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HALAL ECONOMY

A Glimpse into The Global Halal Industry [2023]

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The Halal industry is much more than just food on your plate. It’s a way of life that encompasses the entire ecosystem, from food production to consumerism.  The Halal industry is a booming global market. The global Islamic economy comprises seven sectors — Islamic finance, Halal food, modest fashion, media and recreation, Muslim-friendly travel, pharmaceutical, and cosmetics.

It is estimated that the global Halal market will be increased by trillions in 2027, making it one of the fastest-growing industries in the world today. Recent years have seen a surge in global awareness of sustainability, ethical consumption, green growth, and digitization, enabling the Halal industry to flourish worldwide.

What is Halal?

The word ‘Halal’ comes from Arabic which means “allowed” or “permissible” according to Islamic law. Therefore, every Muslim must ensure that whatever they consume comes from a Halal source—not just the ingredients but also the entire production and handling process from start to finish (Zakaria, 2008). The definition given by Jabatan Kemajuan Islam Malaysia (JAKIM) in Trade Description Order 2011 covers products and services encompassing all the business operations like packaging, marketing, manufacturing, logistics, supply, maintaining premises, slaughtering, and so on (JAKIM, 2015).

Current Global Halal Food Market Insights and Trends

The global Halal food industry is expected to hit almost $4 trillion by 2028 as it expands at an 11.25% CAGR over the next eight years. In 2019 alone, Halal consumers spent a staggering US$1.17 trillion on Halal food — making it the second largest sector after Islamic finance.

Increasingly, customers are purchasing natural regular food and refreshment items. This trend has led to increased revenue from consumers in the utilization of Halal food products. There is a massive opportunity for Halal food manufacturers to capitalize on this growing interest by developing new products marketed in western-style supermarkets, including grocery stores and hypermarkets.

General stores and food makers in numerous nations have begun catering to Halal customers by offering more Halal refreshment products. The Halal food market is projected to experience significant growth due to the rising demand from Muslim and non-Muslim consumers. This is because of its cleanliness-related benefits, such as liberation from debasements, alcohol, and blood. 

In addition, organizations are now following Halal-based planning as it allows for both quality and taste levels, which gives an edge in commercial centers.

What Are the Factors Driving the Global Halal Industry?

Several factors are driving the global Halal industry. Let’s talk about these driving factors in detail below:

Increasing Muslim population

The Muslim population is rapidly expanding, now consisting of 2.2 billion people — almost 28.7% of the global populace! In recent years, immigration and high birth rates have contributed to this growth surge in our communities. As such, there has been an increased demand for Halal products worldwide.

Rising Demand for Certified Halal Products

Religious and ethical values also play a major role in driving the global Halal industry. Customers are increasingly seeking out products that meet their standards and expectations.  As the demand for certified Halal products has grown, manufacturers have taken steps to ensure that their products meet the required standards. This has led to the emergence of many certification bodies and Halal product labels. Consequently, this has been increasing trust in Halal products and further propelling the global development of the Halal sector.

ISA (Islamic Services of America) is a US-based Halal certification body that helps businesses go Halal in the United States of America, Canada, and Mexico. ISA’s certification process includes a rigorous review of ingredients and a regular inspection of production facilities to ensure that all products meet the highest standards of Halal compliance.

Growing Awareness of Health and Wellness

Consumer preference towards health and wellness is also driving the Halal industry. Consumers are increasingly looking for fresh, natural, organic alternatives to traditional processed and packaged foods.  Organic Halal-certified products provide an attractive substitute as they offer a wider range of benefits, like being free from chemical pesticides, preservatives, and additives. This has led to a rise in demand for certified Halal products free from harmful substances and chemicals.

In addition, the increasing demand for natural and organic meat is also driving the growth of the global Halal industry as customers seek out ethically produced animal products.

The Upsurge of Muslim-Friendly Tourism

Halal tourism is one of the world’s most lucrative and rapidly growing industries. By 2026, annual global spending from Muslim travelers will likely skyrocket to $300 billion according to a report by Mastercard and HalalTrip.

The growth of Halal tourism is due to a combination of factors, including the increasing number of Muslim tourists, changing consumer preferences, and ethical considerations.

Moreover, the increasing demand for luxury holidays among affluent Muslim travelers is driving up the opportunities for Halal-friendly hotels and resorts from the Middle East to Japan, Thailand, South Korea and other countries and regions. These establishments offer special amenities and services tailored for Muslim travelers, such as Halal food options, push shower in toilets, and prayer facilities.

Diversification Of the Global Halal Supply Chain

The global Halal industry also benefits from expanding the global Halal supply chain. Companies are now more capable of sourcing Halal certified ingredients and materials from international markets, allowing them to provide consumers with a wider range of Halal finished products. In addition, the rise of digital e-commerce platforms has made it even easier for buyers to access products from anywhere in the world.

The Domination of Food-Tech Within the Halal Industry

The Halal industry has undergone significant transformations due to the emergence of digital technology, with AI and automation radically altering various aspects. This shift has enabled companies to innovate faster, develop products more efficiently, and scale their businesses more quickly. This increased digitization is transforming the global Halal industry, with Food-tech startups tapping into this growing market.

For example, Halal food-related platforms and apps are rapidly gaining popularity due to the ease of ordering Halal-certified products. With the rapid growth of grocery e-commerce, there is a plethora of opportunities for businesses operating within the Halal sector, from Halal cloud kitchens to ghost kitchens.

Rise of Transparency and Sustainability

Customers are becoming more aware of the environmental impact of their purchases. They are increasingly demanding ethically produced products with a minimal environmental footprint.

As a result, businesses have been investing in transparent supply chains to ensure the traceability of their products, from farm to fork. This has enabled businesses to monitor their production process better and ensure the quality of their products.

Food safety Concerns Are Fueling the Growth of the Halal Industry

Food safety concerns are further fueling the consumer demand for more transparency in the Halal food chain. Companies are looking for ways to address this concern, and blockchain technology is a promising solution.

Halal certification is an important part of global trade. However, it often lacks transparency in who certifies what and where products come from. Unless the Halal certifying body is authentic and can be verified, such as ISA, there is little assurance that the product is actually Halal.

Thanks to blockchain technology, companies can now ensure the traceability of their Halal products through the entire supply chain. This helps businesses meet customer demands for more transparency and makes it easier for them to prove authenticity and compliance with Halal standards.

Blockchain technology is now seen as a promising solution for Halal food traceability and sustainability by Halal industry players.

Blockchain technology, also known as distributed ledger technology (DLT), is a decentralized database that records transactions. It has been used to track food from the farm to store shelves and even in production.

To achieve sustainability and food traceability, Halal industry stakeholders are exploring blockchain technology as a viable solution. They can monitor the origin of their products, document how they were processed, and keep tabs on each ingredient used.

This method could help prevent food fraud or contamination at any stage of the supply chain—from farmers growing crops on land to factories processing meat or other ingredients.

Recently, OneAgrix, a B2B faith-based and quality foods trade ecosystem and digital platform, and its eight partners, unveiled the world’s pioneering and comprehensive farm-to-fork solution that traces beef from DNA to QR code. This revolutionary breakthrough will have significant implications for food supply chain traceability.

The Future of Halal Supply Chains

In the next few years, the global Halal industry will continue to evolve as it learns to meet the needs of consumers and businesses. Thus, there will be an increased focus on transparency and traceability within supply chains.

The Halal supply chain has already become more transparent in recent years through initiatives such as LCA (life cycle assessment). The LCA measures environmental impact throughout each production stage, from raw material extraction through processing and manufacturing into final products.

In addition, we see more efforts towards sustainability by ensuring that carbon footprints and animal health are maintained throughout the production process. More companies now recognize the potential of Halal certification as an international quality assurance standard.

Blockchain technology also plays a major role in helping the Halal industry reach new levels of transparency and trustworthiness, ensuring that customers have access to high-quality food products that comply with Halal standards. The potential for blockchain technology to revolutionize food systems is immense, and its impact on the Halal industry will be felt in the years to come.

Halal is a way of life. It’s about ensuring our consumables and non-consumables are safe, secure, and ethical. Halal food looks and tastes great, but it also keeps us healthy. The expansion of the global Islamic economy provides jobs for millions of people worldwide who directly or indirectly work in the Halal industry. With more than 2 billion Muslims living on Earth today, this trend shows no sign of slowing down—and we can all be part of it!


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HALAL ECONOMY

HLISB Introduces BizHalal To Support SMEs in the Global Halal Market

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In a significant move to empower Small and Medium Enterprises (SMEs) navigating the lucrative global Halal market, Hong Leong Islamic Bank (HLISB) has introduced BizHalal. This innovative, Shariah-compliant banking solution is designed to provide both financial support and Halal advisory services, aligning with Malaysia’s strategic vision to expand its Halal ecosystem.

What is BizHalal?

BizHalal is more than just a financial product; it’s a partnership between HLISB and the Halal Development Corporation (HDC), solidified through a recent Memorandum of Understanding (MOU). This collaboration underscores HLISB’s dedication to fostering growth and development within the Halal industry.

Strategic Goals and Historical Context

HLISB CEO, Dafinah Ahmed Hilmi, reflected on the bank’s ongoing commitment to the Halal sector since 2018 and expressed enthusiasm about how BizHalal will further stimulate the expansion of local Halal SMEs. The service package includes tailored financing solutions and expert advisory services, ensuring businesses are well-equipped to thrive in this dynamic market.

Market Potential and Economic Impact

The global Halal market, valued at USD 3 trillion in 2020, continues to grow, with projections placing Malaysia’s Halal industry at US$113.2 billion by 2030. Despite this potential, a gap remains between the market demand and supply, highlighting the critical need for increased investment and collaboration to tap into this burgeoning sector.

Partnership Impact

HDC Chairman, Khairul Azwan Harun, emphasized the importance of strategic partnerships like that of HLISB and HDC in closing the market gap and cultivating local Halal champions. These collaborations are pivotal in ensuring the sustainability and global competitiveness of Malaysia’s Halal SMEs.

Technological Integration

Acknowledging the role of technology, HDC has introduced the Halal Integrated Platform (HIP), which simplifies the certification process and enhances the operational efficiency of Malaysia’s Halal ecosystem. This digital approach not only streamlines operations but also broadens the accessibility of Halal certification for SMEs.

Support and Advisory Services

Under BizHalal, HLISB’s Halal Industry Specialists provide comprehensive support to customers. This includes a readiness assessment, advisory assistance, and integration into the Halal Digital Ecosystem. These services are crucial for both existing Halal-certified businesses and new entrants aspiring to obtain certification.

Inclusivity and Accessibility

BizHalal is accessible to all HLISB customers, supporting both current Halal-certified businesses and those seeking to achieve certification. Additionally, customers who avail of HLISB’s business financing facilities will automatically qualify for the BizHalal program, making it easier for SMEs to join and benefit from this initiative.

With the introduction of BizHalal, HLISB reaffirms its commitment to supporting the growth of SMEs in the global Halal market. This initiative not only aligns with Malaysia’s economic goals but also serves as a catalyst for the development of a robust, sustainable Halal ecosystem that can lead on the international stage.

This rewrite not only incorporates the key phrase “HLISB Introduces BizHalal To Support SMEs in the Global Halal Market” effectively for SEO but also enhances the article’s relevance and informative nature, making it more engaging for readers interested in Islamic finance and the Halal industry.


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HALAL ECONOMY

Top 8 Ways Halal Cosmetics Are Reshaping Fashion in 2024

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In recent years, the global cosmetic industry has witnessed a significant shift towards more ethical, sustainable, and inclusive products, with halal cosmetics emerging as a powerful trend reshaping fashion in 2024. This isn’t just a niche market anymore; it’s a burgeoning phenomenon that’s making waves across the fashion industry, influencing consumer choices and brand strategies alike. Here’s a look at the top 8 ways halal cosmetics are transforming the landscape of fashion today.

1. Expanding Consumer Base

One of the most significant impacts of halal cosmetics is their appeal to a broader audience. Initially targeted at Muslim consumers who seek products that comply with Islamic law, halal cosmetics have transcended cultural boundaries to attract non-Muslim buyers too. This broad appeal is largely due to the ethical manufacturing processes and the absence of harmful ingredients, which resonate with the growing global demand for cleaner, safer beauty products. This expansion is not just reshaping who shops for these products but also how companies market them.

2. Emphasis on Ethical Production

Halal cosmetics are not only defined by their compliance with Islamic law but also by their commitment to ethical production standards. These products are often cruelty-free, not tested on animals, and manufactured using fair labor practices, which appeals to ethically conscious consumers. As sustainability becomes a cornerstone in consumer products, halal cosmetics lead the way, showing how fashion and ethics can coexist harmoniously.

3. Boost in Natural Ingredients

At the heart of many halal cosmetic products is the use of natural and organic ingredients. Avoiding alcohol and animal-derived substances is a requirement for halal certification, which has encouraged brands to innovate with plant-based and mineral-based ingredients. This shift is significantly influencing broader fashion trends, as consumers increasingly seek products that are both ethically produced and beneficial for their health and the environment.

4. Influence on Product Transparency

Transparency is a big buzzword in the beauty industry, and halal cosmetics are at the forefront of this movement. Brands specializing in halal products often provide extensive information about ingredient sourcing, manufacturing processes, and supply chains. This transparency reassures consumers and sets a standard that many other brands are now aspiring to meet, thus reshaping expectations and demands within the fashion industry.

5. Enhancement of Brand Images

Companies that offer halal cosmetics are often viewed favorably for their inclusive and ethical business practices. This positive brand image can translate into increased customer loyalty and market share. As fashion brands seek to differentiate themselves in a crowded market, adopting halal principles can be a powerful tool for enhancing their reputation and attracting a diverse customer base.

6. Innovations in Product Offerings

The rise of halal cosmetics has spurred innovation across the beauty industry. From halal-certified nail polishes that allow water penetration for wudu (Islamic purification rituals) to breathable makeup that maintains skin health while meeting religious standards, these innovations are not only practical but also revolutionary, influencing broader beauty trends and consumer expectations.

7. Growth in Market Niches

Halal cosmetics have carved out significant niches in the beauty market, prompting even mainstream brands to develop halal-certified lines to cater to this growing demographic. This development is reshaping the competitive landscape, compelling brands to diversify their offerings and consider religious and ethical factors in product development.

8. Global Market Expansion

Finally, the global reach of halal cosmetics highlights the impact of globalization in the fashion industry. With major growth in regions like Southeast Asia, the Middle East, Europe, and North America, these products are fostering cross-cultural exchanges and broadening the global market landscape. Brands are not only selling internationally but also incorporating global influences into their products, which in turn influences fashion trends worldwide.

Halal cosmetics are more than just a compliance label; they are a movement towards more ethical, inclusive, and conscientious fashion. By addressing the needs and values of a diverse consumer base, promoting ethical production practices, and driving innovation, halal cosmetics are indeed reshaping the fashion industry in 2024. As this trend continues to grow, we can expect to see even more significant transformations in how products are made, marketed, and embraced by consumers around the globe. Whether you adhere to a halal lifestyle or simply seek more ethical beauty solutions, the rise of halal cosmetics is a development that offers exciting possibilities for everyone in the fashion ecosystem.


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HALAL ECONOMY

Sanctity of Hijab Being Undermined by the Liberal Media Globally

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The hijab—a traditional headscarf donned by countless Muslim women as an emblem of their modesty and deep-rooted faith—has long captivated global media attention. Yet, despite its religious significance, the portrayal of the hijab in the media frequently strays far from its true intent. It’s disheartening to see such a profound symbol of personal and religious commitment often twisted into something barely recognizable. Let us unpack the troubling ways the hijab is misrepresented in the media and explore the ironic twist of how these portrayals can sometimes feed into the very issues of vulgarity and objectification they purport to criticize. The media’s approach is not just misleading—it’s harmful, reinforcing stereotypes and widening cultural divides. It’s time for a change.

Media’s Misrepresentation of the Hijab

The hijab’s portrayal in global media varies widely, but common themes often emerge that skew its intended meaning and significance:

  1. Stereotyping and Sensationalism: Media often pigeonhole the hijab as a tool of oppression, ignoring the agency of countless women who choose to wear it for personal or religious reasons. This narrative is not only reductive but also erases the diversity of Muslim women’s experiences and identities. It fosters a misunderstanding of the hijab as something imposed rather than chosen, overshadowing the empowerment many women derive from wearing it.
  2. Focus on Controversy: The hijab frequently appears in media stories related to bans or legal battles in Western countries, framing the garment as a point of contention rather than a personal article of faith. This focus on controversy rather than understanding reinforces negative stereotypes and places Muslim women who wear the hijab in a defensive position.
  3. Sexualization in Media Portrayals: Ironically, while the hijab is intended to divert attention from a woman’s physical appearance and emphasize her character and values, some media portrayals sexualize the hijab. By focusing excessively on the hijab in contexts related to sexuality or freedom, these portrayals link the garment to the very vulgarity and objectification it seeks to avoid.

How Misrepresentations Promote Vulgarity

The paradox of the hijab’s portrayal in the media is that the misrepresentations can contribute to the societal issues they ostensibly critique:

  1. Objectification: By framing the hijab as a symbol of oppression or sexual repression, the media inadvertently focuses undue attention on the bodies and choices of hijab-wearing women, thus objectifying them. This attention can strip the hijab of its intended purpose, turning a personal and spiritual decision into a public spectacle. And, it is happening in many places like France, America, and so many other countries.
  2. Cultural Misunderstandings: Misrepresentations can lead to broader cultural misunderstandings and tensions. When the hijab is portrayed primarily through a lens of controversy or oppression, it perpetuates a view of Muslim women that is limited and often negative. This can hinder cross-cultural understanding and respect.
  3. Increased Scrutiny and Harassment: The sensationalist coverage increases scrutiny and pressure on hijab-wearing women, making them targets for harassment or discrimination. Such outcomes are starkly at odds with the media’s purported advocacy for freedom and women’s rights.

Steps Towards Accurate Representation

For the media to better serve global understanding and respect for cultural differences, several steps can be taken:

  1. Inclusive and Diverse Reporting: Media outlets should strive to include the voices of hijab-wearing women in their reporting, providing a platform for them to share their experiences and perspectives directly.
  2. Educational Programming: Media professionals should be encouraged to participate in cultural competence training, helping them understand the diverse reasons behind wearing the hijab and the broader context of Islamic practices.
  3. Highlighting Positive Stories: Focusing on the positive aspects of wearing the hijab and the success stories of Muslim women around the world can help counterbalance the prevailing negative stereotypes and provide a fuller picture of the hijab’s role in various societies.

The repeated misrepresentation of the hijab by the liberal media not only distorts public understanding but also challenges the dignity of countless Muslim women who choose to wear it. It is high time we question these portrayals and push for a narrative that respects and reflects the true values of modesty and faith embodied by the hijab. Let us know your thoughts. How have you seen the hijab portrayed in your community or media outlets? Do you believe these portrayals accurately reflect the intentions and personal choices of hijab-wearing women? Join the conversation below and share your insights. Together, we can foster a more informed and respectful discourse


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