Demography, demand and devotion: driving the Islamic economy

Abstract

Purpose: The purpose of this paper is to analyse three drivers of the Islamic economy: global Muslim demography; operational sectors and demand; and faith-based consumerism. Design/methodology/approach: This paper follows a constructivist approach to the Islamic economy, undertaken through an exploratory study of global Muslim population, the growth in opportunities in the Islamic economy and plurality of religious thought across the diaspora. Findings: The research finds four trends (t) positively impacting the growth of the Islamic economy: (t1) above-nominal increase in global Muslim population, with greater intra-religious interactions of varying Muslim cultures; (t2) an increasing demand for a diversity of Shari’ah-compliant and halal products and services; (t3) improving socio-economic status of Muslims in developed and emerging countries; and (t4) a widening perspective of faith understanding and rising interest in religious literacy. Research limitations/implications: This research serves to inform global businesses of opportunities in Islamic economy sectors, highlighting global demographic change and informing how business is impacted through the plurality of Muslim faith interpretation. Practical implications: Based on this research, businesses can better align their services with the socio-economic environment and faith sensibilities of Muslim consumers. Originality/value: The paper provides a first look at the activity across Islamic economic sectors and disaggregates their activity and potential for growth across Muslim-majority and Muslim-minority markets. In particular, three areas were examined – demography, emergent Muslim lifestyles and religiosity.