May 14th, 2010
02:06 PM GMT
Share this on:

The world is still trying to size up the validity and effectiveness of the European Union $1 billion support package for Greece and future emergencies on the Continent. Even though Greece’s gross domestic product is relatively small at $324 billion, the potential contagion has been enough to rattle markets from Hong Kong to Wall Street.

While that drama was unfolding, coupled with the week-long hung parliament saga in Britain, real business was being done with an Islamic twist.

One of Britain’s foremost brands, Harrods, was swept up over the last week for $2.3 billion dollars. The seller was Egyptian Mohamed Al Fayed. The buyer: the investment vehicle of the Emir of Qatar, Qatar Holding. Qatar likes - some would say loves - the UK market. He has stakes in J. Sainsbury, Barclays Bank, Canary Wharf, and is now the owner of the property currently housing the U.S. Embassy in Mayfair, West London.

On the other end of the globe, Qatar-based Gulf Petroleum said it plans to invest $5 billion in an oil and gas complex in Malaysia. The two governments have been talking for the past couple of years and now believe the timing is right to proceed.

And if that was not enough, we should keep an eye on the President of Brazil, Luiz Inacio Lula da Silva who added Qatar to his agenda after a planned visit to Russia. It is worth noting that Brazilian oil giant Petrobras’ off-shore discoveries are garnering plenty of attention by would-be investors like Qatar. Rather quietly, Brazil’s exports to Qatar are up by two-thirds in 2010 versus the same period last year.

There are two sides to this story. Outbound investments by what we can call Brand Islam and inbound investments into a rapidly growing market of more than one and a half billion people in the Muslim world.

With regards to the former, it is not surprising that Gulf sovereign funds in particular are hunting for investment opportunities. Oil has hovered around $80 since the start of 2010 and it continues to generate healthy cash flow that needs to be deployed.

While big-name brand purchases in the West will always garner more than their fair share of media coverage, the quieter business and political diplomacy by the major players in the Muslim world, often amongst themselves, is even more intriguing. Someone kindly emailed the Qatar-Malaysia energy piece, but it is not the first item people in the business community are talking about.

Meanwhile, marketing teams are looking for the best way to reach out to the Muslim consumer market. While I often talk about the potential of a broader Middle East market of 300 million consumers or more, the reality is companies need to look to South and East Asia for the real numbers.

Today the Muslim market represents over one-fifth of the world’s population. Rapid expanding birth rates will translate into greater market share over the next two decades. Obviously, this is not a “one size fits all” market. A consumer in Jakarta behaves quite differently from one in Jeddah. There is also a huge wealth gap between these countries of the Ummah, or "the community of believers." Per capita income in Qatar ranks near the top of heap worldwide; Yemen is near the bottom.

The more one digs into this market, the more layers of complexity are uncovered. The market for Halal foods is growing rapidly, but again, the taste vary widely from Europe to Asia. That sector though remains simple to tackle versus say Islamic banking where scholars today are still seeking common ground for the rapidly growing market.

The top-line numbers are impressive and are worthy of not only our attention in the news sphere, but in the business community as well. Now back to the EU and long-term debt!

soundoff (11 Responses)
  1. Alfaraz Kazi

    Its high time that the Americans & Britishers realize that business can prosper leaps & bounds even in a ISLAMIC environment. They, just need to understand ISLAM.

    June 6, 2010 at 3:12 pm |
  2. Raymond

    Why does this blog exist at CNN? Should a news network be regularly reporting on any subject from the point of a view of a particular religion? There is something very odd about this–I don't think it appropriate for an impartial network to do. There is a kind of favoritism inherent in it that is most disturbing to anyone who values fairness and objectivity in the news.

    July 27, 2010 at 11:36 am |
  3. Jason

    None of that money was made in an Islamic context, so what is the fuss all about? Just because Arabs are making money, one can not attribute that to the success of things Islamic.

    Jason Omar of Oman

    July 28, 2010 at 1:43 am |
  4. AudieHO


    "There is a kind of favoritism inherent in it that is most disturbing to anyone who values fairness and objectivity in the news."

    If you wanted fairness you wouldn't be here. Fair and balanced is Fox. Of course, you're probably like many that think that Fox is too conservative when the fact of the matter is they are truly in the middle. Americans have been bombarded with the liberal propaganda so long, they no longer recognize what is conservative and anything that isn't extremely far left is branded as conservative. If you don't agree that Fox is the middle ground, try tuning in to the 700 Club for some true conservative news.

    July 28, 2010 at 5:43 am |
  5. San Fran

    Raymond, are When on earth did we ever see impartiality from US based media besides PBS news. Its always with a point of view and sensationalized. On topics of religion, its on a the bandwagon of Isalm bashing. All negative news is dug hard reported on Isalm and any postive news (which there is plenty of) is almost never bubbled. Russian TV is more informative and partial than the CNNs of our country.

    July 28, 2010 at 6:28 pm |
  6. Samiulla Bandarkar

    What does Harrods deal have to do with Islam?

    July 28, 2010 at 9:10 pm |
  7. Hasan

    i am not agree with the Raymond's point of view,one thing remember here media is collection of all happenings in the whole world.why do you think and have narrow thinking about the this.we must share all information from everyone.The whole world like a body,if one part of the body feels pain then other parts also feel like that.CNN is network of all the people of the world and not only for a specific ,region, community, country, state and border as should come out from the egg shell and make your mind and thinking broad.

    July 29, 2010 at 10:22 am |
  8. Megan Ally

    marketing of products is very necessary so that someone will buy it.:*

    September 12, 2010 at 11:50 am |
  9. DVD Cleaner

    marketing really takes some skill and talent if you want to succced in it ;;.

    December 14, 2010 at 5:04 pm |
  10. cityville

    i may not have guessed this had been cool several years ago but its surprising precisely how years varies the manner of how you comprehend totally different creative concepts, thanks for the article it is good to browse anything clever once in a while instead of the routine crap mascarading as a blog on the net

    January 5, 2011 at 10:10 am |
  11. icon collection

    It is excellent idea

    October 9, 2012 at 1:24 am |

Post a comment


CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.

About Business 360

CNN International's business anchors and correspondents get to grips with the issues affecting world business, and they want your questions and feedback.

Powered by VIP