Azerbaijan Halal Business Forum Sets Stage for OIC SME Network Launch

In a world grappling with economic volatility, geopolitical shifts, and the urgent call for sustainable practices, the halal industry stands as a beacon of resilience and ethical commerce. On October 7-8, 2025, Baku, Azerbaijan’s vibrant capital, became the epicenter of this transformative movement during the second Azerbaijan Halal Business (AZHAB) Forum. Themed “Halal Industry as a Source of Resilience in a Rapidly Changing World,” the event drew over 500 participants from more than 20 countries, including government officials, business leaders, and experts from the Organization of Islamic Cooperation (OIC) member states. At its core, the forum not only showcased innovations in halal-certified products and services but also marked a historic milestone: the official launch of the OIC Network of Small and Medium-sized Enterprises (OIC-SME Network). This initiative promises to empower SMEs—the backbone of economies in OIC nations—by fostering cross-border collaboration, knowledge sharing, and access to green financing.

Azerbaijan’s strategic positioning as a bridge between East and West, coupled with its growing role in Islamic diplomacy, made it an ideal host. The forum was organized by the Small and Medium Business Development Agency (KOBİA) under the Ministry of Economy, in partnership with OIC institutions such as the Standards and Metrology Institute for Islamic Countries (SMIIC), the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC), and the Islamic Chamber of Commerce and Industry. Endorsed by the OIC’s 51st Council of Foreign Ministers session in Istanbul earlier that year, AZHAB 2025 built on the success of its inaugural edition, amplifying Azerbaijan’s commitment to the $3 trillion global halal economy.

The event unfolded across two dynamic days at the Heydar Aliyev Center, blending high-level discussions, an expansive exhibition, and hands-on workshops. Attendees explored traditional halal sectors like finance and tourism while delving into emerging frontiers such as green transitions, women’s entrepreneurship, and digital halal certification. A standout feature was the “Think Halal: What Every Business Should Know” seminar, led by the Islamic Chamber Halal Services, which demystified certification processes for newcomers. Individual consultations in the Expert Corner provided tailored advice on compliance, drawing queues from eager entrepreneurs.

As the curtains rose on Day 1, First Deputy Minister of Economy Elnur Aliyev set an optimistic tone in his keynote address. He highlighted Azerbaijan’s robust trade ties with OIC countries, noting that bilateral trade had surged to approximately $6 billion in the first eight months of 2025—a 15% year-on-year increase. “Azerbaijan is not just a trade partner but a cultural and diplomatic pillar in the OIC family,” Aliyev remarked, referencing Baku’s past honors as the Capital of Islamic Culture in 2009 and Nakhchivan’s in 2018. His words underscored how the halal sector aligns with national priorities, including post-COP29 green initiatives, where Azerbaijan hosted the UN climate summit in November 2024.

The forum’s exhibition hall buzzed with energy, featuring over 100 booths from Azerbaijani and international firms. Visitors sampled halal-certified Azerbaijani specialties like pomegranate-based products and silk textiles, alongside global offerings in cosmetics, pharmaceuticals, and fintech. Sponsors like ATENA LLC showcased eco-friendly packaging solutions, emphasizing the intersection of halal principles and sustainability. Interactive demos on blockchain for supply chain transparency drew crowds, illustrating how technology can ensure ethical sourcing from farm to fork.

Yet, the forum’s true game-changer was the inaugural session on the OIC-SME Network. Representatives from key OIC members—including Türkiye’s KOSGEB, Saudi Arabia’s Monshaat, Morocco’s Morocco PME, Jordan, Pakistan, Kyrgyzstan, Chad, and Côte d’Ivoire—convened to share SME support strategies. KOBİA’s presentation on Azerbaijan’s national SME ecosystem, which supports over 50,000 enterprises through grants and training, sparked lively debates on scaling similar models regionally. “SMEs in OIC countries represent 99.9% of businesses, generating 93% of employment and 85% of value added,” noted a SESRIC representative, citing recent data that positions these enterprises as engines of inclusive growth.

The session culminated in the adoption of the Baku Declaration, a pivotal document that formalizes the network’s mandate. Expressing profound gratitude to Azerbaijan for hosting the founding meeting, the declaration pledges enhanced cooperation in SME capacity building, trade facilitation, and innovation exchange. It calls for joint programs on digital skills training, access to OIC-wide markets, and alignment with UN Sustainable Development Goals (SDGs). Notably, KOBİA was elected to chair the network for the next three years, positioning Azerbaijan as a leadership hub. “This network will be our collective shield against global disruptions,” declared Orkhan Mammadov, KOBİA’s Chairman, emphasizing its role in mitigating inflation and supply chain risks plaguing OIC economies.

Day 2 amplified these themes with panels on “Enhancing SMEs’ Role in the Global Green Transition” and “Historical Heritage in Halal Tourism Development.” Speakers like Sunniya Durrani-Jamal, Head of the Asian Development Bank’s (ADB) Azerbaijan Resident Mission, praised SMEs’ environmental potential. “SMEs are vital for sustainability; ADB is channeling incentives, tax breaks, and financing to green their operations,” she said, announcing new loans for halal-compliant eco-projects. Dinh Viet Hoa, Founder of Vietnam’s National Entrepreneurship Association, shared cross-cultural insights on resilient supply chains, while Rizvan Huseynov of the Caucasus History Center explored how ancient Silk Road routes could revive halal tourism in Central Asia and the Caucasus.

A landmark outcome was the signing of two Memorandums of Understanding (MoUs). The first, between KOBİA and Türkiye’s Bilişim Valley, supports the Baku Climate Declaration—a COP29 legacy initiative promoting green entrepreneurship among SMEs. The second MoU with the Islamic Chamber Halal Services focuses on standardized certification, easing exports for OIC SMEs. These agreements signal a maturing ecosystem where halal ethics meet modern challenges like climate change and digital divides.

Implications for the Global Halal Economy and Opportunities for SMEs

The AZHAB Forum’s launch of the OIC-SME Network arrives at an inflection point for the global halal economy, projected to reach $7.7 trillion by 2025, up from $3 trillion in 2021, driven by a 7.5% compound annual growth rate (CAGR). This expansion spans food and beverages ($1.668 billion in 2025), cosmetics, pharmaceuticals, tourism, and Islamic finance, with OIC countries accounting for 90% of demand. In OIC nations, where economic growth is forecasted at 4.2% for 2025—slightly above the global 3.3% but below the long-term 4.3% average—SMEs are indispensable. They create seven out of every 10 formal jobs and dominate 90% of establishments, yet face hurdles like limited financing (only 15% access formal credit) and regulatory fragmentation.

For readers in business, investment, or policy, the network offers tangible pathways forward. First, it prioritizes knowledge exchange: Imagine a Kyrgyz artisan accessing Moroccan best practices in halal textile certification via virtual platforms, or a Chadian startup partnering with Pakistani fintech for microloans. The Baku Declaration mandates annual summits and digital hubs, potentially boosting intra-OIC trade by 20% in SME-driven sectors, per SESRIC models.

Second, green integration is a cornerstone. With climate pressures amplifying food insecurity in OIC Africa and Asia, the network aligns with ADB and World Bank programs for halal-green financing. For instance, Saudi Arabia’s Monshaat has pledged $500 million in low-interest loans for renewable energy projects in halal supply chains. Entrepreneurs can leverage this by auditing operations for ESG (Environmental, Social, Governance) compliance—tools like SMIIC’s halal standards now incorporate carbon footprint metrics.

Women’s empowerment emerged as another focal point, with a dedicated panel highlighting success stories. In Azerbaijan, women-led SMEs grew 25% in 2024, per KOBİA data, fueled by halal niches like ethical cosmetics. The network plans gender-specific training, drawing from Türkiye’s KOSGEB model, which has empowered 40% female participants. For global readers, this underscores investment potential: Halal women’s apparel and beauty markets are exploding at 10% CAGR, with brands like Malaysia’s iTokri leading ethical fashion.

Challenges remain, of course. Standardization varies—Malaysia’s JAKIM is rigorous, while others lag—potentially stalling cross-border flows. The network addresses this through harmonized protocols, but stakeholders must advocate for enforcement. Geopolitical tensions, like those in the Middle East, have spurred ethical boycotts, with social media sentiment shifting 30% toward local halal brands since 2023. Savvy businesses can capitalize by emphasizing transparency via apps like HalalScan.

For SMEs eyeing entry, start with certification: Contact SMIIC for audits (costs average $5,000-$10,000, recouped in 6-12 months via premium pricing). Explore OIC grants via SESRIC’s portal, targeting $100 million in SME funds for 2026. Investors should note Azerbaijan’s incentives—tax holidays for halal exporters—and the network’s pipeline for joint ventures. Halal tourism, valued at $200 billion, offers low-barrier opportunities; Central Asian routes could attract 50 million visitors by 2030.

Broader implications ripple globally. Non-OIC nations like Vietnam and China are adapting, with halal exports to OIC markets hitting $50 billion in 2024. This fosters inclusive globalization, where halal principles—integrity, sustainability—challenge exploitative models. As Orkhan Mammadov reflected, “In a fragmented world, the halal economy unites us through shared values.”

Looking ahead, the OIC-SME Network’s first full agenda, set for Q2 2026 in Riyadh, will track progress via KPIs like SME survival rates (target: 80% post-support) and trade volumes. Azerbaijan, as chair, will host webinars on fintech-halal synergies, building on Baku Fintech Forum 2025’s momentum. For policymakers, this means prioritizing SME digitalization; for entrepreneurs, it’s a call to innovate ethically.

In essence, AZHAB 2025 wasn’t just an event—it was a launchpad. By weaving halal resilience into SME frameworks, the OIC-SME Network equips 1.8 billion Muslims and beyond with tools for equitable prosperity. As Baku’s lights dimmed on October 8, the declaration’s echoes promised a more connected, conscientious tomorrow. For those in the halal space, the message is clear: Engage now, or miss the wave.