Jakarta
Investments in the Islamic economy dropped 13% to $11.8 billion from August 2019 through July 2020 compared to the same 12 months in 2018-19. The fall is largely due to the economic downturn as a result of the Covid-19 pandemic, according to the State of the Global Islamic Economy 2020/21 report from DinarStandard. “2020 began on an optimistic note, with low inflation, low unemployment, and steady economic growth. Covid-19 began to spread towards the end of January but the pandemic’s impact was not fully felt until the second quarter, with global M&A deal volume nearly halving in the second quarter, falling from 4,308 deals to 2,630,” said the growth strategy research and advisory firm. Halal food attracted the highest investments in the Islamic economy, followed by Islamic finance, travel, halal pharma, halal cosmetics, media, and modest fashion. The bulk of investments across seven sectors are mergers and acquisitions. “At $11.8 billion, investments in Islamic economy sectors are merely 0.3% of total global M&A, private equity and venture capital investments in consumer.—Agencies