More Entrepreneurs Wanted For US$1.2 Trillion Halal Food Industry

Thursday, October 20th, 2016 | 617 Views

No longer considered a niche segment, the global Islamic economy is estimated to be at US$1.9 trillion, according to Thomson Reuters. Halal food and beverages were worth US$1.2 trillion and is predicted to rise to US$1.9 trillion by 2021, representing a significant portion of Muslim consumer spending.

Halal food has shown encouraging signs of maturity with more private equity investments in the sector. With the introduction of accreditation to oversee certifiers, complexity has been reduced, further encouraging more players to enter the industry.

“The Islamic economy continues to mature, growing more complex and more stable each passing year.

The sector is proving itself to be one of the most viable solutions to the stagnation that is plaguing global markets,” said Majid Saif Al Ghurair, Dubai Chamber of Commerce chairman.

While the sector is growing at a steady rate, various areas of the halal food industry such as logistics, retail, transportation, and fine dining have been identified as key areas for growth. Muslim countries are also reliant on importing food products. According to the Organisation of Islamic Cooperation, its 57 member states import as much as 50 percent of their vegetable products, 32 percent of processed food, and 18.5 percent of animal products.

“A core challenge for the Islamic economy is the need to motivate more Muslims across the globe, especially the youth, to participate in developing this ecosystem and play an integral role in the production process”, said Abdulla Mohammed Al Awar, chief executive of the Dubai Islamic Economy Development Centre.

“In doing so, Muslims can transform from being the largest consumer base in the world to a sizeable production base capable of achieving a more sustainable future,” Mr Al Awar concluded.