Qatar & GCC Emerging As Leaders in Global Halal Economy

The Investment Promotion Agency Qatar (IPA Qatar) reports that Qatar and the Gulf Cooperation Council (GCC) region are emerging as significant players in the global halal economy, which is expected to grow rapidly, with revenues projected to reach $7.7tn by 2025.

The halal economy encompasses various sectors, including Islamic finance, halal food, modest fashion, media, travel, pharmaceuticals, and cosmetics, which are anticipated to experience exponential growth in consumer expenditure by 2025.

IPA Qatar’s sectoral study highlighted three primary reasons to invest in Qatar’s halal economy:

• Access to globally recognized halal certification bodies
• It’s status as a hub of excellence for Islamic economics and finance
• It’s ranking among the top-performing countries for Islamic tourism

Qatar has concentrated on sectors with growth potential by prioritizing producing various high-value-added products and services, thus shaping a competitive market landscape.

In 2021, Qatar’s Islamic fintech market size was $849 million, with the country’s financial market assets valued at $156.4 billion. Qatar’s takaful assets market size reached $1 billion in the same year. The GCC’s halal food market value was $58.2 billion in 2021, while its halal financial assets market was valued at $1.5 trillion. Between 2020 and 2026, Organisation of Islamic Cooperation (OIC) economies, including the Middle East and North African countries, are expected to grow faster (+7%) than the global average growth rate.

Qatar has increased its global and national halal accreditation efforts by establishing the OIC’s Halal Accreditation Centre and the Ministry of Public Health’s (MoPH) guide on importing halal food products, which includes a list of authorized Islamic bodies to issue halal slaughtering certificates. The country’s halal economy value chain demonstrates the collaboration of various players across industries, from pre-production to production, certification, distribution, and end-users.

IPA Qatar highlighted the valuable and competitive business climate Qatar offers foreign investors, its stable and resilient economy, pro-business environment, vibrant knowledge ecosystem, rich culture, and unparalleled market access and connectivity. The study also noted that Qatar’s growing Muslim population and halal lifestyle contribute to the success of the halal economy.

With over 80% of Qatar’s population being Muslim, the country ranks among the top three OIC nations for Islamic-themed media and lifestyle services. Qatar also hosts events such as the annual ‘Halal Qatar Festival.’ The country is one of the accreditation centers for the OIC, and the Ministry of Endowments (Awqaf) and Islamic Affairs oversee Islamic affairs in Qatar. The Centre for Islamic Economics and Finance (CIEF) is a center of excellence in Islamic economics and finance.

Qatar’s Islamic banks hold the largest share of the Islamic finance market, with substantial potential in takaful, green investments, and sukuk issuance. The country also offers access to Islamic academic programs and degrees, such as Islamic law and finance. The Qatar National Vision 2030 identifies the halal economy as critical to achieving national goals. Furthermore, Qatar ranked among the top 10 halal economies on the Global Islamic Economy Indicator (GIEI).

The Ministry of Commerce and Industry’s (MoCI) launch of the ‘Halal Livelihood Programme’ to raise awareness about halal living and the Sheikh Abdulla Bin Zaid Al Mahmoud Islamic Cultural Centre, a Qatari state initiative to support the nation’s Islamic values, exemplify the robust government support for the halal economy.