BUSINESS & ECONOMY

Saudi Arabia’s Economic Power Showcased at the World Economic Forum 2025

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2 months ago

February 16, 2025

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Aamer Yaqub

Saudi Arabia’s Economic Power will be on full display at the World Economic Forum (WEF) in Davos, Switzerland in 2025. This yearly confluence of global leaders from business, politics, and academia is poised to witness a commanding presence from the Kingdom. This robust participation underscores Saudi Arabia’s ascendant position on the world stage: a top 20 global economy, a dominant force within the energy sector, and a nation undergoing a profound and multifaceted economic transformation.

Diversification as the Bedrock of Economic Power

Investment Minister Khalid Al-Falih’s presence at the WEF is a powerful symbol of this paradigm shift. Saudi Arabia’s global identity has been almost exclusively intertwined with its vast hydrocarbon reserves for decades. However, the Kingdom is now proactively and strategically rewriting its narrative, placing economic diversification at the core of its future trajectory. This strategic redirection, meticulously articulated and implemented through the Vision 2030 plan, aims to forge a vibrant, sustainable, and diversified national economy.

This entails significantly reducing reliance on oil revenues and establishing Saudi Arabia as a leading player across a multitude of sectors on the global economic stage. This diversification is not merely a theoretical exercise or a public relations campaign; it is a concerted, well-funded, and meticulously planned national effort to build Saudi Arabia’s Economic Power on a robust foundation of innovation, technological advancement, and the cultivation of human capital.

The WEF provides an unparalleled platform for the Kingdom to share its unique insights, learn from global best practices, and, crucially, forge strategic partnerships that contribute to a more resilient, inclusive, and equitable global economic order. This encompasses collaborations on critical issues such as strengthening global supply chain resilience, fostering technological innovation and adoption, and collaboratively addressing pressing global challenges such as poverty, inequality, and climate change.

Building a Modern, Dynamic Kingdom

The WEF provides an optimal stage for Saudi Arabia to articulate and showcase the core pillars of Vision 2030. This ambitious national plan is far more than a simple collection of economic reforms; it represents a comprehensive societal transformation, impacting every facet of Saudi Arabian life. Here’s a more granular look at how the Kingdom is translating its vision into tangible progress:

Diversifying the Economy: Beyond Hydrocarbons: Vision 2030 unequivocally prioritizes the rapid development of non-oil sectors such as tourism, renewable energy generation, advanced technology, logistics and transportation infrastructure, world-class healthcare services, and a modernized education system. This multi-pronged strategy is designed to create millions of new job opportunities for Saudi citizens, foster a vibrant culture of innovation and entrepreneurship, and attract substantial foreign investment across diverse sectors.
Investing in the Future: Attracting Strategic Foreign Direct Investment (FDI): The Kingdom is actively and strategically working to attract substantial foreign direct investment (FDI) to provide the necessary fuel for its ambitious economic transformation. The National Investment Strategy plays a pivotal role in this crucial endeavor, offering a range of attractive incentives for foreign businesses, streamlining complex regulatory processes, and significantly improving the overall business environment within the Kingdom.
Untapped Potential: A Nation Ripe with Opportunities: Saudi Arabia possesses several key competitive advantages that it is effectively leveraging to attract investment, stimulate economic growth, and drive national development. These include a young and rapidly growing population, a highly strategic geographic location bridging Asia, Africa, and Europe, and a wealth of natural resources that extend far beyond oil, including significant reserves of minerals, abundant solar energy potential, and vast stretches of coastline suitable for tourism development.

Showcasing Progress and Future Potential

The strategically positioned “Saudi House” at the WEF serves as a central and highly visible hub for the Kingdom’s presence. This dedicated space provides a dynamic platform to:

The Story of Transformation: The Saudi House will offer visitors an immersive and engaging experience, showcasing the Kingdom’s remarkable economic and social transformation through a combination of interactive exhibits, informative presentations, and high-level networking events.
Tangible Achievements: The space will highlight Saudi Arabia’s tangible accomplishments across a diverse range of fields, including culture, innovation, tourism, and sustainability. This includes showcasing significant advancements in areas such as large-scale renewable energy projects, the preservation and promotion of Saudi Arabia’s rich cultural heritage, and the development of new and exciting tourist destinations designed to attract international visitors.
Strategic Investment Opportunities: A core focus of the Saudi House will be to highlight attractive investment opportunities within the key sectors targeted for accelerated development under Vision 2030. This includes showcasing specific high-profile projects, clearly outlining available investment incentives, and facilitating direct and meaningful engagement with key Saudi government officials and influential business leaders.

Engaging with Global Leaders

Minister Al-Falih consistently emphasizes the crucial role of the WEF in facilitating high-level bilateral and multilateral meetings with major global investors. These strategic interactions are specifically designed to:

Specialized Expertise: The WEF provides a uniquely valuable platform for Saudi Arabia to connect directly with potential investors, showcase the significant progress it has made in enhancing the investment environment, and attract the necessary capital and specialized expertise to effectively support its ambitious economic diversification efforts. The Kingdom’s strategic position as the largest and most dynamic market in the Middle East and the Arab world further strengthens its inherent attractiveness to global businesses seeking new growth opportunities.
Global Best Practices: The forum provides an invaluable opportunity for Saudi Arabia to share its inspiring success stories in implementing far-reaching economic reforms, actively promoting entrepreneurship and innovation, and steadily developing a robust and sustainable knowledge-based economy. This crucial exchange of knowledge and global best practices not only benefits Saudi Arabia directly but also contributes meaningfully to the ongoing global conversation on sustainable economic development.

Addressing Critical Global Challenges

Saudi Arabia’s participation in the WEF extends far beyond transactional deal-making and investment pitches. The Kingdom is actively and constructively engaged in high-level discussions on a wide range of critical global issues, including climate change mitigation and adaptation, the complex global energy transition, and the collective pursuit of a truly sustainable future for all.

Vision 2030 places a strong and unwavering emphasis on environmental sustainability, and the WEF provides a crucial platform for Saudi Arabia to share its experiences, showcase its innovative initiatives in renewable energy and green technologies, and collaborate effectively with other nations on developing and implementing effective solutions for a more sustainable and environmentally responsible future.

While Saudi Arabia has made significant and demonstrable strides in implementing the core objectives of Vision 2030, the ongoing journey is not without its inherent challenges. These include:

Developing a Skilled Workforce: Developing a domestic workforce equipped with the advanced skills and expertise required for the emerging new economy is a critical and ongoing challenge. The Kingdom is investing heavily in a range of targeted education and training programs to proactively address this crucial skills gap.
Streamlining Bureaucratic Processes: Streamlining complex bureaucratic processes and further improving the overall ease of doing business within the Kingdom remains an important and ongoing priority for the Saudi government.
Managing Global Economic Volatility: External factors beyond the Kingdom’s direct control, such as global economic slowdowns, geopolitical instability, and fluctuations in global commodity markets, can potentially impact Saudi Arabia’s economic growth trajectory.
Managing Social and Cultural Shifts: Implementing significant social and cultural changes requires careful and sensitive management to ensure a smooth and inclusive transition that respects the Kingdom’s unique cultural heritage.

Despite these inherent challenges, the long-term opportunities for Saudi Arabia are immense. The Kingdom’s unwavering commitment to the strategic objectives of Vision 2030, its highly strategic geographic location at the crossroads of three continents, its vast and diverse natural resources, and its growing and increasingly active engagement with the global community position it for continued and sustainable economic growth and national development in the decades to come.

A New Era for Saudi Arabia

Saudi Arabia’s prominent presence at the WEF signifies a truly pivotal moment in the Kingdom’s modern history. It is a compelling narrative of ambitious economic transformation, deepened global collaboration, and an unwavering commitment to building a sustainable and prosperous future for its citizens and the wider world. The WEF serves not merely as a platform to attract foreign investment but also as a strategically important stage to articulate and share Saudi Arabia’s overarching vision, engage in constructive global dialogue on critical issues, and actively contribute to a more interconnected, equitable, and prosperous global community.

The Kingdom’s resolute focus on building Saudi Arabia’s Economic Power through strategic diversification, fostering a vibrant culture of innovation, and forging crucial strategic partnerships is effectively setting the stage for a new and transformative era of sustained economic growth, enhanced global influence, and enhanced national development on the world stage. The Kingdom’s dynamic and proactive participation in global forums like the WEF is a powerful testament to its clear ambition to emerge as a leading global economic powerhouse in the 21st century and beyond.

Deep Dive into Diversification

The cornerstone of Vision 2030 is undoubtedly the ambitious drive to diversify the Saudi economy away from its historical over-reliance on the hydrocarbon sector. This strategic shift is not simply about reducing dependence on a single commodity; it’s about building a more resilient, sustainable, and dynamic economy capable of generating long-term growth and prosperity for future generations. Several key sectors have been identified as crucial for this diversification effort:

Tourism: Saudi Arabia is investing heavily in developing its tourism sector, aiming to attract millions of international visitors each year. This includes developing luxury resorts along the Red Sea coast, promoting cultural heritage sites, and hosting major international events.
Renewable Energy: The Kingdom is making significant investments in renewable energy technologies, particularly solar and wind power. This not only helps to reduce its carbon footprint but also creates new economic opportunities in a rapidly growing global sector.
Technology and Innovation: Saudi Arabia is actively promoting the development of a vibrant technology and innovation ecosystem. This includes supporting startups, investing in research and development, and attracting leading technology companies to the Kingdom.
Logistics and Transportation: Given its strategic geographic location, Saudi Arabia is investing in developing its logistics and transportation infrastructure to become a major regional and global hub for trade and commerce.
Manufacturing: The Kingdom is also focusing on developing its manufacturing sector, aiming to produce a wider range of goods for both domestic consumption and export.

Investing in the Future Workforce

Recognizing that a skilled and adaptable workforce is essential for driving economic growth and innovation, Saudi Arabia is making significant investments in education and training programs. This includes:

Improving the Quality of Education: The Kingdom is working to improve the quality of education at all levels, from primary school to university, with a focus on developing skills in science, technology, engineering, and mathematics (STEM).
Providing Vocational Training: Saudi Arabia is also expanding vocational training programs to equip young people with the skills needed for jobs in high-growth sectors.
Promoting Lifelong Learning: The Kingdom is encouraging lifelong learning and skills development to ensure that its workforce remains adaptable and competitive in a rapidly changing global economy.

Vision 2030 is not just about economic reforms; it also encompasses significant social and cultural changes aimed at creating a more open, inclusive, and vibrant society. These include:

Empowering Women: Saudi Arabia has made significant progress in empowering women in recent years, including increasing their participation in the workforce and granting them greater social freedoms.
Promoting Cultural Expression: The Kingdom is actively promoting cultural expression and creativity, supporting the development of a vibrant arts and entertainment scene.
Improving Quality of Life: Saudi Arabia is investing in improving the overall quality of life for its citizens, including developing new housing projects, improving healthcare services, and creating more recreational opportunities.

Saudi Arabia’s presence at the WEF 2025 is more than just a symbolic gesture; it represents a powerful statement of intent. The Kingdom is determined to play a leading role in shaping the global economy of the 21st century, leveraging its strategic location, its vast resources, and its ambitious vision to build a more prosperous and sustainable future for itself and the world. The journey of transformation is ongoing, but the progress achieved thus far is undeniable. Saudi Arabia is not just adapting to a changing world; it is actively shaping it, solidifying its position as a rising global economic power.

Courtesy: Halal Times

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

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3 days ago

April 15, 2025

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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

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BUSINESS & ECONOMY

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

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7 days ago

April 11, 2025

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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.

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BUSINESS & ECONOMY

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

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4 weeks ago

March 20, 2025

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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.

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