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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

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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HALAL ECONOMY

Promoting Halal Entrepreneurship Among Students: Opportunities and Challenges

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Today’s globalized world has made “halal” a huge corporate force, not just a religious term. Halal entrepreneurship is seen in food, cosmetics, medicines, and banking. It is a growing industry that offers great chances for new ideas and community growth. So, encouraging students to start their own halal businesses is becoming more popular as a key way to improve education and the economy. But what opportunities does this present, and what challenges do aspiring entrepreneurs face? Let’s dive in and explore.

The Rise of Halal Entrepreneurship

Understanding the Market

Halal entrepreneurship involves starting Islamic businesses. These businesses serve Muslims, but non-Muslims are increasingly drawn to them because they associate halal with ethical buying, quality, and sustainability. Fast market growth is fantastic. Global halal sales are likely to soar in the next years. But what does this growth mean for students and aspiring entrepreneurs?

A Platform for Innovation

For students, the halal market offers a platform for innovation. There are many opportunities to be creative and develop new halal-certified products and services for Muslim customers. Innovation goes beyond product creation. Their sale, use, and marketing matter too. New ideas and technology skills from students can have a tremendous effect.

The Importance of Good Writing Skills in Halal Entrepreneurship

Writing is crucial in halal business. Good writing skills get ideas across, persuade people, and create engaging product and service stories. They also go well with a business spirit. Students who wish to create halal enterprises must clearly and convincingly express their goals, ideals, and company details. This is crucial for business strategies, product descriptions, marketing materials, and daily interactions with buyers, partners, and investors.

In halal commerce, where morality and Islamic rules are paramount, precise speech is crucial. Students must describe their products and services, as well as how they follow halal rules and why. You must understand religion and audience expectations to do this. This requires clear, intentional communication. Strong writing abilities are essential to educate a wide audience about halal items and resolve any ambiguities.

Improving these writing skills is a continuous process, one that can be significantly enhanced with the support of experienced professionals. For students looking to excel in halal entrepreneurship, seeking assistance from EduBirdie essay writers for hire can be a game-changer. These experts can help you organize, persuade, and write clearly. Professional writers can help students persuade a wide audience by developing a business plan and marketing materials or improving their communication skills. Expert writing help may be essential in halal companies, where competition is tough and details matter.

Opportunities for Student Entrepreneurs

Bridging Tradition and Modernity

Halal company enables students to combine old values with current business practices, which is great for them. They must follow Islamic laws and use cutting-edge business and communication techniques to reach and help Muslims worldwide. By doing this, student businesses can help bring the halal market up to date and make it bigger.

Educational and Career Advancements

Students who take part in halal entrepreneurship get a one-of-a-kind learning experience that lets them deal with real-life business problems and use what they’ve learned in the classroom in real-life situations. In addition, this journey into entrepreneurship can make students’ resumes look much better, which can lead to job chances in the global halal industry and beyond.

Challenges in Promoting Halal Entrepreneurship

Navigating Regulatory Complexities

Student businesses in the halal sector struggle to label and market halal products due to the many regulations and certifications. These standards vary per country, making it difficult for students unfamiliar with halal licensing to learn rapidly.

Access to Capital and Resources

Halal startups need money and tools to get off the ground, just like any other business. However, it can be especially hard for students to get funding because they might not have the security or track record that investors and financial institutions normally look for. Furthermore, finding halal-compliant funding options adds an additional layer of complexity.

Overcoming the Challenges

Leveraging Technology and Networks

To overcome these challenges, student entrepreneurs can leverage technology and networks. Digital platforms can facilitate access to halal certification information, mentorship, and even funding. Additionally, building a strong network within the halal industry and the broader entrepreneurial community can provide valuable support, advice, and opportunities.

Educational Institutions’ Role

Educational institutions play a pivotal role in supporting halal entrepreneurship among students. By educating entrepreneurship and the halal industry, undergraduate and graduate schools may prepare students for the halal market. Students can also connect with lecturers, professionals, and investors through institutions.

Conclusion

There are many benefits and drawbacks to fostering halal business among students. When the halal market grows, creative, ethical entrepreneurs are needed more than ever. Students may establish outstanding businesses and make the halal industry more dynamic, open, and long-lasting by seizing chances and overcoming challenges. Halal business owners confront many hurdles, but the rewards can be great if they are ready.


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EVENTS & ANNOUNCEMENTS

Unlocking Economic Potential: Zamfara State Halal Economic Summit

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By Baba Yunus Muhammad

Zamfara State is gearing up for an unprecedented event that could potentially redefine its economic landscape – the Zamfara State Halal Economic Summit. This historic event, which is scheduled to take place in the state capital, Gusau in May 2024, represents a pivotal moment in Zamfara State’s quest for economic rejuvenation and sustainable growth, spotlighting investment prospects, harnessing potentials, and capitalizing on the burgeoning Halal economy. Set against the backdrop of socio-economic challenges, this Summit, being orchestrated by the Africa Islamic Economic Foundation (AFRIEF), an international Islamic development organization headquartered in the Republic of Ghana, and convened under the Distinguished Patronage of His Excellency, Dr. Dauda Lawal, the Executive Governor of Zamfara State, emerges as a beacon of hope, offering a strategic platform for growth and development.

At the heart of this endeavor lies a visionary approach to economic development – one that views industrialization as the cornerstone of transformation, progress, and poverty reduction. Under the visionary leadership of Dr. Dauda Lawal, the Zamfara State Government has made a strategic commitment to prioritize job creation and industrialization, recognizing them as pivotal drivers of development. This strategic agenda dovetails seamlessly with the broader imperatives encapsulated within the United Nations Sustainable Development Goals (SDGs), aiming to significantly augment industry’s contribution to employment and GDP within the state.

The Zamfara State Halal Economic Summit transcends mere rhetoric – it represents a concrete manifestation of the State’s determination to harness the power of industrialization for the collective good. More than just a forum for dialogue, this summit serves as a catalyst for action – a platform where aspirations coalesce into actionable strategies and tangible outcomes.

At its nucleus lie the ambitious plans for establishing Special Halal Economic Zone and Rural Transformation Centers across the state, envisioned as engines of innovation, productivity and trade. The Summit serves as a catalyst for identifying and capitalizing on investment opportunities across various sectors. From agribusiness to Islamic finance, the summit offers a platform for investors to explore lucrative ventures and forge strategic partnerships with local stakeholders. One of the key investment prospects of the summit lies in the Halal food industry. With an increasing global demand for Halal-certified products, Zamfara can leverage its agricultural resources to become a hub for Halal food production and export. This not only creates opportunities for local farmers and agribusinesses but also positions Zamfara State favorably in the international Halal market.

A Special Halal Economic Zone (SHEZ) holds special significance within the context of the Halal economy. By designating an area specifically tailored to accommodate Halal industries and businesses, a Halal focused SEZ provides a conducive environment for investment, innovation, and trade. It offers streamlined regulatory frameworks, infrastructure development, and incentives to attract domestic and foreign investors interested in Halal-related activities. Additionally, a Halal focused SEZ serves as a focal point for research and development, fostering collaboration between academia, industry, and government to drive technological advancements and product innovation in Halal sectors.

Moreover, by clustering Halal-certified businesses within these zones, Zamfara State can create synergies, promote knowledge sharing, and drive economies of scale, thereby maximizing the potential of the Halal economy.

Driving this ambitious agenda forward is the Africa Islamic Economic Foundation (AFRIEF), which is steadfast in its commitment to galvanizing the global Islamic finance industry and mobilizing public and private sector investments to propel Zamfara State towards industrialization. With a strategic emphasis on key sectors such as agriculture, manufacturing, and industrialization, AFRIEF lays the groundwork for a profound structural overhaul of Zamfara’s economic landscape.

To comprehend the full magnitude of the Zamfara State Halal Economic Summit, one must delve into the broader context of the global halal economy. Encompassing a diverse array of sectors including food, finance, tourism, cosmetics, healthcare and pharmaceuticals, and more, the halal industry represents a burgeoning market with exponential growth potential.

With an estimated global Muslim population exceeding 1.8 billion, the Halal market represents a significant economic force. According to the State of the Global Islamic Economy Report, global expenditure on Halal products and services is projected to reach $3.2 trillion by 2024, highlighting the immense potential for growth and innovation in this sector. With the global Muslim population on the rise and an increasing demand for halal-certified goods and services, tapping into this market presents unparalleled opportunities for economic expansion and diversification.

Furthermore, the Halal economy extends beyond religious considerations, encompassing principles of ethical consumption, sustainability, and social responsibility. As consumers become increasingly conscious of the origins and production processes of goods and services, the demand for Halal-certified products continues to rise. This trend presents opportunities for businesses and governments alike to capitalize on the Halal economy’s principles of integrity, quality, and inclusivity.

From Malaysia to the Middle East, the Halal economy transcends geographical boundaries, offering opportunities for collaboration and partnership on a global scale. Through initiatives such as the Zamfara State Halal Economic Summit, stakeholders have the opportunity to leverage the power of the Halal economy to drive sustainable development, foster prosperity, and build bridges across cultures and continents.

Against the backdrop of Zamfara State’s socio-economic fabric, characterized by its predominantly rural populace and agrarian economy, the potential benefits of the summit are manifold. By fostering an enabling ecosystem for industrialization and entrepreneurship, the summit holds the promise of unlocking Zamfara State’s latent economic potential, generating employment opportunities, and improving living standards.

Furthermore, the Summit serves as a conduit for attracting both domestic and foreign investments, facilitating technology transfer, knowledge exchange, and skills enhancement. Through strategic partnerships and collaborative initiatives, Zamfara State can harness its unique strengths and resources to emerge as a preeminent hub of halal-centric industries.

Additionally, the summit serves as a platform for knowledge exchange and capacity building, equipping local entrepreneurs and businesses with the skills and resources needed to thrive in the global Halal market. This not only enhances the competitiveness of Zamfara’s economy but also positions the state as a center of excellence in Halal-related industries.

In conclusion, the Zamfara State Halal Economic Summit represents a pivotal moment in the economic trajectory of the state and the broader Islamic economic community. By embracing the principles of the Halal economy and leveraging its inherent strengths, Zamfara has the potential to emerge as a beacon of prosperity and progress in the Federal republic of Nigeria. Under the visionary leadership of Governor Dauda Lawal and with the support of the Africa Islamic Economic Foundation, this summit is poised to chart a new course towards sustainable development, transforming challenges into opportunities, and realizing the aspirations of the people of Zamfara for a better, more prosperous future.

Baba Yunus Muhammad is President of the Africa Islamic Economic Foundation, Tamale, Ghana.


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