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Boosting Global Trade with Halal Certification: Unlocking a $3.2 Trillion Market

Boosting Global Trade with Halal Certification: Unlocking a $3.2 Trillion Market
2024-02-21 by Hafiz M. Ahmed

In an era where the global market is increasingly interconnected, the importance of Halal certification in international trade cannot be overstated. As awareness and demand for Halal products surge among the world’s 1.8 billion Muslim population, the potential to enhance international trade within the Halal market, valued at an impressive $3.2 trillion, is vast. This sentiment was echoed by Muhammad Zubair Mughal, CEO of the Halal Research Council (HRC), during his impactful speech at the International Halal Accreditation Forum (IHAF). This pivotal event, held in Istanbul on October 25th and 26th, 2013, under the auspices of the Turkish government, Turk AK, the Ministry of European Union Affairs, and SMIIC, brought together delegates from over 60 countries in a collaborative effort to expand and standardize Halal certification globally.

Mughal highlighted the expansive reach of Halal certification, noting that over 300 Halal certification bodies operate across more than 125 countries. However, he emphasized that Halal certification transcends mere business transactions, representing a profound religious obligation. The distinction between Halal (permissible) and Haram (forbidden) in Islam extends beyond food, encompassing services like Islamic banking, Halal tourism, and Halal business, as well as cosmetics and physical items. This comprehensive approach ensures that millions of Muslims can confidently navigate their consumption choices in accordance with their faith, highlighting the critical role of meticulous certification to prevent any breach of Shariah law.

An alarming trend pointed out by Mughal is the disproportionate control non-Muslims hold over the Halal industry, with an 82% stake, leaving Muslims with a mere 18% share. This discrepancy raises concerns about the authenticity and safety of Halal products and underscores the need for greater involvement and oversight by Muslim communities.

Pakistan was presented as a case study of success in fostering a robust Halal industry. The country boasts a conducive environment for the Halal sector, featuring advanced Halal laboratories, meat complexes, a comprehensive Halal accreditation scheme, government support, and renowned educational institutions dedicated to the food industry. Pakistani stakeholders, controlling over 50% of Halal certification efforts, extend their services globally, including in key markets like the United States, the United Kingdom, Germany, Australia, Canada, and several European countries, thereby ensuring a reliable supply of Halal-certified products for Muslims worldwide.

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The inaugural ceremony of the IHAF was graced by Tayyip Erdoğan, then Prime Minister of Turkey, who warmly welcomed the international assembly of Halal industry experts. Erdoğan’s presence and support underscored the significance of the forum and its objectives to bolster the global Halal market.

As the Halal industry continues to grow, the emphasis on standardized, globally recognized Halal certification becomes ever more crucial. It not only serves the religious needs of the Muslim population but also presents a lucrative opportunity for international trade and cooperation. The concerted efforts of countries like Pakistan, alongside international forums such as the IHAF, are vital steps towards realizing the full potential of the Halal market. This collaborative approach ensures that Halal certification remains a beacon of trust and quality in the global marketplace, paving the way for a future where Halal products are readily accessible to all who seek them.

Author

  • Hafiz M. Ahmed

    Hafiz Maqsood Ahmed is the Editor-in-Chief of The Halal Times, with over 30 years of experience in journalism. Specializing in the Islamic economy, his insightful analyses shape discourse in the global Halal economy.

    View all posts

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The Halal Times, led by CEO and Editor-in-Chief Hafiz Maqsood Ahmed, is a prominent digital-only media platform publishing news & views about the global Halal, Islamic finance, and other sub-sectors of the global Islamic economy.

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