Islamic economy generates 8.3 per cent of Dubai’s gross domestic product (GDP), according to Dubai Statistics Centre, a strategic partner of Dubai Islamic Economy Development Centre (DIEDC), a media report said.

This was announced by Sultan bin Saeed Al Mansouri, Minister of Economy and chairman of DIEDC while chairing the second meeting of DIEDC’s Board of Directors in 2018, reported Emirates news agency Wam.

The contribution of the Islamic economy to Dubai's GDP increased from 7.6 per cent in 2014 to 8.3 per cent in 2016, registering a growth rate of 14 per cent. In 2016, Islamic economy sectors contributed Dh32.77 billion ($8.9 billion), compared to Dh32.21 billion in 2015, and Dh28.78 billion in 2014.

Al Mansouri said: "These results speak volumes not only in terms of the development of the Islamic economy in Dubai, but also the success of the UAE's sustainable development drive as part of its post-oil economy vision. We are keen to boost productive sectors and develop strategies that encourage responsible investment, entrepreneurship and innovation."

He emphasised that the 'Dubai: Capital of Islamic Economy' initiative achieved success just one year following its launch in 2013 by Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister and Ruler of Dubai.

The Minister of Economy attributed the achievements to DIEDC’s partners, their commitment to implementing the centre’ initiatives and their contributions to the development of an institutional framework that stimulates the growth of the Islamic economy and facilitates the development of halal industry standards. He also thanked Dubai Statistics Centre for its cooperative role as a strategic partner of DIEDC.

"Our goal of increasing the contribution of Islamic economy sectors to the national GDP by 2021 is well within our reach as long as we continue to implement our strategy on schedule and in productive cooperation with all local and international partners. Dubai is already enroute to leading several global Islamic economy indicators by 2021," Al Mansouri added.

He noted that the increased contribution of the Islamic economy to the GDP is the outcome of two factors. The first factor is the growth of key sharia-compliant sectors that goes hand in hand with increased trust in Dubai and the wider UAE as global references for the Islamic economy. Secondly, the impact of the Islamic economy culture on conventional sectors and greater awareness of the focus of Islamic economic standards on achieving sustainable development have attracted more investors to the field.

During the meeting, DIEDC’s Board of Directors also reviewed a study of the Islamic economy’s contribution to Dubai’s GDP, prepared by Dubai Statistics Centre. The study was based on various indicators including the number of establishments active in the Islamic economy, index of production, intermediate consumption, and VAT index, as well as performance indicators of UAE-based halal companies.

According to the study, Islamic finance boosted its contribution from 22.2 per cent in 2014 to 24.7 per cent in 2015 to reach 26.3 per cent in 2016. The halal food sector accounted for 62.4 per cent in 2016, while modest fashion amounted to 25.7 per cent. Halal industries commanded a 94.5 per cent share of domestic trade in 2016, with halal food representing 58.7 per cent and halal pharmaceuticals and cosmetics making up the remaining 41.3 per cent.