CARRE DE BOEUF

Global Indicator Level

• Present one single indicator to provide a pulse of the global Islamic economy's health and development
• Provide an indicator that is reliable and unbiased
• Provide a global view of the Islamic economic landscape
• Inform current and potential Islamic economy stakeholders/investors about the industry's performance

Country Indicator Level

• Assess the current state of the Islamic economy in each country
• Track changes over time and make comparisons across regions and countries

Specific Sector Level

• Measure the sector's health and development from various perspectives
• Enhance sector's market transparency and efficiency
• Track changes over time and make comparisons across regions and countries

INDICATOR METHODOLOGY

The Indicator will systematically measure the development of the Islamic economy, using multi-dimensional measures that comprehensively assesses all elements of the Islamic economy.

The indicator will operate on multiple levels, as depicted below:

GIEI METHODOLOGY

The Global Islamic Economy Indicator (GIEI) is a single measure that captures a holistic assessment of the Islamic economy industry across all sectors. It is a product of a number of key sub-indicators underlining the industry. Disaggregation of data helps expose the disparities, differences and movements that may not be exclusively covered in wide-ranging aggregate terms.

The different components that make up the Indicator were selected based on an outline of the key constituents of the industry as a whole and are based on key contemporary issues covering financial, governance, awareness & social. All are fundamentally important for the development of the industry as a global business.

Data Collection

The data employed in the Global Islamic Economy Indicator when aggregating data and computing indicator values included information that are publicly disclosed only. The employment of disclosed information ensures reliability and consistency of the results.

Universe

• All OIC countries are included
• All non-OIC countries with strong presence of Halal industry

Indicator Calculation Methodology

The methodology for calculating the Indicator values has been developed based on the following key characteristics:

Key Characteristics

• Each indicator and sub-indicator should be equally weighted, ensuring no dimension has greater importance or preference to any other
• The indicator should be capable of measuring the growth in any of the given dimensions
• The indicators should not be restricted to a set range
• The absolute values should be adjusted or rationalized based on the overall size of the country/economy to ensure comparability among countries
• The methodology should have minimal subjectivity, and be based on a consistent formula across metrics
• The Global Indicator is based on the Arithmetic Mean of the individual Country Indicators
• The Country Indicators are based on the Arithmetic Means of their individual Indicators
• The Individual sectors are based on the Arithmetic Means of their Sub-indicators
• The Sub-sectors are based on the sum of the Metric Values of their individual Metrics
• The Metric Value are designed to be aggregated to provide the Sub-indicator values

For numerical values ($ amounts) and numbers (eg. number of seminars/conferences):

The Rationalizing Coefficient is calculated as follows:

For percentage values (eg. return on equity):

For yes/no values (eg. are there regulations for Islamic banks):

Metric Value = Metric Weight if yes, 0 if no

Scale Value is the average for all absolute values for that metric (not including zeros).This value forms the basis of our scale for that metric and will remain unchanged for future years.

This will ensure the development of the metric is not restricted to a particular range, and the first year will form the base year against which relative growth in the metric is measured.

The Metric Weight is designed to ensure that metrics of a particular Sub-indicator are weighted to ensure that all Sub-indicators are comparable, regardless of the number of metrics used to derive each.

The Metric Weight is calculated as follows:

The Rationalizing Coefficient is specific to each country and is designed to adjust the scale based on the size of the country. This is design to ensure comparability of the indicator values across countries.

We have designed the Rationalizing Coefficient to compare the relevant size of countries based on the size of their GDP and population. These are compared to median value for all countries (so as not to be skewed by extreme values at both ends of the scale).