Kuala Lumpur: the small and medium enterprises (SMEs), which give a share in more than 60% of the Islamic economy, industry experts announced on Thursday.
The sessions debated at most how to provide fresh motivation to small and medium sized enterprises.
Islamic Finance assets are predicted to expand to $3.2 trillion (Dh11.7 trillion) by 2020 from $1.8 trillion in 2014.
“This increased appetite demonstrates that the investors are attracted to the benefits surrounding the ethical principles of Islamic finance, linking finance to physical assets and productive fiscal activities” Mustafa Adel, Acting Head of Islamic Finance at Thomson Reuters.
The Halal food sector, meantime, is projected to grow to $1.56 trillion by 2020, with the demand for ethical treatment of animals alone causing $100 billion organic food market.
Anywise, they deal with a challenge of standardization and accreditation of its basics of treating animals.
The global Muslim market consumed about $142 billion on travel in 2014, and is predicted to compass $233 billion by 2020.
The Islamic fashion sector accounts for nearly 11% of the global fashion industry with a worth of $230 billion and is projected to expand to $327 billion by 2020.
The Muslim pharmaceutical industry is predicted to increase to $106 billion by 2019, from the current $75 billion.
Islamic finance has a powerful prospect in promoting financial stability, financial inclusion and shared prosperity, all contributing to building resilient and fair growth, said Ahmad Mohammad Ali, president of Islamic Development Bank (IDB) Group.
With a wide comprehensive base, the industry needs to focus on sustainability, industry experts said.
The IDB Group is also optimistic that countries in the Islamic world would follow initiatives particularly the role of Islamic Finance in ensuring strong and comprehensive growth.