Halal Tourism in the Growth of the

Global Islamic Economy

Presented by: Presented at:

Rafi-uddin Shikoh

Sep 22-23, Andalusia,

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 2
 Halal Tourism in the Growth of the Global Islamic Economy
Islamic Economy encompasses following 3 segments
As viewed and served by DinarStandard

1) .

2) .

3) .

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.

DinarStandard 2005-2014 4
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

DinarStandard 2005-2014 5
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

DinarStandard 2005-2014 6
 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:

DinarStandard 2005-2014 7
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.

DinarStandard 2005-2014 8
 Halal Tourism in the Growth of the Global Islamic Economy

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

DinarStandards DS100 Ranking)
Consumer Brands of the Top 100 Companies of the OIC
(from DinarStandards 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

DinarStandard 2005-2014 9
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

DinarStandard 2005-2014 13
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

DinarStandard 2005-2014 14
Halal Tourism in the Growth of the Global Islamic Economy

Islamic Economy: Convergence Opportunities

DinarStandard 2005-2014 15
 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

DinarStandard 2005-2014 16
 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 NEW - Multiple Region Linked

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

Testing Region C Region F

Hub Node
DinarStandard 2005-2014 17
 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

DinarStandard 2005-2014 18
 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

DinarStandard 2005-2014 20
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)

DinarStandard 2005-2014 21
Islamic
/Ethical
GROWTH STRATEGY
Finance
RESEARCH & ADVISORY

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

E:
info@dinarstandard.co
OIC m
Emerging W:
Economies www.dinarstandard.co
m