BUSINESS & ECONOMY

Pakistan-Saudi Business Ties Grow at Jeddah Chamber

Published

2 months ago

February 11, 2025

Editor

Spread the love

Aamer Yaqub

From shared history and deep-rooted cultural ties to a powerful new economic alliance – the Pakistan-Saudi Arabia relationship is transforming. Think of growing trade, exciting investment opportunities, and a future built on collaboration. Recent high-level talks, like the meeting between Federal Minister for Commerce Jam Kamal Khan and the Jeddah Chamber of Commerce and Industry, make it clear: Pakistan-Saudi Business is entering a dynamic new era. Ready to explore what this means for you?

These discussions are not merely ceremonial; they represent a focused drive to translate shared goodwill into concrete actions, enhancing bilateral trade, attracting substantial Saudi investment, and forging long-term economic alliances that benefit both nations. This renewed emphasis on economic cooperation comes at a critical juncture, as both countries actively pursue economic diversification, sustainable growth, and greater resilience in the face of global economic challenges.

A Foundation of Shared Values and Aspirations

The bedrock of Pakistan-Saudi Business collaboration is built upon a solid foundation of shared history, cultural affinities, and brotherly relations. As Minister Kamal emphasized, these enduring ties are rooted in shared values, mutual trust, and strong socio-economic cooperation. This shared heritage provides a fertile ground for cultivating deeper and more meaningful economic partnerships. Jeddah, as a major commercial, industrial, and logistical hub, plays a pivotal role in facilitating these connections, serving as a vital link between Pakistani and Saudi businesses.

Its strategic position as a gateway for trade between East and West, coupled with its modern infrastructure and business-friendly environment, further amplifies its importance in this burgeoning economic relationship. Existing economic ties are already demonstrating positive momentum. Pakistan’s exports to Saudi Arabia have witnessed a notable increase, reflecting the growing economic engagement between the two nations. + Add New Category

This upward trend highlights the significant potential for further expansion and diversification of trade, moving beyond traditional commodities to encompass value-added products and services. However, both sides recognize the imperative to further enhance bilateral trade and work towards a more balanced trade relationship, focusing on mutual benefit and sustainable growth. This involves proactively identifying and capitalizing on opportunities in high-potential sectors and addressing existing trade imbalances through strategic partnerships and targeted initiatives.

Key Sectors Driving Pakistan-Saudi Business Growth

Several key sectors have been identified as holding immense potential for Pakistan-Saudi Business growth, offering opportunities for collaboration, investment, and joint ventures. These include:

Textiles: Pakistan’s robust textile industry, with its skilled workforce, established infrastructure, and growing focus on sustainable practices, can effectively cater to the Saudi market’s demand for high-quality fabrics, garments, and home textiles. Value addition, branding, and adherence to international quality standards can further enhance competitiveness and export potential.
Halal Food: With Saudi Arabia’s increasing emphasis on halal products and its position as a global hub for halal industries, Pakistan’s burgeoning halal food sector, with its diverse agricultural base, modern processing capabilities, and strict adherence to Islamic dietary guidelines, can find a ready and expanding market. Collaboration in developing robust halal supply chains, standardized certification processes, and joint marketing initiatives can significantly boost exports.
Agriculture and Food Security: Collaboration in agriculture can address food security concerns in both countries, with Pakistan potentially exporting a wide range of agricultural produce, including fruits, vegetables, grains, and livestock products, to Saudi Arabia. Sharing expertise in modern farming techniques, water management, and agricultural technology can further enhance agricultural productivity and promote sustainable farming practices.
Information Technology (IT): Pakistan’s rapidly growing IT sector, with its young, talented, and cost-effective workforce, offers a wealth of innovative solutions, software development expertise, and IT-enabled services that can benefit Saudi businesses across various sectors. Joint ventures, technology transfer, and partnerships in the IT sector can foster knowledge sharing, create new opportunities, and drive digital transformation in both countries.
Pharmaceuticals and Healthcare: Pakistan’s pharmaceutical industry, with its capacity to produce a wide range of generic medicines, pharmaceuticals, and healthcare products, can contribute to meeting Saudi Arabia’s healthcare needs. Collaboration in research and development, technology transfer, and joint manufacturing ventures can further enhance the pharmaceutical sector and improve access to affordable healthcare.
Infrastructure Development: The ongoing mega-development projects in Saudi Arabia, including smart cities, infrastructure development, and real estate projects, create a sustained demand for high-quality construction materials, skilled labor, and engineering expertise, which Pakistan, with its growing manufacturing capacity and construction industry, can supply. Focus on sustainable and cost-effective building materials, innovative construction technologies, and joint ventures can be a key differentiator.
Engineering Goods: Pakistan’s engineering sector, with its expertise in manufacturing various types of machinery, equipment, and engineering products, can provide Saudi Arabia with a range of high-quality engineering goods needed for its industrial and infrastructure development. Joint ventures, technology transfer, and skills development programs can further enhance the engineering sector’s capabilities and promote industrial cooperation.

Attracting Saudi Investment

Pakistan is actively seeking to attract substantial Saudi investment, recognizing its crucial role in driving economic growth, creating employment opportunities, and fostering technological advancement. Priority sectors for investment include renewable and conventional energy, infrastructure development (roads, railways, ports, and airports), agriculture and food processing, mining and mineral exploration, and industrial manufacturing (including textiles, pharmaceuticals, and engineering goods).

The government has implemented a series of investor-friendly policies, including tax incentives, simplified regulatory procedures, streamlined approvals, and protection of foreign investment, to create a more welcoming and attractive environment for foreign businesses, particularly those from Saudi Arabia. A key initiative in this regard is the revised visa policy, which now allows GCC citizens, including Saudi nationals, to enter Pakistan without a visa and stay for an extended period, significantly facilitating business travel, investment exploration, and people-to-people exchanges.

A Vital Link Between Two Nations and Economies

The substantial Pakistani diaspora in Saudi Arabia plays a crucial and multifaceted role in strengthening Pakistan-Saudi Business ties, acting as a vital link between the two nations and their economies. Many Pakistani entrepreneurs and professionals have established successful businesses in the Kingdom over decades, contributing significantly to the Saudi economy, creating employment opportunities, and serving as a bridge between the two cultures and business environments. Their deep understanding of both cultures, business practices, and languages makes them invaluable in facilitating business interactions, fostering trust, and promoting cross-cultural understanding.

The large number of Pakistanis traveling to Saudi Arabia for business and employment, coupled with substantial remittances flowing back to Pakistan, underscores the strong economic and people-to-people connection between the two countries. Recognizing the critical importance of institutional support and structured mechanisms for fostering business collaboration, several initiatives are being implemented to further strengthen Pakistan-Saudi business linkages. The successful visit of a large Saudi business delegation to Islamabad, resulting in the signing of numerous Memorandums of Understanding (MOUs) across multiple sectors, demonstrates the strong commitment from both sides to translate intentions into concrete actions.

The proposed establishment of a “Pakistan-Saudi Business Facilitation Desk” at the Jeddah Chamber of Commerce and Industry will provide crucial support services, including information dissemination, business matching, assistance with regulatory procedures, and guidance on investment opportunities, to businesses from both countries, streamlining trade and investment processes. The introduction of the Pakistan Investor Forum will further empower Pakistani entrepreneurs, connect them with potential Saudi partners, facilitate joint ventures, and strengthen their business networks in Saudi Arabia.

Discussions between Pakistani and Saudi officials also focus on streamlining trade and removing barriers by improving customs procedures, simplifying certification processes, ensuring compliance with international trade standards, and enhancing logistical connectivity. These joint efforts aim to facilitate smoother and more efficient trade operations, reducing bureaucratic hurdles, minimizing delays, and promoting greater ease of doing business. Expanding trade in key Pakistani exports, particularly value-added products like halal meat, dairy products, IT services, and pharmaceuticals, is a priority for both nations, requiring close collaboration on quality control, packaging, branding, and marketing. Improving transportation links, including air and sea connectivity, and establishing efficient logistics networks are also crucial for facilitating trade and reducing transaction costs.

Mutually Beneficial Economic Prosperity

The ongoing dialogue, collaborative efforts, and high-level engagements between Pakistan and Saudi Arabia reflect a shared vision for mutually beneficial economic prosperity and a strong strategic partnership. Both countries are committed to deepening their economic ties, strengthening institutional partnerships, diversifying their economies, promoting sustainable development, and exploring new avenues for mutually beneficial trade and investment growth. The Jeddah Chamber of Commerce and Industry, along with other relevant chambers and business organizations, plays a vital role in fostering this economic cooperation, serving as a dynamic platform for businesses from both nations to connect, collaborate, explore opportunities, build lasting partnerships, and share best practices.

The future of Pakistan-Saudi Business relations looks exceptionally promising, with both sides actively working towards building a stronger, more diversified, resilient, and mutually beneficial economic partnership. This partnership is not just about economic gains; it’s about building a long-term strategic alliance that benefits both nations, contributes to regional stability and prosperity, strengthens the bonds of friendship between the two peoples, and promotes shared values.

The commitment to regular dialogue, the implementation of concrete initiatives, the shared vision for the future, and the active participation of the private sector suggest that the Pakistan-Saudi Business relationship is poised for significant growth, transformation, and enduring success in the years to come. This growth will not only benefit businesses in both countries but also create jobs, stimulate economic development, enhance technological collaboration, promote innovation, and strengthen the bonds of brotherhood between the two nations. The focus on diversifying trade, attracting foreign direct investment, fostering innovation, promoting sustainable practices, and encouraging collaboration in key sectors will ensure a resilient and mutually beneficial partnership that contributes to the long-term economic prosperity, shared future, and strategic stability of both Pakistan and Saudi Arabia.

The ongoing engagement between government officials, business leaders, industry representatives, and the active participation of the private sector, along with the strong support from the leadership of both nations, demonstrates a deep and unwavering commitment to making this shared vision a tangible reality. The future of Pakistan-Saudi Business is one of collaboration, innovation, shared success, enduring partnership, and a shared commitment to building a brighter future for the peoples of both nations.

This partnership holds immense potential to not only transform the economic landscapes of Pakistan and Saudi Arabia but also contribute to regional peace, stability, and prosperity. By leveraging their respective strengths, resources, and expertise, Pakistan and Saudi Arabia can create a powerful engine for economic growth, technological advancement, and social development. The focus on building human capital, promoting entrepreneurship, and fostering innovation will ensure that the benefits of this partnership are shared by all segments of society.

This showcased the evolving Pakistan-Saudi Business relationship, from cultural ties to a strategic economic alliance. We explored growing trade and investment, key sectors like textiles and IT, and initiatives facilitating collaboration. The Pakistani diaspora’s role, streamlined trade efforts, and sustainable development were also highlighted. This partnership is a strategic alliance built on trust and a shared vision for prosperity. Interested in the opportunities this creates? Explore the resources mentioned and stay informed.

Spread the love

BUSINESS & ECONOMY

Trump’s Tariff Tsunami: A Global Economic Earthquake with Far-Reaching Implications

Published

3 days ago

April 15, 2025

Editor

Spread the love

Baba Yunus Muhammad

Washington, D.C. – Long before his 2024 re-election campaign, Donald J. Trump had been an unrelenting advocate for protectionist trade policies. His views on tariffs, long cast as a pillar of his economic nationalism, have now crystallized into a sweeping policy agenda with the potential to reshape the global economic order. Last Wednesday, President Trump took to the White House lawn, brandishing an oversized chart, to announce the most aggressive tariff regime in modern U.S. history—a unilateral 10% blanket tariff on virtually all imported goods, complemented by so-called “reciprocal” tariffs targeting countries he accuses of exploiting the United States.

The move has not just rattled America’s trading partners, it has sent shockwaves through the entire global economy. Financial markets plunged, manufacturing sectors braced for retaliation, and policymakers around the world scrambled to assess the fallout. But what lies behind this bold—and, some argue, reckless—push for economic decoupling? And what does it mean for the Islamic world and emerging markets?

Economic Nationalism Reborn

Trump’s tariff blitz is the fullest expression yet of his “America First” economic philosophy—an ideological throwback to a 1950s-era America that dominated global manufacturing in the wake of World War II. According to economic historian Dr. Alan Scott, this nostalgia is at the heart of Trump’s thinking. “The U.S. was uniquely advantaged during that period—Europe and Japan were devastated, and America had a virtual monopoly on industrial output,” he says. “That era cannot be recreated.”

Nonetheless, Trump’s rhetoric is anchored in the belief that aggressive tariffs will resuscitate America’s industrial base, revitalize blue-collar employment, and address the inequalities wrought by decades of globalization. Whether those goals are achievable—or even realistic—is highly contested.

The Global Repercussions: Allies and Adversaries in the Crosshairs

The effects of the new tariffs are global in scope. China, the U.S.’s main strategic rival, faces an unprecedented 54% total levy on its exports to the United States. Beijing has already vowed retaliatory action. Traditional allies have not fared much better: the European Union is now subject to a 20% tariff; the United Kingdom, 10%; and Japan, despite pledging $1 trillion in U.S. investments, is hit with a 24% tariff.

Notably, Canada and Mexico have been spared—at least temporarily—though they too have been locked in past trade disputes with the Trump administration. For the Islamic world and Global South, the stakes are even higher. Several of the world’s poorest and most trade-dependent countries have been targeted with tariffs as high as 50%. These include Cambodia, Laos, Madagascar, Vietnam, Myanmar—and critically, Muslim-majority nations such as Pakistan and Indonesia are watching with deep concern, given their heavy reliance on U.S. markets for textiles, apparel, and electronics.

A Blow to the Global South

Among the most worrying elements of the policy is its potential impact on least-developed and low-income countries. Nations like Lesotho and Cambodia—already reeling from reduced U.S. development assistance—now face steep tariffs on their exports. For smaller Islamic economies trying to escape the middle-income trap or build industrial bases, this could be economically devastating.

“Tariffs of this magnitude will not just curb growth, they could collapse entire industries,” warns Dr. Aisha Rahman, an economist with the Islamic Development Bank. “Many of these countries have benefited from preferential trade terms. Now, they risk being crowded out of global markets just when they are beginning to integrate.”

There is also the risk that products originally intended for the U.S. market could be dumped in Europe, Africa, and Southeast Asia, creating new competitive pressures for local businesses.

Inflation, Uncertainty, and the U.S. Backlash

Domestically, the response has been fraught with anxiety. Wall Street has registered its displeasure with sharp declines: the Nasdaq dropped 6%, the S&P 500 fell 4.8%, and the Dow slid 3.9%. The U.S. dollar weakened, oil prices plummeted, and the bond market reflected growing fears of a recession.

Analysts warn of rising inflation and unemployment. A study by the Wall Street Journal projects that if the tariffs remain, inflation could spike to 4.4% by year-end, with unemployment hitting 5.5%. This economic strain would disproportionately impact low-income households—precisely those whom Trump claims to champion.

Even within Trump’s own party, unease is growing. While Vice President JD Vance dismissed the market reaction as overblown, some Republican lawmakers are beginning to break ranks, concerned that the long-term economic costs will outweigh any short-term political gains.

Can the Islamic World Respond Strategically?

For Muslim-majority countries—particularly those striving to expand manufacturing and export-led growth—Trump’s new trade regime presents both a challenge and an opportunity. On one hand, increased U.S. protectionism may shut the door on critical export markets. On the other, it could accelerate South-South trade partnerships, regional economic blocs, and Islamic finance-led industrial investment.

Dr. Omar El-Zein, trade advisor to the OIC, argues that “the Islamic world must now pursue intra-OIC trade more seriously than ever before. If the West turns inward, we must turn to one another.”

Indeed, in an era where multilateralism is being tested and global supply chains are being restructured, there is a chance to forge new trade alignments rooted in mutual benefit, Islamic economic values, and strategic autonomy.

Conclusion: Between Ideology and Impact

President Trump’s tariffs are not merely a set of economic instruments—they are a declaration of ideological war on the globalized economic consensus. While they may serve a symbolic political purpose in the U.S., their real-world impact will be felt far beyond its borders—in factories in Bangladesh, in textile mills in Egypt, and in rice fields in Indonesia.

The Islamic world, already grappling with structural development challenges, must now brace for a more hostile and unpredictable global trading environment. Whether it chooses to respond with disunity or collective resolve may well define its economic future.

Baba Yunus Muhammad is President, Africa Islamic Economic Forum, Ghana

Spread the love

BUSINESS & ECONOMY

How Africa’s Largest Economy Lost 50% of Its GDP

Published

7 days ago

April 11, 2025

Editor

Spread the love

Hafiz M. Ahmed

In 2014, Nigeria stood atop Africa’s economic podium, its GDP recalibrated to $510 billion, a figure that cemented its status as the continent’s largest economy. Oil wealth, a burgeoning tech scene, and a population of 220 million fuelled ambitions of global ascendancy. Yet, a decade later, that triumph has unravelled: GDP has halved to $253 billion by 2024, a stark testament to structural frailties and external blows. Inflation has surged to 33.95%, poverty ensnares 46% of the populace, and youth unemployment festers at 40%. This is no mere statistical blip—it is a crisis demanding urgent reckoning. But Nigeria’s story need not end in decline. Beneath the rubble lies a nation poised for resurgence, armed with vast resources, a dynamic workforce, and nascent reforms. The path to recovery is arduous yet attainable. Here, we dissect the collapse and chart a credible blueprint for Nigeria to reclaim its mantle as Africa’s economic powerhouse.

The descent began with oil, the artery of Nigeria’s economy. From 2000 to 2014, annual GDP growth averaged 7%, peaking at $568 billion, propelled by crude prices that topped $115 per barrel. Oil constituted 90% of exports and 70% of government revenue, per the National Bureau of Statistics (NBS). But the 2014 price crash to $50 per barrel exposed a fatal dependency. By 2023, production slumped to 1.28 million barrels per day (mbpd)—below the OPEC quota of 1.5 mbpd—haemorrhaging $10 billion annually to theft, according to the Nigerian National Petroleum Corporation (NNPC). Foreign exchange reserves dwindled from $38 billion in 2019 to $33 billion in 2023, per the Central Bank of Nigeria (CBN), as oil receipts faltered. This overreliance has left Nigeria vulnerable, yet it also signals an overdue pivot to diversification.

Structural deficiencies run deep. Agriculture, employing 45% of Nigerians, contributes just 25% to GDP, its productivity stymied—maize yields average 1.8 tons per hectare against a global norm of 5 tons, per the Food and Agriculture Organization (FAO). Manufacturing, now 9% of GDP in 2023, down from 9.5% in 2015, is throttled by electricity shortages costing businesses $29 billion yearly, per the World Bank. Nigeria generates a paltry 4,000 megawatts for 220 million people, compared to South Africa’s 58,000 MW for 60 million. Import reliance—$2.13 billion spent on wheat, rice, and sugar in 2023, per the African Development Bank (AfDB)—drains reserves, a vulnerability magnified by a 40% wheat price surge following Russia’s invasion of Ukraine. These are not insurmountable flaws; they are clarion calls for reform.

Monetary policy missteps exacerbated the malaise. The CBN’s artificial naira peg at 305 to the dollar until 2023 depleted reserves and spawned a parallel market where rates hit 1,600 by 2024. Post-devaluation, the currency lost 70% of its value, per IMF estimates, driving inflation to 33.95% in May 2024—food inflation reached 40%, per the NBS. A 50kg bag of rice, a staple, soared from ₦25,000 in 2022 to ₦80,000 in 2024, punishing households where 46% live below $1.90 daily, per the World Bank. Public debt escalated to 46% of GDP in 2023, with 89% of budgeted deficits financed through borrowing, per PwC’s 2024 analysis. This fiscal strain is severe, but it is not irreparable—policy agility can stem the tide.

Corruption and insecurity have exacted a punishing toll. Oil theft, at 400,000 barrels daily in 2022, costs $10 billion annually, while Nigeria languishes at 145 out of 180 on Transparency International’s Corruption Perceptions Index. Customs inefficiencies at Apapa Port siphon $4 billion yearly, per the Economic and Financial Crimes Commission (EFCC). In the northeast, Boko Haram’s insurgency has inflicted $100 billion in economic losses since 2009, per estimates, slashing agricultural output by 20%. Banditry and separatist unrest further erode stability. External shocks—COVID-19’s 6.1% GDP contraction in Q2 2020, per the IMF, and Ukraine-driven fuel price hikes (petrol to ₦671 per litre in 2023, per the AfDB)—have compounded the damage. Yet, these challenges, while daunting, are not destiny.

The GDP’s 50% plunge is partly a statistical artefact. The 2014 rebasing inflated it by 89%, but naira devaluation reversed dollar-based gains. In purchasing power parity (PPP), Nigeria’s economy stood at $1.2 trillion in 2023, per the IMF, among Africa’s top three. Still, the human cost is stark: 63% of Nigerians—133 million—face multidimensional poverty, per the NBS, with 10.5 million children out of school, the world’s highest. Youth unemployment, at 40% in 2023, drives the “Japa” exodus—5,000 doctors emigrated in 2022, per the Nigerian Medical Association. Small and medium enterprises (SMEs), comprising 96% of businesses and 84% of jobs, per The Business Year 2024, access just 5% of bank loans. These figures are sobering, but they underscore a latent capacity yearning for activation.

Nigeria’s fundamentals remain compelling. Its tech sector—epitomised by Flutterwave and Paystack—secured $1.8 billion in venture capital in 2023, per TechCabal, with annual growth of 30% since 2020. Agriculture spans 70 million arable hectares, a resource base that slashed rice imports by 40% since 2015, per the AfDB. The Dangote Refinery, operational since 2024 with 650,000 barrels daily, promises $5 billion in annual forex savings. A population projected to reach 428 million by 2050, per UN estimates, offers an unrivalled market. Nigeria’s economic reset hinges on harnessing these strengths through decisive, pragmatic measures. Below are the critical steps to restore and elevate this giant.

Diversification must be the cornerstone. Agriculture, with targeted investment, could generate $100 billion annually. Mechanisation—raising tractor density from 1 per 100 farmers to 10, as in Kenya, per the FAO—could double yields within five years. Nigeria’s 60% share of global cassava production, currently worth $1.5 billion, could reach $5 billion with processing plants, per UNCTAD projections. Leveraging the $2 trillion global halal market, where demand grows 6% annually, per the Halal Trade Expo, is a natural fit—northern Nigeria’s 100 million Muslims could supply certified meat to the Gulf, mirroring Malaysia’s $12 billion halal export success. A $500 million fund for irrigation and agro-industrial zones, coupled with 10-year tax holidays, could catalyse this shift, emulating Ghana’s Planting for Food initiative, which tripled rice output since 2017.

Energy reform is non-negotiable. Nigeria’s $29 billion annual power deficit demands a 10,000 MW boost by 2030—solar farms in the sun-drenched north, harnessing 300 days of sunlight, could deliver half, drawing on Kenya’s $1 billion renewable model that electrified 70% of rural areas. Private investment, as demonstrated by Dangote’s $19 billion refinery, could bridge the $190 billion energy gap, per UNCTAD estimates, if paired with grid upgrades slashing 40% transmission losses, per the World Bank. Reliable power would revive manufacturing, lifting its GDP share to 15% within a decade and unlocking export potential under the African Continental Free Trade Area (AfCFTA).

Corruption requires surgical intervention. Digitising oil flows, as Norway does with real-time tracking, could recover $10 billion yearly, per NNPC data. E-governance—online tax and procurement platforms—could save $2 billion in leakages, per EFCC projections, while a robust anti-graft framework with independent audits and whistleblower protections rebuilds credibility. Foreign direct investment, which fell 33% to $3.3 billion in 2023, per UNCTAD, would rebound as opacity fades.

SMEs, the economy’s backbone, need oxygen. A $1 billion loan guarantee scheme, akin to South Africa’s SME Fund that created 30,000 jobs since 2019, could unlock $10 billion in credit, addressing the 5% lending gap. Vocational training for 1 million entrepreneurs annually—mirroring Rwanda’s 7% youth unemployment drop—enhances competitiveness. Linking SMEs to AfCFTA’s $3.4 trillion market via export hubs could elevate intra-African trade from 16% to 30%, per AfDB targets.

Human capital is the linchpin. Raising education spending to 15% of the budget—$10 billion—could build 10,000 schools, per UNESCO benchmarks, halving the 10.5 million out-of-school figure. Technical institutes, like Ghana’s, could train 500,000 youths yearly, cutting unemployment by 5%. Healthcare demands $1 billion for 1,000 mobile clinics, reaching 20 million rural residents and staunching medical brain drain—India’s model reduced infant mortality 30%. A skilled, healthy workforce is Nigeria’s competitive edge.

Infrastructure must match ambition. A $15 billion overhaul—bolstered by the AfDB’s $1.44 billion 2024 commitment—could halve logistics costs, currently $1 billion yearly. Rail links, like Ethiopia’s $4 billion Addis-Djibouti line, and port digitisation, as at Morocco’s Tanger Med, would expedite trade, positioning Nigeria as an AfCFTA hub. The naira’s flotation and $10 billion subsidy savings, per PwC, are steps forward; execution must be relentless.

Nigeria’s 50% GDP drop is a jolt, not a death knell. Its $1 trillion nominal GDP potential by 2050, per PwC, is within reach if these measures take root. Investors should note: a market of 220 million, with tech growing 30% annually, offers outsized returns despite risks. Policymakers must act—133 million in poverty brook no delay. Nigeria can lead Africa anew, its resilience forged in adversity. The question is not if, but how swiftly, it seizes this moment.

Spread the love

BUSINESS & ECONOMY

What is the Role of Bosnia in Strengthening Halal Supply Chains in Europe?

Published

4 weeks ago

March 20, 2025

Editor

Spread the love

Hafiz M. Ahmed

Imagine walking into a supermarket in Paris, Berlin, or London, scanning the shelves for halal-certified products. You pick up a pack of chicken, a bottle of olive oil, and a box of cookies, all bearing the halal logo. But have you ever wondered how these products made it to the shelf? Behind every halal-certified item lies a complex supply chain that ensures its authenticity, safety, and compliance with Islamic principles. In Europe, where the demand for halal products is growing rapidly, building a reliable and transparent halal supply chain is no small feat. Enter Bosnia and Herzegovina, a country that has emerged as a key player in strengthening halal supply chains across the continent.

With its deep-rooted Islamic heritage, cutting-edge certification processes, and collaborative approach, Bosnia is setting a new standard for halal integrity in Europe. This article explores Bosnia’s pivotal role in creating a robust halal supply chain, its collaborations with other halal-certified organizations, and why its efforts matter for businesses and consumers alike.

The Growing Demand for Halal Products in Europe

Europe is home to over 25 million Muslims, a number that is expected to grow in the coming years. This demographic shift has fueled a surge in demand for halal products, from food and beverages to cosmetics and pharmaceuticals. According to a report by Statista, the European halal food market alone is projected to reach $30 billion by 2025. However, meeting this demand is not without its challenges.

One of the biggest hurdles is ensuring the integrity of the halal supply chain. From farm to fork, every step of the process must adhere to strict halal standards. This includes sourcing halal-certified raw materials, using compliant processing methods, and maintaining transparency throughout the supply chain. For businesses, this requires a high level of coordination and expertise—something that Bosnia has mastered.

Bosnia’s Expertise in Halal Certification: A Foundation for Trust

Bosnia and Herzegovina has long been a leader in the global halal industry, thanks in large part to its Agency for Halal Quality Certification (AHQC). Established in 2007, the AHQC is renowned for its rigorous standards and transparent processes. But Bosnia’s contribution to the halal industry goes beyond certification; it plays a critical role in strengthening halal supply chains across Europe.

Here’s how Bosnia is making a difference:

Setting Rigorous Standards: The AHQC’s certification process is one of the most stringent in the world. It covers every stage of production, from sourcing raw materials to packaging and distribution. This ensures that products bearing the Bosnia Halal Certification logo meet the highest standards of quality and compliance.
Promoting Transparency: Transparency is at the heart of Bosnia’s approach to halal certification. The AHQC requires detailed documentation and conducts regular audits to ensure ongoing compliance. This level of transparency builds trust among consumers and businesses alike.
Leveraging Technology: Bosnia is at the forefront of using technology to enhance halal supply chains. From blockchain to track and trace systems, the country is leveraging innovative solutions to ensure the integrity of halal products.

Collaborations: The Key to a Stronger Halal Supply Chain

Bosnia’s success in strengthening halal supply chains is not a solo effort. It is the result of strategic collaborations with other halal-certified organizations, businesses, and government bodies across Europe. These partnerships have been instrumental in creating a more reliable and transparent halal ecosystem.

Partnerships with Halal-Certified Businesses: Bosnia works closely with businesses that are committed to halal integrity. By providing them with certification and guidance, the AHQC helps these companies navigate the complexities of the halal supply chain.
Collaborations with International Halal Organizations: Bosnia is an active member of global halal organizations such as the AHAC – Association of halal Crttifiers. These collaborations ensure that Bosnia’s standards align with international best practices.
Government Support: The Bosnian government has been a strong advocate for the halal industry, providing funding and support for initiatives that promote halal integrity. This has enabled the AHQC to expand its reach and impact.
Educational Initiatives: Bosnia is also investing in education and training to raise awareness about halal standards. Through workshops, seminars, and publications, the AHQC is helping to build a more informed and skilled workforce.

Bosnia’s Impact on the European Halal Market

To understand the real-world impact of Bosnia’s efforts, let’s look at a case study. In 2020, a major European supermarket chain partnered with the AHQC to source halal-certified poultry products. The collaboration involved:

Sourcing: The AHQC worked with farmers and suppliers to ensure that the poultry was raised and processed in accordance with halal standards.
Certification: The AHQC certified the entire supply chain, from the farm to the supermarket shelf.
Transparency: The supermarket chain used blockchain technology to provide consumers with real-time information about the product’s journey.

The result? A 20% increase in sales of halal-certified poultry products within six months. This success story highlights the tangible benefits of Bosnia’s approach to halal supply chain management.

Why Bosnia’s Role Matters for Europe

Bosnia’s contributions to the halal industry have far-reaching implications for Europe. Here’s why:

Consumer Confidence: By ensuring the integrity of halal supply chains, Bosnia is helping to build consumer confidence in halal-certified products. This is crucial in a market where trust is paramount.
Economic Growth: The halal industry is a significant driver of economic growth. By strengthening halal supply chains, Bosnia is creating new opportunities for businesses and boosting the European economy.
Cultural Integration: The halal industry plays a vital role in promoting cultural integration. By providing high-quality halal products, Bosnia is helping to meet the needs of Europe’s diverse population.
Global Leadership: Bosnia’s expertise in halal certification and supply chain management positions it as a global leader in the industry. This not only enhances its reputation but also sets a benchmark for other countries to follow.

Challenges and the Way Forward

While Bosnia has made significant strides in strengthening halal supply chains, challenges remain. These include:

Standardization: Despite Bosnia’s efforts, there is still a lack of uniformity in halal standards across Europe. This can create confusion for businesses and consumers.
Fraud and Mislabeling: The rise of counterfeit halal products is a growing concern. Bosnia is addressing this issue through stricter regulations and advanced tracking technologies.
Awareness: Many consumers and businesses are still unaware of the importance of halal certification. Bosnia is tackling this through educational initiatives and outreach programs.

Looking ahead, Bosnia’s focus will be on fostering greater collaboration, leveraging technology, and raising awareness about halal standards. By doing so, it aims to create a more robust and transparent halal supply chain that benefits everyone.

Bosnia and Herzegovina has emerged as a beacon of reliability and transparency in the European halal industry. Through its rigorous standards, innovative solutions, and collaborative approach, the country is playing a pivotal role in strengthening halal supply chains across the continent. For businesses, this means access to a growing market and a trusted partner in halal certification. For consumers, it means peace of mind knowing that the products they purchase meet the highest standards of quality and authenticity.

As the demand for halal products continues to rise, Bosnia’s contributions will become even more significant. By setting a benchmark for integrity and excellence, Bosnia is not only shaping the future of the halal industry in Europe but also inspiring the world to follow suit.

Spread the love