Halal Tourism in the Growth of the

Global Islamic Economy

Presented by: Presented at:

Rafi-uddin Shikoh

Sep 22-23, Andalusia, Spain

Halal Tourism in the Growth of the Global Islamic Economy

Outline

1 Defining Islamic Economy Context

2 Halal Travel Sector

3 Halal Travel & Islamic Economy Opportunities

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 Halal Tourism in the Growth of the Global Islamic Economy
‘Islamic Economy’ encompasses following 3 segments
As viewed and served by DinarStandard

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

2) . US$ 2 trillion+ ‘Halal’ consumer market

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

2014 Business Plan © DinarStandard 2005-2014 3

Halal Tourism in the Growth of the Global Islamic Economy

Islamic Finance Convergence & OIC Connectivity

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

• Specific opportunity exists

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

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Halal Tourism in the Growth of the Global Islamic Economy

Global Halal Food & Lifestyle markets: $1.62 trillion in 2012/

expected to reach $2.47 trillion by 2018

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Halal Tourism in the Growth of the Global Islamic Economy

Global Halal Food & Lifestyle markets: $1.62 trillion in 2012/

expected to reach $2.47 trillion by 2018

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 Halal Tourism in the Growth of the Global Islamic Economy

Emerging Islamic Economies (OIC*)

 57 mostly Muslim majority countries

 Attractive young demographic

 Growing economies

 Inter-connected by:

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

Muslim Lifestyle Market℠:

US$ 2 trillion+ ‘Halal’ consumer market

Intra-OIC trade mandates

12%-20%

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Halal Tourism in the Growth of the Global Islamic Economy

Emerging Islamic Economies

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

• These economies are interconnected economically by their core relevance to

Islamic Finance/Capital, Halal food & lifestyle markets, as well as Intra-OIC
trade development targets and trade agreements.

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 Halal Tourism in the Growth of the Global Islamic Economy

Consumer Brands of the Top 100 Companies of the OIC (from

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

Finance:

Transportation

Top 100 Companies of OIC Countries

Food:

Education:

Hospitality:

Media:

*57 OIC (Organization of Islamic Conference) member countries

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Halal Tourism in the Growth of the Global Islamic Economy

Outline

1 Defining Islamic Economy Context

2 Halal Travel Sector

3 Halal Travel & Islamic Economy Opportunities

© DinarStandard 2005-2014 10
Download free copy at: 11
DinarStandard.com
Halal Tourism in the Growth of the Global Islamic Economy

Centers of Islamic Economy

© DinarStandard 2005-2014 12
Halal Tourism in the Growth of the Global Islamic Economy

Outline

1 Defining Islamic Economy Context

2 Halal Travel Sector

3 Halal Travel & Islamic Economy Opportunities

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Halal Tourism in the Growth of the Global Islamic Economy

Islamic Lifestyle Economy Opportunities

1. CONVERGENCE: Islamic finance/ investments in Halal

lifestyle economy

2. OIC Emerging Economy Investments

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Halal Tourism in the Growth of the Global Islamic Economy

Islamic Economy: Convergence Opportunities

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 Halal Tourism in the Growth of the Global Islamic Economy

Convergence Opportunity - Islamic Capital to Islamic Lifestyle Sectors

Islamic Finance Islamic Lifestyle Sectors

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

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 Halal Tourism in the Growth of the Global Islamic Economy

Region-wide Industry Clusters

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

Traditional Close Proximity Linked NEW - Multiple Region Linked

Cluster Industry Cluster
Region A
Region D
Region A
Region I Region G
•Services
•Infrastructure

•R&D Region E
•Talent
Region B
Region H
•Distribution

•Manufacture
Region C Region F
•Testing

Hub Node
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 Halal Tourism in the Growth of the Global Islamic Economy

OIC-wide Industry Clusters

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

E.g. OIC-wide Pharmaceutical Cluster Construction Srvcs.

Syria
TURKEY
Palestine
Amman Karachi
Iran Auto Manufacturing

INDONESIA

Cairo
Dubai
Saudi Arabia
Malaysia
Travel/ Logistics
Select Corporations:
• Eczacibasi, Turkey • Zuellig Pharma Bhd, Malaysia
• PT Kalbe Farma, Indonesia • Tabuk Pharmaceutical, Saudi Arabia
• Hikma Pharma., Jordan • Egyptian Int. Pharma. Ind. Co., Egypt

Source: DinarStandard OIC Clustering Model, *Diagram illustrative

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 Halal Tourism in the Growth of the Global Islamic Economy

OIC Industry Cluster – Value Chain

Industry Sub-sectors OIC Industry Clusters

Halal Value Chain New Growth Investment

Alliances Markets Opportunities

Sub-Sector Value Chain

Raw Production/ Marketing Distribution End

Inputs Operation Customer

Source: DinarStandard OIC Clustering Model © DinarStandard 2005-2014 19

Halal Tourism in the Growth of the Global Islamic Economy

Challenges

 Operational & Product excellence (quality, competitive,

innovative, efficient, and profitable solutions)

 Regulations/standards/compliance

 Human capital development and training

 Consumer education

 Global positioning (sharia-compliant, halal, Muslim-

friendly, family-friendly, other?)

 SME/Venture financing

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Halal Tourism in the Growth of the Global Islamic Economy

Inspired by an inclusive mission.

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

and have made you nations and tribes that ye may
know one another.
Lo! the noblest of you, in the sight of Allah, is the best in
conduct. Lo! Allah is Knower, Aware.”
(Surah al-Hujurat (49:13)

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Islamic
/Ethical GROWTH STRATEGY
Finance RESEARCH & ADVISORY

Halal/
Ethical
Lifestyle
80 Broad Street, 5th Floor,
New York City, NY 10004, USA

E: info@dinarstandard.com
W: www.dinarstandard.com
OIC
Emerging
Economies