Nairobi Hosts Summit to Unlock the $2.3 Trillion Global Halal Economy

Nairobi is hosting a two-day summit starting Monday to explore how Kenya and the East African region can best tap into the lucrative global Sh230 trillion (US$2.3 trillion) halal and Islamic economy. This second annual East Africa Islamic Economy Summit (EAIES) will bring together local, regional, and international industry experts to discuss opportunities in the multi-trillion shilling halal market and how to exploit them to boost regional economies.

The halal economy serves the needs of over 1.6 billion Muslim consumers worldwide, who seek goods and services that align with Islamic principles. Notably, businesses do not need to be Muslim-owned to supply this market. The halal economy spans various sectors including food, tourism, banking, insurance, capital markets, fashion, and beauty, making it the fastest-growing niche sector globally.

Key Focus Areas of the Summit

Regulatory and Legal Environment: Experts will discuss improving the regulatory and legal frameworks to foster the growth of the halal economy, following the government’s recent announcements to amend laws to better accommodate this niche sector.

Islamic Finance and Economy Misconceptions: The summit aims to dispel misconceptions about Islamic finance and highlight best practices. Keynote speakers include Treasury Cabinet Secretary Henry Rotich, Principal Secretary Kamau Thugge, and Capital Markets Authority CEO Paul Muthaura.

Kenya as a Regional Hub: Kenya aims to establish itself as the regional hub for Islamic finance and economy. Plans include issuing the first Islamic bond (sukuk) to attract cheaper funds from the Middle East and globally for infrastructure development, thereby expanding financing options beyond Eurobonds and syndicated loans from commercial banks.

Opportunities in Halal Tourism

The summit will explore the untapped potential of the halal economy in East Africa, home to millions of Muslims representing a lucrative market for halal-certified goods and services. For instance, Kenya has yet to fully exploit the global halal tourism sector, valued at least Sh21 trillion (US$219 billion). Currently, Tanzania and Zanzibar are leading destinations in the region for halal tourism, but Kenya aims to develop its infrastructure to attract a share of this growing market.

By leveraging these opportunities, Kenya and other East African nations can significantly enhance their economic growth and development. The EAIES summit serves as a pivotal platform to strategize and collaborate on unlocking the full potential of the halal economy, ultimately driving sustainable economic progress in the region.

This summit not only highlights the economic potential but also underscores the importance of a collaborative approach to developing a thriving halal market that meets the needs of a diverse and growing consumer base.