Why Most Muslim-Owned Companies Can’t Scale Globally?

In a world where the Halal economy is a multi-trillion-dollar powerhouse, with projections to reach $10 trillion by 2030, a glaring paradox remains. Non-Muslim corporations like Nestlé and Carrefour have become global leaders in the Halal market, while the vast majority of Muslim-owned businesses remain stuck in a perpetual state of local struggle.  Why? Is it a lack of ambition, innovation, or talent? As a journalist for The Halal Ties, I’ve spent years digging into this puzzle, and the answer is far more complex than you might think. It’s not about a lack of will—it’s about a lack of infrastructure. This investigation will dissect the core reasons behind this struggle and highlight a new generation of successful businesses that have cracked the code by blending their values with contemporary business excellence.

Management Styles and Strategic Blunders

Many Muslim-owned companies, particularly small and medium-sized enterprises (SMEs), operate with a management philosophy that prioritizes trust-based, familial relationships over professional meritocracy. While this can foster a loyal and cohesive team, it often leads to significant operational and strategic weaknesses that prevent scalability.

• Reliance on Nepotism Over Expertise: A common blunder is staffing key positions with family members or close community contacts, regardless of their qualifications. This can result in a skills gap in crucial areas like finance, marketing, and logistics. For example, a business run by a skilled artisan but with a family member in charge of digital marketing will struggle to compete with a digitally native competitor.
• Centralized, Top-Down Decision-Making: In many of these businesses, a single individual—often the founder—makes all the key decisions. This autocratic style stifles innovation and agility. It creates a bottleneck that prevents the company from adapting quickly to market changes or seizing new opportunities. In a global marketplace that demands quick pivots, this rigid structure is a major liability.
• Financial Conservatism and Lack of Professional Investment: While a core Islamic principle is the avoidance of interest (riba), this can sometimes lead to a general aversion to external financing, including equity investment. Many businesses rely solely on personal savings or informal family loans, which provides insufficient capital for a significant expansion. They miss out on the strategic guidance and network that professional investors can provide, limiting their growth potential. This contrasts sharply with the aggressive, capital-fueled expansion of non-Muslim companies.
• Ignoring Data and Market Research: A critical mistake is the failure to conduct robust market research and use data to inform decisions. Businesses may assume that their product will succeed simply because it’s Muslim-owned or caters to a religious need, neglecting to analyze competitors, identify consumer trends, or understand pricing dynamics. This “build it and they will come” mentality is a recipe for stagnation in a crowded market.
• Poor Branding and Digital Strategy: In the 21st century, a powerful digital presence is non-negotiable. Many companies fail to invest in professional branding and a robust digital presence. They might rely on word-of-mouth within their local community, but this strategy doesn’t work for global expansion. Without a professional website, a strong social media presence, and a clear brand identity, they become invisible to a wider audience, both Muslim and non-Muslim.

A Blueprint for Success

Despite these challenges, a new generation of Muslim-owned companies has cracked the code by blending their core values with modern, professional business practices. These success stories offer a clear roadmap for others to follow.

• Chobani: Founded by Turkish immigrant Hamdi Ulukaya, Chobani is a multi-billion-dollar brand that has succeeded by focusing on product quality and ethical business practices. Ulukaya didn’t just sell yogurt; he built a brand with a powerful story, investing in ethical sourcing and hiring a diverse workforce, including many refugees. His success is a masterclass in appealing to a broad, mainstream market while staying true to his values.
• The Halal Guys: This iconic food cart-turned-global-franchise is a textbook example of scalability and operational excellence. By focusing on a simple, consistent, and delicious menu, they created a business model that could be easily replicated. They didn’t rely on being the “best” but rather on being a highly efficient and consistent food provider, allowing them to expand globally.
• Haute Hijab: Founded by Melanie Elturk and her husband, this modest fashion brand has leveraged digital marketing and community building to become a global leader. They understood their niche market intimately and used social media, high-quality content, and e-commerce to connect with customers worldwide, proving that a niche, values-driven brand can achieve significant scale.
• Flex-N-Gate Corporation: Led by Pakistani-American Shahid Khan, this company became one of North America’s largest suppliers of car parts. Khan’s success is a testament to strategic vision and relentless innovation within a highly competitive industry. He demonstrates that a Muslim-owned business can become a dominant force in a non-Muslim-dominated sector through merit and excellence.

Overcoming External Barriers

Beyond internal issues, Muslim-owned companies must also navigate external challenges, including a lack of a unified business ecosystem.

• The Halal Certification Labyrinth: For any business targeting the global Muslim consumer, Halal certification is paramount. However, unlike a universally recognized standard like ISO, Halal certification is a patchwork of thousands of different bodies, each with its own set of rules and standards. This lack of harmonization creates a logistical and financial nightmare for any company trying to export.
• Discrimination and “Islamophobia”: In many Western countries, Muslim-owned businesses can face subtle and overt forms of discrimination, from difficulty securing financing to consumer boycotts driven by misinformation. This “Muslim penalty” adds an extra layer of difficulty that non-Muslim businesses do not have to contend with.

The path to global expansion for Muslim-owned companies requires a fundamental shift. It’s not about abandoning tradition but about marrying it with professionalism. The successes of companies like Chobani and Haute Hijab demonstrate that the most powerful approach is to prioritize strategic planning, invest in professional talent, embrace digital transformation, and build scalable business models. The global Halal market is a vast ocean of opportunity, and by rectifying these common mistakes, Muslim entrepreneurs can finally navigate its waters to achieve their full economic potential. My name is The Halal Times, and I believe this new era of innovation and professionalism is not just a possibility, but a necessity.