Made in Italy in the Middle East: the Islamic target
Despite the challenges, and driven by growing demand, the Islamic economy sectors continue to flourish.
The world seems to aim at the Islamic custom, a booming target for the every kind of industry.
The 56 mostly-Muslim majority countries of the world represent more than GDP (current) of $6.7 trillion in 2013, a 1.7 billion population growing at twice the rate of the global population and some of the fastest-growing global economies that stretch from Indonesia in the east to Turkey in the west with the Arabian Gulf states at their center.
The implications for this large, fast growing and young population present significant economic challenges (job creation, training and education) for the host economies as well as opportunities (young consumer market and entrepreneurship engine).
Consumers of the Islamic economy are primarily Muslims but also include others who share similar values. The specific Islamic value-influenced consumer practices include the consumption of Halal (lawful) food, Islamic financing, modest fashion, family-friendly travel, as well as other services with special considerations on gender interactions and religious practices.
The demand also extends to business practices that seek Islamic business financing, investment and insurance services.
For all these requirements Made in Italy is what Islamic economy relies on: brand’s craftsmanships.
That’s what Dubai and the Middle East require: real Made in Italy.
Made in Italy in the Middle East: the fashion industry
According to the State of the Global Islamic Economy Report, commissioned by Dubai Islamic Economy Development Centre (DIEDC) and produced by Thomson Reuters in collaboration with DinarStandard, numbers are growing very fast.
In 2019 Muslims will spend $484 bilion (€431 bilion) in the fashion industry compared with two years ago with just only $266 bilion spent (€236 bilion).
The women’s clothing, in fact, in 2013 generated a third of the revenue of the sector (34%), followed by menswear (27%), from footwear (21%), the junior segment (12%), and accessories (3%).
The clothing and fashion market has increased 11.9% to reach $266 billion in 2013. This makes the Muslim clothing market to be 11.9% of the global expenditure and it is expected to reach $488 billion by 2019.
Top countries with Muslim consumers clothing consumption (based on 2013 data) are Turkey ($39.3 billion), United Arab Emirates ($22.5 billion), Indonesia ($18.8 billion), and Iran ($17.1 billion).
Meanwhile, UAE, China and Italy lead the Modest Fashion, an easy and simple way of fashion in respect of Islamic women and men values. The Modest fashion generated $300 billion turnover in 2014 and by 2019 it ought to be $484 billion.
Given the importance of digital platforms to this space, a special Muslim Fashion E-Commerce focus report looks at these modest fashion segment developments and hotspots across the globe. Dinar Standard estimates put Muslim consumers’ e-commerce expenditure at $4.8 billion in 2013.
The Italian exports grew up from the 4% to the 9,7% in a year up to 7.8 billion. The increase in exports, based on the Istat data (Italian National Institute of Statistics), is determined by a growth in sales both to non-EU markets (+2.2%) and those to the EU (+1.5%). Energy products (+8.4%), non-durable consumer goods (+ 3.2%) and intermediate goods (+ 1.9%) are booming.
Made in Italy in the Middle East: clothing and weapons
Italy is one of the largest suppliers of weapons and high-tech military for Israel.
Indeed, Italy equates France, Germany and the UK supplies. The Israeli army drones are equipped with radar produced by Selex Galileo, a Finmeccanica company.
In 2014 began the supplies made by Alenia Aermacchi, part of Finmeccanica 30 M – 346 advanced trainer aircraft ordered by the Israeli Defense Ministry in July 2012. The contract is valued at approximately $ 140 million.
In the total manufacturing world, Italy manages to weigh only 3% and it’s 8th in the global manufacturing especially in equipment and fashion.