PRESENTED BY

ISLAMIC MICROFINANCE & THE HALAL

INDUSTRY
Al Huda Microfinance Conference
Saturday 8th December 2012
World Trade Centre, Dubai

www.umexcmg.com

Umex Capital Markets Group ltd

RESPONSIBLE INVESTING
Ethical, SRI and Sharia investmentsfrom all of the worlds main
markets andis complimented by several of its proprietary real time
trading solutions.
Umex places particular emphasis on the concept of RESPONSIBLE
INVESTING. This ethical investing strategy seeks to achieve financial
return without compromising social values and benefits.
Umex is a financially Regulated firm operating under MiFID rules in
the UK, Sweden and Romania.

Umex Brand
UMEX is derived from the word 'UMMAH' meaning
'community of nations' established in 622 AD by the Prophet
(pbuh), with a view of bringing communities and nations
together under the Medina Constitution. Umex meansCommunity Exchange.

Umex Hallmark- Ethical & Sharia screening &

monitoring
Every aspect of our Fatwa-awarded products and services is
fully compliant to Ethical & Sharia investment principles and
constantly monitored for accuracy by top eminent scholars
of the Sharia Advisory Panel.

EQUITABLE
ETHICAL
ENVIRONMENTALLY FRIENDLY
SOCIAL RESPONSIBILITY
ACCOUNTABILITY
SUSATAINBILITY
TRANSPARENCY
CORPORATE GOVERNANCE

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UMEX Microfinance platform applies to ALL investments.

Guidelines are based on international conventions and
standards

Own analysis plus three external suppliers (MSCI ESG Research, Ethix SRI
Advisors, GES Investment Services)

... to avoid immoral practices that may harm humans,

the environment or animals

... to contribute to a healthier eco-system and better

social environment whilst maintaining profits

to use their savings as a tool to influence and

contribute to sustainable development

...investing in sustainable future prospects.

Socially
Responsible
Human rights
Labour rights
( e.g. No child
labour)

Environmental
Carbon
Emissions

Armament

Clean Energy

Alcohol

No Pollution

Tobacco

Business ethics
& anticorruption

INCLUDE!

Controversial
Products

Gambling
Pornography

INCLUDE!

EXCLUDE!

Sustainability analysis
Repeated contacts with companies
Identify areas for improvement
In depth engagement
Long term engagement
Sector dialogues
Governance
Annual general meetings
Election committee
Proactive engagement with companies

A Microfinance Opportunity

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Halal industry, a rapidly expanding business now reaching 2.6

billion consumers worldwide and worth an estimated US$2.1
trillion.
The current Halal foods market has some estimates as high as
$560 billion (World Halal Council). Conversely these estimates
are lessened by the fact that a significant portion of the halal
market is composed of meats produced and consumed
domestically.
This does not account for the beneficiaries of this sector
including world economies like Brasil, Australia and New
Zealand
The Halal market has become the latest buzz and
untapped market in the international marketplace.

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The market is fragmented and loosely managed giving

rise to myriad opportunity to those planning on bringing
Halal products and services to the mainstream market
in a relatively recession proof industry. The market is
predominantly sustained by the SME sector
The Micro, Small & Medium enterprises contribute a
significant proportion to the world economy. Recent
statistics and research report shows that it is necessary
to allocate a significant proportion of private equity to
the Micro and Small enterprises to stimulate growth in
world economies as well as to provide a sustainable
social fabric to overcome barriers of cultural and
religious divide.

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The large, truly global market for Halal food products provides
many gateways to equity participation:
Farming and related Industries
Raw materials and food derivatives for Halal-related industries,
Production or processing
Consumer goods and Private label production
Lifestyle and consumer products specifically tailored to meet Islamic
principals
Exporting
Retailing
Hotels, restaurants and institutions
Transportation or logistics support
Management service

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Muslims = 2.1 billion (2012)

Non-Muslims eating Halal food = 1 billion
Total captive audience = 3.1 bn
Spend per day 1$
Total = 3.1bn x 1$ x 365 days = 1131.5 bn

YOU DONT NEED TO BE A WALL STREET WIZ

KID OR A ROCKET SCIENTIST TO FATHOM
ITS SHEER INFLUENCE ON THE WORLD
ECONOMY

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www.umexcmg.com

Key factors of increasing demand of Halal

products are:
Increasing Muslim Population
Increasing income
Increasing demand for safe, high quality food
Increasing demand for greater variety
Incidents of food marketed as Halal but failing to meet
Halal requirements has increased demand for genuine
Halal products

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Investing in a sustainable and rapidly growing industry group and the fastest growing
ethnic community sector in the world
Investing in products and markets that have a focused and targeted consumer group.
Recession proof.
Investing in sector targeting a consumer group with deep rooted traditions and culture
that have an ingrained religious need and must have product Halal.
The market is fragmented and loosely managed giving rise to myriad opportunities to
a group planning on bringing Halal products and services to the mainstream market.
Consumer size - 1.6 billion Muslims and consumer spend of US $ 2.1 trillion.
50% of population below the age of 35.
Reaching non-Muslim population who are already Organic food conscious.
Entering into new markets and food sectors like Fast Food e.g. Halal Pizzas etc.

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Strength

Weakness

Opportunities

Threats

Halal is an absolute requirement in the

Islamic community -1.6 billion population.
Well developed market in the Muslim sector.
Well developed products Food and
consumer goods.
Well defined market segment.
Captive consumer audience.
A large proportion of the Muslim community
have a high spending capacity.
Well regulated sector for quality as all
products are certified or accredited.

Consumer size - 1.6 billion Muslims.

Market size US $2.1 trillion.
Diversified Industry Groups.
Fragmented market segment.
Need for a global brand.
50% of population below the age of 35.
Reaching non-Muslim population who
are already Organic food conscious.
Entering into new food sectors like Fast
Food e.g. Halal Pizzas etc.

Lack of qualified expertise in this sector

in nonMuslim countries.
Lack of experienced and skilled
workforce.
Lack of investment in this industry from
major
investors and institutions.
Lack of public investor knowledge in this
sector
outside of the Muslim community.
Lack of coordinated brand marketing.
Lack of proper branded retail outlets.
Lack of general consumer awareness of
Halal
Geo political
issues.
products
and their
health benefits.
Religious issues
Misinterpretation of Islamic laws.
Breaking Islamic principles.
Anti commercial backlash.
Competition from major brands.
Competition from major super markets
with their own brand of Halal e.g. Tesco
etc.
Environmental issues giving rise to price
wars.
Inflationary pressures in the future.

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In order to ensure that the Halal industry continues unhindered with its
progress and realizes it potential and promise, two major areas need to be
addressed as soon as possible. One is the very limited relationship that it
enjoys at the moment with Islamic finance sector and secondly, the role it
can play in development of the SME sector.
Halal industry and Islamic Finance markets are two major Shariah-compliant
industries that are both said to be growing at around 15-20 percent per
annum and as pointed out earlier have a combined value in excess of a
trillion Euros.
One would expect there to be extensive cooperation between them, due to
adherence to similar faith principles, but for some strange reason, this hasnt
been happening and in fact very few Islamic Banks are directly involved in
the Halal industry, and very few Halal producers seem to actively looking for
Shariah compliant sources of finance.
The Halal industry is predominantly made up by the SME sector, which is
continuously looking for opportunities for growth and expansion.
The
financing needs can be addressed by UMEX , so that a sustainable growth of
the Halal industry can be ensured.

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Umex aims to enter the microfinance

sector with a particular focus on the Halal
Industry.
This will provide support for small and
medium enterprises specialising in the
agricultural, food and clothing industries.
Small to medium enterprises form a
majority of emerging markets and provide
a key pillar for economic growth

Umex provides a concrete foundation

to support the Halal microfinance
sector that proves so essential to
emerging market economies
By providing a platform, our services
offer small and medium enterprises
the opportunity to present their story
and gain exposure in this thriving
Islamic financial sector
Umex operates on a non-usury
financing model

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Thank you!
Mahesh Jayanarayan
Contact:
mahesh.jayanaryan@umexcmg.com

www.umexcmg.com