State of the Global Islamic Economy Report 23/2024: A $142 Billion Opportunity

Highlights: The State of the Global Islamic Economy 2023/24 Report underscores the significant growth and potential in the halal pharmaceutical industry. In 2022, Muslim consumer spending on pharmaceuticals reached a substantial $108 billion, marking a 7.8% increase from the previous year. This spending is projected to reach $142 billion by 2027, with a compound annual growth rate (CAGR) of 5.7%. The report highlights the role of government initiatives in Southeast Asian and European countries in leading the halal pharma ecosystem. For instance, SaudiVax has become the first manufacturer of halal vaccines in Saudi Arabia, and Indonesia has launched its first homegrown halal-certified Covid-19 vaccine. The industry is also witnessing growth through strategic partnerships and collaborations, such as China and Indonesia’s joint investment of $120 million in Indonesian pharmaceutical companies. The report emphasizes the importance of traceability of drugs for maintaining product integrity in the pharmaceutical industry, and the growing capability of African countries in the halal pharma industry. It also stresses the need for more technical experts knowledgeable about both Shariah and science. Overall, the report presents an optimistic view of the halal pharmaceutical industry’s future, highlighting opportunities for collaboration, innovation, and harmonization to drive its growth and development.

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