Dubai eyes Islamic economy growth to reach 10% of GDP by 2021

Dubai –   The emirate of Dubai is looking to increase the Islamic economy’s contribution to its gross domestic product (GDP) to 10% by 2021, a top official at the Dubai Islamic Economy Development Centre (DIEDC) has said.

The Islamic economy’s contribution to GDP currently stands at 8.3% in 2018.

“A specific goal would be to [increase Islamic economy’s contribution to GDP] through efficient use of modern technology,” DIEDC director general Essa Kazim said in a statement.

The move comes as part of the DIEDC’s five-year strategy through which the centre aims to bolster three main sectors of the Islamic economy, including Sharia-compliant products and services.

Under the five-year strategy launched in 2017, the DIEDC will focus on increasing knowledge, industry standards, as well as the use of digital technologies across the sectors of Islamic finance, halal products, and Islamic lifestyle such as fashion and tourism.

In 2018, the emirate of Dubai set the world record for the highest value of Islamic bonds, or sukuk, listings in a year, having registered $60 billion, according to the Dubai Economic Report 2018, which was released by the Department of Economic Development (DED).

The DIEDC also aims to create and develop with local and global organisations in 2019 to establish a regulatory framework and ecosystem for growing the Islamic economy, according to Kazim, who further noted that the centre would equip young workers with the skills needed to boost growth across the industry.

Meanwhile, UAE economy minister and DIEDC chairman Sultan Al Mansouri, said that his country was “a catalyst for innovative initiatives and policies that present effective solutions to global economic challenges, while specifically enhancing the Islamic economy.”

“As a comprehensive economic system, a knowledge-based economy also paves the path to the economy of the future,” Al Mansouri added.

In 2018, Dubai’s halal industry made up 5.8% of its Dubai trade volumes, data released by the Dubai Statistics Centre (DSC) showed.

Meanwhile, the overall global Islamic economy grew 6% to $2.4 trillion by end of 2017, according to the Global Islamic Finance Report by UK-based Edbiz Consulting.

Also in 2017 and according to Thomson Reuters, Sharia-compliant financial assets were projected to represent 1% of all global financial assets.