Report: Digital Services Offer Huge Potential for Islamic Economy Initiatives

Due to the growing global Muslim population with a dominant youth demographic, besides high consumption and expenditure patterns coupled with a rising level of technology readiness, are creating a largely untapped need for Digital Islamic services, according to a recent study by Deloitte and Noor Telecom, a Kuwait-based, Sharia-compliant closed-shareholding company, in association with Dubai Islamic Economy Development Centre (DIEDC).

The investor, government and the non-profit organizations are the one that provide the opportunities for global Digital Islamic Economy. CEO of DIEDC Abdullah Mohammad Al Awar said that:

[pull_quote_center]The Digital Economy is a key pillar and area of focus for DIEDC and Islamic world. The report underscores the critically of building a sound digital infrastructures and ecosystem to foster the development of online services for the Islamic economy.[/pull_quote_center]

‘Defining the Digital Services landscape for the Middle East’ is related to education, health, religion and hobbies. And it is responsible for the development of the Arab world. CEO and Chairman of Noor Telecom Ayman Al Bannaw said that:

[pull_quote_center]Technology is arming us with tools that are far more powerful and effective than anything in the past— the impact of which is fully evident in the Muslim community. By observing and following this trend, we have identified a strong need for Digital Islamic Services.[/pull_quote_center]

Santino Saguto, Partner and Technology, Media and Telecommunication Leader, Deloitte Middle East said that:

[pull_quote_center]Although the prospectuses are noteworthy, our findings reveal that very few Islamic internet platforms have achieved a significant scale. Some verticals are being catered to, but monetisation remains a challenge.[/pull_quote_center]

Digital Islamic opportunities play a vital role but it requires a lot of efforts and funds. And funding is one of the major challenges. Saguto further said that:

[pull_quote_center]Currently there are no venture capital funds in the Middle East that specifically target Islamic needs, signifying a huge gap that could and should be filled.[/pull_quote_center]

Dr Hatim Al Tahir , Director, Deloitte Islamic Finance knowledge center in the middle east said that:

[pull_quote_center]The reporting findings indicates that the Islamic online services will continue to proliferate across the Middle East and the world large over the next few years.[/pull_quote_center]