LONDON: The global halal food and beverage (F&B) market is set to boom in the next five years, driven by new entrants to the market.
The sector is expected to grow from $1.24 trillion in 2016 to reach $1.93 trillion by 2022, according to the “State of the Global Islamic Economy” report.
“Halal food is the largest and most diverse sector of the Islamic economy. New entrants have come into the market, and product offerings have firmly moved beyond being meat-focused to include candy, ready-made meals, snacks and children’s food,” said the report, published by Dubai Islamic Economy Development Center (DIEDC) in conjunction with Thomson Reuters:
It revealed that Muslim spend on food and beverages is growing at nearly double that of global growth — creating significant opportunities for investment and the creation of global halal food brands.
Commenting on the report, Imran Kausar, co-founder of London-headquartered multinational halal food firm Haloodies, told Arab News: “The halal opportunity continues to grow with innovation and consumer-focused brands leading the way. Halal brands that capture a mainstream audience will open halal foods to even larger audiences.”
Food and beverage (F&B) leads Muslim spend by category, followed by clothing and apparel at $254 billion, media and entertainment at $198 billion, travel at $169 billion, and pharmaceuticals and cosmetics at $83 billion and $57.4 billion, said the report.
It notes that established players are expanding at home and abroad through franchising and that multinationals have also made major investments in Muslim-majority markets, anticipating rising demand.
Investment and sovereign wealth funds have been particularly active, and a number of halal investment funds are in development, it said.
Family-friendly halal travel is another growth market with the number of Muslims traveling at an all-time high, and there is corresponding demand for travel that adheres to Islamic values — from hotels and beach resorts, to dining options and airlines.
Halal hotel chains are emerging and family-friendly attractions are being developed in the GCC.
Along with a plethora of new online agencies catering to Muslim tourists, Muslim equivalents of Airbnb have emerged in the UK and globally. Muslim spend on travel was $169 billion in 2016, and is expected to grow to $283 billion by 2022.
Designer brands and boutiques are also developing new modest fashion lines and Ramadan collections.
The reports said: “Start-up modest fashion brands have also been making inroads around the world, particularly for hijabs, gaining traction by spreading the word through social media. Modest athletic apparel is a notably trendy segment, with Nike getting in on the act as well as Danish label Hummel. Muslim spend on clothing was $254 billion in 2016, and is forecast to reach $373 billion by 2022.
Romanna Bint-Abubaker, founder and CEO of global modest fashion brand Haute-Elan.com, told Arab News: “As the first global marketplace for modest fashion, we welcome international brands in producing collections and products for the fastest growing global consumer (Muslims). Our primary issue as a marketplace is the current supply does not meet demand and our consumers are still forced to go to the high street for their basic requirements.”
Global halal food sector set to boom as market grows
Global halal food sector set to boom as market grows
Saudi Arabia ranks 5th worldwide in AI sector growth, leads Arab nations
RIYADH: Saudi Arabia has secured the fifth rank globally and first in the Arab region for growth in the artificial intelligence sector, the Saudi Press Agency reported, citing data from Global AI Index.
According to the report, this development underscores the Kingdom’s progress in AI, reflecting the success of Saudi Arabia’s development plans and its ability to achieve high international competitiveness under its economic diversification strategy Vision 2030.
The Kingdom aims to position itself as a technological hub by the end of this decade as it continues its economic diversification efforts, reducing its reliance on crude oil revenues.
In November, a survey report released by KPMG also highlighted Saudi Arabia’s progress in the technological sector.
It noted that 84 percent of CEOs in the Kingdom are ready to deploy AI responsibly, well above the global benchmark of 76 percent, supported by the country’s data governance ecosystem, including national initiatives led by the Saudi Data and Artificial Intelligence Authority.
“During the period measured by the Global AI Index, Saudi Arabia launched a wide range of national initiatives led by SDAIA. These initiatives strengthened Saudi Arabia’s position on the index,” said SPA.
SDAIA’s initiatives during the period included multiple projects, particularly the Rowad Package initiative, which empowers entrepreneurs and startups to authenticate customer data through electronic linkage to the National Information Center’s databases.
The authority also launched the AI Ethics Incentive Badges initiative to raise awareness of ethical practices and promote the responsible use of technologies.
This initiative offers a comprehensive framework to help organizations and developers align with global best practices.
SPA added that over 50 accreditation certificates have been granted to national AI companies for developing AI-based products serving priority sectors in the Kingdom.
The Gaia generative AI accelerator, backed by SDAIA and the National Technology Development Program with New Native as a partner, is also accelerating startup development, enabling new companies to launch and scale more effectively.
“These efforts also extended to the SDAIA Academy, which has focused on building national capabilities and empowering young talent through advanced training programs in data and AI, offered in partnership with international organizations,” reported SPA.
It added that SDAIA Academy has trained over 1 million Saudis in data and AI skills through the SAMAI initiative, carried out in partnership with various government entities.
This training program is considered one of the world’s largest, targeting the general population.
“These achievements highlight SDAIA’s success in the field of data and AI, both nationally and internationally. They reinforce its role as the Kingdom’s central authority for regulation, development, and application, and advance the nation toward leadership in data- and AI-driven economies,” concluded SPA.
In October, Humain, an AI company owned by Saudi Arabia’s Public Investment Fund, partnered with AirTrunk, which is backed by BlackRock and the Canada Pension Plan Investment Board, to develop hyperscale data centers in the Kingdom.
The first phase of the collaboration includes an estimated $3 billion investment to build a major data-center campus in Saudi Arabia, according to a press statement.
