DUBAI 14 June 2020: His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of Executive Council of Dubai and General Supervisor of the Dubai: Capital of Islamic Economy Initiative, said that as the global hub of the Islamic Economy, Dubai is well placed to lead the sector’s contributions to revitalising the regional and international economy in the post-Covid-19 phase.
With its focus on protecting social and human wellbeing, the Islamic Economy can contribute significantly to mitigating the economic repercussions of the Covid-19 pandemic and the revival of the global marketplace. The Islamic Economy ecosystem based out of Dubai can help the sector play an important part in the economic response to the Covid-19 crisis, he further said.
Sheikh Hamdan said Islamic Economy sectors contributed Dh41.8 billion to Dubai’s GDP in 2018, registering a growth of 2.2 percent over the previous year. He noted that these results are testament to Dubai’s position as the global capital of Islamic economy, in line with the wider objectives of the Dubai: Capital of Islamic Economy initiative.
Sheikh Hamdan pointed out that the recent accomplishments of the Dubai: Capital of Islamic Economy initiative will encourage all the stakeholders of the Islamic economy to keep up their exemplary efforts. He called on the strategic partners of the initiative to enhance awareness of the pivotal role that Dubai and the wider UAE are playing in innovative policy making to accelerate the performance of Islamic economic sectors, and of the practical solutions Islamic economy offers to global financial and economic challenges.
Unprecedented circumstances
Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Dubai Islamic Economy Development Centre (DIEDC), noted that despite the unprecedented circumstances the world finds itself in today as it combats the impact of the Covid-19 pandemic, the UAE’s ability to control the spread has come in for praise.
Chairing the DIEDC board meeting that was recently held virtually, Al Mansouri said: “The Islamic economy is a pillar of the diversified national economy. Being a more just and transparent economic system, it strikes the required balance between wealth accumulation and distribution, while supporting comprehensive long-term growth. It’s ethics and principles play a crucial role in its high uptake and enable the nations of the world to achieve sustainable development even during challenging times.”
During the board meeting, Abdulla Mohammed Al Awar, CEO of DIEDC, outlined the planned phases in developing a unified global legal and legislative framework for the Islamic finance sector, within the context of a strategic partnership between DIEDC and the Islamic Development Bank (IsDB). He highlighted the significance of the project that once complete, will bring much anticipated standardisation to the Islamic finance sector, reduce discrepancies in practices across the globe, and eventually translate into positive outcomes for the Islamic Economy as a whole.
According to the Dubai Statistics Center, a strategic partner of DIEDC, the Islamic economy contributed Dh41.84 billion to Dubai’s GDP in 2018, marking a 2.2 percent increase from Dh40.95 billion in 2017.
In terms of percentage growth, the Islamic economy contributed 9.9 per cent to Dubai’s GDP in 2018. Of the total amount, Dh10.7 billion (26 per cent) came from the financial sector, Dh7 billion (17 percent) from the hospitality and F&B sectors, AED17.9 billion (43 percent) from the retail and wholesale sectors, while the manufacturing sector contributed Dh6.2 billion (14 percent).
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