
from Bahasa Indonesia)
A man uses an ATM (automated teller machine) at the
Emirates Palace hotel in Abu Dhabi, UAE. REUTERS/MOSAB OMAR

Top keywords & hashtags Top Facebook keywords
and hashtags
From across the Islamic Finance interactions captured, the
most common terms and hashtags were: Zakat, #Takaful,
Islamic banking and finance, #prudentialbsntakaful, Allah,
#Prudential, Alhamdulillah, and Sadaqah. Three other
takaful providers also were prominent. Zakat seems to
be top of mind for millennials and Sadaqah also appears Zakat
on the top keywords list. In addition, the second most
prominent term also had many takaful companies as
top terms. Four different Takaful (Islamic insurance)
companies appear on this top list as well.
#takaful
Aggregate of all sectors keywords

Islamic
and hashtags banking and
finance
Keywords & Hashtags
Zakat 900
#prudential
#takaful 800 bsntakaful
Islamic banking and finance 700
#prudentialbsntakaful 700
#prubsn
#prubsntakaful 700
takaful
Allah 500
#prudential 500
Alhamdulillah 300
Dios 200 Allah

Sadaqah 200
South Asia 200
#medicalcard 200 Alhamdulillah

#prubsn 200
#greateasterntakaful 100 Dios

#zurichtakaful 100
Sadaqah
#fulltimeagent 100
#aiapublictakaful 100 South Asia

#hibah 100
#zakat 100
#medicalcard
#riba 100
#prubsn
#greateastern
takaful
Gender profile #zurichtakaful
#fulltimeagent
Millenial men (83.5k interactions/ 53 percent)
#aiapublictakaful
and women (61.6k/ 39 percent) were both well
represented on Islamic Finance related social media #hibah
interactions. While men had a higher representation, #zakat

women millennials are also strongly engaged in Islamic #riba
Finance interactions. Takaful related keywords and
hashtags were the ones in which millennial women
Facebook keywords Facebook hashtags
were most engaged in.
Value Chain Segments Select key players
Mainstream Organizations Islamic/Shariah-Compliant

addressing Islamic Finance Organizations
Regulatory Central Banks Bank of England (UK) Bank Negara Malaysia (Malaysia)
People’s Bank of China (China) Central Bank of Bahrain (Bahrain)
Saudi Arabian Monetary Agency
(Saudi Arabia)
Central Bank of the UAE (UAE)
Standard Setting Bodies Islamic Financial Services Board Bank for International Settle-
(Malaysia) ments (Switzerland)
AAOIFI (Saudi Arabia)
Multilateral Multilateral Organizations Islamic Development Bank (Saudi World Bank (USA)
Arabia) International Monetary Fund (USA)
Banking Commercial Banks HSBC (UK) Al Rajhi Bank (Saudi Arabia)

Standard Chartered (UK) Mellat Bank (Iran)
Barclays (UK) Dubai Islamic Bank (UAE)
Pasargad Bank (Iran)
Kuwait Finance House (Kuwait)
Bank Rakyat (Malaysia)
Al Rayan Bank (Qatar)
Abu Dhabi Islamic Bank (UAE)
Qatar Islamic Bank (Qatar)
Investment Banks BNP Paribas (France) Samba (Saudi Arabia)

Deutsche Bank (Germany) CIMB Islamic (Malaysia)
Insurance Insurance Providers Swiss Re Retakaful (Switzerland) Etiqa Takaful (Malaysia)

Hannover Re Takaful (Bahrain) NCCI (Saudi Arabia)
Egyptian Life Takaful (Egypt)
Crowdfunding Equity crowdfunding platforms Crowdfunder (USA) Blossom Finance (Indonesia)

Crowdcube (UK)
Private equity Private equity firms Texas Pacific Group (USA) Amwal (Qatar)
Abraaj Capital (UAE) Qalaa Holdings (Egypt)
Fajr Capital (UAE)
Arcapita (Bahrain)

High growth segments ↘↘ Islamic crowdfunding platform Narwi.
org has won the 2015 Ethical Finance
↘↘ Social impact sukuk represents a high growth Initiative Award. Narwi is a non-profit Islamic
segment in Islamic Finance. Khazanah Nasional crowdfunding platform set up in June 2015
has issued the first social impact sukuk in Malaysia, by Silatech (Qatar), which allows donors to
to further encourage the country’s goals to become support micro-entrepreneurs of their choice by
a hub for socially responsible investments in 2015.1 establishing an endowment, or “Narwi-Waqf”
with as little as $255
↘↘ Islamic Fintech & Crowdfunding are disruptive
market segments experiencing rapid growth, ↘↘ Blossom Finance, a start-up in Jakarta,
with the formation of a new industry body and is using Bitcoin as part of a Shariah-
key regulators such as Bank Negara exploring the compliant crowdfunding platform to provide
changes needed to adopt it. Another disruptive microfinancing in Indonesia.6
finance trend, Islamic crowdfunding, is also gaining
traction, with several new Shariah-compliant
crowdfunding platforms and campaigns: Current and emerging leaders in the
global Islamic Finance industry
↘↘ Bank Negara (Malaysia) is reviewing
the changes needed for the adoption of ↘↘ New markets across the globe, such as Australia
financial technology, or fintech2 and South Korea, are still witnessing Islamic
Finance transactions, despite the absence of
↘↘ A first-of-its-kind Islamic Fintech Alliance wider regulatory structure. Other countries,
(IFT Alliance) aims to be the reference point such as Azerbaijan and the Philippines, are actively
for knowledge and advice, and facilitate considering legislative reforms to enable interest-
business matching between investors and free finance in their jurisdictions:
entrepreneurs to develop a Shariah-compliant
fintech ecosystem. Launched in April, 2016 in ↘↘ Australia is experiencing a rise in real
Kuala Lumpur, IFT Alliance has eight crowdfunding estate deals using Islamic financing,
platforms operating across eight countries and capitalizing on low-risk tenants and the
territories as founding members3 weak Australian dollar7
↘↘ EthisCrowd.com, a Singapore-based ↘↘ Azerbaijan plans to establish its first

Islamic real estate crowdfunding platform, standalone Islamic bank by 2017
has raised $363,000 in cash and kind following government moves to allow
seed funding. The round was led by Azmi interest-free finance. Through a Jeddah-
Global, a subsidiary of Malaysian law firm based Islamic Development Bank initiative,
Azmi & Associates, and Quest Ventures, a Central Asian countries are developing
Singapore-based venture fund4 Shariah-compliant banks8
5 http://www.salaamgateway.com/en/finance/story/efica__islamic_
1 Khazanah to launch Malaysia’s first social impact bond, Reuters, 2015 April. crowdfunding_platform_narwi_wins_ethical_finance_initiative_award_2015-
2 http://www.salaamgateway.com/en/finance/story/Bank_Negara_studying_ SALAAM04102015192855/, accessed on 20 June 2016.
changes_needed_to_adopt_fintech__-SALAAM11052016091332/, accessed on 6 “Blossom offers Islamic micro-financing in Indonsia using Bitcoun”, TechInAsia,
20 June 2016. April 2015.
3 http://www.salaamgateway.com/en/finance/story/New_alliance_to_ 7 http://www.salaamgateway.com/en/finance/story/australia_sees_nascent_
boost_development_of_Islamic_fintech_for_Muslim_communities- growth_in_islamic_finance_despite_tax_concerns-SALAAM15022016064240/,
SALAAM21042016113446/, accessed on 20 June 2016. accessed on 20 June 2016.
4 http://www.salaamgateway.com/en/finance/story/islamic_real_estate_ 8 http://www.salaamgateway.com/en/finance/story/correctedazerbaijan_looks_
crowdfunding_platform_ethiscrowd_raises_05_mln_singapore_dollars_seed_ to_new_islamic_bank_as_sector_rules_progress-SALAAM19022016142155/,
funding-SALAAM23052016073234/, accessed on 20 June 2016. accessed on 20 June 2016.
↘↘ South Korea’s state-owned Woori Bank plans an initial public offering (IPO) of up to five
carried out its first ever Shariah-compliant percent in state oil company Aramco13
banking transaction, worth $10 million, with
the Qatar Islamic Bank in January 2016. ↘↘ Kuwait plans to privatize some state-
The murabahah financing was made through owned projects, including airports,
Woori’s Bahrain branch9 ports and some facilities of the Kuwait
Petroleum Corporation (KPC)14
↘↘ The Philippines plans to sell Islamic bonds
to generate new sources of financing for the ↘↘ The recent enactment of 31 laws to
new government of President Rodrigo Duterte. enhance Bahrain’s economic environment
New laws are also being drafted to improve the and regulatory frameworks is a major part of
country’s Islamic Finance sector10 the Kingdom’s long-term diversification and
sustainability efforts.15
↘↘ With the lifting of US sanctions, Iran is seeking
outside investment and expertise to further
develop its economy: Regulation and operations
↘↘ SWIFT, the global transaction network, has CENTRAL BANK GOVERNANCE CHANGES
reconnected a number of Iranian banks to
its system, allowing Iranian banks to carry out ↘↘ New Central Bank governors have been installed
transactions with foreign banks following the in three key Islamic Finance jurisdictions:
easing of sanctions11 Malaysia, Saudi Arabia and Turkey. The outcome
of these changes will be interesting to monitor
↘↘ Iran has increased its issuance of short- over the coming months, both to see whether
term Islamic bonds to bolster the local debt these successors continue or depart from their
market, using for the first time the FaraBourse longstanding predecessors’ policies, as well as to see
Exchange Market to issue $278 million in 5.5- how far the new governors promote Islamic Finance:
month bonds since September 201512
↘↘ Senior deputy Bank Negara Malaysia
↘↘ Saudi Arabia has announced its “Vision 2030 Governor Datuk Muhammad Ibrahim
Agenda” to transform its economy. Like Saudi was appointed the new head of the
Arabia, Kuwait and Bahrain are also undertaking central bank in May 201616
efforts to adopt greater privatization in key sectors
such as the oil industry, airports and infrastructure: ↘↘ Ahmed al-Kholifey was appointed Governor
of the Saudi Arabian Monetary Authority in
↘↘ Deputy Crown Prince Mohammed bin Salman, May 2016, replacing Fahd al-Mubarak17
the young prince overseeing Saudi Arabia’s
economy, unveiled Vision 2030 in April 2016, ↘↘ The Turkish cabinet approved the
to diversify the country’s economy and end appointment of Murat Cetinkaya as
its “addiction” to oil. Bin Salman said the the new head of the central bank in
kingdom is to increase the capital of its public
investment fund to $2 trillion $160 billion, and
13 http://www.salaamgateway.com/en/finance/story/Saudi_prince_unveils_
sweeping_plans_to_end_addiction_to_oil-SALAAM25042016165306/, accessed
9 http://www.salaamgateway.com/en/finance/story/sth_koreas_woori_ on 20 June 2016.
makes_countrys_first_financial_transaction_with_an_islamic_bank- 14 http://www.salaamgateway.com/en/finance/story/Kuwait_seeking_to_privatise_
SALAAM17012016171020/, accessed on 20 June 2016. some_KPC_facilities_infra__finmin-SALAAM15032016035647/, accessed on 20
10 http://www.zawya.com/mena/en/business/story/ June 2016.
TR20160610nL8N18Z055X2/, accessed on 20 June 2016. 15 “Bahrain pushes to strengthen private sector”, Gulf News Bahrain, June 2016.
11 http://www.salaamgateway.com/en/finance/story/Iranian_banks_reconnected_ 16 http://www.salaamgateway.com/en/finance/story/Muhammad_Ibrahim_
to_SWIFT_network_after_fouryear_hiatus-SALAAM18022016034231/, appointed_new_Bank_Negara_governor-SALAAM27042016072155/, accessed
accessed on 20 June 2016. on 20 June 2016.
12 http://www.salaamgateway.com/en/finance/story/MIDEAST_ 17 http://www.salaamgateway.com/en/finance/story/Saudi_Arabia_appoints_new_
MONEYIran_to_expand_sale_of_Islamic_treasury_bills_spur_debt_markets- central_bank_governor-SALAAM08052016013925/, accessed on 20 June
SALAAM01022016030900/, accessed on 20 June 2016. 2016.

April 2016. Cetinkaya has a background ↘↘ One of the main focal points of the 2016
in Islamic Finance.18 World Islamic Economic Forum (WIEF)
in Indonesia was the role of SMEs, with
DEVELOPMENT IN THE SUPPORT ECOSYSTEM FOR SMES a keynote speech on “Corporatizing SMEs
and Cooperatives”, and panel discussions
↘↘ Countries across the Islamic Finance world are on “Restructuring SMEs and Improving
introducing various initiatives to promote the Credit Access” and “SMEs in a World
growth of small and medium-sized enterprises of Digitized Trade”.23
(SMEs), such as a mini-insolvency law in the UAE,
Egyptian central bank support for SMEs, and Saudi
Arabia’s plans to introduce a SMEs bourse by Innovation
2017. Market developments are also occurring,
such as BLME Bank’s acquisition of an SME- ↘↘ Shariah-compliant pensions are a new product
focused leasing business: area with strong demographic drivers. Notably,
Malaysia’s pension fund has announced a $25
↘↘ Saudi Arabia’s stock exchange, the billion Islamic Saving Plan, the largest in the
Tadawul, plans to establish an equity world. Recently, Indonesia has also allowed
market targeting SMEs in 2017. The Islamic pension funds, and Islamic Finance
initiative, which is supported by the Capital experts are encouraging the development of
Market Authority, would improve SMEs’ Shariah-compliant pension schemes in other
access to capital and encourage corporate countries such as the UAE:
governance improvements19
↘↘ Malaysia’s pension fund the Employees
↘↘ The central bank of West Africa’s CFA- Provident Fund (EPF) is allocating an
franc zone has signed an agreement with initial fund size of $24.64 billion, or 14.67
the private sector arm of the Islamic percent, from its total investment asset of
Development Bank to help finance SMEs $167.99 billion as of March 2016, for Shariah
through a $100 million Islamic fund20 investments. EPF announced that its new
retirement savings option ‘Simpanan Shariah’
↘↘ The Egyptian government announced in will be launched beginning 201724
January 2016, that the banking sector will
provide $25 billion to support SMEs in a ↘↘ Indonesia plans to establish Shariah-
move to support Egypt’s sluggish economy compliant pension funds in anticipation of
and create more jobs21 growing demand from its aging population, with
the number of over 60 year olds to triple by
↘↘ Bank of London and the Middle East 2050. Insurance and asset management firms
(BLME), one of the UK’s five Islamic banks, will be allowed to market Shariah-compliant
announced in May 2016 that it would retirement plans and convert existing funds to
acquire Renaissance Asset Finance to Shariah-compliant services.25
bolster its leasing business. BLME helped
establish Renaissance in 2014, providing £35 ↘↘ Islamic impact investing is a largely untapped
million ($45.6 million) in financing22 opportunity which is ripe for further
development. Some examples of Islamic impact
investing that have already occurred include:26
18 http://www.salaamgateway.com/en/finance/story/UPDATE_4Turkish_
cabinet_approves_deputy_governor_Cetinkaya_as_next_central_bank_chief-
SALAAM12042016040216/, accessed on 20 June 2016.
19 http://www.salaamgateway.com/en/finance/story/Saudi_stock_exchange_plans_
equity_market_for_SMEs-SALAAM19042016035120/, accessed on 20 June 2016. 23 World Islamic Economic Forum website, http://wief.org/forum/12/forum-
20 http://www.salaamgateway.com/en/finance/story/After_Ivory_Coast_Sukūk_ programme/, accessed on 7 August 2016.
West_Africa_bloc_signs_SME_fund_deal-SALAAM25012016024211/, accessed 24 “Malaysia’ EPF to allocate $24.6b for shariah-compliant investments in 2017”,
on 20 June 2016. Deal Street Asia, June 2016.
21 http://www.salaamgateway.com/en/finance/story/Egypts_president_Sisi_launches_ 25 “Islamic Pensions to Spur Growth as Indonesia Over-60s to Triple”, Bloomberg,
loan_program_for_SMEs-SALAAM09012016125908/, accessed on 20 June 2016. April 2016.
22 http://www.salaamgateway.com/en/finance/story/Islamic_bank_BLME_to_ 26 http://www.salaamgateway.com/en/finance/story/aligning_maqasid_al_
acquire_SMEfocused_leasing_business-SALAAM01032016044216/, accessed shariah_and_impact_investing_objectives_key_to_growth_of_islamic_sector-
on 20 June 2016. salaam10072016050644/, accessed on 4 August 2016.
↘↘ Socially-oriented initiatives, for instance
crowdfunding platforms such as
Narwi, which facilitates the financing of
SMEs throughout the MENA
↘↘ The world’s first Malaysian ringgit-

denominated SRI sukuk in 2014
worth $240 million by Malaysia’s state
investment arm Khazanah
↘↘ The Islamic Development Bank’s Awqaf

Properties Investment Fund (APIF),
established in 2003, which to-date has
approved over $1 billion in commercial and
residential projects
↘↘ Emirates Airlines became the first to issue

export-credit-agency-backed sukuk, in 2015.
The sukuk means governments and companies
can target a new investor base, with the issuance
fully guaranteed by the Export Credits Guarantee
Department of the UK Government27
↘↘ Salaam Bank is the world’s first global Islamic

banking and finance platform, providing access
to Islamic Finance options that are technologically
innovative while creating a bank beyond borders28
↘↘ The UAE’s Finocracy is launching Human

Crescent, the world’s first zakat-driven
crowdfunding platform for global
humanitarian support.29
27 “Islamic finance: going global”, Beyond Borders, February 2016.

28 “The 50 Most Innovative Global Muslim Startups 2016”, Ummah Wide, June
2016.
29 “The 50 Most Innovative Global Muslim Startups 2016”, Ummah Wide, June
2016.

Key Challenges
Marketing and sales challenges
↘↘ Low levels of public awareness and understanding of Islamic financial products and
services persist, contributing to the low penetration rate of the Islamic financial
industry in certain jurisdictions. A recent industry survey showed that lack of awareness
is the main factor causing a low penetration level of Islamic banking in the GCC.30
Financing challenges
↘↘ Monetary policy formulation and implementation are challenging in the presence

of Islamic Finance because of the scarcity of Shariah-compliant monetary policy
instruments and a lack of understanding of the monetary transmission mechanism.
In addition to weakening the transmission channel for monetary policy, the scarcity of
instruments also forces Islamic banks to hold higher unremunerated reserves, affecting
their ability to compete with conventional banks. The IMF considers it important to further
deepen sukuk markets and develop Shariah-compliant monetary policy instruments.31
Regulations and operations challenges
↘↘ Although standard-setting bodies have developed specific standards, regulatory and

supervisory frameworks in many jurisdictions still do not address the unique risks of
the industry. As a result, in some jurisdictions the practice of Islamic banking has resulted
in complex financial products and corporate structures, indicating a need for increased
regulatory clarity and harmonization, better cooperation between Islamic and conventional
financial standard-setters, and further improvement of supervisory tools32
↘↘ Regulators do not always have the capacity (or willingness) to ensure Shariah
compliance. This undermines consistency of approaches within and across borders33
↘↘ Safety nets and resolution frameworks remain underdeveloped. Very few countries
with Islamic banking have a full-fledged Islamic deposit insurance scheme with premiums
invested in Shariah-compliant assets. In addition, only a few countries have developed
a Shariah-compliant lender-of-last-resort facility, despite the systemic importance
of such a facility.34
30 “What customers want; Customer insights to inform growth strategies of Islamic banks in the Middle East”, PwC, October 2014.
31 “Islamic Finance: Opportunities, Challenges, and Policy Options”, IMF, April 2015.

Opportunities
While the Islamic Finance industry is maturing, several high potential segments remain largely
unaddressed across products and services.
Unadressed
high potential Shariah- Mobile banking
Infrastructure
product compliant and payment
sukuk
segments
Unadressed pensions systems
high
 potential Shariah- Mobile banking
Infrastructure
product compliant and payment
sukuk
segments pensions systems
Unadressed Social
high potential  Islamic SME Agricultural financing and
service wealth financing financing sustainable
segments
Unadressed managements development
Social
high
 potential Islamic SME Agricultural financing and
service wealth financing financing sustainable
segments managements development

Opportunities by stakeholder
the Islamic Finance industry.
Islamic Explore Offer new

Banks new products and
markets services
Explore Offer new
Islamic
Banks new products and
markets services
Support

new market
Regulators products/
Support
service
new market
offerings

Regulators products/
service
 offerings Pursue
Private Acquire substancial
Equity new value creation
Firms players Pursue
opportunities
Private Acquire substancial

Equity new value creation
Firms players opportunities


Existing opportunities in Islamic Finance
Shariah-compliant Largely unmet Muslim demand:

pensions ↘ There is significant demand for Shariah-compliant retirement schemes across the Muslim world from individuals,
such as middle-income savers and working professionals
Potential:
↘ Malaysia’s pension fund has announced a $26 billion Islamic Saving Plan, the largest in the world. Indonesia has
also recently allowed Islamic pension funds, and the development of Shariah-compliant pension schemes is being
encouraged in the UAE34
Infrastructure Sukūk Largely unmet opportunity:

↘ In major Muslim markets such as Indonesia there is a strong need for infrastructure financing to help fund numerous
public infrastructure projects35
Potential:
↘ There is an opportunity for public-private partnership (PPP) schemes to fund public infrastructure projects, both
between local private sector companies and governments as well as with foreign private sector companies and local
governments
Mobile banking and Largely unmet opportunity:

payment systems ↘ Across the world, banks are engaged in setting up mobile banking and payment systems that utilize technology to efficiently
channel funds from investors to viable economic ventures, promote risk-sharing and support cross-border investments36
Potential:
↘ There is an opportunity for Islamic banks in emerging Muslim markets to provide Shariah-compliant Internet-based
banking platforms, such as the Investment Account Platform (IAP) setup by six Islamic banks in Malaysia
Islamic wealth Largely unmet opportunity in OIC markets:

management ↘ Islamic wealth management services that cater to both high net worth (HNW) individuals and retail investors present
a lucrative yet relatively untapped growth opportunity across Muslim markets
Potential:
↘ Leading Islamic Finance jurisdictions such as Malaysia are highlighting Islamic wealth management as a new growth area37
SME financing Largely unaddressed Muslim demand in OIC markets:

↘ SMEs across the OIC markets need access to finance for working capital requirements and asset financing, and this
sector remains underpenetrated by Islamic banks38
Potential:
↘ Islamic Banks should focus on providing lower income customers with retail-based offerings and higher income
customers with more corporate and sophisticated banking services39
Agricultural financing Largely unmet opportunity in OIC markets:

↘ Islamic Finance products and services can provide access to finance for under-banked rural populations who need
access to finance agribusiness ventures
Potential
↘ Islamic Finance could provide access to finance for poor and under-banked rural communities through partnership-
based contracts and improve food security by providing agricultural financing through Salam-based contracts40
Social financing Largely untapped opportunity in OIC markets:

and sustainable ↘ With the launch of the UN’s Sustainable Development Goals, Islamic Finance’s role in helping achieve social finance
development goals is gaining much attention as part of viable solutions.
Potential
↘ There are several opportunities to drive enhanced social impact through awqaf initiatives, notably Dubai’s
Mohammed bin Rashid Global Center for Endowment Consultancy (MBRGCEC) that will provide free consultation
to individuals as well as institutions;41 Islamic Finance helping to meet the UN General Assembly 2030 Agenda’s
Sustainable Development Goals;42 and Islamic social finance helping to aid humanitarian efforts.43
34. “Malaysia’ EPF to allocate $24.6b for shariah-compliant investments in 2017”, 39. “Islamic Finance: An Opportunity for SME Financing”, International Federation of
Deal Street Asia, June 2016. Accountants, August 2015.
35. https://www.salaamgateway.com/en/finance/story/islamic_financing_ 40. “Islamic Finance”, The World Bank, March 2015.
for_infrastructure_development_to_top_agenda_for_wief_in_jakarta_- 41. http://www.salaamgateway.com/en/finance/story/Dubai_unveils_new_awqaf_
salaam31072016115503/, accessed on 3 August 2016. and_endowment_initiatives-SALAAM23032016105359/, accessed on 20
36. “Malaysia and Islamic Finance in Emerging Markets”, Franklin Templeton June 2016.
Investments, June 2016. 42. http://www.salaamgateway.com/en/finance/story/Islamic_finance_could_help_
37. “Islamic wealth management a new growth area, says Najib”, New Straits Times in_meeting_sustainable_development_goals_SP-SALAAM19042016095814/,
Online, August 2016. accessed on 20 June 2016.
38. “Islamic Finance: An Opportunity for SME Financing”, International Federation of 43. “Islamic wealth management a new growth area, says Najib”, New Straits Times
Accountants, August 2015. Online, August 2016.

Islamic Banks Explore new Rationale:

markets ↘ Accessing new and underdeveloped Islamic Finance markets could increase revenue streams
for Islamic banks
↘ Key untapped jurisdictions include several jurisdictions with large Muslim populations, such as
India, China and most of the Central Asian states44
Offer new products Rationale:

and services ↘ There are several underserved customer segments that could be further targeted by offering
them new products and services
↘ Key areas include SME sector customers, in particular lower income customers who can
be targeted with new retail-based offerings and higher income customers with more new
corporate and sophisticated banking services45
Regulators Support new market Rationale:

products/ service ↘ Regulators should facilitate market growth by supporting new products and service offerings
offerings with clear supporting regulatory frameworks
↘ Retail-based investors could benefit from clear regulatory guidelines, such as Bank Negara
Malaysia’s framework for retail-based sukuk in Malaysia
Private equity firms Acquire new players Rationale:

↘ The Islamic Finance industry remains highly fragmented and in significant need of capital to
scale and expand to address substantial demand
↘ Both mainstream and Islamic Finance-focused MENA-based private equity firms such as Abraaj
Capital, Amwal, Qalaa Holdings and Fajr Capital are ideally positioned to provide equity financing
in a Shariah-compliant manner and are already involved in several Islamic PE transactions and/or
provide Islamic PE financing46
Pursue substantial Rationale:

value creation ↘ Once a company is acquired, there are substantial value creation opportunities to scale a brand
opportunities and diversify its business
↘ Examples of such a strategy includes private equity backed Shariah-compliant venture capital
funds such as Gulf Islamic Investment’s Tandem Fund III and a $60 million venture capital
investment in Apttus47
↘ As a private equity portfolio company, Islamic Finance PE players can expand into multiple
product categories, as well as expanding geographically and into new distribution channels
46. http://www.salaamgateway.com/en/finance/story/islamic_private_equity_a_
44. “Islamic Finance for Asia: Development, Prospects, and Inclusive Growth”, funding_solution_for_shariahcompliant_companies-salaam08102015071915/,
Islamic Financial Services Board, May 2015. accessed on 4 August 2016.
45. “Islamic Finance: An Opportunity for SME Financing”, International Federation 47. Gulf Islamic Investments company website, http://gii.ae/, accessed on 4
of Accountants, August 2015. August 2016.
Interview
Blake Goud
CEO,
RFI Foundation (UK)
What broader trends do you see the fund and their investors (ESG is associated
among consumers in the Islamic with higher returns), it provides a methodology
Finance industry and which of how to approach positive screening within
product segments are poised Islamic Finance which has lagged previously.
to benefit from this?
One of the overlooked areas in Islamic How has the addressable market for
Finance is in the asset management space, Islamic Finance performed relative
particularly pension funds. The decision by to the broader conventional finance
Malaysia’s Employees Provident Fund (EPF) space, both in Europe and globally?
to offer a Shariah-compliant option which Islamic Finance growth differs from
will represent $25 billion in assets is a huge conventional finance in many ways. For example,
catalyst for the sector. In addition to being a while global finance includes significant asset
large addition to assets (as of 2014, Islamic management and banking activity, Islamic
funds held $56 billion in assets), the EPF move Finance is mostly banking with a smaller volume
aligns Islamic investment more with trends in of debt capital markets activity (sukuk) and
socially responsible investment. Earlier this very little asset management. It also has a
year, EPF said all of its assets met standard different geographical distribution with more
environmental, social and governance (ESG) assets in emerging markets. As the U.S. Federal
criteria and now the Shariah-compliant Reserve’s asset purchase tapering hit emerging
EPF option represents perhaps the market growth more than developed markets
largest collection of assets to incorporate and the rise in Fed rates hit bank’s net interest
Islamic and ESG approaches. margins while capital markets have recovered
to new highs in many markets, any EM-focused,
What are the major developments in banking-centric financial industry was set
the Islamic Finance industry over up to take a hit in its relative performance.
the last few years and how has this Islamic Finance assets overcame these
affected the RFI Foundation? headwinds to show 10 percent year-on-year
The recognition that socially responsible growth for 2015 versus 2014, which shows
investing (SRI) aligns closely with Islamic the strength of the underlying proposition that
Finance is not new, but how this knowledge finance should be values-based and it should
is translated into practice is a major change. focus primarily on being a facilitator for the
For example, SEDCO Capital and Arabesque non-financial economy.
Partners have become the first two
signatories to the UN-supported Principles for How did the RFI
Responsible Investment which advocates for Foundation determine that the
the integration of ESG into financial analysis. Islamic Finance sector was a
Besides the potential performance benefits for viable sector to address?

Interview
The RFI Foundation identified that Islamic primarily focused on the operational side
Finance brought similar values as other areas of how to measure the impact created to
of responsible finance but operated distinctly. differentiate positive social impact versus
We identified that one of the barriers to marketing focused efforts.
realizing the potential overlap between the
approaches in responsible finance was that What are the main types of
they described differently the similar social Shariah-compliant financing that
impact they wanted to support, which limits you see being arranged, and what
awareness. If this awareness gap and the are the challenges?
communication challenges it created could One area that will increasingly be in demand is
be bridged, Islamic Finance could shorten its social impact sukuk. The first two were issued
path to generate positive impact and could in just the past two years by Khazanah (for
contribute its unique approach to traditional school construction) and by the International
responsible finance. Finance Facility for Immunizations (IFFIm,
for vaccines). The challenges for structuring
What is the RFI Foundation’s are that many investors perceive a social
vision for the next five years, impact product as being similar to charity so
and what do you envisage to it needs to overcome a perception gap among
be the next key steps? investors that creating positive social value
Our vision is focused on promoting research does not always involve financial sacrifice
to identify the shared and universal value
proposition that we see in responsible finance. What broader trends do you see
We are also working to raise awareness of among consumers in the Islamic
how different areas of responsible finance Finance industry globally and
approach it with a focus on bringing together which product segments are poised
practitioners from Islamic Finance and to benefit from this?
traditional responsible finance. There been a growing awareness and demand
for investing in accordance with Shariah
Given the large number of Islamic principles among consumers. While Islamic
financial services institutions banking is the most developed product of this
globally, what are the major industry, recently the Islamic capital market
operational and regulatory challenges has seen significant activity as more and
faced by the sector? more investors are looking for investment
We view a key challenge is for institutions to opportunities which appeal to their values and
not only focus on creating a Shariah-compliant beliefs without compromising on performance
proposition but also focus on positive social
impact. In order to do so, the challenges are
Interview
Talal Yasine
Managing Director,
Crescent Wealth
What would you consider to be Please outline your vision for the
the major developments in the company over the next five years,
Islamic Finance Industry over the and what do you envisage to be the
last few years and how has this next key steps for the company?
affected Crescent Wealth? More specifically, please expand
The global Islamic Finance industry has grown upon your expansion in the asset
exponentially compared to conventional financing space in Australia.
banking in the last decade. More than 2.5 We intend to continue our trajectory of
percent of the world’s Muslims are now strong sustainable growth in Funds under
clients of the Islamic Finance industry. management. Geographically we are
Launch of several Islamic indexes and funds expanding to ensure that our products are
have catalyzed the growth and worked to available to investors around the world at
popularize the Islamic capital market. All of both the retail and institutional level. We can
these developments have attracted more only do this by continuing to provide strong
consumers globally. Crescent Wealth too returns during volatile markets, as well as
has seen a rapid growth in assets under superior customer service. Our flagship
management owing to the awareness and product is a superannuation fund (pension
confidence of consumers. product) which means we have customers
who stay with us from working life well into
Please outline the steps retirement. Therefore, it is critical to our
that Crescent Wealth has long term growth will be providing the best
undertaken to expand both its possible service to our life long members.
product offering and geographical
coverage. In particular, tell us What remain the major operational
about your experience operating and regulatory challenges faced
in the sukuk origination market by the industry overall, and
space, and how you plan to further to what extent do these affect
expand across Australia? your company as well?
Since its inception, Crescent Wealth has In many countries, the Islamic Finance
been trying to expand its presence in industry is still governed by regulatory
Australia by holding multiple on ground and supervisory framework developed
activities in Sydney, Melbourne, Brisbane, for conventional finance industry. Not in
Adelaide etc. Globally, our Islamic property Australia, but in some countries the industry
fund has been recently launched in Malaysia operates in an environment where legal
and we are further looking to tap into rules and financial infrastructure do not
markets in the UAE, Brunei, Indonesia, take into account special characteristics of
Singapore, and South Africa. Islamic Finance. Scarcity of Shariah scholars

Interview
with financial expertise, and a slow pace of
innovation are also weighing on the industry.
What do you consider to be major

unmet needs of Muslim consumers
in the Islamic Finance industry?
How does this feature into your new
product development?
The two main issues clients currently face
in this industry, based on member services
feedback, is trust in the brand and returns,
and consumer confidence. Consumers need
to be acknowledged that their money is
invested in 100 percent Halal products and
that it would still yield them good returns. We
plan to tackle this through customer service,
which is the centre of all our communications
to clients and through knowledge sharing of
our past performance rates.
More than 2.5 percent of the world’s

Muslims are now clients of the Islamic
Finance industry. Consumers need to be
acknowledged that their money is invested in
100 percent Halal products and that it would
still yield them good returns.
Interview
Nael Mustafa
Managing Director – MENA Investments,
Arcapita
What broader trends do you see Increased competitiveness in terms of

among consumers in the Islamic structures and pricing for Islamic financing,
Finance industry globally and growth of sukuks as the principal debt
which product segments are poised instrument of choice and now more recently
to benefit from this? the introduction of crowdfunding are a few
The Islamic Finance industry has expanded at of the major developments we see in the
a rapid pace over the last 20 years. There has industry. Another major development is the
been significant advancement in structuring growth of the alternative investments market
of investment products that satisfy Shariah with increasing cross-border transactions
requirements and are attractive to investors. taking place, ranging from private equity
We believe this trend will continue. According and real estate to crowdfunding. These new
to the Malaysian International Islamic and innovative products that are emerging
Financial Centre, global “Islamic assets” are game changers for the Islamic Finance
under management expected to grow to industry that may force many asset managers
almost $77 billion by 2019 from $58 billion and financial services providers to rethink
at the end of 2015. We are also starting to and modify their product offerings. Arcapita’s
see increasing demand for Shariah compliant management is keen to roll out innovative new
alternative investments, as investors seek product offerings that cater to the constantly
to enhance returns and diversify away from changing investor demand.
traditional Islamic Finance products such as
Sukuks. The rapidly growing Muslim population How would you say the addressable
coupled with an expanding middle class market for Islamic financing has
and increasing disposable income is driving performed growth-wise relative to
the growth in the Islamic Finance industry, the broader global finance category,
especially with millennials looking at more both in Bahrain and globally?
ways to invest ethically. Currently there Which sub-sectors in particular
is a lack of high quality Shariah compliant are performing well?
alternative investment products on offer The Islamic financing market has been growing
relative to the available conventional rapidly over the last few years and the growth
products. We see a greater investor appetite has been higher than the conventional finance
for Shariah compliant private equity and market. For example, the UAE’s Islamic
real estate investments. Finance sector has outpaced growth in the
conventional banking sector in 2015. As one
What would you consider to be of the hubs for the financial services industry,
the major developments in the Bahrain’s Islamic Finance market continues to
Islamic Finance Industry over expand to cater to the regional and the growing
the last few years and how has domestic market. The Real estate subsector
this affected Arcapita? has probably been the best performing sector

Interview
in the region given the volume of transactions How have you been able to finance
taking place in the GCC. your business and do you think
access to shariah compliant financing
The Islamic Finance products remains a significant challenge?
marketplace is maturing with Having been at the forefront of Shariah
increasing competition among compliant transactions globally we have seen
all key segments, especially the global Shariah compliant financing market
lease finance (ijarah). How evolve. With the growth of Islamic Finance as
does Arcapita differentiate itself from an industry it has become easier to secure
the numerous brands offering Islamic Shariah compliant financing for transactions
Finance services across Bahrain? in various different geographies. We still
As an alternative investment firm, Arcapita believe there is potential to improve financing
competes with global alternative investment structuring and more integration of various
players. Arcapita was a pioneer in the field of Shariah boards will further improve the process
Shariah compliant alternative investments, and of securing financing.
we continue to serve our investors with unique
product offerings and investments. We are one What do you consider to be major
of the few firms in the region to offer to quality unmet needs of Muslim consumers
Shariah compliant investments globally with in the Islamic Finance industry?
our management having a strong track record How does this feature into your new
in delivering to our investors. Our management product development?
team has completed over 70 transactions with SMEs accounting for 60-70% of jobs
total value of approximately $30 billion. worldwide, it is crucial these businesses
have access to capital. We believe there is
Please outline the steps lack of Shariah-compliant growth capital or
that Arcapita has undertaken to financing for SMEs. Crowdfunding platforms
expand both its product offering have emerged following the global financial
and geographical coverage. In crisis as an alternate source of funding
particular, how you plan to further to assist entrepreneurs in raising capital.
expand across the Middle East? Although it still remains a nascent industry,
We aim to grow through diversifying our it has shown significant growth, to the
product offerings as well as expanding extent where crowdfunding has already
our geographic footprint to include more surpassed the funds invested by angel
developed, as well as emerging markets. investors. This however has largely been
With offices in Bahrain, Atlanta, London and limited to conventional capital and not
Singapore we are able to originate and execute Shariah compliant capital.
transactions globally.
What role do you think investment
Please outline your vision for the – in particular private equity, as
company over the next five years, well as consolidation, will have
and what do you envisage to be the in shaping the Islamic Finance
next key steps for the company? industry going forward?
More specifically, please expand upon With the total Muslim wealth estimated at
your expansion in the real estate $11.5 trillion, according to a recent article in
financing space in Bahrain. Bloomberg, Islamic asset managers will need
Our vision is to become the preeminent to provide a wider array of investments to
investment manager and capital solutions compete with conventional players. Private
provider for Shari’ah complaint investors equity is still a very small part of the Islamic
globally. Within real estate, we aim to structure Finance industry and one of the products
transactions for investors looking for income which Islamic financial institutions need to
generation as well as selective development focus on to provide diversification for Islamic
transactions that offer higher returns through investors who are looking to build a balanced
capital appreciation. risk/return investment portfolio.
Young male traveler photographing a beautiful view of the
Bosphorus in Istanbul, Turkey.

Halal Travel Sector
Halal Travel Sector
‘Say, [Oh Muhammad, PBUH], “Travel through the land and observe how He
began creation.”’ (29:20, Quran)
Muslims have a long tradition of traveling embedded within their consciousness. History’s
most traveled man, Ibn Battuta, traversed the globe for a remarkable 30 years. Muslim
scholars such as Muhammaad al-Bukhari covered great distances to acquire knowledge.
This eclectic tradition has today translated into a burgeoning Halal Travel sector. This report
estimates Muslim populations globally to have spent a total of $151 billion on travel in
2015 (excluding Hajj and Umrah). This is a growth of 4.9 percent from the previous year, and
is higher than the 3 percent increase in the global market. This report also estimates the
revenues derived from Muslim Friendly Travel services to be worth $24 billion in 2015.
Globally we have seen the success of platforms such as Airbnb, and with that momentum
Muslim-friendly vacation platforms have begun to emerge, such as Bookhalalhomes
and Tripfez. Muslim-friendly beach resorts are emerging as a high growth segment, with
Muslims spending an estimated $28 billion on beach resorts in 2014. While Turkey is the
most established market for such beach resorts, there are non-Muslim countries such as
Thailand that are also seeking to cater towards the Muslim travel sector will continue being a
lucrative sector for investment for some time to come.
HALAL TRAVEL
MARKET SIZE1 BE N CH M AR K
How much do Muslims How does Muslim spend
spend on outbound compare to total global
travel? spend on outbound travel?
(2015, US$ Bn)
2015
$168 Bn
$151 Bn $147 Bn $112 Bn $80 Bn $59 Bn
Existing Muslim Market*
China 11.2% of Global
United States Germany UK Russia
Expenditure
2021
Estimated
$243 Bn revenues derived from
Projected Market Size Muslim Friendly
12.3% of Global Expenditure Tourism services
8.2% CAGR Growth
$24 Bn
in 2015
THE HA L A L T RAV E L I ND I CATO R

Which countries have the
best developed ecosystem
Turkey
for Halal Travel?
Lebanon 83 7 Iran
Jordan 5
q 9
Saudi
Arabia Oman
6 Maldives 2 Malaysia
1
United
*CRITERIA (From a total of 73 select countries) Arab Emirates 4 Singapore
Trade: Inbound Muslim Travel relative to its Size
Governace: Halal Friendly Ecosystem
Awareness: Media/Events
Social: Contribution to Employment
Selected key players

Transportation Accommodation Food & Beverage / Channels/Travel Attractions & Entertainment
Infrastructure Infrastructure/ Catering Agencies Infrastructure / Education &
Saudi Arabian Airlines Hospitality Suppliers D’Tandoor Restaurant Serendipity Tailormade (UK) healthcare infrastructure
(Saudi Arabia) Sofyan Hotels (Indonesia) (Australia) Holiday Bosnia (UAE) IMG Worlds of Adventure (UAE)
Kuwait Airways (Kuwait) Shaza Hotels (UAE) Momen (Egypt) Travel Agency Adriaday The 99 Village Theme Park
Firnas Airways (UK) Al Meroz Hotel (Thailand) The Halal Guys (U.S.) (Croatia) (Kuwait)
Waqf Airlines (Malaysia) Macia Condor (Thailand) Yemen Catering & Nur and Duha (Spain) IMG World of Adventure (UAE)
Dubai International Adenya Hotels & Resorts Support Services HalalBooking.com (UK) Legoland (UAE)
Airport (UAE) (Turkey) International (Yemen) Six Flags (UAE)

Halal Travel Sector
Regional expenditure
(2015, US$ Bn)
28%
Muslim travel
spending from
Non-OIC* countries
$54.4 $25.7 $20.5 $16.5 $10.3
MENA-GCC MENA-Other East Asia W. Europe Central Asia
$8.2 $7.0 $4.6 $3.1 $0.8 $108.8 Bn $42.3 Bn

E. Europe Sub-Saharan South Asia North America Other Muslim Spending from Muslim Spending from
Africa OIC Market Non OIC Market
TOP MA R K ETS
Issues and Consumer needs
Top Muslim consumer travel opportunities map
and ecosystem
expenditure markets Under-

developed
branding
Saudi Arabia $19.2
Accommodating

UAE $15.1 Products
& Services Muslims &
Qatar $11.7 non-Muslims GCC
Demand for  diversifying
Kuwait $9.0 Muslim friendly into tourism due
Beach resorts to fall in oil
Indonesia $9.1 prices
 Lack of
Iran $7.2 awareness 
among some
Malaysia $6.7 OIC countries
Marketing
Russia $6.6 
Iran as a destination
destination as Muslim-
Turkey $5.3 friendly
New
Nigeria $4.8 travel themes:  Increase in 
voluntourism, Halal travel
(2015 est., US$ Bn) ecotourism,etc conferences
 Strong  Opportunities
dependence on for Destination
Halal food Marketing
 Halal Agencies
Fragmented Certification 
of hospitality
businesses
 
Crowdfunding
to finance
 startups
$54.39 Bn Convergence
with Halal food,  No unified
standards or
GCC Spend in 2015 IF, media &
terminology
modest fashion
GCC travelers are sectors Limited

3% of the global Muslim population private equity Policies,
but, represent interest in Regulations
36% of the travel spend Financing MFT & Operations
in 2015 
1
Expenditure data Baselined from 2014 UNWTO data, DinarStandard Muslim market estimates; Sector correlated IMF Outlook Oct 2014 Database for
projections estimates & analysis; IMF Outlook Oct 2014 Database for projections"
Halal Travel Indicator
The 2016 State of the Global Islamic Economy Report revisits the Halal Travel Indicator to
evaluate countries’ health and development of its Muslim market travel ecosystem. This
indicator is part of the aggregate Global Islamic Economy (GIE) Indicator. The Halal Travel
Indicator does not focus on the overall size and growth trajectory of a country in this sector;
instead it evaluates countries on relative strengths of the ecosystem they have for the
The UAE, Malaysia and Turkey lead the Halal Travel Indicator ranking that focuses on the health of
the Halal Travel ecosystem a country has relative to its size.
The indicator equally weighs four metric categories and has the following metrics for each:
↘↘ Supply drivers relative to country size (inbound Muslim tourists)
↘↘ Governance (Halal-friendly ecosystem)
↘↘ Awareness (number of related news articles and events)
↘↘ Social (travel sectors contribution to employment)
Below are the top 10 countries in the Halal Travel Indicator.
TO P 1 0
Halal Travel
UAE 81
Malaysia 70
Turkey 51
Singapore 44
Jordan 39
Maldives 38
Iran 36
Lebanon 36
Oman 36
Saudi Arabia 35

Halal Travel Sector
Inbound
Halal Friendly Awareness
Halal Travel Sector Score Muslim Travel Social Score GIE Ranking
Ecosystem Score
Score
Malaysia 70 126 100 35 21 1
Turkey 51 66 100 23 15 17
Singapore 44 107 33 20 16 11
Jordan 39 37 67 19 33 9
Maldives 38 9 33 NA 111 31
Iran 36 53 67 13 10 14
Lebanon 36 20 67 19 39 28
Oman 36 17 67 52 11 5
Saudi Arabia 35 38 67 15 21 4
United Arab Emirates (UAE) Turkey
The UAE overtakes Malaysia in this year’s rankings, Turkey rises four places in this year’s ranking, from 7th
mainly due to an increase in its awareness scores, to 3rd place. While its level of inbound Muslim travel
in addition to maintaining high level of inbound has declined slightly, it has greatly improved its Halal
Muslim travel. The country is quickly capitalizing on Friendly ecosystem scores, while also slightly improving
its reputation as an enjoyable travel destination, its awareness scores, capitalizing on its reputation as a
and has begun to gain a reputation for its Halal- Halal friendly destination between East and West.
themed attractions, exhibiting a strong Halal
Friendly Ecosystem score.
Ups and Downs
Malaysia Thailand, Bahrain and Qatar have been replaced by Iran,

Lebanon and Oman. The removal of sanctions in Iran
Malaysia, although overtaken by the UAE, continues has undoubtedly had a positive effect on travel to the
a strong showing in the indicator, occupying 2nd country, which, combined with its existing ecosystem,
place. While the country has maintained its levels of positions the country among the top 10.
inbound Muslim travel and Halal Friendly Ecosystem
scores, its awareness score has declined slightly,
leading to a lower ranking.
Halal Travel Market Sizing
Market size and profile — Global Muslim consumer spending on Travel (outbound) — $151
billion in 2015 (11 percent of global expenditure), with revenues derived from Muslim
Friendly Tourism services estimated at $24 billion in 2015, estimated for the first time
in this report series.
This Report estimates Muslim populations globally to have spent a total of $151 billion on travel
in 2015 (excluding Hajj and Umrah), 11 percent of global market spending of $1.3 trillion. This
is a growth of 4.9 percent from the previous year, and is higher than the 3 percent increase
in the global market. Muslim spending on travel is expected to reach $243 billion by 2021,
representing a CAGR of 8.25 percent from 2015.
The Muslim market for travel is the second largest when compared to the largest travel source
countries —just after China ($168 billion) and ahead of the United States ($147 billion.)
Top source countries of Muslim tourists based on 2014 expenditure were: Saudi Arabia ($19.2
billion), the United Arab Emirates ($15.1 billion), Qatar ($11.7 billion), Kuwait ($9 billion),
Indonesia ($9.1 billion) and Iran ($7.2 billion).
Regionally, Muslim Tourism expenditure was the highest in the following regions: MENA-GCC
($54 billion), MENA-Other ($26 billion) and East Asia ($21 billion), followed by Western Europe
($17 billion) and Central Asia ($10 billion). The MENA-GCC region represents 36 percent of the
total Muslim travel spend even though they are only 3 percent of the global Muslim population.
Estimated revenues derived from Muslim Friendly Tourism services have been estimated
at $24 billion in 2015 across hotels, air travel and leisure activities. Estimates have
been based on responses from a survey undertaken by COMCEC in a study on Marketing
opportunities in Muslim Friendly Countries. Further details on the approach and sources used
are contained in the Appendix.

Halal Travel Sector
View at Burj Al arab hotel from Madinat Jumeirah

luxury hotel in a summer day in Dubai, UAE. S-F /
SHUTTERSTOCK.COM
Consumer Sentiment
Approach
Earlier in the Report, our methodology and aggregated insights from millennials (18-35 age
group) using social media listening based research was introduced. Here we present specific
insights from millennials social media interactions on Halal Travel. A total of 14,800 Halal Travel
related Facebook ‘posts and ‘comments’ from the millennial age group are analyzed here.
In aggregate, the top countries where millennials were engaged with Halal Travel sector
topics were Indonesia (4.6k interactions), Malaysia (1.9k interactions), and United States
(1.5k interactions.) South east Asian nations of Indonesia and Malaysia once again show
high affinity toward Halal Travel given similar affinity toward Islamic Finance and Halal Food. US
based interactions as third most prominent and UK sixth most, is insightful reflecting the
Western Muslim millennials interest besides South East Asians in Halal themed travel.
Volume of millennial interactions on Halal Travel by country
Country Number of Interactions Country Number of Interactions
Indonesia 4.6K India 300
Malaysia 1.9K Saudi Arabia 100
United States 1.5K Philippines 100
Pakistan 500 Australia 100
Nigeria 400 Singapore 100
United Kingdom 300
Sentiment analysis
Based on an algorithm that factors in the conversational tone and words used in the interactions,
a ‘positive’, ‘negative’ and ‘neutral’ sentiment score is given to interactions (English language
ones only.) From the interactions that were able to be analyzed for sentiment across Halal Travel
interactions, 68 percent of millennial interactions were with positive sentiment, 25 percent were
negative, and 7 percent were neutral. While sentiments are majority positive, relative to other
Islamic Economy sectors, Halal Travel were the most negative. A variety of unpleasant Muslim
traveler experiences in the Americas and Europe seem to be the major driver. 67 percent sentiment
around topic of ‘Muslim’ were negative, while almost 100 percent negative sentiment in the
interactions with topic of ‘flight attendant,’ ‘American Airlines,’ and ‘Delta Airlines.’
The majority positive sentiments by millennials are generally of the type of Halal Travel
experiences, Halal Travel/ Muslim tour promotions, and some regarding ‘burkini’s’ at beaches.
The minority negative sentiment interactions were generally Islamophobic related (mostly from
the US, Europe) but also showed negative impact on their own tourism as well. Select actual
interactions are referenced below (these have been made anonymous for privacy purposes.).

Halal Travel Sector
HALAL TRAVEL EXPERIENCES ‘BURKINI’ AT BEACHES
Ate at Just Thai... enjoyed thai cuisine at the mall Secularism is a simple concept. Don’t interfere
next to the hotel we are staying (in Indonesia) with a person’s right to worship and exercise
However no Halal logo but almost all Indonesian their beliefs. Don’t judge others. If it is criminal
people eat there haha.. Just do not forget to read then it is criminal. Wearing “too much” clothes is
Bismillah and prayer before the meal yes” no one’s business. I just came back from Ayvalik
area. On the beaches and waterfalls, I swam side
My love for #dubai i can’t wait to touch down to side with “burkini” women. I was proud to be
in this beautiful Muslim land & visit some my in this country where women can practice their
sisters, make business moves, Arabic school religion and swim and ski and drive and vote and
there, to them cars & hotels.. Night halal life travel and inherit and compete in sports and
chillin insha’allah” walk their dogs and whatever. It is tolerance. It is
acceptance. I accept that we, human beings (and
animals), have to coexist.”
HALAL TRAVEL / MUSLIM TOUR
PROMOTIONS
ISLAMOPHOBIC THEMES
Mekong Delta Cruises travel trip for Muslim
clients in another attractive Itinerary:) Our The clash of civilizations: Muslims attacked
guests fall in love with these things always. How a tourist in Corsica and committed mayhem
about you Kakak? Are you ready? Ms [redacted] because they didn’t like him taking photos of
gonna be your best partner. Make a call today: Muslim women in ‘burkinis.’ ”
[redacted] #TPtravel #Vietnam #citytour #explore
#Lovetraveltovietnam” Foreign governments are warning their citizens
about traveling to the US if they are Muslim, gay,
Gracia Hotel Semarang participating in Halal or don’t want to get shot.”
Tourism National Level Competition 2016
organized by the Ministry of Tourism Indonesia Wow, never thought I’d see this in my lifetime--a
[names redacted] #TimHalalKemenparRI number of countries, including Canada, the United
#WisataHalal #RoadToWHTA2016 Kingdom, France, the United Arab Emirates,
#PesonaIndonesia #WonderfulIndonesia” New Zealand and Germany, are cautioning their
(translated from Bahasa Indonesia) citizens about traveling to the United States! They
cite concerns about mass shootings, anti-Muslim
Makassar Tourism Industry ready to drive Halal and anti-LGBT attitudes, police violence and the
Tourism: Makassar- Five tourism industry in Zika virus in the U.S. Thanks a bunch, rightwingers,
Kot... https://t.co/PYx8RhbKvT” (translated for creating this image of our country!”
from Bahasa Indonesia)
An airline waitress that refuses to serve alcohol..
Beijing muslim ski tour 5d4n, china!!!!! You want why did she choose this job? To cause a headline?
to surf snow in beijing china? We provide the Or for a lawsuit? http://www.telegraph.co.uk/
best travel package in beijing as low as rm927 travel/destinations/north-america/united-states/
including ground arrangement. This package is articles/muslim-flight-attendant-refused-
starting in december 2016 to february 2017. to-serve-alcohol-sues-expressjet-airline-
Do not miss your chance and quickly book unlawful-suspension/”
your holiday with us. Any questions or more
information, you can contact our travel agent. Go tell Those Airlines of some Muslim countries
Thank you. #ZamarTravel #PercutianMurah to serve Alcohol before fighting Other
#HoneymoonPackage #GroundArrangement companies about policies.”
#MuslimTour #MsTasha
Halal Travel Sector
Top keywords & hashtags Sentiment distribution of Halal
Travel related interactions
From across the halal travel interactions captured, the
Negative
most common terms and hashtags were: Muslim, Halal,
25%
American Airlines, Allah, Malaysia, Delta Air Lines, and
#travel. As highlighted earlier the reference to two airlines
relates to the negative incidents Muslim travelers faced.
Aggregate of all sectors keywords Neutral

and hashtags 7%
Keywords & Hashtags Positive

68%
Muslim 1.3K
Halal 700
Countries 500
Top Facebook keywords
and hashtags
American Airlines 400
Allah 300
Malaysia 200
Delta Air Lines 200
#travel 200
Muslim
Islam 100
Traveling 100
American Muslims 100
#vacation 100 Halal

#pesonaindonesia 100
#halaltravel 100
Countries
#wonderfulindonesia 100
Gender profile American Airlines
Millennial men (6.6k/ 44 percent) and women (5.8k

Allah
interactions/ 39 percent) were both well represented
on halal travel related social media interactions with Malaysia
men more prominent. In terms of sentiment, both
male and female interactions were the same with men Delta Air Lines
slightly more positive.
#travel
Sentiment differences between Islam
male and female millennial Traveling
interactions American Muslims

#vacation
Male Female #pesonaindonesia

#halaltravel
Positive 62.5 percent 60 percent
#wonderfulindonesia
Neutral <100 <100
Negative 37.5 percent 40 percent

Value Chain Segments Select key players
Mainstream Companies Islamic/

addressing Halal Halal Companies
Transportation Infrastructure Air British Airlines (UK) Saudi Arabian Airlines

Kansai International (Saudi Arabia)
Airport (Japan) Kuwait Airways (Kuwait)
Suvarnabhumi Airport (Thailand) Firnas Airways (UK)
Waqf Airlines (Malaysia)
Dubai International Airport (UAE)
Sea Disney Cruises (U.S.) Salaam Cruise (U.S.)

Star Cruise (Malaysia)
Fusion Tours (Turkey)
Accommodation Infrastructure/ Hotels Marriott International (U.S.) Sofyan Hotels (Indonesia)

Hospitality Suppliers Tschuggen Grand Hotel Shaza Hotels (UAE)
(Switzerland) Al Meroz Hotel (Thailand)
Grosvenor House (UK) Macia Condor (Spain)
Resorts Six Senses Resorts Adenya Hotels & Resorts (Turkey)

(Thailand, Maldives) Selge Beach Resort (Turkey)
Ao Nang Princeville Bera Beach Resort (Turkey)
Resort (Thailand) Porto Marina Resort (Egypt)
Banyan Tree Resorts (Maldives) The Regency (Kuwait)
Home sharing Airbnb (U.S.) BookHalalHomes (UK)
Food & Beverage / Catering Restaurants Nando’s (UK) D’Tandoor Restaurant (Australia)
McDonald’s (U.S.) Momen (Egypt)
KFC (U.S.) The Halal Guys (U.S.)
Catering Gate Gourmet (UK) Yemen Catering & Support

Services International (Yemen)
Attractions & Entertainment Attractions & Entertainment Everland Amusement IMG Worlds of Adventure (UAE)
Infrastructure / Education & Park (South Korea) The 99 Village Theme
healthcare infrastructure Park (Kuwait)
IMG World of Adventure (UAE)
Legoland (UAE)
Six Flags (UAE)
Healthcare Bangkok Hospital (Thailand) KPJ Healthcare Berhad (Malaysia)

Global Health City Chennai (India)
Travel Agencies Kuoni Group (Switzerland) Serendipity Tailormade (UK)

Channels/Travel Agencies Holiday Bosnia (UAE)
Travel Agency Adriaday (Croatia)
Nur and Duha (Spain)
Online Travel Agencies TripAdvisor.com (U.S.) HalalBooking.com (UK)

Agoda.com (Singapore) HalalTrip.com (Singapore)
Tripfez (Malaysia)
Yamsafer (Palestine)

Halal Travel Sector
High growth segments Dhabi, in Abu Dhabi, in addition to Jannah
Marina Bay Suites, Jannah Place Dubai Marina
↘↘ Beach resorts are emerging as a in Dubai, and plans to open Jannah Creek Dubai
high growth segment: in 2018. Its planned Jannah Creek Hotel will
replace the traditional reception check-in with
↘↘ Muslims spent an estimated $28 billion on a unique karim (personal concierge) welcoming
beach resorts in 2014. Turkey is the most service. The company plans to launch a budget
established market for beach resorts, with brand named BedoInn aimed at the millennial
28 resorts dedicated to Muslim travelers. In market. The hotel will provide modern facilities
addition to offering Halal Food, being alcohol- and prioritize ethical and sustainable practices,
free, and providing prayer spaces, the resorts with rooms based on themes. Fitness
have women-only dedicated pools, beaches, enthusiasts can book a room with a treadmill
spas and fitness centers. Examples of Muslim- in the room, while gaming enthusiasts can
focused beach resorts in Turkey are Selge select a room that includes gaming equipment.
Beach Resort, Bera Beach Resort, Adenya It has not been confirmed when the first
Beach Resort, and Wome Deluxe. Outside of BedoInn will launch.3
Turkey, examples include Porto Maina Resort in
Egypt, Lagoon Hotel and Resort in Jordan, and ↘↘ Booking platforms are experiencing significant
The Regency in Kuwait1 growth and are a major driver of awareness and
interest in Muslim-friendly tourist packages:
↘↘ Luxury hotels are experiencing significant
growth and expanding into the four-and ↘↘ HalalBooking.com, the UK-based online
five-star categories: travel booking platform focused on the Muslim
market, has received $1 million in Series A
↘↘ Shaza Hotels is diversifying into the four- funding at a $30 million valuation in 2015. It
star segment and expanding across the plans to launch a $1 billion IPO by 20184
GCC. The Dubai-based luxury hotel operator
launched a four-star brand in May 2016 called ↘↘ Tripfez, the online booking platform for
Mysk by Shaza. The new brand shares the Muslim-friendly hotels, tours and activities,
same values as Shaza but is adapted to the has raised $750,000 in seed investment,
four-star segment and features a younger, which it is planning to use to expand.
more vibrant brand positioning. The company
is negotiating five 4-star hotels across
Saudi Arabia, the UAE and Oman. It is also Key existing and emerging players
considering expanding into Iran. A flagship
Mysk by Shaza property will open in Muscat, ↘↘ Leading hotel chains are expanding their
Oman, in March 20172 presence in OIC markets:
↘↘ Jannah Hotels and Resorts is a luxury five- ↘↘ Indonesia-based Sofyan Hotels is in

star hotel operator with plans to expand discussions with a three-star hotel in
into the mid-scale category. Properties Malacca in a bid to expand into Malaysia.
include Jannah Burj Al Sarab, Jannah Eastern The Malaccan hotel is valued at about $10
Mangroves Suites, and Jannah Place Abu million. It has not been decided whether
1 http://repository.salaamgateway.com/images/iep/galleries/ 3 “Jannah CEO reveals plans for budget brand Bedolnn”, Hotelier Middle East.com,
documents/201602021104352997.pdf, accessed on 9 August 2016. February 2016.
2 http://travel.salaamgateway.com/en/travel/story/INTERVIEWShaza_Hotels_ 4 http://www.salaamgateway.com/en/travel/story/halalbookingcom_
to_expand_aggressively_across_GCC_eyes_Iran_-SALAAM15052016102254/, announces_1_million_series_a_round_funding_to_accelerate_growth-
accessed on 9 August 2016. salaam20102015130728/, accessed on 9 August 2016.
the cooperation will be in the form of a several UNESCO World Heritage Sites. Seeing
franchise or other5 the potential, a number of hotel chains have
already started making investments in Iran,
↘↘ UAE-based Time Hotels, whose properties do including UAE-based Rotana and France-
not serve alcohol, are scheduled to open seven based Accor. Shaza Hotels is also considering
hotels by the end of 2017. These include two expanding into Iran
in Saudi Arabia, two in Dubai, and one in each of
Abu Dhabi, Doha, and Egypt6 ↘↘ Bahrain revamped its tourism brand in April
2016 under the slogan “Ours.Yours” as part
↘↘ Al Meroz Hotel is a new 4-star Halal hotel in of plans to diversify the national economy
Thailand that opened in Bangkok in November away from its dependence on oil. The new
2015. The hotel is owned by the TS Family brand focuses on one of the country’s biggest
Group. The main target segments for the hotel assets: the warmth of its people. Bahrain’s
are the Middle East, in addition to Muslim marketing campaigns will focus on conveying
populations of Europe and China. The TS Family this message. The Bahrain Tourism and
group is interested in forming a joint venture Exhibition Authority (BETA) aims at showcasing
with Muslim investors to develop Muslim- Bahrain’s heritage and authentic culture in
friendly resorts in destinations like Pattaya and addition to its business-friendly atmosphere.10
Hua Hin in the next few years.7
↘↘ Several new destinations are Investment and finance developments

emerging in the MFT market:
↘↘ Indonesia relaxed rules for foreign ownership
↘↘ Saudi Arabia launched its Vision 2030 in tourism as well as other sectors in a bid
which aims to diversify its oil-dependent by President Widodo to open up Indonesia’s
economy, with tourism being one of the economy.11 This will have wide implications in the
areas of focus. With regards to tourism, Saudi tourism sectors as it will facilitate investment by
Arabia’s vision is to improve visa issuance global hospitality brands as well as Muslim-focused
procedures for visitors and develop their regional brands to expand into Indonesia which is a
historical and heritage sites. Saudi Arabia ripe market for Halal Travel
previously did not issue tourist visas, but will
now start issuing them again. The Commission ↘↘ Investec Bank, a lender in the aviation
for Tourism and National Heritage plans to market, has closed a $1 billion operating lease
build new museums, including one in Mecca transaction with Emirates Airlines. Financing
dedicated to the history of Islam.8 The country was provided by banks and institutional investors
has improved some of its key tourism sites, across the Middle East, Europe and Asia. Islamic
but lack of highways and transportation is financing was involved in two of the deliveries12
hampering the tourism industry9
↘↘ Tripfez, the online booking platform for Muslim-
↘↘ Following the lifting of United Nations friendly hotels, tours and activities has raised
Security Council sanctions on Iran, inbound $750,000 in seed investment from Chinese
tourism is expected to increase. The country and Malaysian investors. The round was led by
is rich with historic sites and is home to Shanghai-based Gobi Partners, Malaysia’s Intres
Capital, and angel investors including Douglas
5 http://www.salaamgateway.com/en/travel/story/Indonesias_halal_hotel_
Khoo, co-founder of Baidu-owned Qunar, one of
Sofyan_in_discussions_with_Malacca_property_to_expand_into_Malaysia_- China’s largest online travel sites. The investment
SALAAM17052016082250/, accessed on 9 August 2016.
6 http://travel.salaamgateway.com/en/travel/story/Misuse_of_the_term_halal_
tourism_could_hurt_genuine_operators-SALAAM31052016071845/, accessed
on 9 August 2016. 10 “Bahrain launches new tourism identity, eyes $1bn revenues by 2020”,
7 “New halal hotel charts course for expansion”, 4Hoteliers, March 2016. Arabianbusiness.com, April 2016.
8 http://www.salaamgateway.com/en/travel/story/Beyond_pilgrimages_ 11 http://travel.salaamgateway.com/en/travel/story/Factbox_Indonesia_
and_religious_tourism_Saudi_Arabia_opening_up_its_remote_familyfriendly_ eases_foreign_investment_ownership_in_Big_Bang_liberalization-
destinations__-SALAAM20032016123816/, accessed on 9 August 2016. SALAAM25052016033014/, accessed on 9 August 2016.
9 http://travel.salaamgateway.com/en/travel/story/Saudi_Arabias_roads_less_ 12 http://travel.salaamgateway.com/en/travel/story/Investec_closes_1_billion_
traveled_leaving_tourists_behind-SALAAM24042016074027/, accessed on 9 A380_aircraftlease_deal_with_Emirates-SALAAM09052016130206/, accessed
August 2016. on 9 August 2016.

Halal Travel Sector
will be used to expand its inventory, enhance its ↘↘ LGO International FZ, an Abu Dhabi based
technology capabilities and hire new talent13 private airline, will serve only women
clients with an all-female crew. The airline is
↘↘ National carrier Saudi Arabian Airlines issued targeting wealthy conservative GCC families.
a $1.3 billion sukuk, arranged by HSBC, to Female customers can customize the plane’s
finance its fleet expansion interior in terms of color scheme and request
to include a shower or TV screens17
↘↘ Dubai Parks & Resorts raised $460 million for
Six Flags theme park. The debt financing fund ↘↘ Another new concept is a waqf-based airline
was provided by Abu Dhabi Commercial Bank, that subsidizes Hajj and Umrah trips to those
Dubai Islamic Bank and Sharjah Islamic Bank who cannot afford them:
and accounts for about 37 percent of the total
financing being raised. The park is expected to open ↘↘ Malaysia-based Waqf Airlines is a new
by the end of 2019.14 carrier for pilgrims. The airline was launched
in January 2016, and hopes to make its
maiden flight to Jeddah by December. The
Innovation airline is operated by Air Riths Sdn Bhd, which
works in partnership with Perbadanan Wakaf
Several new product segments have emerged including Selangor (PWS), a charitable management
Shariah-compliant airlines, Muslim-friendly activities group based in Selangor, Malaysia. PWS,
booking platforms, and Halal home sharing. along with state religious authority Majlis
Agama Islam Selangor, manages all waqf
↘↘ Transportation: The airlines sector saw the rise contributions that are made to the airline.
(and fall, in the case of Rayani Air) of Shariah- The carrier aims to offer pilgrims subsidized
compliant airlines. These airlines provide Halal rates and also aims to give away part of its
Food and prayer spaces, do not serve alcohol proceeds to charity and eventually become a
and their crew is modestly dressed. Some social enterprise.18
airlines also started employing female-only
crews on some routes: ↘↘ Accommodation: Muslim-friendly peer-to-peer
vacation home rental platform, with a similar
↘↘ Firnas Airways is a London-based Shariah- concept to Airbnb, has emerged:
compliant airline planning to start
operations in 2017 with services to South ↘↘ Bookhalalhomes is a peer-to-peer property
Asia. The Shariah-compliant airline covers rental platform that connects Muslim
funding, food served on the plane as well as travelers with Muslim hosts. The company
the absence of alcohol. Planes will feature a is currently in the phase of signing up property
staggered cabin layout to enhance privacy15 owners. Homes that are added to the database
need to be free of alcohol, provide Halal Food
↘↘ Malaysia’s Rayani Air was the first in the and prayer spaces. The company is currently
market to advertise itself as Shariah- seeking investors to finance its marketing
compliant, however it is facing operational campaign to attract customers.19
troubles. The airline’s air operations certificate
was suspended in April 2016 for three months
because it had temporarily halted operations
following a strike by its pilots, without the
approval of the aviation authority16
13 http://travel.salaamgateway.com/en/travel/story/Tripfez_wins_750000_seed_
funding_from_Chinese_and_Malaysian_investors-SALAAM03052016024341/,
accessed on 9 August 2016.
14 “Dubai Parks & Resorts raises funds for Six Flags theme park”, The National, April 17 “UAE launches first all-woman airline service”, New York Times, January 2016.
2016. 18 http://travel.salaamgateway.com/en/travel/story/Malaysias_new_
15 “UK-based longhaul start-up Firnas Airways to use B767s”, ch-aviation, July waqfbased_airline_for_hajj_and_umrah_pilgrims_to_take_off_by_December_-
2015. SALAAM04052016070957/
16 http://travel.salaamgateway.com/en/travel/story/Malaysias_Rayani_Airs_fate_to_ 19 “ ‘Book Halal Homes’ launched in London to serve Muslim travelers”, eHotelier,
be_known_soon__-SALAAM23052016082508/, accessed on 9 August 2016. May 2016.
Key Challenges
Product and marketing related being added, as well as the increasing number of
challenges investors seeking Shariah-compliant investment,
there is increased traction from investors. Non-real
↘↘ Accommodating Muslims without alienating estate financing is especially a challenge. However,
non-Muslims: This is more of a challenge in with more Silicon Valley type investors looking at
some sub-sectors, such as beach resorts, where digital startups to invest in, there is an opportunity
it is difficult to accommodate both types of for new players to obtain seed funding.
guests. Whereas in other sectors it is easier to
accommodate the needs of both. ↘↘ Cash flow challenges. Some large projects have
faced cash flow challenges. For example, Rayani
↘↘ Underdeveloped branding. There are only a Air, Malaysia’s first Shariah-compliant airline,
limited number of regionally recognized Muslim faced severe cash flow difficulties which resulted
travel brands. Companies should focus on in their pilots going on strike, allegedly due to
building strong brands. non-payment of salaries.
↘↘ Limited number of Muslim travel influencers.

Mainstream travel brands heavily depend on social Regulation and operations challenges
media travel influencers to create buzz, however
there are only a limited number of Muslim travel- ↘↘ Absence of unified standards in Halal
focused bloggers and social media influencers. The tourism is a challenge which can result in
alternative is to work with Muslim bloggers from confusion and lack of confidence on the part of
other Islamic Economy sectors that have similar consumers as suppliers that label themselves
audiences, such as food and fashion. as Halal or Muslim-friendly have varying
levels of compliance.
Investment and finance related ↘↘ Terror threats pose a challenge to the tourism
challenges industry. Safety concerns scare away tourists.
A string of terror attacks in Turkey and Egypt in
↘↘ Challenges in obtaining financing. For hotels it is 2015 and 2016 resulted in a drop in tourism.
challenging to convince investors that a dry hotel is Additionally, there have been direct attacks on
a lucrative investment. Although with the success ancient heritage sites. Islamic radicalism has
of luxury hotel brands such as Shaza Hotels and resulted in the destruction of ancient heritage
Jannah Hotels & Resorts, with new properties sites in Syria and Mali.

Halal Travel Sector
Opportunities
Opportunities by product/service segment
There are many opportunities in the Halal Travel sector across the range of products
and services offered.
High potential product and service segments
High potential
Themed
product High potentialMuslim-focused
segments
Muslim-friendly Muslim-focused
not fully all-inclusive Themed hotel concierge
product segments Muslim-focused travel Muslim-focused
addressed resorts Muslim-friendly apps
not fully all-inclusive packages hotel concierge
travel
 addressed resorts apps
packages

High Islamic
Muslim-friendly
potential service
High Online platform financing
Islamic
home-sharing
Muslim-friendly for tours
segments notservice& meal-sharing
potential home-sharing Online platform services financing
fully addressed
segments not & activities
for tours for family
services
platforms
& meal-sharing
fully & activities vacations
for family
 addressed platforms
vacations

There are many opportunities in the Halal Travel sector across the different stakeholders.
Develop Invest in
Private equity beach resorts
Develop mid-market Invest in
Private equityin countries
real estate beachsuch
resorts hotel
mid-market
investors
real estate as Thailand,
in countries such properties
the Maldives hotel
 investors as Thailand,
properties
the Maldives

Aggregate
Digital Muslim-friendly
Aggregate
Companies tours and
Muslim-friendly
Digital activities
Companies tours and
 online
activities
 online
Develop Establish
a unified a tourism
Private Develop infrastructure Establish
standard fund
a unified a tourism
EquityPrivate to develop
& regulate
standard infrastructure
Muslim-focused
fund
Firms Equity to develop
Halal
& regulate real estate
 Firms compliance Muslim-focused
Halal projects
real estate
 compliance projects


Existing opportunities in Halal Travel
Muslim-focused Largely unaddressed Muslim demand:

all-inclusive resorts ↘ Turkey is the top destination for Muslim-focused beach resorts, with over 30 resorts that provide pools
dedicated to women, women-only beaches, a mosque within the resort, Halal food and family-friendly
entertainment
↘ There is huge demand for Muslim-focused all-inclusive resorts, including beach resorts outside of Turkey20
Potential:
↘ All-inclusive resorts are a profitable segment for investors with a potential for lucrative returns especially
in countries with a developed Muslim-friendly eco-system such as Thailand, Malaysia, the UAE and others
Themed Muslim-friendly Under-addressed Muslim demand:

travel packages ↘ There is little differentiation among Halal Travel agencies, many of whom tend to focus on heritage
tourism and on fulfilling travelers’ faith-based needs such as providing Halal food and prayer spaces.
However, there are growing customer segments such as millennial travelers who are looking for immersive
experiences and unique travel themes, including adventure travel
Potential:
↘ There is potential for travel agencies to specialize in certain travel themes as well as focus on particular
customer segments. Themes that may be addressed include sports tourism, study tourism, cruises and
adventure travel
Muslim-focused hotel Unmet Muslim demand:

concierge apps ↘ Muslim travelers visiting mainstream hotels rarely have their needs met
Potential:
↘ Mainstream hotels that wish to accommodate Muslim guests, while being discreet about it, have an
opportunity to do so by providing a Muslim-focused concierge app that provides updated information on
prayer times, nearby mosques and any Muslim-friendly services provided at the hotel, as well as where
they can obtain Halal food
Muslim-friendly home sharing Under addressed Muslim demand:

& meal sharing platforms ↘ Mainstream home sharing services do not accommodate the unique needs of Muslim guests, while global
meal sharing websites do not accommodate Muslim dietary needs in terms of Halal food and absence of
alcohol
Potential:
↘ There is potential for Muslim-focused home sharing platforms that accommodate the needs of Muslim
guests by, for example, providing a prayer mat and indicating the Qibla direction, as well as training hosts
on providing information on nearby Halal restaurants as well as information on local mosques
Online platform for tours Mainstream industry overview:

& activities ↘ Global travel booking platforms such as Expedia and TripAdvisor have expanded their offerings to provide
tours and activities
Unmet Muslim demand:
↘ Customers, including Muslims, are shifting from using traditional travel agencies to booking their trips
through online travel agencies. In addition to booking flights and hotels online, tours and activities can be
booked from the same website for additional convenience
Potential:
↘ Tripfez jumped on this opportunity and is the first online platform for Muslim-friendly tours and activities.
However, there is room for other players as well
Islamic financing services Category overview:

for family vacations ↘ It is common practice for hotels and travel agencies in Turkey to provide financing services as part of their
arrangement with local banks
Unmet Muslim demand:
↘ Middle class Muslims with large families often find it difficult to fund their vacations. Having access to
Islamic financing would allow families to travel more often
Potential:
↘ This is a new opportunity area for Islamic Finance providers as well as for Muslim-focused travel agencies
and hotels. There is an opportunity to focus on travel-related ancillary services such as travel and health
insurance.
20. In an interview for last year’s State of the Global Islamic Economy Report 2015/2016, Laurent Voivenel, CEO of Hospitality Management Holdings (HMH) in the UAE, said
that long-term sustainability of the tourism sector depends on the development of the mid-market sector that caters to the growing middle class.

Halal Travel Sector
Private equity real Develop beach resorts Rationale:

estate investors in countries such as ↘ Demand for Muslim-focused beach resorts exceeds current supply
Thailand, the Maldives
↘ Turkish beach resorts have proven the success of this model and that there is indeed a
market for it
↘ Countries, such as Thailand have a well-developed Halal eco-system
↘ Developing all-inclusive beach resorts in countries blessed with pristine beaches and a
well-developed Halal ecosystem
Invest in mid-market Rationale:

hotel properties ↘ Globally, the Muslim middle-class segment is growing. With its increased purchasing power,
many are able to afford traveling abroad21
↘ Several luxury hotel chains such as Shaza Hotels, Jannah Hotels & Resorts have decided to
diversify into the four-star hotel segment to cater to the growing middle class
↘ Developing three-star and four-star hotels that provide comfort and accommodate Muslim
needs, while being affordable
↘ Focus on accommodating the needs of the Muslim millennial travel segment who are
digitally connected, ethically-conscious and look for genuine experiences
Digital Companies Aggregate Muslim- Rationale:

friendly tours and ↘ Globally there has been a shift from using traditional travel agencies to booking travel
activities online services online
↘ Accommodating Muslim needs extends beyond providing Muslim-friendly accommodation
to providing Muslim-friendly tours and activities
↘ Platforms for guided tours and recreational activities. Tripfez is an example of a new
company that is successfully filling this gap, but there is room for more
Government Agencies Develop a unified Rationale:

standard & regulate ↘ Halal Travel regulation is in its infancy compared to Halal food, and in many instances there
Halal compliance is a complete lack of regulation
↘ There is an opportunity for government agencies, as well as regional and OIC-level bodies,
to develop a unified standard for Halal Travel
↘ Unified hospitality standard that allows for varying levels of compliance
↘ Standards for travel agencies that cover tours and activities
Establish a tourism Rationale:

infrastructure fund ↘ A tourism infrastructure fund would support the much needed development of Muslim-
to develop Muslim- focused real estate projects such as beach resorts and amusement parks
focused real estate
projects Main areas of opportunity:
↘ All-inclusive resorts
↘ Family-themed amusement parks
21. In an interview for last year’s State of the Global Islamic Economy Report 2015/2016, Laurent Voivenel, CEO of Hospitality Management Holdings (HMH) in the UAE, said
that long-term sustainability of the tourism sector depends on the development of the mid-market sector that caters to the growing middle class.
Interview
Faeez Fadhillah
Founder,
Tripfez (Malaysia)
What are the major developments in substantially increased their business with our
the Halal Travel industry over the last target customer. Muslims reward the effort
few years and how does Tripfez fit in? of such hotels and book them in much higher
The Halal Travel industry is one of the frequency. We currently see on average a 42
fastest growing segments in tourism. percent higher conversion of Muslim-friendly
Firstly, the travel industry itself faces a hotels on our site. At the same time hotels are
highly competitive and globalized market. reaching out to us to learn how to offer more
It needs and is looking for differentiation Muslim facilities. To see how eager hotels
and localization of their products. Many new in non-Muslim countries are to offer a great
markets and customers are in Muslim majority Muslim-friendly experience to their Muslim
countries. Those markets are looking for guests is probably the highest reward for us
Muslim-friendly offerings. Secondly, Muslim and we are planning to increase those efforts
travellers are changing their expectations in many more destinations.
of their travel experience. A decade ago, a
Muslim was happy to find Muslim-friendly The Halal Travel marketplace is
amenities during their travels. Over the seeing increasing competition among
past few years Muslim travellers have come all key segments, with companies
to expect that their needs are taken into such as HalalBooking.com gaining
account by the global travel industry. Tripfez market share. What strategic steps
wants to contribute to the development of has Tripfez taken to stay ahead
the Halal Travel industry by supporting hotels of the competition?
to understand and offer Muslim facilities and The main focus of Tripfez is our users. We
services, and offer accommodation providers constantly strive to increase the quality of
a platform to showcase their offerings for our platform and inventory. It is essential
Muslim travellers. We also want to inform that we improve the travel experience of
Muslims about the amenities and services Muslims around the world by offering as
which are available to them, and empower much information on as many destinations
them to make an informed choice. and accommodations as possible. We
think any company which puts their users
How has the online Muslim-friendly first will be on the right track. That being
hotels and tours booking sector said, we are expanding the Salam Standard
performed compared to the broader information on Tripfez rapidly, because it is
Halal Travel category? the key drive of our endeavour, to proudly
The Muslim-friendly hotels sector has seen serve our Muslim users.
a boom in the past year. Hotels which offer
Muslim-friendly services and amenities have

Interview
Are you planning to increase the There is confusion in the Halal
number of product offerings as well Travel market due to the lack
as your geographic coverage? of a global or regional standard
Our main goal is to increase the inventory of that defines what travelers can
hotels regarding the availability of Muslim- expect from the term “Muslim-
friendly amenities and services. We are friendly hotel” or “Halal hotel”. Is
focusing on covering a large numbers of that why you launched your own
hotels in prime destinations in Asia, the MENA, standard, the Salam Standard?
Europe and North America. We are looking We see Salam Standard as an information
to reach a global number of 100,000 hotels tool for Muslim travelers to make an
in those destinations by the end of 2016. informed choice on their travel purchase,
We believe that a vast geographical reach of such as hotel bookings. Our main focus is
Muslim-friendly destination information is to provide information on which services
essential for our users. and amenities are available and get ratings
and reviews based on those Muslim specific
What are the major operational and facilities. With Salam Standard we want to
regulatory challenges faced by the empower the users themselves, without
industry overall, and to what extent necessarily trying to create a unified
do these affect your company as well? regulation. With this, we are following similar
One of the biggest challenges faced in this strategies to other non-Muslim focused
space are the high costs of operation to reach travel review standards. The current
users and inventory. A related challenge is that biggest opportunity in the Muslim-friendly
the Muslim travel space is a highly fragmented hotels space lies with the accommodation
market due to many different geographies, providers themselves. By acknowledging
languages and cultures. The market is big their service responsibility for all their
and fast growing, but it is not a homogenous guests, they will have to create and offer
market like for example China, India or the U.S. more Muslim-friendly facilities. And this
But although it is highly fragmented, it is united will drive the overall Muslim travel market
by religious beliefs and practices. So to reach forward in the near future.
out to potential consumers requires huge
investment in the form of marketing and brand What are the major unmet needs
awareness. While the fragmented market makes of Muslim consumers in the
the Muslim travel space unique when compared Halal Travel sector?
to other segments of tourism, it is also quite One of the biggest unmet needs of
challenging to create a uniform formula that Muslim consumers in the travel space
suits the global market. is the availability of Halal food in non-
Muslim majority countries. In all surveys
Tripfez managed to secure $750,000 conducted around the globe, Halal food is
in financing. Was it a challenge to considered to be the most important thing
access Shariah-compliant financing? during the travels of a Muslim. In many
The struggle was to find investors who look countries hotels do not offer Halal food
beyond the money, but also believe in the as a standard product. But many do offer
principles of the business. We are happy to it as an on-demand service, which can be
have found real partners in our investors, pre-ordered before the arrival of a guest.
who became advocates of Muslim travel and One of our goals of our current product
all the opportunities and the possibilities of development is to make this feature more
helping people that comes with it. This was readily available to our users and offer them
the reason it was important for us to find direct communication with hotels that
investors which also have a Shariah-compliant offer the possibility of pre-ordering Halal
finance background. With the involvement of food as a general option to their guests. In
Malaysia Venture Capital Management Berhad this way we hope to solve a big concern of
(MAVCAP) we were able to find a partner that many Muslim travelers visiting non-Muslim
is a pioneer in the sector. majority countries.
Interview
Sanya Saengboon
Managing Director & General Manager,
Al Meroz Hotel (Thailand)
What broad trends do you see in the and what do you envisage to be the
Halal tourism industry, and what next key steps for the company to
segments are poised to benefit? bring out this vision?
I am sure in the next couple of years more When the right time comes during the
and more Muslims from Central Asia and next 5 years we will definitely add more
Eastern Europe will travel to this part of the room accommodation and more meeting
world, especially Thailand. Halal restaurants, and function rooms. We want to develop
Halal hotels and resorts, and travel agents our current land bank to something
specialized in handling this unique market will special for the local community and
all benefit from the increase in Muslim travel. international visitors.
What would you consider to be the What are the major operational and
major developments in the Halal regulatory challenges faced by the
Travel Industry over the last few industry overall, and to what extent
years and how has this impacted the do these affect your hotel?
launch of Al Meroz Hotel? Our major operational challenge is to make
More Muslim people will travel if the people understand that a Halal hotel or
destinations they are visiting provides Muslim-friendly hospitality is not just for
facilities that match their requirements. Muslims but for everyone. It does not really
Japan and Korea now have all facilities affect our operation but people should
to accommodate this special group of be educated about Halal and Muslim-
travelers. We are very happy to be the friendly hospitality.
pioneer in Thailand that can truly provide all
facilities to their needs. How have you been able to
finance your business?
Please outline the story of how We get good support from an Islamic
Al Meroz Hotel determined that bank here in Thailand and our financing
the Muslim-friendly sector was a is Shariah-compliant.
viable sector to address?
Five years ago, after speaking with travel What are some of the success factors
industry people from Muslim countries, our and opportunities for this industry?
CEO realized that this sector was untouched A success factor for this market is to create
and that it was an opportunity for both local awareness of the fact that there are 1.7
and international tourism. billion Muslims around the world. There are
countless opportunities to cater for them, be
Please outline your vision for the it locally-made products, hotels and resorts,
company over the next five years, and travel agencies.

Interview
A model walks on the runway for Anniesa Hasibuan collection during New York Fashion week at
Moynihan station, New York, USA. LEV RADIN / SHUTTERSTOCK.COM

Modest Fashion Sector
A new age of fashion has arrived. Modest Fashion is trending across cultures and national
boundaries; especially as mainstream brands are waking up to the Muslim market.
Muslim women in particular are driving this market forward, and are innovatively pushing
boundaries within the fashion sector.
This, along with other factors, has meant that Muslim consumer spending on clothing is
estimated at $243 billion in 2015, 11 percent of the global market spend. This is a growth of
5.7 percent from the previous year. The revenues from Modest Fashion clothing purchased by
Muslim women has been estimated at $44 billion in 2015.
Such growth has naturally meant that more mainstream players in the fashion market have
entered the field of Modest Fashion, with their own line of hijab, modest garments and related
accessories. Dolce & Gabbana (D&G) launched its first ever collection of hijabs and abayas
for the Middle East market in the beginning of 2016, Burberry launched its first Ramadan
collection, and Uniqlo launched its second modest fashion range.
New ways to deploy Modest Fashion for societal benefit have also emerged as H&M debuted
a hijab wearing model, Mariah Idrissi, in a commercial that encourages the retailer’s customers
to recycle their clothes. Education activist Malala Yousafzai collaborated with US-based
Toms to create Malala Fund x Toms scarf where 100 percent of the profit from sales will
go to support girls’ education.
Unfortunately, several anti–Islamic expressions relating to Modest Fashion have arisen, such
as the hacking of the Instagram accounts of several Muslim fashion retailers. This included the
posting of anti–Islam content on these accounts, an issue that has since been addressed by
Instagram. But this is not about to stop the mostly female Muslim trailblazers of this sector.
Incredible innovations continue to take place, with Dubai-based designer Manaal Al Hamaadi
recently creating the first solar-powered abaya that can charge a portable electronic device
on the go. The sector offers many opportunities, where there still a need for products that
combine fashion and functionality, which is a great access point for people interested in
innovating in this sector. The sector will undoubtedly continue to thrive as can be seen
by the fact that this report estimates that Muslim spending on clothing is expected
to reach $368 billion by 2021.
The clothing may be modest, its success is anything but.

MODEST FASHION
B E NCHMA R K MARKET SIZE 1
How does Muslim spend compare How much do Muslims spend
to global market spend? on clothing globally?
(2015, US$ Bn)
2015
$406 Bn $344 Bn $243 Bn $114 Bn $101 Bn $99 Bn

United States China Existing Muslim Mkt. UK Germany India
11% of Global
Expenditure
2021
$368 Bn Estimated revenues

Projected Market Size from Modest Fashion
7.2% CAGR Growth clothing purchased
by Muslim women
$44 Bn
in 2015
T HE MODE ST FASHION INDICATOR

Which countries have the
best developed ecosystem
for Modest Fashion? 8 France
5 Italy 7 Bahrain
2 3 China
Turkey
4 India
q Togo 6
Sri Lanka 9 Singapore
1
United
Arab Emirates

Trade: Clothing Export to OIC Countries
Awareness: Number of News articles & Events
Social: Clothing Prices Index; Labor Fairness Index
Selected Raw materials inputs Retailers Designers/Labels and Value Add manufacturs
Aker (Turkey) Matahari (Indonesia) H&M (Sweden)
key players Armine (Turkey) Harrods (UK) Aab (UK)
Tekbir (Turkey) Jo Lamode (Qatar) Itang Yunasz (Indonesia)
Moshaict (Indonesia) Naelofar (Malaysia)
Modanisa (Turkey) Haute Hijab Ruh Collective (UK)

Which countries export $21,926 Clothing and apparel trade value
the most clothing to China by OIC member countries2
OIC countries?
$510 Bn
(2015, US$ Mn)
Global Exports
$78 Bn $465 Bn
OIC Exports Global Imports
$5,589 $2,643 $1,345 $1,137 $492 $42 Bn

India Turkey Bangladesh Italy Indonesia (2015, US$ Bn) OIC Imports
TO P MAR K E TS
Issues and
Top Muslim consumer opportunities map Consumer needs
clothing expenditure and ecosystem
markets
Underserved
Turkey $25.71 Modest Muslim-minority
sportswear Western
UAE $20.63 markets
 IFDC goes 
Nigeria $16.13 Products global
Saudi Arabia $15.32 & Services
Modestly & Collaboration
 with manufactu-
Indonesia $13.28 sustainably
luxurious rers, vertical
Russia $11.38 products integration
Western
 Muslim role 
Pakistan $11.14 brands creating
models as brand
modest fashion
ambassadors
Egypt $10.88 lines
Fashion
 meets tech =  Modest fashion
Iran $10.16
product guidelines
India $10.12 innovations development
‘me too’  
(2015 est., US$ Bn) Islamophobia,
products
hijab bans
 Convergence  Patent/
with IF, Copyright
media & travel
sectors issues
Ecommerce No unified
 
investments & (ethical/
expansions* sustainability)
standards or
 terminology
$78 Bn
Modest Policies,
fashion media 
Regulations
Value added clothing exports by OIC Funding & Operations
countries (15% of global exports) challenges for 
non real-estate
$36 Bn companies

Lack of
Value-added clothing trade surplus modest fashion
by OIC countries incubators
in 2015 Financing /accelerators
*(Hijup, FashionValet,YNAP)

1
Expenditure data Baselined from 2011 International Comparison Program + National Statistics Agencies, DinarStandard Muslim market estimates & analysis;
Sector correlated IMF Outlook Oct 2014 Database for projections. See Report for full methodology.
2
Product label: Articles of apparel and clothing accessories, not knitted or crocheted. Articles of apparel and clothing accessories, knitted or crocheted. Other
made-up textile articles; sets; worn clothing and worn textile articles; rags.
Modest Fashion Indicator
The 2016 State of the Global Islamic Economy Report revisits the Modest Fashion Indicator
(MFI) to evaluate countries’ health and development of their Modest Fashion ecosystem. This
indicator is part of the aggregate Global Islamic Economy (GIE) indicator. The indicator does not
focus on the overall size and growth trajectory of a country in the sector; instead it evaluates
them on relative strengths of the ecosystem they have for the development of the sector.
The United Arab Emirates, Turkey, and China lead this year’s Modest Fashion Indicator ranking
that focuses on the health of the Modest Fashion ecosystem in a country that is relative to its
size and includes its related social considerations.
The indicator equally weighs three metric categories and has the following metrics for each: (Full
methodology is presented in the Appendix.)
↘↘ Supply drivers relative to country size (clothing export to OIC countries)
↘↘ Awareness (Number of news articles and events)
↘↘ Social (clothing pricing and labour fairness indexes)
Below are the top 10 countries in the Modest Fashion Indicator.
TO P 1 0
Modest Fashion
UAE 67
Turkey 29
China 28
India 27
Italy 27
Sri Lanka 27
Bahrain 26
France 26
Singapore 26
Togo 26

Clothing
Modest Fashion Sector Score Awareness Score Social Score GIE Ranking
Export to OIC
United Arab Emirates 67 76 96 29 2
Turkey 29 57 5 26 17
China 28 53 NA 32 49
India 27 24 NA 56 30
Italy 27 16 NA 65 55
Sri Lanka 27 8 NA 72 22
Bahrain 26 12 24 41 3
France 26 9 2 66 44
Singapore 26 26 NA 52 11
Togo 26 0 NA 78 63
United Arab Emirates (UAE) China
The UAE’s efforts to establish Dubai as the capital China currently occupies 3rd place on the ranking.
of the Islamic Economy continue to pay dividends, as While this is a decline of two spots from the position
the country takes the first spot in this year’s rankings. it occupied a year ago, 1st, the country is still by far
This is due mainly to its high level of exports to OIC responsible for the highest number of exports to OIC
countries, as well a strong social score. countries, valued at $27 billion.
Turkey Ups and Downs
Turkey occupies 2nd place in this year’s rankings, India and Bahrain make their way into the top 10 this
showing strong improvement from 7th place in the year at the expense of Burkina Faso and Senegal, with
previous year. Its improvement is also driven by high India occupying an impressive 4th place and Bahrain 7th.
levels of clothing exports to OIC countries, with online
shopping platforms such as Modanisa responsible for
much of the recent growth.
Modest Fashion Market Sizing
Market size and profile — Global Muslim consumer spending on clothing at $243
billion (11 percent of global expenditure), with revenues from Modest Fashion clothing
purchased by Muslim women estimated at $44 billion in 2015, estimated for the first time
in this report series.
This Report estimates Muslim populations globally to have spent a total of $243 billion on
clothing in 2015, 11 percent of the global market spend of $2.2 trillion. This is a growth
of 5.7 percent from the previous year, and is higher than the global market growth of 3.5
percent. Muslim spending on clothing is expected to reach $368 billion by 2021, a CAGR of
7.2 percent from 2015.
The Muslim market for clothing ranked third behind the United States ($406 billion) and China
($334 billion), and ahead of the United Kingdom ($114 billion) and Germany ($101 billion).
Muslim countries with the highest spend on Muslim fashion in 2015 were Turkey ($25.7 billion),
the United Arab Emirates ($20.6 billion), Nigeria ($16.1 billion), Saudi Arabia ($15.3 billion), and
Indonesia ($13.3 billion). Russia and the U.S., countries with Muslim minorities, also spent $11.4
and $6.9 billion, respectively.
Revenues from Modest Fashion clothing purchased by Muslim women were estimated
at $44 billion in 2015, representing the amount of spend by females over the age of
fourteen on modest apparel, excluding footwear. More detailed explanations of the approach
taken to estimate these numbers are included in the Methodology Section towards the
end of this report.

A model wears a creation by Anas Abdullah during the

Islamic Fashion Festival at Kuala Lumpur Fashion Week
in Kuala Lumpur, Malaysia. REUTERS/OLIVIA HARRIS
Consumer Sentiment
Approach
Earlier in the Report, our methodology and aggregated insights from millennials (18-35 age group)
using social media listening based research was introduced. Here we present specific insights
from millennials social media interactions on Modest Fashion. A total of 108,000 Halal modest
fashion related Facebook ‘posts and ‘comments’ from the millennial age group are analyzed here.
In aggregate, the top country where millennials were engaged with Modest Fashion sector
topics was by a far margin, Indonesia (68.6k interactions) followed by Malaysia (5.3k),
Singapore (1k), Pakistan (1.5k), and Taiwan (1.5k). This shows the concentration of Modest
Fashion activities among millennials in Indonesia. High interactions in non-Muslim majority
countries of Singapore, Taiwan, Hong Kong, Philippines and USA is a reflection of the prominent
interest from these markets in Modest Fashion category.
Volume of millennial interactions on Modest Fashion by

country
Indonesia 68.5K Saudi Arabia 900

Malaysia 5.3K Bangladesh 700
Singapore 1K India 500
Pakistan 1.5K Nigeria 500
Taiwan 1.5K United Kingdom 400
Hong Kong 1.2K Egypt 400
Philippines 1.2K France 300
United States 1.1K United Arab Emirates 200
Sentiment analysis
Based on an algorithm that factors in the conversational tone and words used in the interactions,
a ‘positive’, ‘negative’ and ‘neutral’ sentiment score is given to interactions (English language
ones only.) From the interactions that were able to be analyzed for sentiment across
Modest Fashion interactions, an overwhelming 82 percent of millennial interactions were
with positive sentiment, 12 percent were negative, and 6 percent were neutral. Significant
positive sentiment is a reflection of large and growing interest in hijab and Muslim modest
fashion by millennials in the prominent countries of Indonesia and Malaysia especially.
The majority positive sentiments by millennials are generally of the type of supporting modest
wear/ hijab, or Modest Fashion promotions. The minority negative sentiment interactions were
generally Islamophobic related (mostly from the US, Europe). Select actual interactions are
referenced below (these have been made anonymous for privacy purposes.).

God willing Olshop Aman.nyaman.ramah.dan
SUPPORT FOR MODEST
trustful. So the guns need to worry yes.....
WEAR/HIJAB
Do not forget to follow Giveaway is also yes,
good luck...... Barakallahu fiik #Hijabsahla”
I think the most remarkable thing I saw today (translated from Bahasa Indonesia)
was when I to get in to the cafeteria and saw
a Jew man wearing a Kipa and a muslim girl
Beijing muslim ski tour 5d4n, china!!!!!
wearing a Hijab laughing and sharing food,
You want to surf snow in beijing china?
in fact they are good friends; that was a
We provide the best travel package in
beautiful scenario. As a country we may be
beijing as low as rm927 including ground
not perfect however something good about it
arrangement. This package is starting in
is how peaceful coexist people from different
december 2016 to february 2017. Do not
racial group and religion.”
miss your chance and quickly book your
holiday with us. Any questions or more
Hijab is not to remove all beauty from a information, you can contact our travel agent.
woman. Rather, it is to let her define her sense Thank you. #ZamarTravel #PercutianMurah
of beauty by donning the dress and character #HoneymoonPackage #GroundArrangement
that pleases God. When Muslim women are #MuslimTour #MsTasha
asked why do they wear hijab, the simple
answer is, “Because God asked me to” not
“Because men asked me to.” Hijab is about ‘BURKINI’ AT BEACHES
Allah (swt) and submitting to His will and
trusting His way. VirtualMosque.com”
Secularism is a simple concept. Don’t interfere
with a person’s right to worship and exercise
their beliefs. Don’t judge others. If it is criminal
MODEST FASHION/ then it is criminal. Wearing “too much” clothes
HIJAB PROMOTIONS is no one’s business.” I just came back from
Ayvalik area. On the beaches and waterfalls,
Want to be HIJAB FREE dariCANTIK.COM? I swam side to side with “burkini” women. I
Let’s just follow the instructions below: was proud to be in this country where women
1. Like FB Fanpagecantik.com:www. can practice their religion and swim and ski
facebook.com/imcantik 2. Share this image and drive and vote and travel and inherit and
3. Mention to @imcantik and 3 friends compete in sports and walk their dogs and
you #CANTIKhijabgratis” whatever. It is tolerance. It is acceptance.
I accept that we, human beings (and
animals), have to coexist.”
Assalamualaikum Ukhty Sholehah.....
Again nyari Gamis cheap and quality???
shar’ī dressed because guns have to be
expensive..... yuk Kepoin fp http://hijabsahla.
ISLAMOPHOBIC THEMES
com/”>http://hijabsahla.com/ Karna
#hijabSahla sell hijabs syari, robe, and Muslim The clash of civilizations: Muslims attacked
women’s clothing at affordable prices & a tourist in Corsica and committed mayhem
guaranteed guns make perforated bags.... because they didn’t like him taking photos of
oh yes..... http://hijabsahla.com is one that, Muslim women in “burkinis.” “
A shop assistant of the “Irada” confession fashion store,
which specializes in female clothing and is popular among
women including Muslim believers, works on the day
marking Eid al-Adha (Kurban Bairam) in Moscow, Russia.
REUTERS/MAXIM ZMEYEV

Top keywords & hashtags Sentiment distribution of Isamic
Modest Fashion related interactions
From across the Modest Fashion interactions captured,
the most common terms and hashtags were: #hijab. Negative
12%
(hijab in Arabic language), Muslim, Allah, Hijab, and
Neutral
#hijabers. It is obvious that the term hijab is central 6%
to millennials interactions around Modest Fashion.
Most of them related to the numerous hijab/ modest
fashion ‘bloggers’ and experts promoting their various
comments on Modest Fashion especially linked to hijabs.
Positive
Aggregate of all sectors keywords 82%
and hashtags
Keywords & Hashtags
and hashtags
#hijab 3.2K
‫حجاب‬ 2.4K
Muslim 500
Allah 400
Hijab 300
#hijabers 300
#hijab
Islam 200
#ootd 200
#jilbab 200
#like4like 200
Islamophobia 100 ‫ﺣﺠﺎب‬
Subhanallah 100
#muslimah 100
#hijabista 100
Muslim
#fashion 100
#latepost 100 Allah
#hijabfashion 100
Hijab
#makeup 100
#hijabers
#subhanallah 100
Islam
#likeforlike 100
#ootd
#hijabstyle 100
#jilbab
#like4like
Islamophobia
Gender profile Subhanallah

#muslimah
#hijabista
Millennial women (65.4k/ 65 percent) dominate the
#fashion
millennial interactions around Modest Fashion with
#latepost
men representing only 24 percent (24.4k). In terms #hijabfashion
of sentiment, both male and female interactions were #makeup
the same with men slightly more positive. For select #subhanallah
hashtags the interaction is even higher by women #likeforlike
millennials. For example, #hijab had 91 percent women #hijabstyle
and #hijabers, #jilbab were 100 percent women.

Select key players

Mainstream Companies addressing Modest Fashion Companies
Modest Fashion
Raw materials inputs Textile manufacturers Hangzhou Huacuiyuan Silk Co (China) Armine (Turkey)
Deqing Erdemei Scarf Factory (China) Tekbir (Turkey)
Beximco (Bangladesh)
Aker (Turkey)
Designers/labels Hijab/Womenswear Uniqlo (Japan) Aab (UK)

Dolce & Gabbana (Italy) Itang Yunasz (Indonesia)
Mango (Spain) Naelofar (Malaysia)
Melinda Looi (Malaysia) Haute Hijab
Cotton Ink (Indonesia)
Sustainable fashion H&M (Sweden) Ruh Collective (UK)

SHUKR (UK)
Ethnic clothing Khaadi (Pakistan) Dian Pelangi (Indonesia)

Gene Martino (Malaysia) DAS Collection (UAE)
Ghea Sukarya (Indonesia) Rabia Z (UAE)
Arabesque (UAE)
Sportswear Marks & Spencer (UK) Assila (China)

House of Fraser (UK) Nashata (Malaysia)
Modest Sea (USA) Mumine (Belgium)
Veil (USA)
Alsharifa (USA)
Value add Gul Ahmed (Pakistan) PT Shafira LarasPersada (Indonesia)

manufacturers Dongguan Hong Xin Fashion Factory (China) Elzatta (Indonesia)
Alya Sarah (Malaysia)
Retailers Brick and mortar Matahari (Indonesia) Jo Lamode (Qatar)

Landmark International (Middle East) Moshaict (Indonesia)
Harrods (UK)
Zara (Spain)
E-commerce Zalora (Singapore) Modanisa (Turkey)

Souq.com (UAE) Islamic Design House (UK)
Yoox Net-a-Porter (UK) Sefamerve (Turkey)
Hijup (Indonesia)
Saqina (Indonesia)
High growth segments 2015. Her work, mainly featuring contemporary

interpretations of traditional Arab clothing,
↘↘ Clean and contemporary designs, frequently was showcased during the Vogue Dubai
mixed with local elements, are gaining traction Fashion Experience.1
among the young and urban, Muslims as
well as non-Muslims: ↘↘ Sportswear and swimwear is a high-growth
segment within Modest Fashion that is
↘↘ The designs of Saudi designer Reem Al attracting new players as well as mainstream
Kanhal have been worn by international and modest fashion companies:
regional fashion icons such as blogger Leandra
Medine, Lily Cole, Anne Vyalitsnya, and Samar
Seraqui de Buttafoco. Reem Al Kanhal won
1 “Introducing the Young Talents of the Vogue Fashion Dubai Experience”, Vogue,
the Arab Women Award for Best Designer in November 2015.

↘↘ UK retailer Marks & Spencer (M&S) appearances at international events such as
launched its first burkini collection. The the Istanbul Modest Fashion Week
three-piece sets are sold on the store’s
website in the UK and at the company’s ↘↘ Moroccan-born designer Nadia Zein has been
flagship store in Marble Arch, London. selling her modest formal wear among the
Previously, the modest swimwear collection Muslim immigrant community in Spain6
was only available in Dubai and Libya.2
↘↘ Since 2015, luxury online retailer Net-A-Porter
↘↘ Ethical modest fashion is a high growth area has prepared the Ramadan version of The Edit,
with a growing number of players addressing the its weekly online magazine. The Ramadan Edit
opportunity globally: features exclusive apparel and accessories
from labels such as Etro Fendi, Emilo Pucci
↘↘ SHUKR is an Modest Fashion industry pioneer and Oscar de la Renta.7
that has consistently upheld its ethical values.
Since its establishment in 2001, SHUKR has
expanded its distribution in many countries Current and emerging leaders in the
Modest Fashion industry
↘↘ Zinia K3and Ruh Collective4 are examples
of Modest Fashion brands that specialize in ↘↘ Several startups are showing signs of maturity
natural fabrics and ethical manufacturing by opening brick and mortar stores and
expanding their product lines:
↘↘ Zynira.com is an online retailer
specializing in ethical apparel and Halal ↘↘ Following the opening of its flagship store
personal care products.5 in 2015, UK Modest Fashion label Aab has
opened another store at The Broadway, a mall
↘↘ Formal and luxury wear is a high growth in Westfield, London8
segment not only in the GCC but also globally.
This segment especially has high potential to ↘↘ SHUKR opened its second
grow around special events such as Ramadan, store in Amman, Jordan9
Eid and wedding seasons:
↘↘ Singapore-based Modest Fashion label
↘↘ Jo La Mode in Qatar, Ush Boutique in Sufyaa announced plans to expand to
Dubai and House of Fraser Abu Dhabi are neighboring Malaysia10
some outlets in the GCC that stock luxury
abayas and modestly cut gowns from various ↘↘ Malaysia-based label Naelofar announced
designers and labels plans to set up an office in New York.11
Launched in 2014 by actress Noor Neelofa
↘↘ Irna La Perle, the luxury label of Indonesian Mohd Noor, Naelofar has quickly grown
designer Irna Mutiara, is sold at upscale into an umbrella brand with three product
department stores in Indonesia and has made
6 “Moroccan origin stylist Nadia Zein combines modesty and style”, Jeune Afrique,
August 2015.
7 “Net-A-Porter fetes Ramadan with exclusive edit”, Luxury Daily, May 2016.
2 http://fashionartdesign.salaamgateway.com/en/fashion-art-design/story/MS_ 8 “Six new names announced by Westfield for The Broadway shopping centre in
burkinis_mark_arrival_of_modest_sportswear_into_mainstream_say_UK_modest_ Bradford”, Telegraph & Argus, October 2015.
fashion_companies_-SALAAM26042016104353/, accessed on 9 August 2016. 9 Shukr company website, http://www.shukr.co.uk/blog/index.php/2015/12/
3 Ziniak company website, http://www.ziniak.com/, accessed on 9 August 2016. shukr-expanding-in-jordan/, accessed 9 August 2016.
4 Ruh Collective company website, https://www.ruhcollective.com/, accessed on 10 http://www.salaamgateway.com/en/fashion-art-design/story/
9 August 2016. INTERVIEWSingapore_modest_fashion_brand_Sufyaa_eyes_regional_expansion_-
5 “Zynira.com The New Marketplace For Ethical Fashion And Halal Personal Care SALAAM28022016070100/, accessed 9 August 2016.
Products!”, Halal Trade Zone, May 2016. 11 “Naelofar Hijab to make foray into New York”, The Rakyat Post, February 2016.
lines: Naelofar Hijab, Naelofar Abaya, and ↘↘ Dubai-based Islamic Fashion and Design
Lofalens contact lens12, 13 Council (IFDC) has been active in developing
partnerships and coming up with initiatives to
↘↘ Verona Collection, a US-based Modest grow the Modest Fashion industry:
Fashion company that started its business
online, has opened a store in Florida.14The ↘↘ IFDC has launched Pret-A-Cover™, a
shop is located at Orlando Fashion Square and program that offers a range of supporting
is one of the first Islamic wear stores to open services to retailers and designers so
in a mainstream mall in the U.S. they can attract the valuable modest wear
consumers. In launching the program, IFDC has
↘↘ Turkey-based online Modest Fashion retailer partnered with Bangladesh-based garment
Modanisa.com in collaboration with the Islamic manufacturing company Beximco
Fashion and Design Council (IFDC) organized
Istanbul Modest Fashion Week, Turkey’s ↘↘ In Indonesia, IFDC has forged collaboration
first international modest fashion week. The with the organizers of leading fashion events
event was attended by notable Modest Fashion such as Jakarta Fashion Week and Muslim
designers, bloggers and fashion personalities from Fashion Festival Indonesia (MUFFEST) to
25 countries, from Azerbaijan to Indonesia15 enable designers from the UAE and other
countries to appear on the runways of the
↘↘ Events have served as a driving world’s most populous Muslim nation
force to converge and promote the
Modest Fashion industry: ↘↘ The leading fashion event in Qatar, Heya
Arabian Fashion Exhibition, entered its
↘↘ Italian Vogue, the Dubai Design and ninth year in 2016. The women-only event has
Fashion Council, and chairman of Emaar become a hub for fashion entrepreneurs and
Properties Mohamed Alabbar organized consumers in the GCC as well as being a key
the Vogue Fashion Dubai Experience as a element of Qatar’s tourism industry18
platform for promoting emerging designers
from the Middle East, Africa and Asia.16 ↘↘ Recognizing the rise and popularity of
The event featured many modest clothing celebrity-created labels, a fashion bazaar
designers, including award-winning Saudi called CelebFest has been organized in
designer Reem Al Kanhal Singapore. CelebFest is an annual event that
gathers celebrities and fashion icons from
↘↘ Indonesia’s Modest Fashion e-commerce Indonesia, Malaysia, and Singapore19
platform Hijup.com showcased the work
of four Indonesian designers at the ↘↘ To serve the 172 million Muslim market in
International Fashion Showcase section of India, a growing number of online retail sites
London Fashion Week.17 This is the first time are catering to the specific needs of Islamic
that Modest Fashion made an appearance at fashion consumers. These sites include MyBatua.
the event, which was covered widely by media com, Abaaya.in, Islamicshop.in, Islamic-attire.
channels, including the BBC and CNN. com and Mubarak Deals.20
Investment and finance

12 Naelofar Hijab company website, http://naelofarhijab.com/pages/about-us,
accessed 9 August 2016.
↘↘ Several notable venture capital investments
13 “Naelofar Hijab to make foray into New York”, The Rakyat Post, February 2016. relating to the Muslim fashion market have
14 “Modest Muslim Clothing Store Hopes To Cater To People of All Faiths”, The
Huffington Post, May 2016.
15 “Azerbaijani kelagayi on show at Turkey’s Modest Fashion Week”, Azernews,
September 2016.
16 “Introducing the Young Talents of the Vogue Fashion Dubai Experience”, Vogue, 18 Heya Arabian Fashion Exhibition website, http://heya.qa/, accessed on 9 August
November 2015. 2016.
17 http://www.salaamgateway.com/en/fashion-art-design/story/Modest_ 19 CelebFest company website, http://www.celebfest.co/, accessed on 8 August

Fashion_or_Fashioning_Modesty_HijUp_Unveiled_at_London_Fashion_Week- 2016.
SALAAM12042016062423/, accessed on 9 August 2016. 20 “When an abaya is both modest and modish”, The Times of India, April 2016.

occurred in the past year, signaling investor’s clothing as well as the cultural variety and ethical
interest in this segment: responsibility of the industry.
↘↘ The Qatari Mayhoola investment fund

bought the French luxury fashion Innovation
label Balmain for close to 500 million
euros ($563 million)21 ↘↘ More mainstream players have entered the
Modest Fashion market with their own line of
↘↘ Dubai-based Alabbar Enterprises bought hijab, modest garments and related accessories:
a 4 percent stake in Yoox/Net-a-Porter
(YNAP) in a deal valued at $111 million. ↘↘ Italian luxury label Dolce & Gabbana (D&G)
Following the investment, the high-end luxury launched its first ever collection of hijabs
site is expected to potentially target more and abayas for the Middle East market
Middle Eastern customers22 in the beginning of 2016. This collection
was followed by a Ramadan and Eid abaya
↘↘ Malaysia’s online Modest Fashion retailer collection a few months later25
Fashion Valet received a multi-million-
dollar Series B strategic investment ↘↘ Uniqlo, a Japanese brand, partnered with
by Start Today Co., the operator of famous designer Hana Tajima to launch
Japan’s largest online fashion mall, a collection featuring tops, bottoms, and
ZOZOTOWN. The funding came a year after dresses, along with kebayas and hijabs,
its Series A investment from US-based Elixir complete with Uniqlo’s AIRism technology—a
Capital. With the newly injected capital, patented material that is thin, light, highly
FashionValet plans to expand its operations in breathable and quick-drying.26 Consecutively,
Singapore and Indonesia.23 Uniqlo has also announced the launch of the
collection in Japan, which will be followed with
↘↘ Crowdfunding platforms are emerging as an more launches in China, South Korea, Taiwan,
alternative venue for Modest Fashion-related Hong Kong and Australia27
projects to raise funds:
↘↘ Spanish brand Mango launches a Ramadan
↘↘ Veil, a U.S.-based startup that has collection for the second year. The launch
successfully raised funding for its of the collection has drawn some criticism
climate-adapting hijab on Kickstarter, is because some elements seems to portray
launching a modest sportswear line on the a lack of understanding of Muslim women’s
same crowdfunding site.24 demographics and lifestyle28
↘↘ UK luxury fashion brand Burberry launched

Regulatory developments its first Ramadan collection on its website.
The collection features handbags in addition
↘↘ Having organized the 2015 Round Table Discussion to gowns and dresses.29
on Modest Fashion in Turin, Italy, the Dubai
Islamic Economy Development Center (DIEDC) is ↘↘ Several innovative new hijab and modest wear
developing Modest Fashion guidelines for industry products have been developed:
players. The guidelines are being developed with the
goal to educate potential as well as existing market
players on the requirements of Islamic modest
21 “Valentino’s Qatari Owners Acquire French Fashion Brand Balmain”, Bloomberg, 25 “Exclusive preview: Dolce & Gabbana’s Ramadan and Eid abaya collection”, The
June 2016. National, May 2016.
22 http://www.salaamgateway.com/en/fashion-art-design/story/ 26 “7 Reasons Hana Tajima’s New Uniqlo Collection Is A Win For Modest Fashion”,
What_does_the_AlabbarYNAP_deal_mean_for_the_Mideast_fashion_world- InStyle.co.uk, March 2016.
SALAAM02052016081429/, accessed on 8 August 2016. 27 “Uniqlo and Tajima take Islamic fashion to the world”, Nikkei Asian Review, June
23 “Malaysia’s Fashion Valet secures Series B funding from Japan’s Start Today”, 2016.
Deal Street Asia, March 2016. 28 “The 4 Big Problems With “Ramadan” Fashion Collections”, Refinery29, June
24 “Fore More Modest Workout Clothes, Women Look to Sportswear Startup ‘Veil’ ”, 2016.
Time Magazine, June 2016. 29 “Burberry’s First Ramadan Collection”, Mode-sty blog, June 2016.
↘↘ Singapore hijab designer Adlina Anis Scarf. 100 percent of the profits from the
announced patent-pending earphone- sales of the scarf goes to the Malala Fund to
friendly hijab Ninja Echo, which promises to support girls’ education.36
make it easier for women who wear the hijab to
put in earphones or use a stethoscope30 ↘↘ Nigeria-based Haneefah Adam creates
Hijarbie, an Instagram account featuring
↘↘ Swedish designer Iman Aldebe has created Barbie dolls dressed modestly and
a line of fashionable turban interpretations fashionably as an alternative fashion
as an alternative way of wearing the hijab31 reference for Muslim young women37
↘↘ Dubai-based abaya designer Manaal Al ↘↘ Australian app Mod Markit is applying the
Hammadi introduced a solar-powered ‘sharing economy’ concept to the Modest
abaya prototype at the Solar Expo during the Fashion industry. The app enables users to
World Future Energy Summit in Abu Dhabi. shop, swap, and sell Modest Fashion from their
The abaya features solar panels and hidden wardrobe or other people’s wardrobes.38
cellphone charging ports, which enables the
wearer to charge her cellphone on the go.32
↘↘ New Modest Fashion and accessories

labels created by celebrities and fashion
personalities have launched:
↘↘ In Malaysia, female celebrities including Noor

Neelofa Mohd Noor, Emma Maembong,
Elfira Loy and others have created their own
line of hijab labels33
↘↘ US fencing medalist Ibtihaj Muhammad has

launched her own Modest Fashion label, Louella
↘↘ UK-based hijab blogger Amena Khan has

launched a new range of false eyelashes with
eyelashes company Lashionery.34
↘↘ Several innovative ways to deploy Modest

Fashion elements as tools of education and
activism have emerged:
↘↘ H&M debuted a hijab-wearing model, Mariah

Idrissi, in a commercial that encourages the
retailer’s customers to recycle their clothes35
↘↘ Education activist Malala Yousafzai

collaborates with Toms, a US-based
footwear and fashion accessories
company, to create Malala Fund x Toms
30 “Earphone-friendly hijab”, The Straits Times, January 2016.

31 “The Rise of “Islamic Chic” and Hijab Haute Couture”, Fair Observer, July 2015.
32 “Solar-Powered Abayas Light up the Abu Dhabi World Future Energy Summit”, 36 “Malala fund x Toms Scarf”, Toms website, http://www.toms.com/malala-fund-
Style.com/Arabia, January 2016. toms-scarf, accessed on 9 August 2016.
33 “M’Sian Star Elfira Low Swaps Acting For Fashion”, The New Paper, June 2016. 37 “This ‘Hijab Barbie’ May Be The Cutest Style Star on Instagram”, Mic Network Inc.,
34 “Luxurious New Lashes”, Amena Official, March 2016. February 2016.
35 “H&M Debuts First Hijab-Wearing Muslim Model in New Video Campaign”, 38 ModMarkit company website, http://www.modmarkit.com/, accessed on 8
NewsBeat Social YouTube Channel, September 2015. August 2016.

U.S. Olympic team fencer Ibtihaj Muhammad

poses for photographers on the red carpet as she
arrives for the TIME 100 Gala in Manhattan, New
York, U.S. REUTERS/SHANNON STAPLETON
Key Challenges
Marketing and sales challenges and the limited geographic areas where they are
launched. By contrast, Japan’s Uniqlo has been
↘↘ Several anti-Islamic incidents relating to praised for its efforts in involving a Muslim designer
Modest Fashion have occurred, creating an with a cosmopolitan background and its inclusive
atmosphere of discouragement and negativity approach in marketing their Muslim-friendly fashion
around the industry: line.42 To be successful in this market, it is essential
for mainstream brands to understand that Muslims
↘↘ Several Muslim fashion retailers and are not a monolithic group and that they need to
influencers’ Instagram accounts were hacked cater to different Muslim lifestyles.
in April 2016. The attack deleted images and
posted anti-Muslim content on accounts with
hundreds of thousands of followers, including Financing challenges
those belonging to Australia’s fashion outlet
Hijab House, Modest Fashion personality ↘↘ Obtaining financing still a challenge. In many
Nabiila Bee, and fashion and lifestyle blogger Muslim markets, fashion is still seen as a home-
Mariam Moufid. Instagram has since reinstated based industry with limited growth opportunities,
the hacked accounts39 which makes it challenging for fashion
entrepreneurs to obtain institutional financing.
↘↘ Laurence Rossignol, France’s minister Crowdfunding websites are an alternative venue
for families, children, and women’s for raising funds, but currently only very few
rights, publicly criticized Modest Modest Fashion projects have been successful in
Fashion on a TV show, saying “it was raising funds on online platforms.
irresponsible for companies to make and
market such clothing”40
Regulations and operations
↘↘ At the Olympic Games in Rio de Janeiro, challenges
female Egyptian volleyball athletes were
singled out in the Western media for ↘↘ Adapting the production process from
wearing modest clothing compared to their design through to production and delivery to
German opponents, prompting anti-Islamic address increased demand. Emerging Modest
sentiment. U.S. fencer Ibtihaj Muhammad Fashion companies often find it challenging to
was also subjected to online abuse respond quickly to market changes, resulting in
for wearing a hijab41 missed opportunities.
↘↘ More and more mainstream brands are entering ↘↘ Due to their small scale operations,
the Modest Fashion industry. Some of them leveraging manufacturers to turn designs into
exhibit a lack of understanding of Islamic garments at the scale and in the timeframe
principles, Muslim lifestyle and cultural needed is a challenge for Modest Fashion
nuances. Mango and D&G’s Modest Fashion line businesses. As a result, in-house production is
launches have invited criticism due to the styles frequently required.
and price range offered, the choice of models
39 “Islamic fashion houses, including Hijab House, targeted by racist hackers”, ABC
News, April 2016.
40 “The French Culture Wars Continue”, The New Yorker, May 2016.
41 “The Internet Goes Nuts Over This Picture Of Olympic Volleyball: Egypt vs. 42 “Here’s Why Uniqlo Is Poised To Nail The Muslim Fashion Market”, The Huffington
Germany”, The Daily Wire, August 2016. Post, February 2016.

Opportunities
Despite increasing competition in the Modest Fashion industry, there are several high potential
segments that remain unaddressed across products and services.
Unaddressed
high potential Wearable/ Sustainable
Unaddressed Functional modest
product Wearable/ Sustainable
high potential Fashion fashion
segments Functional modest
product

segments Fashion fashion

Unaddressed
high potential Business Alternative
Unaddressed incubators/ shopping
service Business Alternative
high potential accelerators platforms
segments incubators/ shopping
service

segments accelerators platforms

The Modest Fashion sector offers a range of opportunities for stakeholders

across the value chain.
Mainstream Acquire Develop

fashion modest fashion modest
companies company clothing line
fashion modest fashion modest
companies
 company clothing line

Acquire Pursue
Private substantial
modest fashion Pursue
equity Acquire value creation
Private company substantial
modest fashion opportunities
equity value creation
 company
opportunities

Develop
Design modest
schools Develop
Design fashion-related
modest
schools curriculum
 fashion-related
curriculum



Existing opportunities in Modest Fashion
Wearable/Functional Fashion Unmet Muslim demand:

↘ Muslims have a variety of unique needs pertaining to their daily lifestyle. There is still ample
room for innovative fashion or wearable products that better serve the lifestyle needs of
Muslim men and women
Potential:
↘ Products that combine fashion and functionality to serve the unique pain points of
Muslims. The earphone-friendly Ninja Echo hijab and Veil’s climate-adapting hijab are some
examples of such innovations
Sustainable modest fashion Unmet Muslim demand:

↘ The Quran states that Muslims should care for the environment and not be extravagant in their
consumption. In the meantime, practices in the apparel and fashion industry are rampant with
ethical and environmental issues
Potential:
↘ Sustainable and ethical fashion is a growing trend globally. There is a great opportunity to grow
fashion labels that are both modest and sustainable
Business incubators/accelerators Unmet Muslim demand:

↘ Muslim fashion entrepreneurs frequently find difficulties in growing their business due to a lack
of mentoring and funding
Potential:
↘ There is opportunity to cultivate global modest fashion brands through business incubators
Alternative shopping platforms Unmet Muslim demand:

↘ Many modest fashion startups have thrived through the e-commerce model. There are
uncharted possibilities to apply other innovative shopping models to the modest fashion
market
Potential:
↘ Mobile commerce and subscription services are a couple examples of many viable
opportunities that can be explored by modest fashion players

Mainstream fashion Acquire modest Rationale:

companies fashion company ↘ Acquiring a modest fashion company gives a mainstream fashion company instant access
to the acquired company’s client base
↘ Acquisition of companies in emerging economies with high Muslim populations such as
the GCC, Malaysia, Indonesia and Pakistan will help grow a mainstream fashion company’s
customer base in these regions
Develop modest Rationale:

clothing line ↘ By developing a modest fashion line, a mainstream fashion company brings diversification
to its product offering, resulting in new sales potentials from customers with affinity for
more covered clothing
↘ Many leading brands, from D&G to Tommy Hilfiger, have adopted this strategy
Forging collaborations with emerging designers, labels, and distribution channels in Muslim
communities
Private equity Acquire modest Rationale:

fashion company ↘ Fashion is a core sector addressed by private equity firms, with modest fashion a high-
growth, high potential segment
↘ Many modest fashion firms struggle to get the capital needed for expansion, and private
equity will help provide the capital and expertise needed
↘ There are substantial opportunities to acquire a leading label among more than 146 key
modest fashion labels.43 In particular, one that has a strong management team, strong
brand identity and following

value creation ↘ Once a company is acquired — there are substantial value creation opportunities to scale a
opportunities brand in terms of customer segments and geography
↘ Private Equity firms are well-positioned to enhance marketing efforts, strengthen
management team as well as exploring incubating new concepts
Design schools Develop modest Rationale:

fashion-related ↘ Industry stakeholders need a good understanding of Muslim cultures and Islamic
curriculum requirements in order to create a modest fashion line that is well-received by the largely
religious target market
↘ Mainstream fashion companies and designers interested to tap into the conservative
clothing market.
43. http://www.salaamgateway.com/en/fashion-art-design/story/current_consolidation_activity_and_potential_in_islamic_modest_fashion-salaam10032016064009/
Leadership Article
MODEST FASHION REVOLUTION
By Duygu Demir
Brand Manager
Modanisa
Muslim fashion designers reflect on a rapidly growing industry. While

established names continue to gain traction in their respective regions, new
labels and designers of Modest Fashion clothing are emerging all over the
globe. As the Modest Fashion industry continues to grow rapidly in 2016, there
has been notable recognition by mainstream western media.
Muslim consumers have been estimated to countries with a majority Muslim population
spend $243 billion on apparel and footwear is projected to grow at an average of
in 2015. This number is larger than the 5.4 percent a year, which is faster when
current clothing markets in the UK ($107bn), compared to a 3.4 percent annualized GDP
Germany ($99bn) and India ($96bn).1 growth rate for Europe and the United
States over the next few years. Lastly, 29
Although all clothing purchases made percent of the global population is projected
by Muslim consumers does not qualify to be Muslim by 2030.2
as Modest Fashion, a number of drivers
suggest the Modest Fashion industry will A large number of local fashionistas,
be continue to thrive. entrepreneurs and designers have been
rushing to seize the opportunity within the
First and foremost, the “importance of Modest Fashion industry in the last few years.
religion” plays a major role in a considerable However, a number of players outside of local
number of Muslim lives. 88 percent of the entrepreneurs and designers trying to jump
population in Muslim majority countries on the Modest Fashion bandwagon have been
define religion as ‘important’. Secondly, identified. Large international brands such
the average age in Europe and the United as DKNY, H&M and Uniqlo have all created
States is an estimated 44 years, whereas collections to cater to the Muslim market.
in Muslim majority countries, the average D&G launched its abaya and hijab collection
age is an estimated 30 years. Moreover, the more recently. This unveiling caused
purchasing power of young consumers tends discussions in the luxury fashion world and
to grow over the years. flashed a light on the other design houses
that want to follow.
The third important growth driver for the
Modest Fashion industry is an economic This new perspective on the Muslim
one. The gross domestic product (GDP) of consumers reminded the western industry
1 2015-2016 State of the Global Islamic Economy Report, http:// 2 2015-2016 State of the Global Islamic Economy Report, http://
www.dinarstandard.com/state-of-the-global-islamic-economy- www.dinarstandard.com/state-of-the-global-islamic-economy-
report-2015/ report-2015/

Leadership Article
that for the longest time Muslim consumers shopping website3. The fashion power
have been treated as passive, but they are house showcases more than 30,000 casual
more active than ever and brands need to styles, evening dresses, shawls, scarves,
adhere to their specific needs to prevent sportswear, swimwear and accessories from
outcasting. 2016 has been a year to prove 300 brands and 30 international designers to
this right. Now, it requires being innovative more than 9 million monthly visitors. Muslim
in order to stand out in the increasingly women from 100 countries all over the
competitive environment. world choose Modanisa for Modest Fashion
shopping. The company acted as the main
Modest Fashion is a way to empower Muslim sponsor of Istanbul Modest Fashion Week
women and give them choice, and help with the goal of making İstanbul the Modest
them express themselves. Fashion capital and creating a unity among
the Muslim fashion community.
Attempts to create a pan-global Muslim
community among industry leaders, The event has received significant attention
designers and influencers via Modest and played a great role in raising awareness
Fashion weeks held around the world have regarding Modest Fashion on a global
encouraged community growth. scale. There have been numerous articles
written by the world’s most renowned press
Istanbul Modest Fashion Week, Turkey’s associations’ including the New York Times,
first international Modest Fashion event The Guardian, US News, Business of Fashion,
brought together the leading designers, and many others. This awareness, topped
influencers and buyers. The organization by Indonesian Muslim designer Anniesa
proved itself to be a global platform for Hasibuan’s show at New York Fashion week
Modest Fashion and received more than featuring hijab, is a huge leap forward in
10,000 participants which included national creating a cultural shift in today’s society to
and international journalists, featured bring together a community filled with young,
fashion shows, designer boots, workshops bright, and empowered Muslim women.
and conferences. The events took place in
the impressive atmosphere of Haydarpaşa
Station, an Ottoman-era railway station, with
old-fashioned train cars.
Modanisa.com is Turkey’s first and world’s

most popular online Modest Fashion
3 Global Islamic Economy Report 2014 (GIES), Thomson Reuters

Interview
Altaf Alim
Commercial Director,
Aab (UK)
What broader trends do you experienced growth. We saw a healthy

see in the fashion industry improvement on Ramadan sales and had
and which product segments double-digit percentage growth online,
are poised to benefit? which is reflective of the latent demand
One of the more noticeable trends over which has only recently begun to be met.
the past year has been the growth of the
‘athleisure’ (casual wear) sector. The growth The modest fashion marketplace
here has impacted modest wear in that is maturing with increasing
it has allowed us to branch out more into competition among all key
loungewear and active wear, broadening segments, in particular
the range of our offering and of the modest womenswear. What strategic
wear sector in general. In addition, with steps has your brand taken to stay
the rise of Halal Travel experiences, we are ahead of the competition?
launching our own resort wear collection. The increasing competition has been good in
that it’s reflective of the increasing size of the
How does the growth of the market, and has led to the Muslim consumer
global Muslim population becoming much more demanding. To respond
affect your business? to this, we’re seeking to strengthen our
The rapid projected growth of the Muslim Omni-channel retail operation by looking to
population is great for us — it means we are further develop our website, increasing social
operating in a market naturally poised for media engagement, and of course increasing
growth. Of course, the larger market size our physical brand presence with regards
can only result in more demand, which is to stores to ensure that the brand is always
definitely a good thing. strongly represented. Our customers can
shop online, over the phone and in-store.
How has the addressable market for
modest fashion performed compared What steps has your brand taken
to the broader fashion category, both to expand its product offering and
globally and in the UK? geographical coverage?
Although many mainstream conventional The most recent major steps we have taken
brands have been struggling recently due are the expansion of our brick-and-mortar
to macroeconomic factors, which definitely offerings, particularly with the opening
haven’t been helped in short-term in the of our store in Bradford, UK. Although
UK by the effect of Brexit, the modest wear setting up the stores has required very high
market has, in our experience, actually capital investment, in the long-term they

Interview
are instrumental in reinforcing the brand The business has largely grown organically,
and helping to increase awareness of, and which is a testament to the rapid
customer engagement with, our products. growth of the modest fashion market.
Whilst growth in this manner may take
What is your vision for Aab over slightly longer, it does ensure we have
the next five years, and what do you complete control over the business
envisage to be the next key steps? and the direction we wish to take it
Having proven the concept of the brand in in. In our experience, although there’s
the UK market, we’re now looking to export lots of hype around Shariah-compliant
the retail proposition into overseas markets financing — and it’s definitely an area
as a franchise. We’re seeking out the right with great potential — it’s at a nascent
partners and brands who can complement stage at the execution level in terms of
our offering and enable us to tap into new actually closing investments to offer
markets. Also, the online sector continues to opportunities for SMEs.
offer major growth opportunities, as global
comfort levels regarding online shopping What are the major unmet needs of
improve, as does the general infrastructure, Muslim consumers in the modest
including payment and delivery systems. fashion industry and what role
Over the next five years we’re looking to could investment play?
continue investing in the brand and marketing Due to the growth of the industry, I actually
in order to ensure we are able to make the believe there’s now a huge amount of
most of the growing market and population. choice available in the modest fashion
Our experience with brick-and-mortar stores market. There are many brands, each
has also shown us that, rather than just with their own unique DNA and approach
purchasing modest wear, people are buying to the market, which is great for the
into the lifestyle. We’re looking into launching discerning Muslim consumer. Investment
fragrances and expanding our range of could definitely be used to greatly
complementary offerings, perhaps by offering accelerate the speed-to-market of retail
a basic homeware collection. propositions, as what could ordinarily take
five years could now be achieved in 18
How have you been able to months. However, ultimately, the success
finance your business and do of a proposition is grounded in a solid
you think access to shariah- business concept that can demonstrably
compliant financing remains a produce revenue, regardless of how much
significant challenge? investment can be raised.
Interview
Andy Santoso
CFO,
HijUp (Indonesia)
What broader trends do you see in in 2015. We see that there are many regular
the fashion industry and which brands that are starting to target the Muslim
product segments are poised to fashion market, such as Uniqlo, H&M, Dolce
benefit from this trend? & Gabanna, although they are not focused
The major Muslim fashion trend is the one yet in this segment.
suitable for daily activities tailored for each
country’s taste and weather. We think that The modest fashion marketplace
each product has its own segments that fit is maturing with increasing
with this trend, so all products will benefit. competition among all key segments,
For instance, vests (undershirts) can be in particular womenswear. What
used daily everywhere. strategic steps has HijUp taken to
stay ahead of the competition?
How does the growth of the global By curating and providing good quality
Muslim population affect HijUp? products at affordable prices and being
We are very optimistic with the growth of Shariah-compliant, HijUp, being a trendsetter,
the global Muslim population as the market will be able to stay ahead.
for Muslims is the fastest growing market in
the world. In the Halal lifestyle, as well as the What steps has HijUp taken
Muslim fashion industry, we are very certain to expand both its product
that if the Muslim fashion industry goes offering and distribution?
global, it cannot only be enjoyed by those In terms of products, we collaborate with
who are Muslim but by all women who like the designers to make special products
the modest fashion style. We hope that the and maintain the supply. In terms of
industry will give a positive image towards distribution, we collaborate with local and
Islam. Since the establishment of HijUp, we international shipping companies and plan to
see the instrumental growth to our business. have a warehouse abroad.
We continue to grow double digits in the last
few years and foresee this trend What is your vision for HijUp over
the next five years, and what do you
How has the e market for modest envisage to be the next key steps?
fashion performed compared to HijUp is an abbreviation of “Hijab Up”. We
the broader fashion category, both believe that by wearing hijab as a Muslim,
globally and in Indonesia? we are not impeding ourselves from being
The modest fashion market has been growing active and powerful, on the contrary, we are
faster both globally and in Indonesia than that bringing energy and power to women wearing
of the general one. In fact, it grew three fold it. This is the vision of HijUp -Muslim women

Interview
are confident for being a Muslim and wearing financing remains a
hijab. As we are growing our e-commerce significant challenge?
market share in Indonesia and Southeast Asia, We have been able to secure funding from
our next step is to establish our presence in several venture capital firms from Indonesia
Singapore and Malaysia so that our customers and the Silicon Valley. Shariah-compliant
benefit from the world-known Indonesian financing is still a significant challenge both
designs from HijUp, yet still get tailored in Indonesia and the rest of the world, but
offerings that suit local tastes. we were able to make sure that the venture
capital firms that invested in us gave us the
What remain the major operational Shariah-compliant terms we requested.
and marketing challenges faced by
the industry overall, and to what What are the major unmet needs
extent do these affect HijUp? of Muslim consumers in the
As the market is getting bigger and the modest fashion industry?
industry gets more players, the competition We found that the supply chain is still an issue
is getting more challenging. The local for the industry. Sometimes the demand is
fashion players still have a lot of homework much higher than supply. Furthermore, due to
to do in terms of scaling up the business, the limited manufacturing capacity, the price
manufacturing and supply. On the other hand, of the product becomes more expensive. This
the competition from bigger competitors is one of HijUp’s priorities, to connect the
or the incumbent brands are also more designers to the manufacturer.
competitive. Therefore, our biggest challenge
is to support the local designers to grow, What role do you think investment
maintain the quality of the product, maintain – in particular venture capital – will
good branding and positioning, and maintain have in shaping the modest fashion
good relationship with the consumers. HijUp industry going forward?
is well positioned to make the local fashion In our opinion, the venture capital world
players shine in this world by bringing their will shape the modest fashion industry
products to our international customers. in innovative ways. We envision the
marriage between the fashion and high-
How have you been able to finance tech worlds, to deliver innovative online
your business and do you think shopping experiences, and to develop
access to Shariah-compliant custom-made/ready-to-make fashion and
just-in-time manufacturing.
Halal Media and Recreation Sector
In 2016/17, Muslims are reclaiming their narrative. For over a decade, Muslims around the
world have faced the challenge of having their narrative be defined by others. No more. This
year saw three Somali–Canadian siblings open Qurtaba Publishing House, with the vision “to
define our narrative, our stories, our perspectives and reclaim the voice of Muslims”. In a similar
fashion, Muslim Ink, a magazine for Muslims in the 21st century, was launched with an aim to
address “the absence of genuine Muslim voices in the media”.
Such a confident approach from Muslim storytellers has resulted in a confident Islamic
Economy. This report estimates Muslim populations globally to have spent a total of $189
billion on Halal Media and Recreation in 2015, which is five percent of the global market figure
of $3.7 trillion. Not only is this a five percent growth from the previous year’s figure, it is also
higher than the global market growth of 3.8 percent.
With such growth, it is little wonder that mainstream companies have sought to invest in the
potential of the Islamic Economy. Publishing giant Simon & Schuster launched Salaam Reads,
the first imprint focusing on children and young adult books, featuring Muslim characters and
experiences. Leading publisher Mifflin Harcourt utilized their most famous children’s book
character, Curious George, to target the Muslim audience through their Ramadan Edition. This
edition gained the unique combination of both critical and commercial success, with the pre-
order phase on Amazon being sold out.
While there are challenges, such as a notable lack of community support for the arts and
media sector, especially financial support, the future for this sector is nevertheless bright.
Important innovations are taking place, such as Islamic Tunes in Malaysia, a self-styled
Halal digital content marketplace. The sector also offers many areas of opportunity,
such as having interactive, educational programs for children, something Muslim
Kids TV has attempted to address.
With such growth, innovation and opportunity, the Halal Media and Recreation sector is
expected to reach $262 billion by 2021. The sector is already ranked seventh globally behind
only countries such as the United States, Japan and China. A lucrative and growing sector,
made distinct by the confidence of its leading storytellers and innovators, should inspire
nothing but confidence in its future investors as well.
HALAL MEDIA & RECREATION SECTOR
B EN C HMA R K M AR K E T S I ZE 1
How does Muslim spend compare How much do
to total global spend? Muslims spend in
(2015, US$ Bn) total on media
and recreation?
2015 *Existing Muslim

$1,142 Bn $261 Bn $254 Bn $244 Bn $207 Bn Market
United States Japan China UK Germany $189 Bn* 5.1% of Global
Expenditure
2021
$262 Bn
Projected Market Size
5.6% CAGR Growth
THE HA L A L M E D I A & R E CR E AT I O N I ND I CATOR

Which countries have the best developed
ecosystem for Halal Media and Recreation?
5 UK
Germany
France 7 8
Lebanon 4 6 Qatar
Kuwait 9
Bahrain 3
2 Singapore
1
United
Arab Emirates
Australia q
Supply drivers relative to country size (Recreation exports to OIC )
Awareness (Number of News Articles and events)
Social (Internet access Index)
Selected Distribution channels Services Production

Peace TV (UK) Halal Ad (Denmark) NA3M (New Arab Media) (Jordan)
key players Islam Channel (UK) Muslim Ad Network (USA) Engare (Iran)
British Muslim TV (UK) Ogilvy Noor (Global) 5 Pillar Games (Saudi Arabia)
Eman Channel (UK) Darussalam (UK)
Ruju Murgam (India) International Islamic Publishing House (Saudi Arabia)

Media and Recreation trade value
by OIC* member countries
(2015, US$ Bn)
$149 Bn
$10 Bn
Global Imports
$136 Bn $10 Bn
Media & recreation imports by OIC Global Exports
countries (6.7% of global imports) OIC Imports
$3 Bn
$7 Bn OIC Exports
Media & recreation trade deficit

by OIC countries
in 2015 * Only for print (news, books, other) toys, games, sports, cultural recerational services, media
and other information services.
TOP MA R KETS
Issues and opportunities map
Top Muslim consumer
Operations
media and recreation
expenditure markets Products
& Markets
Millennials
Lack of well creating
established Rising
Turkey $22.8 new demand
brands demand of
values based subsets
United States $19.4
 content across 
Russia $11.4 Continued all media
bad press platforms
Saudi Arabia $9.8 Lack of
Young
 millennials  creative skillset
UK $9.4
are key growth and trade
Indonesia $8.8 drivers know-how in Gulf
Inadequate economies
Tapping the
France $8.5  intellectual
universal Ummah 
market through property right
Germany $8.5 protection in OIC
English Lack of countries Political
Egypt $6.1  financial support
to incubate  and religious
Iran $6.0 and grow new censorship hindering
GCC ‘innovative’ creativity
(2015 est., US$ Bn) government concepts Shariah
 
funding / rebates standardization
for foreign in some sectors
production such as gaming
Budding
 
Shariah-compliant Policies,
crowd-funding
Regulations
Oil space
market slump & Investment

bleaks funding
prospects for
Gulf patrons Investors*
High Impact Issues
 have poor
 Challenges understanding
Financing and confidence in *(particularly Islamic)
 Opportunities media business

1
Expenditure data Baselined from 2011 International Comparison Program + National Statistics Agencies, DinarStandard Muslim market estimates & analysis;
Sector correlated IMF Outlook Oct 2014 Database for projections. See Report for full methodology.
Halal Media and Recreation Indicator
The 2016 State of the Global Islamic Economy Report revisits the Halal Media and Recreation
Indicator to evaluate countries’ health and development of their family-friendly/Islamic media
and recreation ecosystem. This indicator is part of the aggregate Global Islamic Economy (GIE)
indicator. The indicator does not focus on the overall size and growth trajectory of a country in
the sector; instead it evaluates them on relative strengths of the ecosystem they have for the
The United Arab Emirates, Singapore and Bahrain lead this year’s Halal Media and Recreation
Indicator ranking that focuses on the health of the family-friendly/Halal media and recreation
ecosystem a country has relative to its size, including its related social considerations.
The indicator equally weighs three metric categories and has the following metrics for each: (Full
methodology is presented in the Appendix.)
↘↘ Supply drivers relative to country size (recreation exports to OIC countries)
↘↘ Awareness (number of news articles and events)
↘↘ Social (Internet access Index)
Below are the top 10 countries in the Halal Media and Recreation indicator.
TO P 1 0
Halal Media and Recreation
UAE 137
Singapore 75
Bahrain 58
Lebanon 58
United Kingdom 53
Qatar 46
France 45
Germany 45
Kuwait 45
Australia 41

Sector Score Awareness Score Social Score GIE Ranking
Recreation Exports to OIC
United Arab Emirates 137 240 49 122 1
Singapore 75 123 NA 102 11
Bahrain 58 7 42 125 3
Lebanon 58 41 35 98 28
United Kingdom 53 24 9 125 25
Qatar 46 2 19 119 8
France 45 20 NA 114 44
Germany 45 16 3 117 51
Kuwait 45 2 29 105 7
Australia 41 8 NA 115 19
United Arab Emirates (UAE) Bahrain
The UAE overtakes Singapore in this year’s ranking, Bahrain occupies 3rd place in this year’s ranking, an
mainly due to its increased level of recreation exports improvement of 4 places from last year’s ranking of 7th
to OIC countries, as well as an improved awareness place. While the country’s exports are low, its social
score and maintaining a relatively high social score. score is quite high and is driven by the highest internet
The country has begun to increase its foothold in the penetration rate (along with the UK) of all countries
sector, including through greater investments and measured at 90 percent.
infrastructure projects, such as Dubai Internet City, a
$1.2 billion project.1
Ups and Downs
Singapore Qatar and Kuwait make their way into the top 10 this
year at the expense of the United States and Canada.
Although overtaken by the UAE, Singapore nevertheless Both GCC countries’ entry into the rankings is driven by
maintains a strong position in the rankings at 2nd place. high internet penetration rates—Qatar at 85 percent
While the country has maintained its social score, and Kuwait at 75 percent.
its exports to OIC countries have declined, and have
therefore also contributed to a decline in its overall
ranking in the indicator.
1 “Ongoing Dubai construction projects said to be worth $400bn”, Arabian

Business, 2016.
Market Sizing
Market size and profile — Global Muslim consumer spending on Halal Media and
Recreation at $189 billion in 2015 (five percent of global expenditure):
This Report estimates Muslim populations globally to have spent a total of $189 billion
on Halal Media and Recreation in 2015, five percent of the global market of $3.7 trillion.
This is a growth of five percent from the previous year, and is higher than the global market
growth of 3.8 percent.
Muslim spend on Halal Media and Recreation is expected to reach $262 billion by 2021, a CAGR
of 5.6 percent from 2015.
The Muslim market for media and recreation ranked seventh globally, behind the United States
($1.1 trillion), Japan ($261 billion), China ($254 billion), the United Kingdom ($244 billion), and
Germany ($207 billion).
The top 10 Muslim markets with Halal Media and Recreation expenditure were equally split
between Muslim-majority and Muslim minority countries. The top six included Turkey ($22.8
billion), the U.S. ($19.4 billion), Russia ($11.4 billion), Saudi Arabia ($9.8 billion), the UK ($9.4
billion) and Indonesia ($8.8 billion).
In addition to the U.S., Russia, and the UK, other Muslim-minority countries in the top 10 included
France and Germany, which each spent $8.5 billion.

A general view shows the newsroom at the

headquarters of the Qatar-based Al Jazeera English-
language channel in Doha. REUTERS/ FADI AL-ASSAAD
Consumer Sentiment Barometer
Approach
Earlier in the Report, aggregated insights from millennials (18-35 age group) using social media
listening based research was introduced. Here we present specific insights from millennials social
media interactions on Halal Media and Recreation services. A total of 98,800 Halal Media and
Recreation related Facebook ‘posts and ‘comments’ from the millennial age group are analyzed here.
In aggregate, the top country where millennials were engaged with Halal Media and
Recreation sector topics was by a far margin, Pakistan (48.5k interactions) followed by
Saudi Arabia (5.3k), India (5.2k), Turkey (4.9k), and Indonesia (4.2k). Pakistani millennials
prominence is a reflection of high volume of Islamic themed media in the country and high levels
of social media engagement. Following countries of Saudi Arabia, India, Turkey, Indonesia and
UAE also have strong Halal Media and Recreation services.
Volume of millennial interactions on

Halal Media and Recreation by country
Pakistan 48.5K Jordan 1K
Saudi Arabia 5.3K Lebanon 1K
India 5.2K United Kingdom 1K
Turkey 4.9K Germany 900
Indonesia 4.2K France 800
United Arab Emirates 3K Bangladesh 500
Iraq 2.6K Canada 300
Morocco 2.5K Palestinian territories 300
Egypt 2.3K Nigeria 300
United States 2.2K Afghanistan 300
Malaysia 1.4K Italy 200
Sentiment analysis
language ones only.) From the interactions that were able to be analyzed for sentiment
across Halal Media and Recreation interactions, an overwhelming 82 percent of millennial
interactions were with positive sentiment, 12 percent were negative, and 7 percent were
neutral. Interactions referencing topics such as ‘happiness,’ ‘sibling’ ‘Alhamdulillah’ ‘gratitude’
seem to reflect positive engagement with Islamic themed media topics.

Media and Recreation related
From across the Halal Media and Recreation interactions interactions
captured, the most common terms and hashtags were:
Negative
#bilal (an upcoming Islamic themed animated movie, 12%
#iqra, sibling, Allah, Birthday, #duawo (urdu language Neutral
word meaning prayers.) It is obvious that the term hijab 7%
is central to millennials interactions around modest
fashion. The most popular topic of #Bilal the movie
reflects the excitement around high quality Islamic
themed entertainment.
Positive
Aggregate of all sectors keywords 82%
and hashtags
Keywords & Hashtags and hashtags
#bilal 1.2K
#iqra 800
#ƙąɧąŋi ą 700
#bilal
#ʂɧąɧʑąɖ 700
Sibling 600
Allah 600 #iqra
Birthday 400
#duawo 300
#afzzz 300
#assalam_walaikum_my_all_frndzzz 300
#love 200
Sibling
Gender profile
Millennial men (65.7k/ 66 percent) dominate the Allah

millennial interactions around Halal Media and
Recreation with women representing 30 percent of
Birthday
the interactions (29.5k). While for specific top topics/
hashtags, men were the majority, the hashtag #iqra had #duawo
majority women interactions.
#afzzz
Note: Detailed and relevant individual commentary was #assalam_walaikum
_my_all_frndzzz
not accessed for Halal Media and Recreation.
#love

Select key players

Mainstream Companies Islamic/ Halal Companies
addressing Halal
Production Video games Ubisoft (USA) NA3M (New Arab Media) (Jordan)
Activision (USA) Engare (Iran)
Rubicon (UK) 5 Pillar Games (Saudi Arabia)
Electronic Arts (USA)
Print content Simon & Schuster (USA) Darussalam (UK)
Modern Library (USA) International Islamic Publishing House

(Saudi Arabia)
Houghton Mifflin Harcourt (USA)
Kazi Publications (USA)
Penguin Random House (USA)
IQRA (USA)
Marvel (USA) Awakening Publications (UK)
Films Tiglon (Turkey) Barajoun Entertainment (UAE)
Kinostar(D) (Germany) SplitMoon Arts (USA)
Farabi Cinema Foundation (Iran)
Digital Apps/ Services Apple Siri (USA) Muslim Pro (Singapore)
ITunes (USA) Quran Companion (USA)
Productive Muslim (USA)

Ramadan Legacy (USA)
IslamicTunes (Malaysia)
Quest Jr (Canada)
Distribution channels Terrestrial television Channel Four (UK) Peace TV (UK)
BBC (UK) Islam Channel (UK)
DW (Germany) British Muslim TV (UK)
PBS (USA) Eman Channel (UK)
HistoryTV (USA) Ruju Murgam (India)
Discovery (USA) Iqra (Saudi Arabia)
Al Jazeera (Qatar) Al Huda (Egypt)
MBC (Saudi Arabia) Manara TV (Nigeria)

Al Majd (Saudi Arabia)
Press TV (Iran)
Online media Netflix (USA) Alchemiya (UK)
Amazon Prime Video (USA) Muslim Kids TV (Canada)
Bayyinah TV (USA)
IECON TV (USA)
Services Marketing Memac Ogilvy (UAE) Halal Ad (Denmark)
Trans Arabian Creative Communications Muslim Ad Network (USA)

(Saudi Arabia)
Ogilvy Noor (Global)

High growth segments book characters gaining significant traction
with younger consumers:
↘↘ Religious TV channels are thriving. There are
now over 180 Islamic channels globally in six ↘↘ Samurai Akiyama is a manga about a Muslim
languages, with several new channels launching brother and sister who fight off demons
catering to Muslim needs: to protect their village. It illustrates the
heroic character of Muslims. Modern day
↘↘ Eman Channel is a new free-to-air Islamic manga are Japanese-style comics, which
TV channel launched in the UK that will also originated in the mid-1900s. It is part of the
be available online. The channel’s content Muslim Manga Project, which uses manga
will focus more on religion and lifestyle than to help enlighten people on what Islam really
politics, and is supported internationally teaches by creating manga style comics that
by renowned Muslim figures such as Mufti address current issues6
Ismail Menk, Shaikh Abdur-Raheem Green,
and Shaikh Abdur-Raheem McCarthy, who will ↘↘ Dunia, a new and original children’s action-
have their own programs2 comedy animated series, was commissioned
by ICFLIX, the Middle East and North Africa’s
↘↘ Universal Islamic Research Center (UIRC), a leading online streaming service. Dunia,
Hyderabad (India) based Da’wah organization Arabia’s first teen female superhero, follows
has launched Ruju Margam, the first Islamic the adventures of a lively 12-year-old girl
TV channel in Telugu. India, with the second who uses her secret martial art skills to
biggest Muslim population in the world, has fight injustice and reinforce positive social
more than 100 million Telugu speakers3 behavior with her peers. The series, mainly
targeted at children aged 12 and below, is
↘↘ To spread Islamic teachings, Manara produced in Arabic, but will also be available
Television and radio stations have been in English and French making it accessible
launched by a leading Nigerian Islamic group, to a wider audience.7
targeting West Africa. The new channel
is expected to benefit both Muslims and ↘↘ Islamic-themed movies are maturing as a media
non-Muslims by helping them to understand segment, with several new movies planned:
the teachings of Islam4
↘↘ Oscar-winning screenwriter David
↘↘ The world’s largest pan-Islamic body, the Franzoni is to work on a biopic about the
56-member Organization of Islamic 13th-century Iranian poet Jalaluddin al-Rumi.
Cooperation (OIC), is planning to launch a new Producers hope to begin shooting the film
television channel. Maha Mustafa Akeel, the in 2017 and would like to cast Leonardo
OIC’s communications director, said the new DiCaprio to play Rumi8
channel would be broadcast across the world
and discuss issues affecting Muslims and ↘↘ Pakistan’s first-ever animated TV series Burka
creating awareness of Islamic teachings.5 Avenger premiered on the big screen in the
British Southbank Center Arts Festival. Its
↘↘ Animation is a significant area of lead character, a school teacher named Jiya
opportunity, with popular Muslim comic who becomes a black burqa-clad avenger
6 “The Muslim Manga Project”, MuslimMatters.org, September 2015.
2 “New Islamic channel launches on Sky”, 5Pillars UK, May 2016. 7 http://www.salaamgateway.com/en/media-recreation/story/ICFLIX_to_
premiere_new_original_Arabic_animated_production_for_kids_worldwide-
3 “RUJU MARGAM : First Telugu Islamic TV Channel”, MuslimMirror, June 2015. SALAAM09112015042926/, accessed on 8 August 2016.
4 “Manara television and radio launches in Nigeria”, Pulse.ng, December 2015. 8 “Rumi film will challenge Muslim stereotypes, says Gladiator writer”, The
5 “OIC television channel to project Muslim viewpoint”, Arab News, October 2015. Guardian, June 2016.
who fights evil and promotes education, ↘↘ Alchemiya, dubbed the “Muslim Netflix”,
has been listed among the most influential is growing in popularity through its Islamic
fictional characters of 20139 content. The platform recently invested
in original content by producing two new
↘↘ Muslim animated superhero Buraaq creators productions, The Muslim Traveler’s Guide to
Adil and Kamil Imtiaz of California-based Granada and I Heart Quran13
Split Moon Arts aim to create a high-quality
Buraqq movie. The main character, Yousuf ↘↘ Al Hijrah TV, the first Islamic television
Abdullah, is a young man in his early 30s, born station in Malaysia, provides Islamic-specific
and raised in the U.S10 and permissible content for Muslims and
non-Muslims under 40 years old. The network
↘↘ Saudi Arabian 3D animation film Bilal has also set up an online media platform,
had its international premiere at Cannes. Alhijrah Media, offering free and paid
The film tells the story of Bilal Ibn Rabah, on-demand Islamic media
the Ethiopian companion of the Prophet
Muhammad who converted to Islam. ↘↘ In the broader Halal Media and Recreation space,
Completed over three years with a budget of several key players are beginning to emerge:
$30 million, the movie is set for worldwide
release in September 2016.11 ↘↘ Kamala Khan, aka Ms. Marvel, a Muslim
superhero Marvel introduced in 2013 that
went on to be an international bestseller
Current and emerging leaders in the according to the publisher, launched an English
Halal Media and Recreation industry and Arabic version in the Middle East through
Al Ahli Publishing and Distribution (APD)14
Established brands are benefiting from operational
economies of scale and scope particularly on ↘↘ MuslimGirl, a leading online publication for
traditional media platforms like TV: Muslim women in the U.S., recently teamed up
with Teen Vogue, a version of Vogue magazine
↘↘ While Peace TV has a formidable force among for teenage girls, to bring to the public what
Islamic-themed TV channels, the emergence life is like for a Muslim girl in today’s society.
of channels Al Hijarah and Alchemiya is driving MuslimGirl.net was launched by Amani
diversification in the genres, going beyond Al-Khatahtbeh to counter negative media
traditional religious lectures: coverage of Islam with positive coverage of
Muslims and their lifestyle. The publication
↘↘ Peace TV is a nonprofit Mumbai-based global is part of a campaign drive to become
Islamic channel launched in 2006. Founded the first mainstream media network by
by Dr. Zakir Naik, its programs feature famous and for Muslim women15
scholars and orators on Islam. The channel
broadcasts 24 hours a day, seven days a week. ↘↘ Awakening Publication, the publication division
According to the UK’s Charity Commission, of Awakening Records, released The Productive
the foundation raised about £1.16 million Muslim book, providing a practical framework that
($1.51 million) in 201412 helps urban Muslims lead a productive lifestyle.
Mohamed Faris, founder of ProductiveMuslim.
com, joins other acclaimed authors such as Tariq
Ramadan and Peter Sanders in the Awakening
Publication’s roster.16
9 “Mokhtar film competition continues with theme of ‘Tell us about Prophet
Muhammad’”, Daily Sabah, October 2015.
10 “The ticket: Flying high”, Dawn, March 2015. 13 http://www.salaamgateway.com/ar/media-recreation/story/interviewaudiences_
want_more_travel_and_childrens_programmes__alchemiya_founder-
11 “Saudi animated film Bilal screens at Cannes”, Ahramonline, May 2016. salaam16092015074812/, accessed on 8 August 2016.
12 The channel has also extended its reach to the Chinese market, with Peace 14 “Al Ahli Publishing and Distribution launches Ms. Marvel, first ever Muslim
TV offering programs in Mandarin and other programs dubbed into English and superhero”, Al Ahli Holding Group, June 2015.
telecast free-to-air. The Channel will feature many famous native Muslims such
as Ma Zi Long, Li Shan Mu and Zhang Wei Zhen. The network also ventured into 15 “How This 23-Year-Old Is Busting Negative Myths About Muslim Women and
the telecom domain with the launch of Peace Mobile Phone, claiming to be the Dominating the Internet”, Teen Vogue, August 2015.
“world’s only authentic Islamic Android Smartphone” complete with religious 16 Productive Muslim Book website, http://www.productivemuslimbook.com/
app, games, and books according to the network. resources/, accessed on 8 August 2016.

↘↘ Digital services addressing the Islamic lifestyle musical group from the U.S. Native Deen’s
are beginning to diversify their offerings to music combines hip-hop and R&B styles with
appeal to Muslims globally: lyrical themes grounded in Islam20
↘↘ ProductiveMuslim, an online platform ↘↘ Ramadan Legacy, the world’s first fully

that aims to boost productivity amongst featured app for Ramadan released in June
Muslims around the world, saw its website 2015, launched its 2016 crowdfunding
traffic increased fivefold after it ran a special campaign The #Legacy Campaign. Shahbaz
“Productive Ramadan” campaign starting 30 Mirza, founder of Ramadan Legacy, an app that
days before the fasting month. The startup, helps the faithful track and remember their
which debuted as a blog in 2007, has now Ramadan experience, is planning to launch a
scaled up to become a media/training company series of lifestyle apps that cater to Muslims
that offers online classes and courses17 particular daily needs21
↘↘ Muslim Pro, the most downloaded and ↘↘ Muslim superhero Buraaq creators Adil and
reviewed Islamic app in the world, with over 10 Kamil Imtiaz used a crow funding campaign to
million downloads, rises in popularity. Heavy generate $65,000 for the animated Buraaq
on advertising and monetization, it has proven movie “Pitch Book”.22
to be the most profitable Muslim app in the
world according to trade analysts. Translated ↘↘ The experience of digital apps such as Quran
into 15 languages, the app provides users Academy suggests a positive and engaged
with global qibla direction, prayer times, Quran role for accelerators to help support and refine
functions and much more.18 Digital Islamic concepts:
↘↘ Quran Academy, which seeks to help serious

Investment and finance and dedicated users to better meet their
Quran memorization goals, was accepted
↘↘ Islamic media companies have been able to into two highly competitive incubation
successfully leverage crowdfunding to fund programs, Start-Up Chile and Malaysia’s
their expansion needs: MaGIC Accelerator Program. The programs
helped Quran Academy learn and incorporate
↘↘ Alchemiya, the Muslim focused SVOD best practices along with securing financing
(subscription video on demand) platform, for their operations.23
secured double figure seed capital by
targeting ABC1s of the Muslim world on equity
crowdfunding platform Crowdcube. Alchemiya, Regulation and operations
which had initially set a figure of £60,000
($78,451), received an additional £59,00019 ↘↘ Peace TV and its founder Dr. Zakir Naik were
accused of promoting radical ideology following
↘↘ DEEN TV, the first 24/7 Halal online the terror attacks in Dhaka, Bangladesh in July
entertainment channel, is looking to raise 2016. The channel, banned in India since 2012, was
$150,000 for the development of its studio, restricted in Bangladesh, where both the channel
equipment and staff with an aim to offer better and its founder are extremely popular.24
and more varied programming. The webcaster
aims to raise $600,000, in the next two years.
DEEN TV is founded by Native Deen, an Islamic
20 Native Deen company website, http://nativedeen.com/, accessed on 8 August
2016.
17 http://www.salaamgateway.com/en/media-recreation/story/ramadan_review_ 21 “Islam means business: Meet the new generation of Muslim entrepreneurs”,
productivemuslim_website_traffic_jumps_fivefold-salaam28062016233756/, Management Today, April 2016.
accessed on 8 August 2016. 22 “The ticket: Flying high”, Dawn, March 2015.
18 “The 50 Most Innovative Global Muslim Startups 2016”, Ummah Wide, June 23 http://www.salaamgateway.com/en/digital/story/case_studyquran_academy_a_
2016. smart_way_to_memorize_the_quran__-salaam15052016052342/, accessed on 8
19 http://www.salaamgateway.com/ar/media-recreation/story/ August 2016.
interviewaudiences_want_more_travel_and_childrens_programmes__alchemiya_ 24 “Bangladesh probes ‘Peace Schools’ after ban on Naik’s Peace TV”, The Times of
founder-salaam16092015074812/, accessed on 8 August 2016. India, July 2016.
↘↘ Game Developers Conference 2016 discussed The founders’ vision is to reclaim the Muslim
Muslim representation in video games. A narrative: “We want to define our narrative,
conference panel comprised of Muslims working our stories, our perspectives and reclaim the
in the gaming industry emphasized that the voice of Muslims.” Qurtuba Publishing aims to
industry needs greater diversity to counter the be more than a publishing house by creating
negative, violent portrayal of Muslims in games platforms for issues that are pertinent to
today. The conference also appreciated positive the needs of contemporary Muslims and
representation of Muslims emerging in the gaming tackle important issues that are often not
world like Ubisoft‘s Assassin’s Creed’s Altair represented in mainstream media27
character. Likewise, a positive portrayal of a Muslim
character of Faridah Malik in Deus Ex: Human ↘↘ Muslim Ink, a magazine for Muslims in the
Revolution was appreciated.25 21st century, was launched with an aim to
address “the absence of genuine Muslim
voices in the media”. The publication’s
Innovation editorial team has extensive experience in
the mainstream media coupled with a strong
Several new product segments have emerged in the background in Islamic studies. Through
Halal Media and Recreation industry over the last its coverage the magazine will strive to
few years to address the unmet needs of Muslim improve the quality of life and faith without
consumers, primarily in non-OIC countries. compromising Islamic beliefs.28
↘↘ Mainstream publishing houses are encouraging ↘↘ Several new digital Islamic services
Muslim representation through characters and have been launched to aid Muslims in
themes, reaching out to Muslim and non-Muslim fulfilling their religious obligations and
readership interested in Islam: meet potential partners:
↘↘ Publishing giant Simon & Schuster launched ↘↘ Ramadan Legacy, the world’s first fully
Salaam Reads, the first imprint focusing on featured app for Ramadan launched in June
children’s and young adult books featuring 2015, released its 2016 crowdfunding
Muslim characters and experiences. The campaign called The #Legacy Campaign.
company plans to publish at least nine books a Shahbaz Mirza, founder of Ramadan Legacy, an
year with its first titles launching in 2017. The app that helps the faithful track and remember
four books that have already been acquired their Ramadan experience, is planning to
by the publisher are by first time authors, launch a series of lifestyle apps that cater to
including the British teen pop star Harris J’s Muslim’s particular daily needs29
“Salam Alaikum”. The publisher aims to target
both Muslim children as well as a larger non- ↘↘ IslamicTunes, a self-styled Halal
Muslim audience by providing entertaining and entertainment digital content marketplace,
enriching coverage of a wide range of cultural is aiming to tap into the significant demand
and religious traditions in Islam26 for spiritual music and Islamic-oriented
entertainment. The website claims to
↘↘ Thematic publications by new players, primarily attract 30,000 visitors per day offering
targeting a young Muslim demographic, have some 20,000 items in music content. The
been driven by a desire to chart a positive site also provides digital content for video,
narrative for Muslims: talks, movies and events30
↘↘ Three Somali-Canadian siblings opened

Qurtuba Publishing House, focusing on 27 “Somali Sisters Launch Qurtuba Publishing House in Ottawa”, Publishing
Perspectives, August 2015.
Muslim-interest titles, business and more. 28 Muslim Ink company website, https://www.muslimink.com/about, accessed on
8 August 2016.
29 “Islam means business: Meet the new generation of Muslim entrepreneurs”,
25 “Shooting the Arabs: How video games perpetuate Muslim stereotypes”, Management Today, April 2016.
Engadget, March 2016. 30 http://www.salaamgateway.com/en/media-recreation/story/
26 “Simon and Schuster Launches Muslim Imprint for Children’s Books”, Publishers Malaysia_pushing_music_up_the_charts_in_Islamic_Economy_ecosystem_-
Weekly, February 2016. SALAAM24032016030952/, accessed on 8 August 2016.

↘↘ New matchmaking apps and apps, educational resources and interactive
methods. Minder is dedicated to helping activities and seeks to make learning about
connect progressive, smart, fun and Islam the most enjoyable thing in a child’s life
interesting Muslims with each other. and be “Disney” for Muslim families33
Muzmatch is a new mobile app for
Muslims worldwide who are looking for ↘↘ 5Pillar Games, a new board game that seeks
their perfect spouse. Salaam Swipe is to bring families together and have fun learning
an interactive matching application that about Islam and recently hit major retail stores
wants to revolutionize the way Muslims around the world and was sold online, with
meet one another. Ishqr, formerly known as 90,000 copies sold.34
HipsterShaadi, is a space for young Muslims
to connect. Et3arraf brings traditional Saudi
courting online. Furthermore, speed dating
events have gone ‘Halal’ in Malaysia.31
↘↘ Dedicated Islamic Economy projects have seen a

considerable rise in the online sphere:
↘↘ IECON TV, the first crowd-based online

TV dedicated for Islamic Finance and Halal
sectors, was launched in the U.S. in 2015.
IECON TV disseminates information on the
rapidly growing Islamic Economy around the
world in video format.
↘↘ Al-Kanz, a French information website that

originally started as a blog dealing with news
on Islamic economics in France and globally, is
planning to launch an English version in 2016.32
↘↘ Salaam Gateway, the first and only online

platform for all Islamic Economy-related
industry intelligence, news, information,
and data is gaining popularity amongst
Islamic Economy professionals to keep
informed on the sector.
↘↘ Media and entertainment targeting Muslim

children is a relatively new genre — with a range
of media products and services — including
games and web-based interactive platforms:
↘↘ Muslim Kids TV, the first interactive Islamic

TV channel for children online, was launched
with an aim to bring together the best digital
content for children. The webcaster boasts
of hundreds of videos, computer games,
31 “Et3arraf brings traditional Saudi courting online”, Wamda, April 2016.
http://mediarecreation.salaamgateway.com/en/media-recreation/story/Speed_
dating_goes_halal_in_Muslimmajority_Malaysia-SALAAM06102015035613,
accessed on 8 August 2016. 33 Muslim Kids Guide company website, http://www.muslimkidsguide.com/mkg-
32 http://www.salaamgateway.com/en/media-recreation/story/case_studyalkanz_ chats-with-muslim-kids-tv/, accessed on 8 August 2016.
the_information_gateway_for_muslim_consumers-salaam08112015104818/, 34 “Entrepreneur seeks to develop Islamic-friendly games”, Saudi Gazette, April
accessed on 8 August 2016. 2016.
Key Challenges
Marketing and sales challenges
↘↘ The barriers to entry are extremely high in mainstream media platforms, in particular
television and cinema. Traditional media platforms focused on Islamic and ethical themes
are very few in number. Raising funds and sustaining operations prior to a break-even phase
can be an impediment to breaking into the sector.
↘↘ Apathy and a lack of community support restricts the ability of the Islamic media
genre to go beyond core religious content. Founders of Muslim Kids TV, a web based
operation aimed at Muslim children around the globe, have complained about the lack of
concern in the Muslim community about Islamic media for children. Children, the founders
claim, are “not even on the agenda”. Muslims should comprehend the positive effect that
media can have on building a better Muslim generation, inasmuch as there is a real danger
of exposing children to mainstream media that is counter to Muslim values.35
↘↘ There is a continued, global negative brand connotation with Islam due to the
numerous terrorist attacks over the last year, in particular in Europe and the U.S.
Recent research by the University of Cambridge has shown that mainstream media
reporting about Muslim communities is contributing to an atmosphere of rising hostility
toward Muslims in the UK and Europe.36
Financing, regulations and operational challenges
↘↘ Investors continue to have fairly limited confidence and appreciation of Halal Media
and Recreation, restricting fundraising options to high potential projects. Many
upcoming projects fail to secure funding compared to mainstream projects. The creators
of Muslim superhero Buraaq had to resort to a crowdfunding campaign after failing to
generate investor interest in their project.37
↘↘ There remains a high level of dependence on OIC government support to fund Islamic
media initiatives, in particular in the GCC, which can be hampered by fiscal pressures
following the decline in oil prices:
↘↘ The majority of funding in the GCC comes from government-backed initiatives such as
Twofour54’s SANAD Fund, Injaz at the Doha Film Institute, and the Arab Fund for Arts
and Culture.38 These funds have been able to fill the gap and support the film industry
in the region, which has been gaining momentum over the last five years. Most film
festivals also have government back, such as in Dubai, Abu Dhabi and Qatar
↘↘ Poor IP rights continues to impact profitability in most emerging markets, which in turn
limits innovation and entrepreneurship.
35 Muslim Kids Guide company website,

36 “Why the British media is responsible for the rise in Islamophobia in Britain”, Independent, April 2016.
37 Buraaq The Movie website, http://www.buraaqthemovie.com/blog/buraaq-the-movie-update, accessed on 8 August 2016.
38 “May the funds be with you”, Wamda, October 2015.

Opportunities
The Halal Media and Recreation industry is in a very early stage of growth with several high
potential segments that remain largely unaddressed across products and services.
Unaddressed Interactive
high potential
Unaddressed Children’s
Interactive Islamic-themed
content
high potential educational
Children’s competitions
Islamic-themed
genres
content content
educational competitions
genres
 content

Shariah-
Unaddressed
Social gaming compliant
Shariah-
digital service
Unaddressed
Social gaming advertising
compliant
digital service
 advertising

the Halal Media and Recreation industry.

Develop
Mainstream or Islamic-themed
Develop Acquire an
existing Media
Mainstream or content or
Islamic-themed existing
Acquire Islamic
an
sectorMedia
existing players a dedicated
content or channel
existing Islamic
sector players
 channel
a dedicated channel
 channel
Pursue
Private Acquire an substantial
Pursue
equity
Private existing player
Acquire an value creation
substantial
equity existing player opportunities
value creation
 opportunities



Existing opportunities within Halal Media and Recreation
Interactive Children’s Largely unaddressed Muslim demand:

educational content ↘ While there are ample Islamic-themed television channels with well-developed animated content, there is a
substantial need for interactive, character-based and educational program, that can replicate the success of popular
television programs such as Barney and Yo Gabba
↘ This gap prompted the development of Muslim Kid’s TV, but remains largely unaddressed by leading Islamic channels39
Potential:
↘ There is significant potential to introduce Islamic characters in mainstream children’s programs that appeal to
broader Muslim values, as well as to develop tailored values-based programs for Muslim children
Islamic-themed Largely unmet Muslim demand:

competitions ↘ There have been attempts at Islamic-themed competitive programs, replicating the format of popular programs such
as American Idol, evidenced by Egypt-based 4shbab, which seeks to provide the Islamic answer to MTV, with its own
competitive program “U-turn”, and with similar programs aired in Malaysia and Indonesia
↘ However, with few examples, this is an unaddressed format that could prove highly popular40
Potential:
↘ There is significant scope to introduce this format of program into popular Halal Media and Recreation channels and
to attract younger viewers who are seeking a more positive portrayal of Islam in the media
Social gaming Sub-segments with largely unaddressed Muslim demand:

↘ There is a substantial need for social gaming that connects Muslim’s online and that enables them to share similar
passions, going beyond blogs and discussion boards, covering areas such as travel and food — with Heaven’s Diner
and Virtual Traveler serving as good mainstream examples
Potential:
↘ This is an opportunity for existing app developers to develop a game based on Islamic values that can connect users
worldwide and foster positive engagement amongst the Ummah
Shariah-compliant Largely unaddressed Muslim demand:

advertising ↘ Shariah-compliant advertising is a relatively new concept, coined by Malaysia’s TV Al Hijarah, and involves the tailoring
of advertisements to Islamic values, including prohibiting alcohol or gambling, and adherence to modest clothing
requirements41
↘ While not a possibility on mainstream channels, in particular in non-OIC countries, a service that can tailor
advertisements to Muslim viewers has significant potential, as done by leading multinationals during Ramadan42
Potential:
↘ There is substantial scope for an advertising agency, or an online advertising platform, to help leading multinationals
develop advertisements that cater to Muslim values and that can be efficiently deployed on Islamic channels and
during Islamic-themed programs
↘ Such a move would also promote the growth of Islamic Economy companies and represents an attractive
convergence opportunity
39. Based on discussion with Michael Milo, Co-Founder of Muslim Kids TV.
40. Based on discussion with Michael Milo, Co-Founder of Muslim Kids TV. 42. http://www.salaamgateway.com/en/digital/story/muslim_ad_network_the_
41. Based on discussion with Salehudding Jumiri, Business Development Director, digital_gateway_to_muslim_consumers-salaam09032016055541/, accessed
Al Hijrah TV. on 8 August 2016.

Mainstream or Develop Islamic- Rationale:

Existing Media themed content or a ↘ Developing an Islamic program or dedicated channel will help media platforms build a
sector players dedicated channel viewing among Muslim viewers
↘ For instance, in the UK, the BBC has aired documentaries on Islam,43 and in India, Zee TV, the
leading media player, has launched Zee Salaam, a dedicated Islamic channel44
↘ Developing new genres, such as reality TV shows and comedy, will help attract Muslim
millennial viewers and drive niche advertising and marketing opportunities across the
Islamic Economy sectors
Acquire an existing Rationale:

Islamic channel ↘ Acquiring an existing channel will help capitalize and enhance production and distribution
for Islamic-themed content
↘ Identifying leading channels in OIC countries, helping mainstream players address a new
customer segment, as well as expanding geographic scope
Private equity Acquire an existing Rationale:

player ↘ Media is a core sector that is addressed by private equity firms, with Halal Media and
Recreation a high-growth, high potential genre
↘ Many media firms struggle to get the capital needed for expansion, and private equity will
help provide the capital and expertise needed
↘ With over 180 channels, there are substantial opportunities to acquire a leading channel, in
particular one that has a strong management team and a diverse production schedule

value creation ↘ Once a company is acquired there are substantial value creation opportunities to scale a
opportunities channel or media offering in terms of product segments and geography
↘ Private equity firms are well-positioned to enhance channel and media marketing efforts, as
well as exploring add-on acquisition opportunities and incubating new concepts
43. http://www.salaamgateway.com/en/media-recreation/story/ 44. http://www.salaamgateway.com/en/media-recreation/story/

overviewislamic_and_muslim_lifestyle_vod_and_tv_programming_in_the_uk- islamic_television_programming_gaining_share_in_indias_9_billion_market-
salaam19062016082048/, accessed on 8 August 2016. salaam09062016090912/, accessed on 8 August 2016.
Interview
Michael Milo
Co-Founder,
Muslim Kids TV (Canada)
There are multiple Halal Media and Although you started in Canada,
Recreation channels, but very few you have secured partnerships in
seem to be addressing children. Is Malaysia and are seeking to expand
Muslim Kids TV an early mover in internationally. How did you grow the
this segment, and how does it differ business internationally?
from existing offerings that provide We have secured international partners
content for children? in Malaysia and are also negotiating
Muslim Kids TV is an early mover. We differ with partners in the GCC, Indonesia and
from other Islamic children’s content Philippines. We have benefited greatly
providers as we focus on the delivery platform from the support of the Canadian Trade
and monetization of content through the Commission. They have facilitated meetings
platform. The most cost effective way for us with potential partners in each of these
to deliver content is through web and cloud, regions. For example, the Trade Commission
and through apps. This is the preferred way has referred us to the services of MDEC
children consume content rather than through (Malaysia Digital Economy Corporation).
television delivery. As a platform we are also MDEC has been amazing in facilitating
a content aggregator. We search out the best introductions to animation companies and
content producers around the world and bring we now have partnerships with nearly a
families meaningful content with universal and dozen Malaysian companies. Our current
Islamic-themed values. Our value proposition customer base is predominately in North
to parents is that Muslim Kids TV filters all America and the UK. We realize that to
this content and provides the peace of mind reach our growth targets we must also be in
that the children are in the safest digital Muslim majority markets. This has worked
environment. So we focus both on building our out very well as Muslim Kids TV is a unique
customer base as well as our relationships with offering in these countries as well. Having
content providers. With a platform we have a established the business in North America
stronger business model to ensure long term has been a benefit in a number of ways.
sustainability. We have studied successful Firstly, the IT infrastructure is extremely
Western children’s media companies and are stable and provides a world-class backbone
taking these best practices and applying them on which to run the platform. The start-up
to Muslim Kids TV. This includes business culture is mature here and provides models
models, content pedagogy, and production and guidance. The regulatory environment
practices. The platform will allow us to scale is also stringent, especially in Canada which
and introduce merchandising, e-commerce and provides discipline in the areas of compliance
integration in educational environments. and shareholder relations.

Interview
What is your vision for the countries have not yet begun to support the
company over the next five years, production of digital content that celebrates
and what do you envisage to Islamic history, culture and beliefs. The
be the next key steps? support of digital and motion picture media
Our vision is to be the premium digital is a key function of many Western ministries
platform for values-based Islamic-themed of culture which leads to sustainability of
programing for children. Our mantra is to be media and motion picture industries in these
the “Disney” for Muslim children. Our goal is to countries. What we understand from Muslim
be a household brand internationally and the majority markets is that investment is coming
go-to source for values-based and Islamic- from corporations, charitable organizations,
themed digital media for children. We are in and philanthropists and less from government.
our first series of equity financing. We expect There is increasing awareness of the potential
a number of rounds of financing over five of this sector, especially when investors
years. There are two key factors to grow the look at the successes of media companies
business — marketing and content. Capital in developed markets. That is why Muslim
will allow a broader marketing reach especially Kids TV has looked at the entire value and
online. We are also developing innovative supply chain with a specific focus on how to
marketing campaigns to reach directly to extract value. This is something missed by
children. This includes live entertainment many media start-ups. The area of start-up
events that bring our characters off the financing is also relatively new in Muslim
screen and in front of children to see, hear, countries. That said it is progressing forward
touch and interact. This direct contact with rapidly with many incubators appearing
end customers — children and families — is in almost every country. This is excellent
crucial to developing brand loyalty. We will news for start-ups.
continue to have an aggressive content
strategy. We have partnerships with over a What do you consider to be
dozen production companies and expect this major unmet needs of younger
to grow exponentially. We will be expanding Muslims in the Halal Media and
the platform to include apps, e-commerce Recreation segment?
and merchandizing. Strategic partnerships We see the major unmet need in two
will remain key to reaching growth targets in areas — entertainment and education.
markets in a variety of priority regions. When a comparison is done with the output
of Western and Asian markets in these
What in your view remains as the two areas, it is clear that Halal Media and
major operational and regulatory Recreation output is virtually non-existent.
challenges faced by the industry Every day tens of thousands of products
overall, and to what extent do these are released in Western and Asian markets
affect your company as well? including children and youth books, videos,
In Western broadcast markets financing animations, apps and games. Digital
for content comes from multiple sources educational resources are also widely
including equity partners; government abundant and efforts are being made to
programs and non-profit cultural agencies transform educational environments to
and foundations. Government support for the completely digital spaces. In the past it
motion picture and digital media industry in has been far easier for traditional media
most Muslim majority markets is almost non- outlets in Muslim markets to acquire content
existent. When it does take place it has a very from outside these markets. Today Muslim
positive impact. An example being Malaysia. consumers are demanding content reflective
They are now the leader among Muslim of Islamic heritage, culture and beliefs to
majority countries providing content in all pass on to children and youth. This offers
markets. To our knowledge the Ministries of an amazing opportunity as there is such a
Culture and Islamic Affairs in Muslim majority large unmet demand.
Interview
Bilal Memon
CEO and Founder,
Quran Academy (U.S.)
What major developments are revenues faster than other products. Most
you noticing among Digital Islamic apps have a very small team, mostly of
Islamic Apps and how does this engineers and not product or growth guys. We
impact Quran Academy? have these folks with specialized skillsets and
I think you are starting to see Islamic Apps are able to make product changes and major
trying really hard to engage communities, build decisions to positively impact growth faster
market places, and tap into habit building. You than other Islamic products and services.
have many Islamic apps in both the Play & App
stores but unfortunately, the majority are just How would you compare the
copycats of the more prominent apps and lack growth of Digital Islamic services
real innovation. You have an app like Muslim to the broader Halal Media and
Pro which undoubtedly is the most profitable Recreation industry?
Islamic app in the market, and it’s done by far I am seeing more Digital Islamic services
the best job with its digital marketing efforts. startups, in the past three to four years in
It’s built such a solid platform to cater to all particular. You have several Islamic-themed
of your spiritual needs. I’m starting to see companies such as Al Maghrib Institute
that Islamic Apps are trying to invest in digital who are doing incredibly well Masha’Allah. I
marketing but are really limiting themselves would say that Halal Media and Recreation
in the sense that they are utilizing one or two companies are more profitable and
digital channels to market their products successful currently than the Digital Islamic
and services. They are generally investing services companies, with an exception being
in Facebook ads which can lead to higher Bayyinah, which is probably more profitable
acquisition costs than other more affordable than any major media company. A lot of
and effective channels. Additionally, most media companies are more focused on a
Islamic apps don’t take a data driven approach content play and with information product
to making decisions which significantly launches. Whereas other companies such
stunts their growth and learning. The reality as Bayyinah and Productive Muslim have
is that you don’t know what will work and shifted towards both information product
what won’t work until and unless you run launches as well as Software as a Service
weekly growth experiments in the following (SaaS) models. At the moment, even though
avenues: acquisition, activation, retention, the media companies still have the biggest
revenue, and referral; it’s really hard to grow. I market share, I am foreseeing that those
think Insha’Allah we are on the right track for companies that converge on both info
Quran Academy. We have a lot of expertise in product and SaaS are starting to not only
product, growth and marketing which I think gain significant momentum, but will have
gives us a unique opportunity to scale and get stronger market share as well.

Interview
Quran Academy has become an even the average, busy Muslim can pursue his
international offering, with a or her Quran memorization goals without being
strong user base in Malaysia, and constrained by a classroom timetable or the
with a new offering, the Quran costs of commuting to class, as well as being
Companion addressing a broader a significantly cheaper alternative to enrolling
segment of learners. How did you in an Islamic school or engaging a personal
expand the business? Quran teacher. We launched Quran Companion
At first we built our iPad App, Quran Academy, in May 2016 (in the Play Store) and in Aug.
which is catered more towards those people 2016, we launched our iOS App. Alhumdulillah,
that have memorized longer portions of the we’ve received a very positive response for
Quran, such as at schools or madrasahs Quran Companion and we have major plans to
(Islamic school). These customers have a take it to the next level.
higher lifetime value than others and so we
developed a product catering to their needs What is Quran Companion’s vision for
and preferences. However, the majority of the the next five years, and what do you
market is the common Muslim who has maybe envisage to be the next key steps?
memorized four to five Surahs (a chapter in The reception for Quran Companion (QC) has
the Quran) and would love to memorize some so far been encouraging with high interest
of the longer and more famous Surahs such expressed from users around the world. Within
as Al Mulk, and Yaseen. We then decided to just the first two and a half months of launch,
create a second product, Quran Companion Muslims from 109 countries have downloaded
(QC), that’s more for the masses. For the QC to benefit from the Quran memorization
first time now, Muslims around the world journey at their fingertips. In the future, Quran
can connect with one another to pursue a Academy also plans to expand its services
common Quran memorization goal together through value-added programs and courses
through gamification technology. This that supplement the usage of QC in addition
breaks down borders and allows Muslims to launching training seminars and Quran
from anywhere to connect with each other, memorization competitions. Additionally, in
support each other, and race with each other our product roadmap, we have several games
towards performing good deeds -- just as Allah we’d like to launch to make memorization even
has commanded Muslims to do and as the more enjoyable Insha’Allah. Finally, we’ll be
Prophet’s (PBUH) companions had done. QC’s taking advantage of data science and machine
technology also makes Quran memorization learning to personalize each individual’s
more accessible to the masses. Previously, memorization journey and experience.
Quran memorization was mostly limited
to those who could commit a significant What are the major unmet needs
amount of time and money to study at either of Muslim consumers in the Halal
a madrasah) or with a personal Quran teacher. Media and Recreation industry?
This resulted in a trend where primarily It is offering services in other languages
only children, retired people or scholars besides English. There’s significant
would have the time to commit to intensive opportunity for the media companies to
Quran memorization classes. QC’s learning expand their operations overseas in countries
technology and social support through the with large Muslim populations who don’t speak
smartphone has the potential to shift this English. We do plan on adapting our App UI and
limiting trend in Muslim societies. With QC, other programs/courses to other languages.
Interview
Peter Gould
CEO,
Peter-Gould.Com
Islam-inspired media seems in today’s climate are conscious of building

to be taking on a life of its own, positive Muslim identities for their children and
in particular, with a raft of new are wanting to introduce faith to their families
creative brands, designer products in soft, fun, enjoyable experiences. Creative
and even comic book characters. brands such as Noor Kids, Faatimah & Ahmed,
What major innovation trends have Ilyas & Duck, Salam Sisters, Bismillah Babies,
observed in the space? Jannah Jewels, and products such as My First
We’re witnessing an exciting flourish of Wudu Bathtime Book, 5Pillars Board Game, are
innovation with many new design-driven among many others. Even mainstream projects
brands and creative projects rapidly emerging such as “It’s Ramadan Curious George”, the
in this space. In the last couple of years alone hugely successful Ms Marvel comic and
we’ve had many promising Muslim-centric Sesame Street’s new Afghan character reflect
media sites, startups and creative content important changes in the global conversation.
being launched to the reflect the changing Inspired by this proliferation of niche-based
expectations of Muslim audiences. A trend products & creative content, I felt that there
I’ve noticed is that we now have much more was a need for platforms to serve each
quality niche content for different Muslim community. I wanted a way for creators in each
audiences. These ‘tribes’ range from new space to connect with each other, inspire
parents, to teenagers, gamers, converts, great work and of course share their ideas and
tech geeks, newlyweds, artists, pop culture products to global audiences. This led to the
junkies, fitness freaks and more. These may be creation of 5 independent sites — Muslim Kids
further segmented into countries and regions, Guide, Muslim Gift Guide, Creative Ummah,
where there are opportunities for creative MuslimLOL, and Geeky Muslim (collectively
content and products to be purpose-built called Gould.Community). This differentiation
with a cultural, as well as Islamic, awareness. is one that I don’t often see in online media
At all levels, they are expecting more unique platforms, which tend to provide content
content created with them in mind, or are on almost every topic. Since launching in
creating it themselves. One clear example January this year Alhumdulilah we’ve had
is looking at the rapid growth of kids’ books, helped many entrepreneurs discover new
products, apps, games & toys primarily created audiences and connect a new generation of
by and for English-speaking Muslims living Muslim consumers with quality, curated brands,
in non-Muslim communities. Many parents products & experiences.

Interview
How important is design and the work. Our aim with Islam Imagined is to
creativity generally in Halal Media introduce Muslim children to the world of
and Recreation, and modern brands? design and technology, and spark their learning
How have you sought to address this and imagination. Creativity, design, innovation
with Creative Ummah and Islam & entrepreneurship are the tools our global
Imagined, and what are your plans community desperately needs to embrace.
for both going forward? Islam Imagined is my personal effort to inspire
Design and creative professions have and motivate young people around the Ummah
been undervalued by Muslim communities, to think positively and optimistically about
organizations and brands for some time, which the future, and encourage them to proactively
has far reaching consequences in our highly create the future they want. Both of these
branded world. Recently however I’m seeing projects are committed to nurturing a culture
a positive change in mindset and am feeling of thinking innovatively and creatively so
very optimistic about the road ahead. Investing that we may, as a community, solve complex
in the people, projects and institutions who problems while bringing some more beauty
champion a deeper level of design, creativity, into the world. While it may not be possible
artistry, innovation and fresh thinking in Muslim to outshine creative masters from our past,
organizations will have a significant impact and we can certainly honor our creative legacy in
influence at all levels of society. They uniquely the language of today.
have the ability to disrupt ugliness in the world
by shaping conversation and introducing a We’d like to learn more about your
narrative of positivity, hope and beauty. While involvement in the Zileej brand. What
there is still an abundance of brands that do gaps in the market is the company
not place high priority on design, creativity or trying to address, and what do you
innovation, there is a growing minority that envisage going forward?
recognize it is fast becoming essential for Zileej is a major new focus and I’m very excited
their business success. Over the next five to be a co-founder. We have been working
years this transition will become more and on the concept quietly for the past year and
more apparent as Design-driven brands start almost at a stage we can present our detailed
to shine and achieve global recognition. For plans more publicly. Building on the success of
example, brands that embrace Design Thinking his 5Pillars Board Game, selling over 100,000
and understand the importance of User copies since launch, CEO Ansarullah Ridwan
Experience design can expect a huge strategic Mohammad & our team have established an
advantage in the same way mainstream brands ambitious vision for the new company. The
such as Apple, Uber and Tesla achieve success Zileej brand will be built on innovative and
by designing their end-to-end customer exciting design-led products and creative
journeys & experiences. We launched Creative lifestyle experiences for Muslims. It will be
Ummah as a platform to showcase those a global brand, but we are focusing on the
inspirational people driving positive change MENA region first, with our new creative team
in the global community and who illuminate based in Dubai. Our initial two core product
our world with beauty, creativity, artistry and ranges are in prototyping stage and related
fresh perspectives. One brilliant creative we to faith-inspired fun & learning (think toys &
have featured on Creative Ummah includes games) and spiritual self-improvement (think
the deeply inspiring work of el Seed. His wearable technology). The projects address
recent project “Perception” saw his signature several gaps in the Islamic Economy around
Calligraffiti style mural spanning 50 buildings innovative tech-based products experiences
in the Manshuyat Nasr neighborhood in Cairo, for increasingly sophisticated Muslim
which brought attention to unconscious audiences. My hope is that Zileej will become
bias based on stereotypes that society can a globally known and loved brand associated
subject marginalized communities to. This is with beautiful, innovative, high-quality products
an example of creativity and art going beyond and experiences that inspire positivity and
the use of Arabic letters, rather it displays creativity with a deep sense of purpose,
a meaningful motivation and message to inshAllah. Watch this space!
Halal Pharmaceuticals and Cosmetics Sector
Halal Pharmaceuticals and
Cosmetics Sector
From its very origins, Islam has sought to encourage human beings to live a holistic way of
life. A life where the individual sees their body and mind as a trust placed upon them by God.
Historically, to honor that trust has been of the utmost concern to Muslims. It is why medicine
was a central part of medieval Islamic culture and gave rise to such titans as Muhammad ibn
Zakariya al-Razi and Al-Biruni.
However, a period of significant advancement within the sciences led by Muslims is by no means
exclusive to the medieval period. Even today, there is much innovation by Muslims within this
field, especially when it comes to Halal certified pharmaceuticals products. Innovation that is
fueled by increasing demand. This Report estimates Muslim spending on pharmaceuticals to
be $78 billion in 2015, 7 percent of global expenditure, and the Muslim spend on cosmetics is
estimated at $56 billion in 2015 , also 7 percent of global expenditure.
The amount of new product development is just one example of how much traction this
sector is gaining. Within pharmaceuticals, there has been an ongoing push for Halal-
certified vaccines. A Malaysian and Saudi Arabian consortium working on developing a
Halal vaccine are waiting to launch their product as soon as the world’s first Halal vaccine
facility becomes operational in 2018.
In the cosmetics sector, Halal nail polish is a product many companies are seeking to develop.
The Saudi Arabia based BCI Group launched its Halal certified H nail polish line in 2014, as did
Greece-based Safe ‘N’ Beautiful. The UK’s Nails Inc. launched a Halal friendly line in 2015.
Challenges have come in the form of backlash against Halal products, hindering Halal
certification by multinationals and limiting marketing possibilities. As with other sectors, there
are funding challenges, as Halal manufacturers are in significant need of resources to compete
with global manufacturers with sizeable marketing budgets.
Beyond challenges, the landscape is changing. The lifting of sanctions on Iran means that the
country of 79 million people is set to become a major global player in this sector. The country’s
current pharmaceutical market is estimated to be worth $2.35 billion while in cosmetics Iran is
the second largest market in the Middle East, valued at an estimated $4 billion.
With further innovations occurring in this sector in areas such as skincare, fragrance and
nutraceuticals, this Report estimates Muslim spending on pharmaceuticals to reach $132 billion
and the spending on cosmetics to reach $81 billion by 2021.
HALAL PHARMACEUTICALS
BEN C HMA R K M AR K E T S I ZE 1
How does Muslim spend compare How much do Muslims
to total global spend? spend on pharmaceutical
(2015, US$ Bn) products?
2015
$371 Bn $114 Bn $109 Bn $78 Bn $62 Bn $44 Bn

United States Japan China Existing Muslim Germany France
Market*
[4 page spread as per previous *6.6% of Global

years to be designed by Haroon
2021 Expenditure
and Usama in conjunction with
34%
Rafi/ Maruf/ Yasir ] $132 Bn
Muslim pharmacuetical Projected Market Size
market in Non-OIC2 9.3% CAGR Growth
countries
66%
Muslim spend on pharmaceutical
products in OIC countries
THE HA L A L P H A R M ACE U T I CA LS & COS ME T I CS I N D I CATOR

Which countries have the best
developed ecosystem for
producing Halal 6 Jordan
Egypt 4
pharmaceutical and 7 5 Pakistan
cosmetics products? Saudi Arabia 9 Oman
Singapore 3 q Brunei
1 Malaysia 2 8
United Indonesia
*CRITERIA (From a total of 73 select countries) Arab Emirates
Trade: Pharma & Cosmetics exports to OIC relative to country size
Governace: Regulation/ Certification requ
Awareness: Media/Events
Social: Pharma & Cosmetics Pricing Index
Selected Ingredients Pharmaceutical products Cosmetics products Distribution

DSM (Switzerland) Pfizer (U.S.) Wardah (Indonesia) Noorain (B2C, Malaysia)
key players Symrise (Germany) AJ Pharma (UAE) Ivy Beauty Corporation Zilzar (B2B, Malaysia)
Givaudan (Switzerland) Julphar (UAE) (Malaysia) Aladdin Street (B2B,
Halalgel (Malaysia) Noor Vitamins (U.S.) Pure Halal Beauty (UK) Malaysia)
Suci Harumatiques (Malaysia) CCM Berhad (Malaysia) One Pure (UAE) Dagang Halal (B2B, Malaysia)

Which countries export $5,086 T RAD E BY OI C COU N T R I E S 3
the most pharmaceutical France Pharmaceutical

products to OIC manufacturing trade value by
countries? (2015, US$ Mn) OIC* member countries
$495 Bn $514 Bn
Global Exports Global Imports
$4 Bn $33 Bn
OIC Exports OIC Imports
$4,258 $3,391 $2,664 $2,048 $1,859 (0.8% of global (6.4% of global
Germany Switzerland USA Belgium India exports) imports)
* Only for pharmaceutical manufacturing sectors (2015, US$ Bn)
TOP MA R KETS
Issues and opportunities map
Top Muslim consumer Products
& Markets
pharmaceutical Medical
expenditure markets tourism
Consumer needs
Halal pharma  and ecosystem
Turkey $9.1 B2B and retail
ecommerce
Saudi Arabia $6.7 Low
 consumer
United States $6.3 Labelling and
awareness and
certification
trust issues
Indonesia $5.0
 
Algeria $3.6 Emerging Limited
exporters distribution
Russia $2.8
Iran $2.7  Halal 

ingredients Accreditation
Germany $2.5 manufacturers roll-out
France $2.4  Religious 

Halal rulings regarding
Pakistan $2.4 neutraceuticals porcine
gelatin
(2015 est., US$ Bn)  Few 
multinationals Lack of vaccine
investing certification
Halal pharma Testing

 
government and detection
support (certain advancement
countries)
 
Lack of
$33 Bn
standardization
Pharmaceutical imports by OIC R&D 

countries (6.4% of global imports) and overhead
costs high
$29 Bn 
Policies,
Regulations
Pharmaceutical trade deficit & Investment
Financing
by OIC countries
in 2015
1
Expenditure data based on various National Statistics Agencies/ Pharama Industry Associations and UN Comtrade Data, DinarStandard Muslim market
estimates & analysis; Sector correlated IMF Outlook Oct 2014 Database for projections. See Report for full methodology
2
OIC: Organization of Islamic Cooperation — 57 member countries.
3
International Trade Centre Trademap Statistics.
HALAL COSMETICS
BEN C HMA R K M AR K E T S I ZE 1
How does Muslim spend compare How much do Muslims
to total global spend? spend on cosmetics
(2015, US$ Bn) products?
2015
$84 Bn $80 Bn $63 Bn $56 Bn $46 Bn $40 Bn

United States Japan China India Germany
Existing Muslim
Market*
*7.4% of Global
2021
Expenditure
$81 Bn
Projected Market Size
6.5% CAGR Growth
Which countries export the most

personal-care and cosmetics
products to OIC countries?
(2014, US$ Mn) 5
$668
UK
4 2
$800 $978
Ireland Germany
3
$837
USA 1
$2,210 Mn 7
France
$580 6
Italy $654
China
q
$483 8
Spain $578
India
9
$570
UAE
1
Expenditure data from national industry associations, national statistics agencies, Eurostats and DinarStandard Analysis, DinarStandard Muslim market
estimates & analysis; Sector correlated IMF Outlook Oct 2014 Database for projections. See Report for full methodology.

Global Personal care
/cosmetic segment
breakdown
20% 10% 23%
Hair Care Fragrance Other (toothpaste,
deodorants, sunscreens,
other personal care products)
27% 20%
Skin Care Make-up
Source: ChemistCorner
http://chemistscorner.com/a-cosmetic-market-overview-for-cosmetic-chemists/
TOP MA R KETS
Top Muslim consumer cosmetics
expenditure markets
India $4.7
Russia $3.5
Indonesia $3.3
$12.7 Bn
Turkey $3.1 Personal care/cosmetics imports by
OIC countries (12.1% of global
Malaysia $2.8
imports)
$9.4 Bn
Bangladesh $2.5
Iraq $2.0
Personal care/cosmetics trade
Kazakhstan $1.9 deficit by OIC countries
France $1.7
in 2015
Iran $1.6
(2015 est., US$ Bn)
Cosmetics trade value by OIC*

member countries
(2015, US$ Bn) 40%
Muslim cosmetics
market in Non-OIC*
$107.5 Bn countries
Global Exports
$3.4 Bn $105 Bn
Global Imports
OIC Exports
(3.2% of global
$12.7 Bn
exports)
OIC Imports $34 Bn $22 Bn
(12.1% of global Muslim Spending from Muslim Spending from
imports) OIC Market Non OIC Market
* Only for Essential oils, perfumes, cosmetics, toileteries manufacturing *OIC: Organization of Islamic Cooperation — 57 member countries
Cosmetics Indicator
The 2016 State of the Global Islamic Economy Report introduces the Halal Pharmaceuticals
and Cosmetics Indicator to evaluate countries’ health and development of their Halal
Pharmaceuticals and Cosmetics ecosystem. This indicator is part of the aggregate Global
Islamic Economy (GIE) indicator. The indicator does not focus on the overall size and growth
trajectory of a country in the sector; instead it evaluates them on relative strengths of the
ecosystem they have for the development of the sector.
The United Arab Emirates, Singapore and Bahrain lead this year’s Halal Media and Recreation
Indicator ranking that focuses on the health of the family-friendly/Halal media and recreation
ecosystem a country has relative to its size, including its related social considerations.
The indicator equally weighs four metric categories and has the following metrics for each:
↘↘ Supply drivers relative to country size (pharmaceutical exports to OIC countries)
↘↘ Governance (Halal regulations and certification requirements)
↘↘ Awareness (number of news articles and events)
↘↘ Social (Pharmaceuticals and Cosmetics pricing indexes)
Below are the top 10 countries in the Halal Pharmaceuticals and Cosmetics indicator.
TO P 1 0
Halal Pharmaceuticals
and Cosmetics
UAE 78
Malaysia 61
Singapore 56
Egypt 53
Pakistan 52
Jordan 49
Saudi Arabia 48
Indonesia 41
Oman 40
Brunei 39

Halal
Sector Pharmaceutical Awareness
Pharmaceuticals Governance Social Score GIE Ranking
Score Exports to OIC Score
and Cosmetics
Malaysia 61 9 100 89 46 1
Singapore 56 110 83 4 26 11
Egypt 53 30 100 2 78 16
Pakistan 52 3 100 17 88 6
Jordan 49 52 67 18 59 9
Saudi Arabia 48 37 100 14 42 4
Indonesia 41 5 100 10 48 10
Oman 40 7 100 6 48 5
Brunei 39 0 100 20 38 12
United Arab Emirates (UAE) Singapore
The UAE occupies 1st place in the rankings, mainly Singapore occupies 3rd place in the rankings, due mostly
driven by a high level of pharmaceutical exports to its high volume of exports to OIC countries, as well as
to OIC countries, relative to its size, in addition to a respectable social score.
high regulatory and certificatory requirements for
pharmaceuticals and cosmetics.
Malaysia
Malaysia occupies 2nd place in the rankings, mainly

driven by strong awareness and governance scores,
as would be expected given its experience in
certification. The country’s exports however are low
relative to other players.
Cosmetics Market Sizing
Pharmaceuticals Market size and profile — $78 billion market in

2015 (7 percent of global expenditure)
This report estimates global Muslim spending on pharmaceuticals to be $78 billion in 2015, 7
percent of global expenditure of $1.2 trillion. This is a growth of 4.2 percent from the previous
year, slightly lower than the global market growth rate of 5.3 percent. Muslim spend on
pharmaceuticals is expected to reach $132 billion by 2021, a CAGR of 9 percent from 2015.
The Muslim market for pharmaceuticals ranked fourth globally, behind the United States
($372 billion), Japan ($114 billion), and China ($109 billion). The top 10 Muslim markets with
pharmaceuticals expenditure were Turkey ($9.1 billion), Saudi Arabia ($6.7 billion), the United
States ($6.3 billion), Indonesia ($5 billion), Algeria ($3.6 billion) and Russia ($2.8). Germany and
France, countries with Muslim minorities, ranked eighth and ninth on the list, spending $2.5 and
$2.4 billion on pharmaceuticals, respectively.
Cosmetics market size and profile — $56 billion market in 2015

(7 percent of global expenditure)
This report estimates global Muslim spending on cosmetics to be $56 billion in 2015, 7 percent
of global expenditure of $750 billion. This is a growth of 4 percent from the previous year, and
is higher than the global market growth rate of 2.4 percent. Muslim spend on cosmetics is
expected to reach $81 billion by 2021, a CAGR of 7 percent from 2015.
The Muslim market for cosmetics ranked fourth globally, behind the United States ($84
billion), Japan ($80 billion), and China ($63 billion). The top ten Muslim markets with cosmetics
expenditure were India ($4.7 billion), Russia ($3.5 billion), Indonesia ($3.3 billion), Turkey ($3.1
billion), Malaysia ($2.8 billion), and Bangladesh ($2.5 billion).

A saleswoman from Wardah cosmetics, an

Indonesian brand specialising in products for
Muslim women, attends to a customer at a sales
booth in a mall in Jakarta, Indonesia. REUTERS/
BEAWIHARTA
Consumer Sentiment
Approach
Earlier in the Report, aggregated insights from millennials (18-35 age group) using social
media listening based research was introduced. Here we present specific insights from
millennials social media interactions on Halal Pharmaceuticals and Cosmetics sectors.
(Note: social media research methodology is described in the beginning section, “Millennial
Consumer Insights — Social Data Analysis Interactions” on page 17.) A total of 27,500 Halal
Pharmaceuticals and Cosmetics related Facebook ‘posts and ‘comments’ from the millennial
age group are analyzed here.
In aggregate, the top countries where millennials were engaged with Halal Pharmaceuticals
and Cosmetics sector topics were Malaysia (8.1k), Indonesia (7.8k interactions.) and
Philippines (4.3k). This shows the high level of awareness and interaction around Halal
Pharmaceuticals and Cosmetics. Other countries with some interactions included USA,
Pakistan, Singapore and the UK.
Volume of millennial interactions on Halal

Pharmaceuticals and Cosmetics by country
Country Number of Interactions
Malaysia 8.1K
Indonesia 7.8K
Philippines 4.3K
United States 500
Pakistan 200
Singapore 200
United Kingdom 100
Sentiment analysis
language ones only.) From the interactions that were able to be analyzed for sentiment
across Halal Pharmaceuticals and Cosmetics interactions, an overwhelming 91 percent
of millennial interactions were with positive sentiment, 6 percent were negative, and 4
percent were neutral. Across all Islamic Economy sectors this sector had the most positive
interactions by millennials.
Note: Analysis of detailed interactions were not available for Pharmaceuticals and cosmetics

Pharmaceuticals and Cosmetics
From across the pharmaceuticals and cosmetics related interactions
interactions captured, the most common terms
and hashtags were #projekstg, Halal, #elitkingdom, Negative
6%
glutathione, melanin, dietary supplement.
Neutral
Projekstg and #elitkingdom are related to a part- 4%
time business program in Malaysia related herbal
medicine and other products.
Aggregate of all sectors keywords

and hashtags
Positive
91%
Keywords & Hashtags
#projekstg 2.2K
Halal 2K
and hashtags
Food and Drug Administration 1K #projekstg
#elitkingdom 1.4K
Glutathione 1.3K Halal

Melanin 800
Switzerland 800 #elitkingdom
Dietary supplement 800 Glutathione

#winkwhite 800 Food and Drug
Administration
#pancea 800
#glutapancea 800
Melanin
#cozumacccream 700 Switzerland

Vitamin C 500 Dietary supplement
#meroketrm1000seminggu 500
#winkwhite
Muslim 400
#pancea
Viber 300
Antioxidant 300 #glutapancea

#greatapprenticeempire 300 #cozumacccream
#wemakeithappen 300
Vitamin C
#themagicofparttime 300 #meroketrm1000
#halal 300 seminggu
Muslim
Viber
Antioxidant
Gender profile #greatapprenticeempire
#wemakeithappen
Millennial women (20.1k/ 73 percent) dominate the #themagicofparttime
millennial interactions around pharmaceuticals and #halal
cosmetics with men representing 15 percent only
(4.1k). Also all top hashtags were majority women, with
only the topic ‘Muslim’ being all men. Facebook keywords Facebook hashtags
Select key players

Mainstream Companies Islamic/ Halal Companies
addressing Halal
Ingredients Manufacturing DSM (Switzerland) Halalgel (Malaysia)
Symrise (Germany) Suci Harumatiques (Malaysia)
Givaudan (Switzerland)
Pharmaceutical Nutraceuticals Abbott Nutrition (U.S.) Noor Vitamins (U.S.)

products
Nestle (Switzerland)
Vaccines and med- Pfizer (U.S.) CCM Berhad (Malaysia)

icines
AJ Pharma (UAE) Kalbe Pharma (Indonesia)
Julphar (UAE)
Cosmetics products Manufacturing 4LifeResearch (U.S.) Wardah (Indonesia)
Ivy Beauty Corporation (Malaysia)
Pure Halal Beauty (UK)
One Pure (UAE)
Distribution Retail CVS Pharmacy (U.S.) Geo pharmacies (U.S.)
Online Alibaba (B2B, China) Noorain (B2C, Malaysia)
Amazon (B2B, U.S.) Zilzar (B2B, Malaysia)
Aladdin Street (B2B, Malaysia)
Dagang Halal (B2B, Malaysia)
High growth segments regional market for nutraceuticals, including in

the Halal segment, followed by Asia Pacific2
↘↘ Pharmaceuticals. Halal Nutraceuticals are a
rapidly emerging Muslim consumer segment, ↘↘ There are a number of players emerging globally
incorporating nutritionally enhanced products: that are focused on Halal nutraceuticals
including U.S.-based Noor Vitamins, Madina
↘↘ Many leading nutraceuticals ingredients Vitamins and Rxtra Solutions, the Netherlands-
companies have secured Halal certification, based HalalVital, and the UK’s Natures Well.
including Abbott, Nestle, Archer Daniels Sanofi’s Australian subsidiary Ostelin produces
Midland Company, Groupe Danone S.A., BASF Halal certified vitamins.
SE, and Royal DSM N.V.1
↘↘ Halal Pharmaceuticals and Cosmetics.
↘↘ The Halal segment is growing on the back Halal e-commerce platforms focused
of higher purchasing power and health on the broader Halal lifestyle markets,
awareness, with Halal nutraceuticals including Pharmaceuticals and Cosmetics
successfully marketing products without products, have emerged:
porcine. North America remains the largest
2 “Demand for Nutraceuticals Expected to Rise as Consumers Show Growing

1 “Malaysia: World’s first halal vaccine plant to begin production in early 2018”, Inclination toward Natural Ingredients, Says TMR”, Transparency Market
Halal Focus, December 2015. Research, April 2016.

↘↘ In B2B e-commerce, several strong players ↘↘ Pharmaceuticals. Halal Medical tourism is a
are emerging, predominantly based in major opportunity in the broader Healthcare
Malaysia, including Dagang Halal, Zilzar and segment, providing substantial growth options
Aladdin Street, connecting businesses with for Halal certified products:
Halal products suppliers
↘↘ Medical tourism globally is a fast growing
↘↘ In B2C e-commerce, targeted e-commerce sector, estimated at 25 percent growth per
providers are beginning to emerge, with annum, and worth over $439 billion worldwide4
Malaysia as a key source market, including
start-up Noorain, but with leading B2B players ↘↘ The top five medical tourist destinations
also seeking to expand into B2C. include Thailand, India, Singapore and
Malaysia, which have targeted Muslim medical
↘↘ Halal Pharmaceuticals and Cosmetics. Halal tourists through dedicated Halal healthcare
ingredients is an attractive segment across the facilities and offerings, such as the Malaysia
Food, Halal Pharmaceuticals and Cosmetics Healthcare Travel Council
sectors, with a growing number of players:
↘↘ KPJ Healthcare Berhad in Malaysia offers
↘↘ While there are over 300 ingredients treatment and surgeries with a full-range of
manufacturers globally, in the Halal Muslim-friendly services
Pharmaceuticals and Cosmetics industries
over 322 ingredients manufacturers ↘↘ Thai Halal Tour, a Muslim-focused tour operator
have been identified in Bangkok, offers package tours that combine
tourism with health check-ups at one of the
↘↘ The leading pharmaceuticals manufacturers three Halal hospitals in the capital
have all sought Halal certification to address
Muslim, and predominantly, OIC demand for ↘↘ Global Healthy City Chennai is India’s first
Halal products, such as Teva Pharmaceuticals, Halalcertified hospital.5
Novartis, Sun Pharmaceuticals, Dr Reddy’s
Laboratories, Dow Chemicals, Sumito
Chemicals, Solvay, and Ashland Inc.3 Current and emerging leaders in the
global Halal Pharmaceuticals and
↘↘ Halal Pharmaceuticals and Cosmetics. Halal Cosmetics industry
pharmacies are developing in high Muslim
population areas, notably in the U.S. and ↘↘ Halal Pharmaceuticals and Cosmetics. Leading
Australia, while online pharmacies are starting to players in the Pharmaceutical industry globally
offer Halal products: are increasingly seeking Halal certification
to address a clear and growing demand from
↘↘ In New York City alone, there are nine dedicated Muslim consumers worldwide:
Halal pharmacies, run by GEO
↘↘ BASF’s Care Chemicals division announced
↘↘ Halal pharmacies have opened up in major that two of its facilities in Germany
Australian cities, including Sydney manufacture 145 Halal-certified ingredients
used in personal care products such as facial
↘↘ UK-based online pharmacy EverydayPharmacy cleansers, bubble baths and detergents.
offers Halal pharmaceuticals. The chemical giant will continue to expand
3 http://www.salaamgateway.com/en/food/story/addressing_the_halal_ 4 “Medical tourism industry valued at $439 billion”, eHotelier, July 2016.
ingredients_opportunity_industry_developments-salaam13062016062959/, 5 http://www.salaamgateway.com/en/pharma-cosmetics/story/
accessed on 20 July 2016. SALAAM13072016052658/, accessed on 20 July 2016.
its portfolio of Halal ingredients, citing rising pharmaceuticals and cosmetics after the lifting
demand among Muslim consumers as well as of sanctions. The country of 79 million people will
Indonesia’s push to have mandatory Halal- be an attractive market for Halal pharmaceuticals
certified products by 2019. Notably, BASF and cosmetics. The current pharmaceutical
cited rising demand from Western consumers market is the fourth largest in the Middle East and
for Halal certified products due to quality estimated to be worth $2.35 billion,8 while over
assurance, with Halal ingredients traceable the next decade Iran plans to bolster exports of
through the value chain6 medicines from $180 million to $1.5 billion.9 In
cosmetics, Iran is the second largest market in the
↘↘ Malaysia’s CCM Berhad is seeking Halal Middle East and seventh in the world, valued at an
certification for its prescriptive medicines estimated $4 billion.10
once JAKIM, the country’s Halal certifier, opens
up the Halal application for this segment in ↘↘ Pharmaceuticals. Halal pharmaceuticals
2016. The company is also working on being manufacturers are investing in R&D to develop
the first to offer Halal certified biologics, vaccines, and eying patent expirations to
Highly Active Pharmaceutical Ingredient (HAPI) expand their portfolios:
and vaccines fill and finish
↘↘ The UAE’s AJ Pharma through its subsidiary
↘↘ The Indonesian subsidiary of South Korea’s AJ Biologics acquired Denmark’s Statens
Cosmax Inc., an original development Serum Institut’s vaccine production
manufacturing (ODM) cosmetics company, business in 2016, to have better access to
was granted Halal certification from Majelis the global vaccine market and have upstream
Ulama Indonesia (MUI)7 manufacturing capabilities at its Halal facility
in Malaysia. The firm is working on an animal
↘↘ FMC Corporation’s health and nutrition division, source-free polio vaccine
a global producer of concentrated marine
omega-3 fatty acids, had its Norwegian Facility ↘↘ AJ Pharma is in phase three of development
Halal certified in 2015 of a Halal vaccine for EV71 (Hand, Foot and
Mouth Disease), while the first phase of a
↘↘ UK-based Rosemont Pharmaceuticals received MCV4 (meningococcal meningitis) vaccine will
Halal certification in 2015. The company start in the last quarter of 2016. The MCV4 will
produces liquid medicines, and has applied for be the first ever Halal certified meningococcal
80 products to be Halal certified vaccine for pilgrims traveling to Saudi Arabia
↘↘ UK-based Natures Well Laboratories, which ↘↘ Companies are gearing up to take

produces vitamins and nutritional products, advantage of the ‘patent cliff’ in generics,
was Halal certified in 2016 with $148 billion worth of generic patents set
to expire by 2018.11 Malaysia’s CCM Berhad
↘↘ MM Makeup launched Pakistan’s first will select products with upcoming patent
Halal cosmetics company in 2015, expirations for manufacturing, depending on
offering a range of products focused on production capacity, by 2018.12
the South Asian market
↘↘ Cosmetics. At a regional level, Southeast
↘↘ The UK’s PHB Ethical Beauty is launching over Asia is emerging as a leading player in the
100 Halal certified products in 2016. Halal Cosmetics industry globally, but with
↘↘ Halal Pharmaceuticals and Cosmetics. Iran is

8 “Iran to Be 4th Largest Mideast Pharmaceutical Market”, Financial Tribune, June
set to become a major global player in Halal 2015.
9 “Iran’s Pharmaceutical Sector to become a Pharma Powerhouse Post Sanction
Era - Biotechnology Sector to Have Lucrative Opportunities”, Frost & Sullivan,
6 http://www.salaamgateway.com/en/pharma-cosmetics/story/chemical_giant_ December 2015.
basf_says_going_halal_for_personal_care_products_worth_it_for_business_-
salaam22052016103140/, accessed on 20 July 2016. 10 “Barriers to entry: Iran’s cosmetics market may prove harder to crack for
international brands”, Global Cosmetics News, April 2016.
7 http://www.salaamgateway.com/en/pharma-cosmetics/story/south_
koreas_cosmax_beauty_products_get_halal_certification_for_indonesia- 11 “From vision to decision Pharma 2020”, PwC, 2012.
SALAAM19032016140917/, accessed on 20 July 2016. 12 Interview with CCM Berhad, July 2016.

increasing participation from European and U.S. fragrance manufacturer to be Halal certified.17
Halal-focused companies: In India, Iba Halal Care has expanded fast since
launching in 2014, producing some 80 Halal
↘↘ Southeast Asia accounts for 61.2 percent certified cosmetics products and planning
of the total halal cosmetics market in Asia, to have 16 stores throughout the country by
with total regional sales estimated at $1.4 end 2016. 18 Japan’s PBJ Inc. released a line
billion; of that Malaysia and Indonesia account of Halal-certified skincare products called
for around 65 percent of Southeast Asia’s “Momo Hime,” which means “Peach Princess”,
total Halal cosmetics sales13 approved by the Japan Islamic Trust.19
↘↘ Malaysia and Indonesia account for 65

percent of Southeast Asia’s total Halal Investment and finance
cosmetics sales, at $1.03 billion by end
2016, reflective of the advanced nature of the ↘↘ Several Halal companies were able to
Halal sector in both countries, and corresponds successfully leverage crowdfunding:
with sizable Muslim populations. Wardah,
an Indonesian Halal brand, is a notable Halal ↘↘ The Netherlands-based startup HalalVital used
cosmetics player, as is Malaysia’s IVY Beauty a fundraising campaign on equity crowdfunding
Corporation. East Asian brands with dedicated site Symbid in 2015, to reach its target of
Halal lines account for 20 to 25 percent of $72,000. It seeks to generate revenues of
the overall market14 $6.7 million by 2017
↘↘ Indonesia’s 760 cosmetics companies, ↘↘ Noor Vitamins used start-up crowdfunding

which had exports of $818 million in 2015, website MassChallenge to expand its business
will have to gear up for Halal certification, if following a six-month “proof of concept” pilot
not already complying, to be in line with new in the U.S. The company was later awarded
legislation requiring all products in the country a $75,000 prize in the NYU Stern new
to be Halal by 201915 venture competition.
↘↘ Southeast Asia’s adoption of Halal

cosmetics has led to regional Regulation and operations
manufacturers to bring out Halal lines,
such as Japan’s Shisedo and South Korea’s ↘↘ The push for Halal accreditation impacts all Halal
Talent Cosmetic; the latter has 550 cosmetic products sectors, driving the industry towards a
products, of which 147 have Halal certification clearer adoption of common standards, and stricter
oversight of Halal certifiers. These developments
↘↘ However, there are emerging players will serve to encourage greater participation in the
addressing the opportunity in Muslims Halal products sector from leading pharmaceutical
minority countries, such as in the U.S., the products and cosmetics companies seeking
UK, India and Japan. Indicative of the Halal to market to Muslims20
cosmetics segment emerging fast out of
its niche status is that sales in the U.S. have ↘↘ Malaysia is urging pharmaceutical companies to
grown by 80 percent per year, albeit rising from use the country as a manufacturing hub, having
a low base.16 Amara Cosmetics is the first U.S. been accepted into the Pharmaceutical Inspection
Halal-certified makeup brand, since 2011, and
is exporting around the world, while in 2016,
17 http://www.salaamgateway.com/en/pharma-cosmetics/story/case_studyamara_
Seven Scent UK became the country’s first cosmetics_develops_madeinusa_halal_brand-salaam02112015044400/,
accessed on 20 July 2016.
18 http://www.salaamgateway.com/en/pharma-cosmetics/story/halal_
products_gaining_market_share_in_indias_43_billion_personal_care_industry-
13 Future Market Insights. salaam06042016110444/, accessed on 20 July 2016.
14 http://www.salaamgateway.com/en/pharma-cosmetics/story/southeast_ 19 “Made in japan halal cosmetic “MOMOHIME” is now on sale”, Halal Media Japan,
asias_1_bln_halal_cosmetics_opportunity_-salaam03022016122534/, March 2016.
accessed on 20 July 2016.
20 https://www.salaamgateway.com/en/food/story/resolving_the_
15 Indonesian Ministry of Trade, 2016. current_inefficiencies_in_the_global_regulation_of_halal_food-
16 “Global Halal Cosmetics Market 2015-2019”, TechNavio, January 2015. SALAAM13042016195204/, accessed on 20 July 2016.
A polio worker gives polio vaccine drops to a
child during a vaccination campaign in Peshawar,
Pakistan. REUTERS/FAYAZ AZIZ

Cooperation Scheme (PIC/S), an extension of estimates point to a potential $1 billion Halal
the international, non-binding Pharmaceutical vaccine market by 203024
Inspection Convention of 1970, which promotes
cooperation between regulatory authorities in ↘↘ The Drugs for Neglected Diseases initiative
the field of GMP. Malaysia has 110 Halal certified (DNDi) and Egypt’s Pharco announced that
pharmaceutical manufacturers, of which 24 a hepatitis C drug tested could be available
are export orientated21 within two years. It is expected to cost less
than $300, a tiny fraction of the $80,000-plus
↘↘ For the first time since 2001, the European price charged by major drug-makers. Latin
Commission updated its guidelines for America stands to benefit from DNDi’s and
pharmaceutical qualification and validation, as Pharco’s move, along with Egypt, Malaysia,
part of Good Manufacturing Procedures (GMP) Thailand, Saudi Arabia and Iran.25
guidelines. Key changes require manufacturers
to ensure “critical aspects” of their operations ↘↘ Cosmetics. Halal Nail polish is a new product
are validated through the product lifecycle to area that cosmetics companies are seeking
ensure quality control, ranging from cleaning to develop. The Saudi Arabia-based BCI Group
to transportation, to packaging and testing launched its Halal certified H nail polish line in 2014,
for microorganisms. The move will ensure as did Greece-based Safe ‘N’ Beautiful. The UK’s
greater traceability, a core component for Halal Nails Inc. launched a Halal friendly line in 2015. The
ingredients and producers.22 nail polish is permeable, allowing water to penetrate
to the nails, a requirement for wudu (ablution).
Other brands have launched permeable polishes,
Innovation but have garnered criticism for marketing to Muslim
consumers without being Halal certified.
There have been several new promising product
and service offerings developed across the Halal
pharmaceuticals and cosmetics industries to
cater to a growing demand among Muslims for
Halal-certified products.
↘↘ Pharmaceuticals. While vaccines are

predominantly derived from non-Halal gelatin,
there has been an ongoing industry push for
Halal-certified vaccines:
↘↘ A Malaysian-Saudi Arabian consortium has

been working on developing a Halal vaccine,
which was slated for launch in 2016, but
has now postponed the release until a Halal
vaccine facility — the world’s first — is
operational in 201823
↘↘ However, the Halal World Conference in

Malaysia in April 2015, suggested that with
no Halal vaccine yet developed, plant-based
vaccines could be certified as Halal. Muslim
spend on vaccines was $1.8 billion in 2014,
forecast to grow to $2.3 billion by 2020, while
21 “Use Malaysia As Regional Halal Hub, Pharmaceutical Makers Urged”, Pharma Bio
Asia 2016, October 2015. 24 “World’s first halal vaccine plant to begin production in early 2018”, The Malay
22 “EU Makes Major Update to Drug Manufacturing Guidelines”, Regulatory Affairs Mail Online, December 2015.
Professionals Society, April 2015. 25 “Drugs for Neglected Diseases initiative and Pharco Pharmaceuticals to test
23 “Malaysia: World’s first halal vaccine plant to begin production in early 2018”, affordable hepatitis C regimen with support of Malaysian and Thai governments”,
Halal Focus, December 2015. Drugs for Neglected Diseases initative, April 2016.
Key Challenges
Marketing and sales challenges Financing, regulations and operations

challenges
↘↘ In certain markets there has been a backlash
against Halal products, hindering Halal ↘↘ Halal manufacturers are in significant need
certification by multinationals and limiting of funding to ensure they can compete with
marketing possibilities. There have been major global manufacturers with sizable marketing
campaigns, primarily using social media, calling and advertising budgets. While the global market
for boycotts against Halal goods, especially in for pharmaceuticals is estimated at $1 trillion,
non-Muslim majority countries. Such campaigns the world’s 10 largest drug companies accounted
have prompted stores to not stock Halal goods, for nearly half of that revenue. Furthermore, for
and for manufacturers to not emphasize Halal every $1 spent on research, big pharmaceuticals
certification and labeling. companies spend an estimated $19 on promotions
and advertising. Lacking such budgets, in large
↘↘ Economies of scale. Multinational companies part due to the sector’s nascency, Halal certified
are opting to produce organic and natural producers are having to promote Halal labeling on
products instead of Halal certified products to products and emphasize the quality of ingredients
appeal to a broader consumer base and have to capture market share.26
better economies of scale.
↘↘ Uncertainty about requirements and
↘↘ Identifying the source of medicines. Fortunately, the stringency of certification can have
gone are the days when pig placenta was a major impact on production costs. For
used in anti-ageing cosmetics or mare urine instance, some certifiers and scholars state
to manufacture the contraceptive pill, thanks that Halal manufacturing facilities should be
to increasing consumer demands for cruelty separate — standalone — from non-Halal
and animal free products. There is a preference facilities over concerns about contamination.
for using non-animal ingredients now, owing to Such standalone facilities typically require
consumer awareness due to vegetarian and vegan significantly upfront investment.
lobbying. The ‘mad cow’ and bird flu epidemics
have also impacted the use of animal-based ↘↘ Good Manufacturing Procedures (GMP)
ingredients. Most antibiotics on the market are compliance has become a must at the global
synthetic, making them cheaper and available in level, while manufacturers have to abide by
large quantities to meet global demand. The main national regulatory bodies. Such compliance
problem is at the formulation stage where these procedures can complicate production, with
antibiotics and other medicines are encapsulated in high compliance barriers cited as obstacles to
ingredients that aren’t Halal. investment in the Halal sector. Furthermore,
many Muslim auditors are not trained in GMP
guidelines Practices (GMP) guidelines, thereby
missing potential points of contamination in
product traceability and applicability for Muslim
patients, such as unethical masbooh ingredients
(best to avoid) that can be absorbed via the skin or
ingested internally.
26 “2015 Global life sciences outlook; Adapting in an era of transformation”,

Deloitte, 2014.

Opportunities
Opportunities by product/services segments
Unaddressed
high potential Male Children’s
product Halal Gelatin
grooming cosmetics
segments

Unaddressed
On-demand
high potential
consumer
service
services
segments

Opportunities by stakeholder types

or existing existing a new Halal
players players offering

Pursue
Acquire
Private substantial
an existing
equity value creation
player
opportunities

Develop
comprehensive
Regulators training
programs for
the industry


Existing opportunities within Halal Pharmaceuticals and Cosmetics
Halal Gelatin Sub-segments with largely unaddressed Muslim demand:

↘ Gelatin is a key component of medicinal products, used extensively in vaccines, capsules and supplements, with
close to 40 percent of gelatin sources from porcine
↘ While there is some variation in scholarly views on whether pork-derived gelatin is permissible for medicinal
purposes, there is a significant unmet demand among consumers for Halal gelatin across a range of products27
Potential:
↘ There is significant opportunity to develop a large-scale producer of Halal gelatin, providing the consistent supply
needed in order to make Halal pharmaceutical products viable on a mass-scale
Male grooming Largely unmet Muslim demand:

↘ While the demand for male grooming products is expected to increase significantly, valued at $21.4 billion in 2016
and forecast to grow by 9.4 percent annually, there has been relatively limited innovation to develop products tailored
to Islamic lifestyle needs, with beard oil serving with as a good example of what is needed28
Potential:
↘ There is substantial opportunity for existing cosmetics companies to develop a range of personal care products
marketed at Muslim men to complete a modest lifestyle, including for instance, alcohol-free fragrances and dental
cleansing products
Children’s cosmetics Largely unmet Muslim demand and potential:

↘ Children’s cosmetics products are a high-growth area — valued at $47.7 billion worldwide and forecast to grow by 7
percent CAGR to 2017, to $66.8 billion — and similar to male grooming above, there has been limited innovation29
Potential:
↘ There are substantial opportunities to develop a range of personal care products such as fragrances, dental
cleansing products, and skincare products for Muslim children
↘ The marketing and branding of such products can leverage the popularity of popular Muslim cartoon characters and
emerging television channels, such as Muslim Kids TV
On-demand consumer Largely unaddressed Muslim demand:

services ↘ On-demand services have evolved beyond taxi-hailing and food delivery apps to include multiple lifestyle sectors,
including cosmetics
↘ While Uber has partnered with Benefits Cosmetics in New York to provide beauticians on demand, and hairdresser
booking app Rock Pamper Scissors has secured over $1.5 million in venture funding, there has been limited
development of on-demand Halal products and services provision beyond food delivery and e-commerce
Potential:
↘ There is substantial opportunity to create on-demand product and service delivery apps providing Halal cosmetics
products or connecting Muslims beauty service providers with households
27. https://www.salaamgateway.com/en/food/story/addressing_the_demand_for_
halal_gelatin_in_food_products-SALAAM10042016082408/, accessed on 20
July 2016.
29. “Global Baby Care Products Market to Exhibit 7.0% CAGR during 2007-2017
28. “Asia Leads Growth In World Market For Men’s Beauty”, Personal Care Business due to Rise in Disposable Income across Developing Economies”, Transparency
360, February 2016. Market Research, April 2016.

Mainstream or Acquire existing Rationale:

Existing players players ↘ Acquiring a small-to-mid sized pharmaceutical products or cosmetics company with
existing Halal production capabilities or an emerging brand tailored to Muslim users
↘ The recent acquisition of Dollar Shave Club by Unilever for $1 billion shows a substantial
appetite and acquisition potential for Halal products30
↘ Key areas include acquiring dedicated Halal ingredients manufacturers, and high-growth
Halal nutraceutical products manufacturers
Develop a new Halal Rationale:

offering ↘ Following the path of leading global nutraceutical products providers, there are substantial
opportunities for leading pharmaceutical and cosmetics products manufacturers to gain
certification for key product lines
↘ Products tailored to Muslim needs would address a large potential market, in particular in
OIC countries where Halal-certification is very important for consumers, such as Malaysia
Example products could include Halal nail polish and Halal vitamins and supplement
Private equity Acquire existing Rationale:

players ↘ Many of the dedicated Halal products manufacturers are small and in need of expansion
capital, which a private equity firm can provider, to address demand in a growing,
sizeable market
↘ There are high-growth and relatively recent nutraceutical products manufacturers,
cosmetics companies, as well as key ingredients suppliers that could be scaled

value creation ↘ With capital and through leveraging substantial commercial experience provided by private
opportunities equity firms, there are substantial avenues for value creation and growth
↘ The portfolio companies can then either be sold to leading multinational companies after a
five to 10-year investment holding period, or listed a public stock exchange
↘ Private equity firms can help broaden the product offering of portfolio companies as well as
helping management pursue a more aggressive marketing plan
↘ For instance, an ingredients manufacturing company can pursue large pharmaceutical
products manufacturers and develop a large-scale Halal gelatin offering which can be used
in a wide-range of medicines
Regulators Develop Rationale:

comprehensive ↘ As mentioned in the Halal Food section, there are substantial opportunities to provide
training programs for dedicated training platforms for Halal industry professionals, going beyond food to cover a
the industry wide range of products
↘ Training providers and regulators (including accreditation bodies and certifiers) can develop
formal training qualifications to ensure appropriate skillsets for Halal production
30. “Unilever sharpens P&G rivalry by buying Dollar Shave Club”, Yahoo, July 2016.
Interview
Dr. Mohamed Issa

CEO,
Noor Pharmaceutical (U.S.)
What are the emerging application I think the Halal sector is following the trend,
areas for nutraceuticals? of functional food and to extract ingredients.
What we have been doing for the past two years Slowly and surely Halal is converging with the
is clean sources of ingredients, using whole mass market. I think in the next five years
food and plant-based ingredients for general there will not be much disconnect. At Noor
vitamins and nutraceuticals. Consumers are we are eager to not only drive and develop
becoming more educated and more inclined to the market in the Halal space but also to be a
know where ingredients are coming from. The significant player in the mass market.
other area is specialty products, which have
direct benefit for a special need, whether it be How has Noor expanded its
beauty, skin, eyes or for the heart. At this point offerings in recent years?
a trend is to develop unique products with very And are certain products
specific functional benefits. performing better than others?
We have expanded in a couple of different
What technological advances are ways. We have pushed to source the
nutraceuticals companies tapping highest quality ingredients we can for
into to develop the sector? all products. Now 10 out of 12 are 100
Technology is being used to extract core percent all natural, GMO free, gluten
ingredients of functional food, for example free, and organic ingredients, that is one
Vitamin K from spinach. That has always been advancement. Another is pushing to
available but companies have not pursed it produce an exclusive proprietary blend, so
as other less expensive forms and sources trade-marked formulas are not replicated
are available. But use of technology is much by any other brand. Trade-marks on sources
more than it was. Another use of technological have also come together. This shows that
advances in the space is in dosage forms, studies have been done on the benefits
you’ll see new forms of these products. on claims we are making on products, so
Traditional forms were capsules, tablets and customers know it is Halal but also natural,
soft gels, and now it is more innovative — and a formula you cannot replicate in the
liquids, shots, juices, gummies. market place, that the benefits are unique
to us. Another is the forms of products.
Is the Halal nutraceuticals We were the first ever to produce a Halal
sector reflecting the mainstream gummy product, and we now have products
market in terms of segment for both children and adults. So we push on
demand and development? forms, and innovate the class.

Interview
What export markets are you market place. If your solution is compelling
targeting and expecting to target and the problem is significant, fundraising will
in the coming years? inherently be easier.
Right now we are finalizing some really
important agreements with the Middle East What are the un-met nutraceuticals
and North Africa market, with the European needs of Muslim consumers?
market, and with Latin America. We will also It is access to Halal products. Before it was
be in Canada by the end of the summer, so an creating products, but at Noor we have
additional eight countries by the end of 2016, created a solution, and other companies have
bring us to around 19 countries. We have an copied parts of our business. Another issue is
80 percent share of the market outside the high quality and uniquely formulated products
US, while the US is our biggest market, having sourced from natural ingredients that provide
around 90 to 95 percent share of the Halal the benefits they claim, that is much harder
market, according to our internal estimates. to copy. Anybody can put a label on a product
these days. It may seem that consumers
Is Noor considering developing new have several options, but when they take
segments, like sports nutrition? a closer look, not all brands are giving the
Our team is working aggressively on sports same value as it may seem on the surface.
nutrition. We are meeting with some high The more informed consumers are about
profile Muslim athletes globally that would the products they purchase and ingredients
get behind a sports nutrition line sourced and they use, the more likely they are in keeping
produced to the quality Noor operates. We their families healthy.
are also looking at beauty pretty aggressively,
consumables and external, so those two main With more Halal certified ingredients
segments. But we have a lot of room with available every year, what
nutraceuticals, so we want to balance core opportunities does this present
business with future opportunities. for the development of the Halal
nutraceuticals segment?
Do you use Shariah-compliant More innovative formulas and more
finance, and what are the challenges innovative forms of delivery. I think
in securing such financing? you don’t have to settle for the basic
Since the day we started we have used multi-vitamins formula or a basic tablet.
Islamic-based business principles. We are Our Noor energy product for example
an Islamic compliant business so not just has a proprietary blend with ingredients
focused on finance, also contracting, and mentioned by the Prophet (PBUH). We
a credo you hold to when interacting with wouldn’t have been able to do that without
consumers, B2B partners, and employees. an increased access to Halal ingredients.
Given our growth and track record securing Now it is doing something innovative.
financing has not been a big challenge. My Availability will drive innovation. I am
advice to companies seeking Islamic Finance confident we can continue to lead from
is, worry about financing after making sure the front and innovate the space as more
you are providing solutions to a problem in the ingredients and sources become available.
Interview
Dr. Tabassum Khan

Managing Director,
AJ Pharma Holding (UAE)
There is an anti-immunization and have to be handled accordingly. People

trend in many parts of the world. have to be made aware that a disease that’s
What kind of challenge does that apparently under control can suddenly return
present? And will the development and we have seen it in countries like Japan,
of Halal vaccines help overcome Sweden and Australia. The other example is
this phenomenon, particularly in the re-emergence of polio mainly in the Islamic
Muslim-majority markets? countries. Polio primarily affects children under
The anti-immunization campaigns can be the age of five and one in 200 infections lead to
segregated into three groups: social and medical, irreversible paralysis. Among those paralyzed,
political and religious. The first group includes almost five to 10 percent face death. Awareness
those who have mistrust in the effectiveness needs to be created that as long as a single child
and utility of vaccines. They have been made remains infected, children throughout the world
to believe that vaccines cause harm rather are at risk. Failure to eradicate polio from the
than good. Notions have been put forward countries where it is present — mainly Pakistan
that vaccines may even lead to HIV and are and Afghanistan — can result in as many as
vehicles for sterilization. Such notions develop 200,000 cases every year globally, putting
mistrust on vaccines and put a question mark the future generations at the risk of disability
on their safety. They can easily be handled and premature deaths. As far as the impact on
through education campaigns, based on development of Halal vaccine is concerned, there
scientific data showing a clear cut benefit of would definitely be a positive step in increasing
immunization. The second is political. Certain immunization rates in the Muslim dominated
countries have conspiracy theories about countries, as psychologically the highest
immunization programs that vaccines have resistance is perpetuated by misinterpreted
been used as a cover for military intelligence religious perceptions.
gathering purposes. At times there is also
mistrust on those who deliver vaccines such as By 2019, all products imported into
governments and international agencies. This Indonesia will have to be Halal certified.
group can be managed through reassurance and What opportunities and challenges
education. For the religious group, in addition does this present for the global Halal
to the aforementioned factors, the problem vaccine and pharmaceutical sector?
is compounded by wrongly applying religious Indonesia is a large market for
injunctions. The presence of ingredients pharmaceuticals, which more than doubled
forbidden by religion, especially those derived from $3 billion in 2008, to reach approximately
from a porcine source, created a resistance $7 billion in 2015, and is anticipated to hit
to vaccine use. These objections are further about $12 billion by the end of 2019. Although
substantiated by bringing faith into it that the value of imports of finished products
disease is the will of God and will happen have significantly reduced over the years,
anyways. So the challenges are three pronged even in 2015, around 90 percent of the raw

Interview
materials for medicines were imported. If we How is development progressing
split the pharmaceutical industry into pure on AJ Biologics’ vaccines, such as
pharmaceuticals and biologics most products EV71 (against Hand, Foot and Mouth
falling under pharmaceuticals will have no issue disease) and MCV4 (meningococcal
of being Halal certified. The major challenge will meningitis)? When will these vaccines
be for biologics. Having said that it is virtually be commercially available?
impossible to have all or even majority of the These are our co-development projects with
biologics to be Halal certified by 2019. So in my international partners. EV71 is in phase three
opinion, the challenge is not that big but the and MCV4 shall begin phase one in the last
groups investing in Halal vaccines and biologics quarter of 2016. The MCV4 will be the first ever
have an opportunity in hand to monopolize Halal certified meningococcal vaccine for all the
the Indonesian market. pilgrims traveling to Saudi Arabia.
AJ Pharma through its subsidiary AJ What are the major operational and
Biologics signed to acquire Denmark’s regulatory challenges faced by the
Statens Serum Institut (SSI) vaccine Halal ingredients industry overall,
production business in 2016. What and to what extent do these affect
was the motivation for the acquisition your company as well?
and how will it tie into plans to The main overall challenges faced by the
develop Halal vaccines? industry will include the confusion surrounding
The biggest motivation for acquisition was to Halal standards, primarily because they are
have access to the global vaccine market and being compiled by many different government
to have upstream manufacturing capabilities linked organizations, private organizations and
for our project in Malaysia. The other motivation independent Halal certification bodies. The
was to have access to a polio vaccine and to challenge for manufacturers is to determine
develop new formulations and expand our reach which standard will essentially provide market
to contribute to the World Health Organization access, and in many cases multiple certificates
(WHO) objective of eradicating polio. Developing are necessary for exporters. The major
an animal source-free polio vaccine would be a operational challenge will be identifying the right
major contribution to the Islamic world. source of constituents that can replace the
forbidden components. In addition, many Halal
Will the vaccines developed at certification auditors are not trained in Good
SSI be Halal-certified? Manufacturing Practices (GMP) guidelines, which
It is too premature to answer this question. is important to maintain quality. It is imperative
However, we would be working on the prospect of that the quality remains in the domain of
making an animal source-free polio vaccine. Our technical and scientific experts.
primary goal nevertheless will be to concentrate
on new formulations of polio vaccine and to What opportunities are there for
expand the capacity substantially. We would the Halal pharmaceutical industry
like to be an important partner in the noble to leverage the current trend for
cause of eradicating polio from the face on the personalized – or precision – medicine?
earth in collaboration with, and the support of, For a lot of diseases there is no proven tool to
international agencies such as BMGF (Bill and prevent or to give effective treatment. At this
Melinda Gates Foundation). stage of time we have to gain better knowledge
of biological, environmental and behavioral
How is progress developing at AJ influences on such diseases to make an impact
Pharma’s Halal vaccine facility in on the people suffering from them. Precision
Malaysia? When will it open, and which medicine is an emerging approach that takes
markets are you expecting to target? into account the individual variability in genes,
AJ Biologics is under construction and is environment and lifestyle of each person. The
expected to start commercial operations in the whole concept of it, at the moment, is in its initial
first quarter of 2018. The primary target markets stage, so bringing Halal into it at this point of time
would be ASEAN, Middle East and South Asia. can only be explored.
Special Brief: Healthcare

requirements, there is a notable growth in demand
The growing need for Muslim–
for Halal food options, and a push among Halal
friendly Healthcare services
certification bodies to certify cosmetics and
pharmaceutical products
Mirroring other sectors, Muslims represent a core
patient segment with specific, faith-based needs that
↘↘ Healthcare tourism is a growing trend and a
may not be fully addressed by conventional products
high-potential segment within Halal Travel. A
and services across the Healthcare value chain.
study by the OIC in 2016 found in a global survey
that only one percent of Muslims that traveled
NEEDS
abroad did so for medical reasons. However, there is
The core needs of Muslim patients can be segmented
a notable trend toward Muslim friendly tourism, with
into three broad categories:
the study identifying several countries seeking to
address visitor’s medical needs, including Malaysia,
↘↘ Location-based needs. These include:
Indonesia, Turkey and Tunisia.2
↘↘ Gender-segregated care, notably matching

female patients with female doctors
Market size and profile
↘↘ Halal certified food
The value of healthcare spend attributable to
↘↘ Access to prayer rooms Muslims can be estimated at $435.6 billion in
2015, accounting for 5.7 percent of global spend on
↘↘ Access to essential Islamic healthcare, estimated at $7.7 trillion in 2015.3 Global
services for bereavement. spend on healthcare includes public (government)
spending, out-of-pocket expenses and private spending
↘↘ Medical product needs: These include the on insurance and healthcare services.
availability of Halal certified products, inclusive of
medicines and medical applications that do not In 2015, if ranked together with other countries the
contain gelatin or alcohol. aggregate global Muslim market would be the fifth
largest market for Healthcare spend, with the four
↘↘ Financing needs: Shariah-compliant insurance and largest markets comprising the United States ($1.9
financing solutions. trillion), China ($1.4 trillion), Brazil ($575 billion), and
Japan ($438 billion).
TRENDS
There are three positive trends that will drive Healthcare spend attributable to Muslims was highest
robust growth in the demand for Muslim-friendly in Indonesia, estimated at $39.9 billion in 2015, followed
Healthcare services: by the U.S., estimated at $31.9 billion, and Saudi Arabia,
estimated at $21 billion.4
↘↘ The fast-growing Muslim population will
increase the overall Muslim need for healthcare
services: With the Muslim population growing
faster than the global population,1 there will
be an overall increase in demand for products
and services used by Muslims across the
Healthcare value chain
↘↘ Muslims are increasingly requiring the

availability of products and services that suit 2 “Muslim Friendly Tourism: Understanding the Demand and Supply Sides In the
OIC Member Countries”, COMCEC, February 2016.
their religious lifestyle needs, and this will 3 Global aggregate healthcare spend estimates are based on 2013 Global
impact the procurement decisions of service Healthcare spending estimates by the Economist Intelligence Unit, Healthcare
market growth estimates by the Carlyle Group (2016 Global Health Care
providers: While there is a variation in the Outlook), national healthcare spending estimates, and World Bank data on
Healthcare spend as a share of GDP.
level of adherence among Muslims to religious
4 Breakdown of Muslim healthcare spend by country was estimated using
National estimates and global healthcare spend estimates, with Muslim share
of spend estimated based on Muslim proportion of population for each country,
1 Pew Research estimates, 2011. adjusted for income disparities.
Healthcare value chain
The Healthcare value chain can be segmented into four key components which support the delivery of
essential healthcare services to the end consumer. Across each segment there are several key Halal/ Islamic
lifestyle touchpoints.
Key segments Sub-segments
Resources: Essential inputs enabling the delivery of healthcare Includes: Pharmaceutical products manufacturers; Medical
services including products, materials and personnel infrastructure and equipment suppliers; Lodging infrastructure and
equipment suppliers; Food and beverage suppliers; Healthcare personnel
Service Providers: Providers of essential services across the Includes: Hospitals; Clinics; Nursing Homes; Pharmacies and Medical
healthcare continuum tourism agencies
Finance providers: Payers and institutions that help mitigate the cost Includes: Financial institutions; Insurance companies
of healthcare services
Regulators: Government and non-government institutions that Includes: Healthcare regulators; Government agencies; Product
oversee resource and service providers and ensure compliance with certification bodies
relevant laws and regulations

Healthcare value chain diagram
SERVICE 3RD PARTY

RESOURCES CONSUMERS
PROVIDERS PAYERS
Me Ho
dic sp
1 in
an es 5 ita
an ls
dH d
Pro eal Cli Ins
du th
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s Co uran Pa
tie
mp ce nts
8 an
ies
ME Me
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a
INF AL Inf l Nu
rsi
R ras ng
EQ AST Eq tru Ho
SU UIPM RUC Su uipm ctur me
PP T pp e/
LIE ENT URE lier ent s
RS / s
LO Lo
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INF G inf g
RA ras Ph
EQ ST Eq tru arm
SU UIPM RUC
PP T
Su uipm ctur
pp e
6 ac
ies
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RS / s
Fo
od
3 Be nd
a
ve
Ca rage
ter Me
ing / dic
7 To l
a
uri
Ot sm
he Logistics Transportation/Freight
r
su
pp Eco-system Marketing, Technology,
a lies
ma nd ra Financial services,
ter w Regulation, Training
ials
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4 h
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rso
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nt
Healthcare value chain diagram Halal touchpoints
Halal Touchpoints
1 ↘ Halal certified products or plant-based products
2 ↘ Muslim prayer spaces
3 ↘ Halal food and beverage
4 ↘ Health professionals familiar with muslim values (i.E.: Gender-matched care)
5 ↘ Muslim-friendly facilities and services
6 ↘ Muslim-friendly nursing homes
7 ↘ Muslim-friendly medical tourism
8 ↘ Halal medical insurance companies (takaful)

Key players across the Muslim-friendly Healthcare value chain
OVERVIEW
While this report has looked in detail at key players across the Halal Food and Pharmaceuticals industries, there are
several notable players in the provision of Muslim-friendly Healthcare services and Shariah-compliant financing.
Key players in Muslim-friendly Healthcare
Year
Segments Company HQ Description
Founded
Healthcare KPJ 1981 Malaysia Overview:

Service Healthcare ↘ KPJ Healthcare Berhad is the largest private healthcare service provider in
Provider Berhad Malaysia
Core focus and developments:
↘ KPJ Healthcare Berhad has over 10,000 employees and operates over 25
hospitals across Malaysia
↘ KPJ Healthcare Berhad offers treatment and surgery options including
cardiac, orthopedic, and oncology5
↘ The healthcare service provider also offers Muslim-friendly services,
which include prayer spaces, Islamic funeral preparation, Halal meal
options for patients, and accommodates gender requests for patient care
Bangkok 1972 Thailand Overview:

Hospital ↘ Bangkok Hospital is the largest private healthcare service provider in
Thailand
↘ Bangkok Hospital operates over 40 hospitals throughout Thailand
↘ Bangkok Hospital established an Arabic Medical Services wing in 20066
↘ They provide Arabic-speaking staff in addition to Halal food and prayer
facilities
Global Health 1999 India Overview:

City Chennai ↘ Global Health City Chennai is a subsidiary of Global Hospitals, which is one
(Global of the fastest growing healthcare chains in India
Hospitals)
↘ Global Health City Chennai specializes in multi-organ transplant for liver,
pancreas, kidney, heart and lungs
↘ Global Health City Chennai has received Halal certification and provides
Muslim-friendly services including prayer mats and direction in hospital
rooms, privacy for female patients
↘ The hospital also has Arabic-speaking employees
Medical Thai Halal Tour 2013 Thailand Overview:

Tourism ↘ Thai Halal Tour is a Muslim-focused tour operator in Thailand
Service
↘ The tour operator offers health check-up packaged tours and offers
customers to visit attractions, shop in the city of Bangkok, and receive
health check-ups in the capital city from three different hospitals
↘ In addition to these offerings, the company provides Halal meals and Arab-
speaking guides
5 http://www.salaamgateway.com/en/travel/story/healthy_growth_of_muslimfriendly_medical_tourism_-salaam13072016052658/, accessed on 25 July, 2016.

6 http://www.salaamgateway.com/en/travel/story/healthy_growth_of_muslimfriendly_medical_tourism_-salaam13072016052658/, accessed on 25 July, 2016..

Year
Segments Company HQ Description
Founded
Insurance Takaful Ikhlas 2002 Malaysia Overview:

provider Berhad ↘ Takaful Ikhlas Berhad is an Islamic insurance provider and is a wholly owned
subsidiary of MNRB Holdings Berhad
↘ Takaful Ikhlas Berhad has established Islamic financial protection services
based on the Takaful system and offers Islamic medical insurance
↘ The company has 13 regional offices across Malaysia and has reached 2
million individuals and corporations as clients
↘ The company also has comprised a workforce of over 5,000
Islamic Arab 1979 UAE Overview:

Insurance ↘ Islamic Arab Insurance Company is a Shariah-compliant Takaful (Islamic
Company insurance) provider and is one of the largest Takaful providers globally
↘ Islamic Arab Insurance Company is also the parent company of six
different Takaful companies that operate in Saudi Arabia, Egypt, Senegal,
Algeria and Jordan
Noor Takaful 2009 UAE Overview:

↘ Noor Takaful is an Islamic insurance company, which is a subsidiary of Noor
Investment Group, a commercial and private banking service
↘ Noor Takaful was established to provide a broad range of Islamic insurance
including medical insurance and primarily serves individuals, families and
corporations in the UAE.
Challenges
Establishing a Halal supply chain and verifying the suppliers could add considerable costs and result in
source of ingredients: the loss of economies of scale.
↘↘ While Halal certification of pharmaceutical ↘↘ This higher cost is exacerbated by the fact that
products is increasing, much of the certification Halal Food suppliers are likely to pass on the cost of
that has occurred has been led by Muslim- certification through higher prices.8
majority, or OIC member countries, which have
well-developed Halal ecosystems, namely Managing the co-mingling of Muslim
Malaysia and Indonesia and non-Muslim patients
↘↘ There still remains a considerable challenge in ↘↘ Segregating Muslim patients and meeting
identifying Halal alternatives for common medical their needs may be difficult in high-strained
ingredients including gelatin, which is mostly environments where critical life-enabling decisions
derived from porcine.7 must be made and where capacity constraints exist
Justifying the perceived higher cost of Halal ↘↘ Such challenges are exacerbated by funding
products and services: difficulties at hospitals and the negative portrayal
of Muslims in the media, which can cause an
↘↘ At a time when medical service providers are under adverse reaction among non-Muslims, especially in
pressure to reduce costs by insurance providers, Muslim-minority countries. 9
securing food from alternative, often smaller
8 Based on Discussions with a Muslim medical professional and former medical

7 http://www.salaamgateway.com/en/food/story/addressing_the_halal_ resident at Lutheran Medical Center in Brooklyn, New York.
ingredients_opportunity_industry_developments-salaam13062016062959/, 9 Based on Discussions with a Muslim medical professional and former medical
accessed on 25 July 2016. resident at Lutheran Medical Center in Brooklyn, New York.
Opportunities
Raising awareness of healthcare needs of Muslims: ↘↘ The certification of the Global Health City Center
in India serves as a good example of a hospital
↘↘ There are significant opportunities to shine a securing Halal certification,10 and mirrors a similar
spotlight on the needs and developments in the model applied to hotels in Spain, several of which
provision of Muslim-friendly Healthcare services, have been certified by Instituto Halal11
both at conventional medical conventions, as
well as tailored Islamic Economy and consumer ↘↘ Certifiers are in a position to proactively approach
summits, including the annual State of the Global hospital management, in particular in areas with
Islamic Economy Summit in Dubai, and regional large numbers of Muslims, to help hospitals better
Muslim-oriented consumer events such as those meet the needs of key customer segments.
organized by the American Muslim Consumer
Consortium and the Muslim Lifestyle Show. Promoting Medical Tourism for Muslims:
Certification of hospitals: ↘↘ There is significant scope for OIC and non-OIC

countries to target travelers for Muslim-friendly
↘↘ There is significant scope for Halal certifiers Medical Tourism, with Thailand and India serving
to assess the suitability of hospital services as good models for non-OIC countries, and with
for Muslims, including the availability of Halal tourism agencies playing a key potential role in
Food, gender-segregated care, as well as marketing services and ensuring travelers can enjoy
providing training to staff on cultural and destinations fully while also receiving treatment.12
religious sensitivity topics
10 http://www.salaamgateway.com/en/pharma-cosmetics/story/healthy_growth_
of_muslimfriendly_medical_tourism_-salaam13072016052658/, accessed on
25 July, 2016.
11 Based on discussion with Tomas Guerrero Blanco, Director, Instituto Halal.
12 http://www.salaamgateway.com/en/pharma-cosmetics/story/healthy_growth_
of_muslimfriendly_medical_tourism_-salaam13072016052658/, accessed on
25 July 2016.

Special Brief: Education
Top high school students attend an annual award ceremony organized by

Yemen’s Education Ministry in Sanaa. REUTERS/KHALED ABDULLAH

The growing need for tailored Islamic Education
QURANIC CONTEXT AND HISTORY TRENDS

Knowledge and its attainment are central to the Islamic Islamic education in the near future will be driven
faith. The Quran makes this clear numerous times, by three major trends:
including in the following verses, the first to be revealed
to the Prophet (PBUH): ↘↘ The Muslim population is growing fast, which is
on balance younger than the global average with
“Recite in the name of your Lord who created. a range of education needs. Muslim populations
Created man from a clinging substance. Recite, are among the fastest growing in the world, and the
and your Lord is the most Generous. Who taught by number of Muslims in North America and Europe is
the pen. Taught man that which he knew not”(Surat expected to greatly increase in the coming years.
Al-‘Alaq, Verses 1-5) By 2050, Muslims will account for 10 percent of
the population in Europe and 2.1 percent of the
The Prophet Muhammad (PBUH), also made it obligatory population in the U.S.1 Muslim youth in particular
upon Muslims to seek knowledge, and extolled its will comprise 27 percent of the world’s youth and
virtues, those who obtain it, and impart it to others. young adult population in 2020 and will increase to
29 percent in 2030—this demographic will be the
The history of education in the Muslim world has major force driving the growth of Islamic education2
therefore been extensive, with Islamic education
and instruction spreading to all parts of the world. It ↘↘ There is increased interest in Islamic content, in
is therefore no surprise that the Islamic world also particular at the university and post-graduate
hosts the oldest existing, and continually operating levels. Over the past few years, educational
educational institution in the world, the University of institutions and platforms have increasingly
Qarawiyyin, founded in 859 AD in Fez, Morocco. been offering Islamic educational content, and
specifically Islamic Finance. For instance, in the
MUSLIM NEEDS IN EDUCATION UK, there are currently over 30 Masters’ programs
The core needs of Muslim students can be tailored into in Islamic Finance.3 High-ranking universities from
three broad categories: around the world, such as Harvard University and
the University of Oxford, also have dedicated
↘↘ Content needs: Islamic content either in dedicated Islamic studies departments and programs
or broader education programs
↘↘ Millennial Muslims are increasingly demanding
↘↘ Location-based and scheduling needs: education be made available online. Muslim
populations are amongst the most connected in
↘↘ Gender-segregation of students the world,4 and have increasingly been demanding
that education be delivered online. Islamic
↘↘ Halal certified food education has begun to respond to this demand
with online universities, professional qualifications
↘↘ Access to prayer rooms delivered online, and Massive Online Open Courses
(MOOCs), including ones such as Bayyinah TV,
↘↘ Consciousness of major Islamic Productive Muslim and Yurizk Academy, which offer
events, including Ramadan, Islamic Islamic values-driven education and courses.
holidays, and prayer times
↘↘ Financing needs: Access to Shariah-compliant

financing.
1 “Muslim population in Europe to reach 10% by 2050, new forecast shows”, The
Guardian, April 2015.
2 “Chapter 1: Main Factors Driving Population Growth”, Pew Research Center, April
2015.
3 “The Human Capital Challenge: Shaping The Future”, Simply Sharia, 2015.
4 “Social media strategy”, Smart Insights website, http://www.smartinsights.
com/social-media-marketing/social-media-strategy/new-global-social-media-
research/, accessed on 8 August 2016.
Muslim students entering school, Thailand.
DODDA / SHUTTERSTOCK.COM
Market size and profile
The value of education spend attributable to Muslims is an estimated $402 billion in 2015,5 which is
9 percent of global spend on education, estimated at $4.4 trillion in 2015.6 Global spend on education includes
public (government) spending as well as private spending.
In 2015, if ranked together with other countries, the aggregate global Muslim market would be the third largest
market for Education spend, with the two largest markets comprising China ($1.1 trillion) and the U.S. ($695 billion).
Education spend attributable to Muslims was highest in Indonesia, estimated at $85.9 billion in 2015, followed by
Iran, estimated at $36.6 billion and Turkey estimated at $25.4 billion.7
Education value chain
The Education value chain can be segmented into four key components. Across each segment there are several key
educational touchpoints.
Key segments Sub-segments
Resources: Essential inputs enabling the delivery of educational Includes: Infrastructure and equipment suppliers, publishers, human
services including products, materials and personnel capital, software, food and beverage suppliers, physical infrastructure
Curriculum development: Institutions determining the focus and Includes: Educational boards, advanced academic institutions,
segmentation of content across certificates and classes advanced professional institutions and independent non-certified
content developers
Content delivery: Institutions that deliver the content and instruct Includes: Location-based education providers, online education
students, either for certificates issued by themselves or a third
party institution
Support and oversight: Government and non-government institutions Includes: Educational policy/ government, financing
that set guidelines, and financing providers
5 Muslim share of total spend based on Muslim share of population adjusted for income disparities for each country.
6 Global education spend estimates are based on 2012 IBIS Capital sizing data, and extrapolated to 2015 based CAGR and World Bank data on Education spend as a share
of GDP.
7 Breakdown of Muslim healthcare spend by country was estimated using National Estimates and global healthcare spend estimates.

Education value chain diagram
RESOURCE 5 CURRICULUM CONTENT EDUCATION END

SUPPLIERS DEVELOPMENT DELIVERY SEGMENT BENEFICIARY
INF Inf Ed K-1
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Education value chain diagram Halal touchpoints
Halal Touchpoints
1 ↘ Design, development and printing of Islamic educational content
2 ↘ Provision of cultural and religious sensitivity training to teaching personnel

↘ Training of educators proficient in Islamic content
3 ↘ Product and supply of Halal certified Food and Beverage products
4 ↘ Creation of dedicated Muslim prayer spaces and washroom facilities
5 ↘ Development and incorporation of Islamic content and courses into broader academic curriculum
6 ↘ Provision of instruction in Islamic content, and where on-site, access to the full suite of facilities and services addressing Muslim needs
7 ↘ Development of guidelines and policies to ensure Muslim needs are understood and addressed
8 ↘ Development of Shariah-compliant financing solutions

Key players across the Islamic Education value chain
OVERVIEW
This section profiles notable players providing some form of Islamic education, including traditional and innovative,
as well as old and new.
Key players in Islamic Education
Year
Segment Institute Location Description
Founded
Universities Al-Azhar AD 970 Egypt Overview:

↘ Al-Azhar is known as one of the world’s most prominent Islamic universities, and is
also in charge of a network of educational institutions throughout Egypt providing
education to over 2 million students
↘ The university focuses on teaching Islamic theology and Arabic, in addition to
providing education in various secular subjects
Zaytuna 2009 United Overview:

College States ↘ Zaytuna College is the first Islamic Liberal Arts University in the United States
↘ A liberal arts college that focuses on Islamic law and theology
In May 2014 it had its first graduating class and has since also been accredited
University of 1096 Oxford, Overview:

Oxford United ↘ The University of Oxford is the oldest university in the English-speaking world
Kingdom
↘ The university offers several programs in Islamic studies, and is also home to the
Oxford Center for Islamic Studies, established in 1985 to encourage the study of
Islam and the Islamic world
↘ The university also hosts the Oxford Islamic Studies Online resource, which provides
vast amounts of research and scholarly works on Islam and the Islamic world
Harvard 1636 Mass., Overview:

University United ↘ Harvard University is the oldest institution of higher education the United States
States
↘ The university offers many courses in Islamic studies, and is also home to the Prince
Alwaleed Bin Talal Islamic Studies and Islamic Legal Studies Programs, both of which
seek to promote interdisciplinary research on Islam and the Islamic world
Islamic 2007 Global Overview:

Online ↘ Islamic Online University, established in Doha, Qatar by Dr. Bilal Philips, offers online
University degrees and certifications in Islamic fields and sciences
↘ The online university offers a mixture of free and affordable, accredited university-
level instruction and qualifications, ranging from diplomas and certifications to
Bachelor and Master degrees in business administration, education, IT, Islamic
banking and finance, Islamic studies and psychology. To date it has over 260,000
registered students
International 2006 Malaysia/ Overview:

Center for Global ↘ INCEIF is a university offering location- and distance-based degrees and
Education certifications in Islamic Finance and banking
in Islamic Core focus and developments:
Finance
↘ The university was established by the central bank of Malaysia, Bank Negara.
(INCEIF)
Dedicated to postgraduate study in Islamic finance, it offers a Masters in Science of
Islamic Finance, and a Doctor of Philosophy in Islamic Finance, as well as a Masters
in Islamic Finance Practice which can also be completed online

Year
Segment Institute Location Description
Founded
Professional Al Maghrib 2002 Global Overview:

qualifications Institute ↘ Al Maghrib Institute is a non-profit organization that provides university-level Islamic
education through global educational seminars held in person
↘ The institute offers single and double-weekend seminars in over 40 cities worldwide
in Islamic theology, Islamic law, Quranic and Hadith Science, and Islamic history, in
addition to other electives, to a mostly young Muslim audience
↘ The Islamic education institute with the largest student body in the West, with over
80,000 having benefitted from its classes
Al Kauthar 2006 Global Overview:
Institute ↘ Al Kauthar Institute is a non-profit organization that provides university-level Islamic
education through global educational seminars held in person
↘ The institute also offers single and double-weekend seminars in over 20 cities
worldwide in Islamic theology, jurisprudence, Quranic studies, Prophetic traditions,
history and personal development. To date over 100,000 students have attended
its classes
Non-Certified Critical 2008 Toronto, Overview:
Education Loyalty Canada/ ↘ Critical Loyalty, initially established as the Shatibiyyah Institute, offers courses on
Global Islamic sciences
↘ Is headed by Sheikh Uthman Khan, a master of Quranic recitation in North America. It
focuses on the rules of tajwīd (Quranic recitation)
↘ In 2011, the institute expanded its reach to also offer distance-based learning
and in addition to teaching Quranic recitation and hadith, also teaches the Arabic
language
Bayyinah 2005 US/Global Overview:
↘ Bayyinah, launched in the United States, focuses on Arabic and Quranic studies,
offers a hybrid of online and on-site education
↘ It provides instruction through a curriculum at its own institute, in addition to
travelling seminars and intensives, and online programs, as well as pre-recorded
videos and podcasts
RWAQ 2013 Global Overview:
↘ RWAQ is an Arabic-based MOOC offering free online courses in a variety of fields
↘ The platform, established by Saudi Arabian entrepreneurs Fouad Al Farhan and Sami
Al Hussayen, offers completely free Arabic courses in Islamic sciences, economics,
IT, medicine, engineering, arts and culture, social sciences, and history
↘ Classes feature interactive exercises and are also available through apps
Yurizk 2012 Global Overview:
↘ Yurizk is a MOOC offering courses dedicated to the Islamic Economy
↘ The platform’s instructors include scholars, professionals and entrepreneurs. It
offers courses in Islamic law, Islamic entrepreneurship, Islamic economics, Islamic
banking and finance, as well as Islamic travel and marketing
K-12 Lantern of 2006 London, UK Overview:
Knowledge ↘ Lantern Knowledge is a secondary school based in London
Secondary
School
↘ The independent school achieved an overall effectiveness rating of ‘Outstanding’
by the Office for Standards in Education, Children’s Services and Skills (Ofsted). The
report noted that ‘the spiritual, moral, social and cultural development of pupils is
outstanding. They have an excellent understanding of the world around them and
make a positive contribution to their community,’ and that the curriculum ‘achieves a
successful balance between Islamic and secular subjects’.
Averroès 2003 Lille, France Overview:
High School ↘ Averroès High School was the first private Muslim school in France to abide by the
national curriculum
↘ While it had only 11 students following its establishment, it currently has over 750.8
It is rated as one of the best schools in France.9
8 “The Muslim Averroes school grew with the acquisition of a building”, Saphir News, April 2016.
9 “France’s first private Muslim school tops the ranks”, France24, March 2013.
Challenges Opportunities
Establishing and scaling existing educational Online and distance-based learning represent a
programs and institutes is a significant challenge: largely untapped market gap for Islamic education:
↘↘ Attracting and retaining talented educators ↘↘ An increasing number of high-education institutions

has proven difficult for many segments of have begun to offer online education for their
Islamic education, and therefore successful students, as is the case with INCEIF, while MOOCs
expansion in some segments, such as K-12 and such as Bayyinah are experiencing rapid growth.11
university has been difficult. This is particularly
the case with new segments, such as MOOCs Increasing demand for Islamic Economy education
and distance-based learning. Commenting on
the necessity of talent, Muhammad Alshareef, ↘↘ While Islamic finance education has experienced
founder of Al Maghrib Institute, noted the need for massive growth in recent years, a focus on other
“outstanding leadership” and “bona fide community Islamic Economy sectors such as Halal Food,
leaders” to encourage the growth of Islamic Modest Fashion, and Halal Travel is still in its
educational institutions nascence. The emergence of Yurizk and its Islamic
Economy courses is a case in point.
↘↘ This is also due to the difficulty many Islamic
education institutions face in getting accredited. As segments of the sector increasingly adopt
Much of Islamic education is still not accredited by subscription-based models, investment
international and local governing bodies, including is guaranteed to grow:
some of the largest institutes in North America
and Europe. This inevitably inhibits the growth of ↘↘ Some institutes, particularly online- and distance-
the field, while also discouraging many potential based ones, will inevitably see more investment
students from seeking knowledge. from private equity and venture capital in the near
future, particularly if they maintain their levels of
Islamophobia in many Western countries has growth. While this may not be the case with some
made it difficult for institutions to serve the higher education institutions such as universities,
needs of Muslim students: MOOCs, and especially those that offer Islamic
Economy education, will see increased levels of
↘↘ France’s ban of the hijab in state schools is a prime financing and investment.
example. Rising Islamophobia is also expected to
have increased intolerance to Islamic educational
institutions and Muslim students in non-Islamic
schools. Such issues have also occasionally
highlighted a failure of some Islamic schools to
encourage integration amongst their students.
Education can be prohibitively expensive,

especially where Muslims are unable to resort to
interest-bearing loans:
↘↘ This is the case in most non-Muslim countries

where the dominant mode of financing education
has been through obtaining interest-bearing
loans. However, the UK’s proposed hybrid takaful-
charitable model could be a positive change.10
11 http://www.salaamgateway.com/en/digital/story/Islamic_elearning_platforms_
thriving_in_a_18_billion_MOOC_market-SALAAM20032016082627/, accessed
10 “Muslim students to be given ‘charitable’ sharia loans”, Telegraph, May 2016. on 8 August 2016.

Introductory Overview:
Islamic Culture and Arts Economy
3. Islamic Culture and Arts: Islamic traditions,

lifestyles, civilization and values and artistic
creations and works related to or inspired by them
4. Culture and Arts Economy:
↘↘ “Cultural industries”: Industries of

consumption and production that have at their
Below is an overview of a study commissioned by core a symbolic or expressive element
the Dubai Culture and Arts Authority on the Islamic
Culture and Arts Economy to complement the role of ↘↘ “Creative Industries”: Industries which have
Dubai as the global capital of the Islamic Economy. His their origin in individual creativity, skills and
Highness Sheikh Mohammed bin Rashid Al Maktoum, talent and which have a potential for wealth
Vice President and Prime Minister of the UAE and and job creation through the generation and
Ruler of Dubai set the goal for Dubai to become the exploitation of intellectual property; further
capital of the Islamic Economy by the end of 2017 and defined as industries that use intellectual
Islamic Culture and the Arts is one of the seven pillars capital as their primary input
that will support Dubai’s strategy as the capital of the
global Islamic Economy. 5. Islamic Culture and Arts Economy: Economic
activities that include cultural and creative
Islamic Culture and Arts represents one of the seven production and consumption of works, participation
pillars identified under the Dubai Capital of the Islamic at cultural events and activities, as well as
Economy Initiative launched in 2013. Dubai is in a innovations creating wealth and jobs through
leading position to drive the development of the global generation of intellectual property, which are of
Islamic Culture and Arts Economy, given its diversified Islamic origin, related to or inspired by Islamic
and innovation-driven economy. tradition, civilization and values
Dubai Culture and Arts Authority’s study promises to As such the report suggests that the Islamic Culture
convey ground-breaking research to propose the first and Arts Economy relates to all economic activities of
definition of the Islamic Culture and Arts Economy a creative and artistic nature that are associated with
by studying over 20 definitions from diverse sources Islamic heritage and its contemporary manifestations.
ranging from international governmental, to private-
sector and academic bodies. COMPONENTS OF THE ISLAMIC CULTURE
AND ARTS ECONOMY
These definitions have been interweaved and adapted Identified by the Dubai Islamic Economy Development
in order to match the reality of Dubai’s evolving Islamic Centre as “Islamic fashion, arts and design”, Islamic Arts
Culture and Arts Economy: contribute to the economy in creating both value and
employment opportunities.
1. Islamic Art: Works related to history of
Muslim nations, arts and sciences, cultural It is important to shed light on the components
heritage and current work inspired by Islamic of the Islamic Culture and Arts Economy so as to
traditions and civilization evaluate the size of its constituting industries and
their growth potential. In order to distinguish the
2. Islamic Culture: Languages, literature, philosophy, different sectors, Dubai Culture and Arts Authority
sciences and artistic creations but also lifestyles, has exhaustively studied various categorizations from
ways of living together, value systems, traditions museums to academic and private institutions, and put
and beliefs together a list of examples of Islamic Culture and Arts
Economy components.

Introductory Overview: Islamic Culture and Arts Economy
The following examples include components of ↘↘ Immaterial cultural heritage: Islamic trade
Islamic culture and arts that contribute to the heritage and traditional manufacturing
economy through business growth, employment, methods, culinary art, Islamic
exports, and tourism and investment opportunities. history and sciences
5. ISLAMIC WRITTEN MEDIA AND ARABIC

Examples of Islamic Culture and
LANGUAGE
Arts Economy Components
↘↘ Holy Quran, Islamic manuscripts and
religious texts, Tajweed
1. ISLAMIC DESIGN
↘↘ Arabic language
↘↘ Modest fashion
↘↘ Islamic calligraphy, ornamentation of
↘↘ Jewelry, ivory and precious stones texts and typography
↘↘ Furniture and carpets ↘↘ Poetry, storytelling and mysticism
↘↘ Tiles and ceramics
↘↘ Glassware 6. PERFORMING ARTS
↘↘ Metalwork ↘↘ Music
↘↘ Arabesque and geometry-inspired items ↘↘ Theatre
↘↘ Graphic design ↘↘ Urban arts
↘↘ Performances and ceremonies
2. ISLAMIC ARCHITECTURE, ISLAMIC CITIES
AND PUBLIC ART
7. DIGITAL ART
↘↘ Buildings and monuments
↘↘ Urban planning
8. MEDIA, INFORMATION AND COMMUNICATIONS
↘↘ Islamic gardens and landscaping
↘↘ Academic and scientific publications
↘↘ Magazines (both printed and digital)
3. VISUAL ARTS
↘↘ Social media and blogs
↘↘ Drawing
↘↘ Islamic-themed TV/broadcast channels
↘↘ Painting
↘↘ Radio
↘↘ Miniature painting
↘↘ Advertising and marketing
↘↘ Sculpture
↘↘ Software development
↘↘ Films and documentaries
↘↘ Entertainment and ‘edutainment’ products
↘↘ Mixed media installations (Islamic children’s cartoons and video games)
↘↘ Photography
9. SPORTS
4. ISLAMIC HERITAGE ↘↘ Camel racing
↘↘ Handicrafts, artisanal works ↘↘ Falconry
↘↘ Material cultural heritage:
Classic arms and armors
Acknowledgements
Supported by: Produced by:
THOMSON REUTERS
Thomson Reuters is the world’s leading source of
intelligent information and is a committed stakeholder
of the Islamic Economy. Thomson Reuters provides
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integrated knowledge services and solutions that
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DUBAI ISLAMIC ECONOMY DEVELOPMENT CENTRE enhance transparency, clarity and accessibility of the
Dubai the Capital of Islamic Economy
Brandmark
Date: 25th February 2013
For the fourth consecutive year, the Dubai Islamic

Contact: Shyrose Osman
Andrew Noddings
Office 201, Trident Waterfront
Dubai Marina
Islamic Economy to the global audience of businesses
Dubai, UAE
T: +971 55 8803 921
Economy Development Centre (DIEDC) in partnership

www.theandongroup.com
and professionals. We are proud to have been at the
with Thomson Reuters launches the ‘State of the heart of Islamic banking since the first commercial
Global Islamic Economy Report’ including the ‘Global Islamic bank launched in 1975. Our involvement in
Islamic Economy Indicator (GIEI) 2016/17,’ as part of its developing reports such as the State of the Global
priority to evolve as a one-stop-reference for the global Islamic Economy Report, since 2013, demonstrates
Islamic Economy. The report is a comprehensive study our institution’s commitment to develop much needed
on the continued momentum of the Islamic Economy knowledge solutions to increase transparency and
focusing on the seven pillars that comprise the DIEDC’s improve collaboration across the industry.
Islamic Economy strategy.
The Dubai Islamic Economy Development Centre

(DIEDC) was established in December 2013 to make In collaboration with:
Dubai the ‘Capital of Islamic Economy’, as envisioned
by His Highness Sheikh Mohammed Bin Rashid Al
Maktoum, Vice-President and Prime Minister of the
UAE and Ruler of Dubai.
DINARSTANDARD™
The DIEDC is equipped with the financial, administrative
DinarStandard™ is a growth strategy research and
and legal tools to promote economic activities
advisory firm empowering organizations for profitable
compatible with Islamic law in Dubai’s goods and
and responsible global impact. DinarStandard
financial services sector, as well as the non-financial
specializes in the Halal/Tayyab Food, Islamic/Ethical
sector. In this capacity, it will conduct research and
Finance, Halal Travel, Islamic NGOs and OIC member
specialist studies to determine the contribution of
country sectors. Since 2008, DinarStandard has been
Shariah-compliant activities to the emirate’s gross
advising organizations globally on market expansion,
domestic product, and explore how to extend this
business/investment strategy, and innovative
contribution to boost the economy. The DIEDC is also
marketing strategies. Its clients include global
mandated to create new products and lines of service to
multi-nationals, Islamic financial institutions, Halal
law firms specializing in finance structuring.
market startups and NGOs.

Acknowledgements
Report Team
REPORT COORDINATOR Shaima Hasan

Head of Research & Product Development, Thomson Reuters
REPORT AUTHOR, HALAL FOOD, AND LEAD ANALYST Haroon Latif

Director, Strategic Insights, DinarStandard
REPORT COORDINATOR AND EDUCATION ANALYST Usama Al-Za’tari

Senior Associate, DinarStandard
REPORT COORDINATORS AND ANALYST Shereen Mohamed

Senior Analyst, Thomson Reuters
MILLENIAL SOCIAL DATA ANALYST Rafi-uddin Shikoh

Managing Director, DinarStandard
TRAVEL ANALYST Reem El-Shafaki

ISLAMIC FINANCE ANALYST Tayyab Ahmed

Director of Islamic Finance
HALAL LIFESTYLE ANALYSTS Afia Fitriati

Shariq Faraz
Associate, DinarStandard
HALAL PHARMACEUTICALS AND COSMETICS ANALYST Paul Cochrane

HEALTHCARE ANALYST Yasir Malik

Senior Analyst, DinarStandard
REPORT ADVISORS Rafi-uddin Shikoh

Managing Director, DinarStandard
Mustafa Adil
Head of Islamic Finance, Thomson Reuters
Ammar Radhi
Senior Proposition Manager, Thomson Reuters
RESEARCH ANALYST Francis Dur

REPORT EDITORS Hammaad Chaudry

Paul Cochrane
Disclaimer
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Report Purpose and Methodology
Report context, purpose and objectives
CONTEXT
The 2016-17 State of the Global Islamic Economy Report presents the continued momentum
of the Islamic Economy, highlighting the maturing of key players identified in previous
reports, and the emergence of new players and more sophisticated products and services
addressing Muslim needs.
The 58 Muslim majority countries1 of the world represent current GDP exceeding $7 billion in
2015, just under 10 percent of global GDP. Furthermore, Muslims in total represent a 1.7 billion
population growing at a faster pace than the global population and containing some of the
fastest-growing global economies that stretch from Indonesia in the east to Turkey in the west
with the Arabian Gulf states at their center.
The influence of the Islamic Economy stretches beyond Muslim-majority countries as more than
350 million Muslims reside as minorities in many nations, with largely affluent ones living in the
West and large populations residing in the emerging nations of India, China, and Russia.
All over the world, this fast growing and relatively young population of Muslims is increasingly
asserting its Islamic sensitivities in the marketplace to products which include food, banking,
and finance, extending all the way to fashion, cosmetics, travel and healthcare.
PURPOSE
The purpose of the State of the Global Islamic Economy Report is to inspire and empower
business leaders, entrepreneurs, government officials and industry bodies to evaluate
and develop an actionable, practical, and high impact market strategy focused on the
Global Islamic Economy.
OBJECTIVES
The content objectives of the Report are to:
1. Present key business and consumer drivers of the Global Islamic Economy, providing an
update on previous reports.
2. Provide a global view of the Islamic economic landscape, including Muslim spend,
value chains and key players across core Islamic Economy pillars, and highlight new
product developments, high growth sectors, as well as regulatory, financing and
operational developments.
3. Present an illustrative estimate of actual Halal activity across the Halal Food and Beverage,
Halal Travel and Modest Fashion industries.
4. Present specific market opportunities for each sector including current challenges and
areas of opportunity across product and service segments, as well as opportunities
for key stakeholders.
1 Islamic Development Bank member 56 mostly Muslim-majority countries.

5. Present existing and emerging centers of the Global Islamic Economy based on a
continuation of this report’s high-impact Islamic Economy Indicators.
6. Present focus reports on the Healthcare, Education and Islamic Arts sectors.
Report methodology
APPROACH
In addressing its objectives, the Report incorporates a top-down and bottom-up
approach. This includes:
1. Primary research and frameworks have been used to ensure a comprehensive

understanding of developments, issues and opportunities, supplemented by
extensive secondary research.
PRIMARY RESEARCH
Original research of Halal Food and lifestyle market-related companies and ecosystem
institutions was conducted by leveraging the services of on-the-ground analysts from each
global region. Thomson Reuters Islamic Finance Development Report research was leveraged
for the Islamic Finance-related section. Expert interviews were also conducted to identify the
market landscape, challenges, opportunities and key companies and institutions.
The Report presents interviews with 12 related industry practitioners and influencers across
major geographic markets to identify key sector challenges, trends, and opportunities.
INTERVIEWS
Halal
Halal Media and Pharmaceuticals
Halal Food Islamic Finance Halal Travel Modest Fashion Recreation and Cosmetics
— — — — — —
Imran Kausar, Blake Goud, Faeez Fadhillah, Andy Santoso, Micheal Milo, Mohamed Issa,
Co-founder and CEO Founder CFO Co-Founder and CEO CEO
Managing Director RFI Foundation (UK) Tripfez (Malaysia) Hijup (Indonesia) Muslim Kids TV (Canada) Noor Pharmaceutical
Haloodies (UK) — — — — (U.S.)
Nael Mustafa, Sanya Saengboon, Altaf Alim, Bilal Memon, —
Noman Khawaja, Head of MENA Investments Managing Director and Commercial Director CEO and Founder Dr Tabassum Khan,
Co-founder and Arcapita (Bahrain) General Manager Aab (UK) Quran Academy (U.S.) CEO
Managing Director — Al Meroz Hotel — AJ Pharma (UAE)
Haloodies (UK) Talal Yassine, (Thailand) Peter Gould,
— Managing Director Founder and Creative
David Ventura, Crescent Wealth Director
Sales Director (Australia) Peter-Gould.com
Grupo Carinsa (Spain) (Australia)
Industry survey methodology overview
PURPOSE
An industry survey was undertaken across each core pillar of the Islamic Economy to measure
current business sentiment, representing the first such survey in the annual “State of the Global
Islamic Economy Report” series. The survey contained a series of questions designed to gain
unique insights into the progress, level of optimism, main opportunities and core challenges
faced by industry players.
SURVEY RESPONDENTS
172 responses were received across core geographies and sectors, with a credible distribution
across business size and with the majority of responses from senior company personnel. The
main attributes for responses are as follows:
↘↘ By geography: Perspectives were gained from core markets in the Islamic

Economy, with Malaysia, the UK, the U.S. and the UAE accounting for just under 50
percent of total responses
↘↘ By sector: Halal Food and Islamic Finance were strongly represented in the survey, at close
to 60 percent of responses, but key perspectives were gained from the other pillars
↘↘ By business size: The majority (just over 50 percent) of respondents had annual revenues
of less than US$5 million, but there was a robust representation of larger companies, with
22 percent of respondents having revenues exceeding $100 million
↘↘ By seniority: The majority of respondents had senior positions in their companies, with 41
percent of respondents either owner, president or CEO of the companies they represented.
SECONDARY RESEARCH
A range of sources have been used, including but not limited to Halal Focus, Salaam Gateway,
international news sites and company websites, supplemented by the extensive project-based
sector knowledge developed by DinarStandard.
OPPORTUNITY IDENTIFICATION FRAMEWORKS

The Report presents sector-level opportunities that are primarily derived from DinarStandard’s
Islamic Economy related project experiences.

Survey response percentage breakdown
BREAKDOWN BY GEOGRAPHY BREAKDOWN BY SEGMENT
Malaysia UAE
24% 23%
Other United Kingdom
58% 62% Turkey
United Kingdom 14%
23%
Indonesia
19%
UAE
GCC other 19%
12% United States
United States Malaysia 14%
Turkey Indonesia
19% 40%
7% 10%
BREAKDOWN BY BUSINESS SIZE BREAKDOWN BY SENIORITY
United Kingdom Other Malaysia

Malaysia 46% 52% 11%
66%
UAE
38%
UAE
22% GCC other
Turkey 33%
Indonesia United States
19% Indonesia
10% 9%
38%
Source: Analysis based on responses

1. Universe market sizing: The value of Muslim spend across
lifestyle sectors by country was developed by applying
DinarStandard’s proprietary Muslim multiplier to global
sector-level market sizing data.
Overall, the Islamic Economy sector estimates (Halal Food, Islamic Finance, Modest Fashion,
Halal Travel, Halal Media and Recreation, Halal Pharmaceuticals and Cosmetics) are based
on the potential universe of the opportunity and focused on its core audience of Muslim
consumers globally.
MARKET SIZING METHODOLOGY

Per Country, Global lifestyle spend by sector (excl. Finance), $Bn
Key steps in the calculation (summary) Key external sources
Food & Beverage
Footwear & Clothing

National databases; International
Comparison Programs, UN World
Travel BY Trade Organization, World Bank,
COMPRISES COUNTRY DS analysis and estimations
Media & Recreation
Pharma & Cosmetics
Muslim multiplier %
Per country, global lifestyle spend by sector (excl. Finance), $Bn
Key steps in the calculation (summary) Key external sources
Muslim % of total population
BASED Relative income levels Census data; DS Analysis and

BROADLY BY
COUNTRY
estimations
ON
Average family size
Total Muslim lifestyle spend market size, $Bn
NOT ADDRESSED
Halal penetration of Muslim markets, % IN THIS REPORT
NOT ADDRESSED
Actual Islamic Lifestyle Economy market size, $Bn IN THIS REPORT

A KEY CAVEAT
This number does not represent the actual value of the Global Islamic Economy, but
more broadly, the total value that Muslims provide to the Islamic Economy, including their
consumption of non-Islamic products and services. However, the Islamic Economy could capture
a large share of total spend on lifestyle products and services by offering products and services
that appeal to the core values of Muslim consumers.
Metrics used to calculate Muslim spend on individual sectors
Global spend Metric,

Muslim market Sources used
segment by country
Muslim spend on Food and Beverage Expenditure on food and non-alcoholic Baselined from latest International
beverages Comparison Program values (2011), adjusted
to more recent values from national statistics
Muslim spend on Apparel and Footwear Expenditure on clothing and footwear agencies and GDP evolution
Muslim spend on Media and Recreation Expenditure on culture and recreation
Muslim spend on Travel Expenditure on outbound travel 2014 UNWTO (World Tourism Organization)
and World Bank data
Muslim spend on Pharmaceuticals and Expenditure on pharmaceuticals and National statistics agencies, pharmaceuticals
Personal Care products cosmetics and cosmetics industry associations
The Islamic Finance current market estimates are based on data derived from Thomson Reuters
Islamic Finance Development Report research. The potential Islamic banking universe estimate
has been baselined from national total banking assets data from central banks. It assumes
an optimal scenario of the fully supportive regulatory environment in the core Islamic Finance
markets as well as 100 percent penetration of the Muslim demographic proportion for the
countries included.2
Global Muslim market estimates are applied based on DinarStandard’s Muslim population
estimates per country that are adjusted for income disparities. Projections were determined
primarily by regressing historical annual growth of the relevant industry metrics on GDP growth
for each country, showing high correlation. The regression determined a line of best fit that,
using IMF GDP forecasts, projected industry growth. Regression output was compared to
external estimates by national statistics agencies and global industry forecasts.
2. This is the first year that actual Halal market estimates have
been developed, for Certified Halal Food, Halal Travel, and
Modest Fashion
CERTIFIED HALAL FOOD AND BEVERAGE

The current market size of Halal Certified food and beverage products has been estimated for
the first time in this report series based on the following approach:
↘↘ Interviews were held with over 20 certifiers around the world, supplemented by secondary
research of national and industry association estimates, resulting in close to 30 data points
on the size of Halal certified food actuals in over 20 key countries (representing ~40% of
the estimate Halal Certified Food market).
2 Based on DinarStandard analysis. Note that Global assets data is from 72 countries representing over 85 percent of the global GDP.
↘↘ A thorough review of Muslim spend on food and beverage by region, including key countries,
supplemented by a detailed analysis of food and beverage exports to OIC countries
were used to estimate the revenues from Halal certified food and beverage products
for remaining countries
We note that in many OIC countries, formal Halal certification is often not carried out nor
expected, and has only started to be applied widely. This estimate does not include food
produced domestically that is considered Halal, but not officially certified Halal (for instance,
this is the case with majority of domestically produced food in Pakistan).
Halal-Certified food and beverage market sizing methodology
Estimates developed by region
Steps in methodology Source
Muslim spend on food & beverage – Muslim market spend

domestically produced and consumed estimates, 2015; ITC Trademap
(excluding imports & exports), $ in billions OIC import data
Share of Muslim spend that is Halal Halal certifier interviews,

certified, % national trade ministry estimates
Food & beverage exports by region/ ITC Trademap OIC import

country to OIC markets, $ in billions and export data
Share of food and beverage exports Halal certifier interviews,

that are Halal certified, % national trade ministry estimates
Total estimated revenues from Halal Certified Food and Beverage products, 2015

MUSLIM-FRIENDLY TOURISM (“MFT”)
Survey results and findings from a 2012 Pew Research Religiosity study were applied to Muslim
outbound travel spend to estimate the total estimated revenues derived by MFT services in 2015.
↘↘ Pew Research Center’s religiosity study helped identify the proportion of Muslims
that considered religion as very important, a key requirement for proactively
seeking out MFT services.
↘↘ Survey results from a COMCEC study were used to determine the proportion of Muslims
who valued MFT services across travel touchpoints including airports, restaurants
and hotels, and that were satisfied with the services provided. There is a “passive”
market for those who use MFT services without actively seeking them out, which is not
captured in our estimates.
Muslim-friendly Tourism market sizing methodology
Muslim spend on outbound Proprietary estimates

travel by country, 2015 prepared by DinarStandard
Proportion of Muslims that consider Based on Pew Research

religion as very important Center Religiosity Report
Proportion of Muslims that both Consumer survey undertaken

require MFT services when travelling by COMCEC in 2016 for report
and are satisfied on “Developing and Marketing
Muslim Friendly Products
and Services”
Total estimated revenues derived from Muslim Friendly Tourism services, 2015

MODEST FASHION
Estimates based on estimates of clothing spend by country, additionally accounting for
Muslim share of spend, teenage and adult share, and female share of total population, and the
proportion of Muslims adhering to the religion, based on Pew Research.
Modest Fashion market sizing methodology
Spend on clothing by country ICP 2011 data, supplemented by

national estimates, with growth
determined by national estimates
and a regression of sector growth
on GDP growth between 2011
and 2015
Proportion of population that is Based on Pew Research Center

female and above the age of 12 Religiosity Report
Proportion of Muslims that Based on Pew Research Center

consider the religion as very important Religiosity Report
Total estimated revenues from Modest Fashion clothing

purchased by Muslim women, 2015

3. There are several other considerations regarding our
methodology.
↘↘ Sector briefs: Refer separately to the Healthcare, Education and Islamic Arts sections for
an explanation of how market sizing estimates were developed for those sectors.
↘↘ Trade data: DinarStandard’s industry value-chain segmentation has been applied to

analyze related industry trade data from the UN Comtrade Database 2015.
Note: all figures in the Report prefixed with a ‘$’ (e.g. $141 million) represents USD currency,
unless otherwise stated.
Appendix
The Global Islamic Economy sectors operate within a business and financial environment
that demands them to adapt to constant change, but there is limited reliable information and
data on these sectors to evaluate their development. The Global Islamic Economy Indicator
(GIEI) is meant to be a true barometer of the state of the Islamic economic sectors across
their fundamentals. The indicator aims to introduce a new way of measuring development
by combining data from the various key elements of the sectors into a singular composite
indicator. This quantified information will help facilitate further comprehension of how the
different parts of the market are developing over time.
The Global Islamic Economy Indicator
The Global Islamic Economy Indicator is a composite weighted index that measures the overall
development of the Global Islamic Economy sectors by assessing the performance of its parts
in line with its broader social obligations. It is a global level composite indicator with selected
national and industry component level indicators.
Objectives
GLOBAL INDICATOR LEVEL
↘↘ Present one single indicator to provide a pulse of the Global Islamic Economy’s
health and development
↘↘ Provide an indicator that is reliable and unbiased
↘↘ Provide a global view of the Islamic economic landscape
↘↘ Inform current and potential Islamic Economy stakeholders/investors about the

industry’s performance
COUNTRY INDICATOR LEVEL
↘↘ Assess the current state of the Islamic Economy in each country
↘↘ Track changes over time and make comparisons across regions and countries
SPECIFIC SECTOR LEVEL
↘↘ Measure the sector’s health and development from various perspectives
↘↘ Enhance the sector’s market transparency and efficiency
↘↘ Track changes over time and make comparisons across regions and countries
GIEI is a single measure that captures a holistic assessment of the Global Islamic Economy
industry across all sectors. It is a product of a number of key sub-indicators underlining the
industry. Disaggregation of data helps expose the disparities, differences and movements that
may not exclusively be covered in wide-ranging aggregate terms.

Appendix
The different components that make up the indicator were selected based on an outline of the
key constituents of the industry as a whole and are based on key contemporary issues covering
financial, governance, awareness and social aspects. All are fundamentally important for the
development of the industry as a global business.
Data collection
The data employed in the Global Islamic Economy indicator when aggregating data and
computing indicator values includes information that is publicly disclosed only. The employment
of disclosed information ensures reliability and consistency of the results.
Universe
All OIC countries are included along with all non-OIC countries with a strong
presence of Halal industry.
Country list (73 countries distributed among main regions in our universe)
GCC Other MENA
South
(GULF (MIDDLE EAST AND
CORPORATION East South Sub-Saharan NORTH AFRICA
COUNCIL) Asia Asia Africa EXCLUDING GCC) Europe Others
Bahrain Brunei Afghanistan Benin Algeria Albania Australia

Darussalam
Kuwait Turkmenistan Burkina Faso Egypt France Azerbaijan
Indonesia
Oman Bangladesh Cameroon Iran Germany Brazil
Malaysia
Qatar India Chad Iraq Italy Canada
Singapore
Saudi Arabia Maldives Comoros Jordan Switzerland China
Thailand
United Arab Pakistan Djibouti Lebanon Turkey Guyana
Emirates
Sri Lanka Gabon Libya United Kingdom Kazakhstan
Gambia Mauritania Kyrgyzstan
Guinea Morocco Russia
Guinea-Bissau Palestine Suriname
Ivory Coast Sudan Tajikistan
Kenya Syria United States
Mali Tunisia Uzbekistan
Mozambique Yemen
Niger
Nigeria
Senegal
Sierra Leone
Somalia
South Africa
Togo
Uganda
ABOUT
THOMSON REUTERS
Islamic Finance
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of intelligent information to the leading decision
makers in the financial and risk, legal, tax and
accounting, intellectual property, science and
media markets.
Combining industry expertise innovative technology,

Global our information services cover deep coverage of
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Information Islamic finance news, market insights and Shariah-
Provider compliant pricing data, indices, screening solutions, the global reference for
regulation, standards, and more. industry intelligence, news,
Built on the back of the world’s most extensive data
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Leading capabilities, we leverage global networks to provide the Islamic Economy. Our
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House and institutions to a wide range of sectors, including
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Thomson Reuters consulting professionals include from across the globe, help
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Solutions Islamic financial services industry, including deep businesses and fuel their
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With more than 100,000 clients in over 30 indus- intelligence come from Islamic
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Notes
Notes
STATE OF THE
GLOBAL ISLAMIC
ECONOMY REPORT
2016/17
SUPPORTED BY: DEVELOPED AND PRODUCED BY:
IN COLLABORATION WITH:
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0 / 100 / 100 / 0
Copyright © SalaamGateway.com 2016. All Rights Reserved.
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0 / 40 / 90 / 0
Dubai the Capital of Islamic Economy Date: 25th February 2013 Andrew Noddings
Office 201, Trident Waterfront
Brandmark Contact: Shyrose Osman Dubai Marina

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What are the key sectors that make up the Islamic economy?

What are the key sectors that make up the Islamic economy?

What are some of the trends observed across sectors of the Islamic economy?

What are some of the trends observed across sectors of the Islamic economy?

STATE OF THE

SUPPORTED BY: DEVELOPED AND PRODUCED BY:

9 | The Global Islamic Economy Indicator (GIEI)

12 | Global Islamic Economy Drivers

16 | Millennial Consumer Insights – Social Data Analysis Interactions

20 | Industry Insights – Islamic Economy Leaders Survey

25 | Halal Food Sector

53 | Islamic Finance Sector

81 | Halal Travel Sector

105 | Modest Fashion Sector

133 | Halal Media and Recreation Sector

159 | Halal Pharmaceuticals and Cosmetics Sector

184 | Special Brief: Healthcare

192 | Special Brief: Education

200 | Introductory Overview: Islamic Culture and Arts Economy

204 | Report Purpose and Methodology

The Islamic Economy continues to evolve, driven by young Muslims asserting

p.4 State of the Global Islamic Economy 2016

Most active Islamic finance

ISLAMIC FINANCE ASSETS MARKET SIZE Islamic economy sentiment:

Total Islamic Projected Market

Halal Food respondents most optimistic – 80% saying

p.6 State of the Global Islamic Economy 2016

p.8 State of the Global Islamic Economy 2016

Malaysia, UAE and Bahrain continue their dominance

MALAYSIA 121 1 UAE 1 MALAYSIA 1 UAE

GIE Halal Halal

Malaysia 121 189 55 70 25 38 61

United Arab Emirates 86 92 75 81 67 137 78

p.10 State of the Global Islamic Economy 2016

All GCC economies as a whole have maintained their

Four key Islamic market-based growth drivers

1. LARGE, YOUNG AND FAST-GROWING GLOBAL MUSLIM DEMOGRAPHIC:

2. LARGE AND FAST GROWING GLOBAL ISLAMIC ECONOMIES:

p.12 State of the Global Islamic Economy 2016

Uzbekistan 6.07 ↘↘ In an earlier comprehensive study from 2012 by

Emerging market and developing economies 4.67

Global Average 3.6

OIC overall 4.19

Source: IMF Outlook, April 2016

p.14 State of the Global Islamic Economy 2016

↘↘ Global sentiment around healthy/organic food,

2 “Growth continues: Global organic market at 72 billion US Dollars with 43

MILLENNIALS CRITICAL RELEVANCE TO THE ISLAMIC ECONOMY

p.16 State of the Global Islamic Economy 2016

Volume of millennial interactions recorded by country & sector

Indonesia 37,500 4,200 68,500 4,600 4,200 7,800 126,800

Malaysia 60,600 7,400 5,300 1,900 1,400 8,100 84,700

Pakistan 4,000 1,200 1,500 500 48,500 200 55,900

USA 2,500 6,800 1,100 1,500 2,200 500 14,600

Philippines 400 7,700 1,200 100 200 4,300 13,900

India 1,800 2,500 500 300 5,200 – 10,300

Saudi Arabia 900 600 900 100 5,300 – 7,800

UK 600 2,700 400 300 1,000 100 5,100

Turkey – – – – 4,900 – 4,900

UAE 300 300 200 – 3,000 – 3,800