Sustainability in Islamic economy

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Joy Abdullah
Joy Abdullah

For those of us involved in the dual industries of Islamic finance and halal, we are aware of the substantial growth in both industries.

by Joy Abdullah*

In their respective ‘silos’, both industries, individually, keep shattering growth forecasts!

Yet the often spoken about convergence of the two industries is, tangibly, yet to occur! Quoting from the state of the Islamic economy report – “In an analysis of private equity, venture capital deals or mergers and acquisition tracked by Zephyr, a global deals data provider, only 17 completed transactions relating to halal food-related companies are reported with the seven disclosed deal amounts adding to $22 million only.” And this is just for halal food!

The Global Islamic Economy summit (organised by Dubai Chamber of Commerce and Thomson Reuters in November 2013) was, perhaps, the first and only organised meet of the two industries (in my opinion) where there was researched data and discussion on how the opportunities in the Islamic Economy can actually be utilised for:

  • Benefiting a country’s national economy
  • Benefiting both the dual industries (of Islamic and halal)

Leading to improvement in the global Muslim community, global economy and humanity as a whole.

The report —State of the Global Islamic Economy 2013 was published at this summit. This report, a first of its kind, was jointly undertaken by Thomson Reuters and Dinar Standard.

It’s an absolutely goldmine of information, highlighting specific business opportunity areas! Whilst the report highlights growth segments, emerging trends, business potential and provides a very comprehensive backdrop with going-forward strategic solutions, for the dual industries of Islamic Finance & Halal to go mainstream by using the global Muslim community as a starting base, what appears to be missing is a point-of-view on the sustainability aspect.

convergence-islamic-economy

Sustainability that enables organisations, in the dual industries, to undertake strategic business growth based on achieving short-term profitability coupled with long-term beneficial impact on the communities their brands are involved with.

In sum, this means approaching the growth opportunity ground-up.

Approaching sustainability ground-up means having to look at:

  • Leadership
  • Processes
  • People
  • Communication

Topics that have had very little exposure in terms of cross-industry discussions and development of concrete action plans. Given the rising consumer demand, for authentic engagement with brands, perhaps, industry leaders would now explore these topics in-depth.

This would aid, not only the organisations currently making up the dual industries but those in the periphery, to come up with measurable, long-term business plans. Plans that deliver both shareholder and community value whilst ensuring the long-term sustainability of the businesses.

* Joy Abdullah is a Malaysia-based expert in brand-based business sustainability

See his other post Leadership for business sustainability in the Islamic economy

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Reading Time: 2 minutes

Joy Abdullah

For those of us involved in the dual industries of Islamic finance and halal, we are aware of the substantial growth in both industries.

Reading Time: 2 minutes

Joy Abdullah
Joy Abdullah

For those of us involved in the dual industries of Islamic finance and halal, we are aware of the substantial growth in both industries.

by Joy Abdullah*

In their respective ‘silos’, both industries, individually, keep shattering growth forecasts!

Yet the often spoken about convergence of the two industries is, tangibly, yet to occur! Quoting from the state of the Islamic economy report – “In an analysis of private equity, venture capital deals or mergers and acquisition tracked by Zephyr, a global deals data provider, only 17 completed transactions relating to halal food-related companies are reported with the seven disclosed deal amounts adding to $22 million only.” And this is just for halal food!

The Global Islamic Economy summit (organised by Dubai Chamber of Commerce and Thomson Reuters in November 2013) was, perhaps, the first and only organised meet of the two industries (in my opinion) where there was researched data and discussion on how the opportunities in the Islamic Economy can actually be utilised for:

  • Benefiting a country’s national economy
  • Benefiting both the dual industries (of Islamic and halal)

Leading to improvement in the global Muslim community, global economy and humanity as a whole.

The report —State of the Global Islamic Economy 2013 was published at this summit. This report, a first of its kind, was jointly undertaken by Thomson Reuters and Dinar Standard.

It’s an absolutely goldmine of information, highlighting specific business opportunity areas! Whilst the report highlights growth segments, emerging trends, business potential and provides a very comprehensive backdrop with going-forward strategic solutions, for the dual industries of Islamic Finance & Halal to go mainstream by using the global Muslim community as a starting base, what appears to be missing is a point-of-view on the sustainability aspect.

convergence-islamic-economy

Sustainability that enables organisations, in the dual industries, to undertake strategic business growth based on achieving short-term profitability coupled with long-term beneficial impact on the communities their brands are involved with.

In sum, this means approaching the growth opportunity ground-up.

Approaching sustainability ground-up means having to look at:

  • Leadership
  • Processes
  • People
  • Communication

Topics that have had very little exposure in terms of cross-industry discussions and development of concrete action plans. Given the rising consumer demand, for authentic engagement with brands, perhaps, industry leaders would now explore these topics in-depth.

This would aid, not only the organisations currently making up the dual industries but those in the periphery, to come up with measurable, long-term business plans. Plans that deliver both shareholder and community value whilst ensuring the long-term sustainability of the businesses.

* Joy Abdullah is a Malaysia-based expert in brand-based business sustainability

See his other post Leadership for business sustainability in the Islamic economy

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