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HALAL ECONOMY

Malaysia Secures RM4 Billion Halal Industry Investment from China

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Malaysia is set to receive a significant boost in halal industry investments from China, amounting to RM4 billion. Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi announced a series of high-profile meetings with key Chinese halal industry players at the Malaysia-China Halal Business Forum in Shanghai. This development signals a strong economic partnership between the two nations, positioning Malaysia as a major player in the global halal market. Aamer Yaqub Reports

 

Halal Industry Investments from China

The potential RM4 billion in investments is aimed at various sectors within the halal industry, including food and beverages, pharmaceuticals, cosmetics, herbal medicine, and vaccines. These sectors are expected to drive economic growth and create new opportunities for Malaysia’s expanding halal industry. The importance of halal-certified products, especially in Muslim-majority regions like Southeast Asia and the Middle East, cannot be understated. As the global demand for halal products continues to rise, Malaysia is positioning itself as the primary hub for investors who want to tap into this burgeoning market.

“Forty Chinese companies have expressed serious interest in investing in Malaysia, with estimated investments totaling RM4 billion,” said Ahmad Zahid during a press conference. “The priority sectors are food and beverages, but there are also significant interests in pharmaceuticals, cosmetics, vaccines, and herbal medicinal products.”

This investment surge comes at a time when the halal industry is witnessing exponential growth. According to the State of the Global Islamic Economy Report 2023, the global halal market is projected to reach $2.3 trillion by 2024, with the food and beverage sector alone expected to account for nearly $1.5 trillion. Malaysia’s move to attract more foreign direct investments, particularly from China, is well-timed to capitalize on this growth.

Expanding Malaysia’s Halal Footprint

Malaysia’s halal industry continues to grow rapidly, thanks in part to its strategic location in Southeast Asia and its reputation for producing high-quality halal-certified products. Currently, Malaysia has dedicated 5,787 hectares of land to the halal industry, with the largest area being Tanjung Mas, Sarawak, which boasts an impressive 9,900 acres of land available for halal production. This infrastructure has made Malaysia an attractive destination for international investors looking to penetrate the global halal market.

In recent years, Malaysia has strengthened its halal certification system under the Halal Development Corporation (HDC) and the Department of Islamic Development Malaysia (JAKIM), making it one of the most recognized and trusted halal certification bodies worldwide. This has given foreign investors, including Chinese companies, confidence that their products will meet stringent global halal standards, making Malaysia an ideal base for halal production and exports.

Ahmad Zahid emphasized the need for government support to facilitate these new investments. He urged the state government to streamline the approval processes for Chinese investors, particularly in areas such as infrastructure development, including water and electricity supply, and providing incentives like tax exemptions. This move is expected to ease the entry of Chinese companies into Malaysia’s halal industry, enabling them to obtain the JAKIM halal certification, a globally recognized standard that will allow them to export their products internationally.

The halal certification market is not only limited to food but has expanded to include pharmaceuticals, cosmetics, and healthcare products. This diversification means that Chinese investors, who have already established themselves in various industries, can leverage Malaysia’s certification infrastructure to expand into new markets. As halal becomes a key driver of the global economy, Malaysia is positioning itself as the gatekeeper of halal standards for the world.

Halal Industry’s Global Potential

Malaysia is not only eyeing domestic growth but also aims to become a global halal hub, catering to the demands of the BRICS nations, ASEAN, and the Global South. During the Malaysia-China Halal Business Forum, Ahmad Zahid introduced a visionary concept: the Malaysia-China Halal Trade Corridor, an initiative designed to boost halal trade between the two nations and beyond.

This trade corridor is expected to streamline the import and export processes between China and Malaysia. It will feature Bi-Nation Halal One-Stop Centres, simplifying protocols, enhancing halal logistics, and providing easier access to markets in both countries. By aligning with China’s One Belt One Road initiative, this strategic corridor will strengthen the supply chain for halal products, not only in ASEAN but globally.

The Malaysia-China Halal Trade Corridor will also position Malaysia as the leading halal trade partner for BRICS nations, where the demand for halal products is growing. Countries like Brazil and Russia have shown increased interest in halal-certified meat and food products. Additionally, Malaysia is eyeing other key halal markets, including the Middle East and Africa, where demand for halal-certified products is steadily rising. By working closely with China, Malaysia can ensure a smoother supply chain for halal goods in these regions, further expanding its global reach.

Collaboration in Herbal Medicine and R&D

An exciting area of potential growth is the collaboration between Chinese investors and Malaysian universities and research institutions, particularly in the herbal medicine sector. Ahmad Zahid highlighted that Chinese investors have shown strong interest in partnering with Malaysian institutions like the Malaysian Agricultural Research and Development Institute (MARDI) to develop new products. This partnership could spur innovation in herbal medicine, enhancing Malaysia’s capabilities in this rapidly growing field.

Herbal medicine, already a booming industry in China, is seeing rising demand in Southeast Asia due to increasing consumer interest in natural remedies and wellness. Malaysia, with its biodiversity and rich tradition of herbal medicine, offers a fertile ground for research and development in this field. Collaborations between Chinese herbal companies and Malaysian research institutions will likely result in new product innovations, which will be halal-certified and available for export globally.

This initiative could also help Malaysia tap into the growing wellness industry, which was valued at over $4.5 trillion globally in 2022, according to the Global Wellness Institute. With the backing of Chinese investments and research collaborations, Malaysia could become a leader in halal wellness products, ranging from herbal supplements to cosmetics and pharmaceutical innovations.

Asian Development Bank Investment

In a separate meeting with the Asian Development Investment Bank from China, it was revealed that the bank is prepared to offer an initial funding of US$500 million (RM2.17 billion) for halal industry development. This funding will play a crucial role in kickstarting new projects and expanding existing halal facilities, further solidifying Malaysia’s position as a leader in the halal economy.

The Asian Development Investment Bank’s commitment underscores China’s long-term investment strategy in Malaysia’s halal sector. With US$500 million in initial funding, Malaysia can develop the necessary infrastructure, support R&D, and build new halal-certified production facilities that meet global demand. The bank’s backing also signals confidence in Malaysia’s role as a leader in halal finance, opening doors to further collaboration between the two nations.

Malaysia as a Strategic Halal Hub

Malaysia’s strategic location in Southeast Asia makes it an ideal hub for halal trade, both regionally and globally. Ahmad Zahid reaffirmed Malaysia’s commitment to becoming the leading halal hub for ASEAN and beyond. “Our goal is to establish Malaysia as a global halal hub, not just for ASEAN but for the world. The halal industry is growing rapidly, and Malaysia is well-positioned to lead this charge,” he said.

In addition to food, cosmetics, and pharmaceuticals, Malaysia is looking to diversify its halal offerings to meet the increasing global demand. With more companies looking to invest in halal-certified products, Malaysia is at the forefront of ensuring that halal standards are upheld across various industries. The halal certification, overseen by JAKIM, is recognized worldwide and provides companies with a competitive advantage in the global marketplace.

As the halal economy continues to grow, Malaysia’s ability to attract foreign investment, build infrastructure, and develop innovative products will be key factors in its success. By positioning itself as a global halal hub, Malaysia is set to reap the rewards of an industry that is poised to become one of the largest in the world.

The RM4 billion in investments from China marks a new chapter in Malaysia’s journey to becoming a global leader in the halal industry. With strong government support, robust infrastructure, and a strategic location, Malaysia is well on its way to becoming a key player in the global halal market. The Malaysia-China Halal Trade Corridor will further enhance this growth, ensuring that halal products from both nations can easily reach international markets.

These halal industry investments from China are just the beginning, and Malaysia is poised to seize the opportunities that lie ahead in the expanding global halal economy. By focusing on innovation, collaboration, and certification, Malaysia is positioning itself as the premier destination for halal investors and companies looking to tap into the global halal market.


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HALAL ECONOMY

Israel, Saudi Arabia, Kuwait, Lebanon, Iran, Jordan, Bahrain, Qatar, And More Highlight Cambodia’s Tourism Strategy For 2025

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Cambodia’s tourism strategy for 2025 focuses on attracting travelers from Israel, Saudi Arabia, Kuwait, Lebanon, Iran, Jordan, Bahrain, Qatar, and more with tailored experiences.

Cambodia, often celebrated for its rich history, breathtaking landscapes, and the iconic Angkor Wat, is charting a path toward robust tourism recovery post-pandemic. According to Din Somethearith, president of the Cambodia Tourism Federation, China, once the Kingdom’s top source market before COVID-19, has yet to return to pre-pandemic levels in visitor numbers. The gap in Chinese tourists presents both a challenge and an opportunity for Cambodia’s tourism sector, urging the country to diversify its source markets and adopt innovative strategies.

Seasonal Dynamics and Market Diversification

Din Somethearith highlighted that Cambodia experiences a seasonal shift in its tourist demographic. The rainy season often sees a decline in European visitors. However, this period coincides with peak travel demand from Middle Eastern countries due to extreme heat in those regions. This presents a timely opportunity for Cambodia to attract Arabic travelers and expand its presence in the Muslim tourism market.

Projections from the Ministry of Tourism estimate that Cambodia welcomed approximately 6.7 million international tourists by the end of 2024. Notably, about 430,000 of these were Muslim travelers. This demographic underscores the growing importance of catering to this niche market, particularly given the increasing number of Muslim travelers seeking destinations that align with their cultural and religious preferences.

Strategic Outreach to Middle Eastern Markets

In a bid to strengthen bilateral relations and attract more Middle Eastern tourists, Cambodian officials have actively engaged with countries such as the UAE and Saudi Arabia. Recent months have seen a flurry of diplomatic visits and trade agreements aimed at fostering tourism exchange between Cambodia and the Gulf nations. A notable development includes a series of trade deals with the UAE, designed to enhance collaboration across sectors, with tourism being a major beneficiary.

Enhanced Air Connectivity to Boost Arrivals

Air connectivity has emerged as a cornerstone of Cambodia’s tourism revival strategy. Recognizing the pivotal role of direct flights in driving visitor numbers, the country has partnered with leading airlines to improve accessibility. In 2024, Emirates introduced direct flights between Dubai and Phnom Penh, with a layover in Singapore. Similarly, Qatar Airways launched flights connecting Phnom Penh and Doha, stopping briefly in Ho Chi Minh City. Adding to this momentum, Etihad Airways will commence flights between Abu Dhabi and Phnom Penh in October.

These direct routes not only simplify travel for tourists but also position Cambodia as a more attractive destination for Middle Eastern visitors, particularly Muslim travelers.

Meeting the Needs of Muslim Travelers

Despite these promising developments, industry experts stress that Cambodia must implement specific measures to cater effectively to Muslim travelers. Sinan Thourn, president of PATA Cambodia and IMCT Co., emphasized the need for infrastructure and services tailored to this market. This includes halal-certified dining options, prayer facilities at tourist sites, and culturally sensitive customer service.

Sivlin Chhay, president of the Cambodia Tourism Association, echoed these sentiments, highlighting the importance of targeted marketing campaigns to showcase Cambodia as a Muslim-friendly destination. She suggested leveraging the Kingdom’s unique cultural and historical attractions while emphasizing its commitment to inclusivity and hospitality.

“Collaboration is essential,” Chhay remarked, urging partnerships with Muslim-focused travel agencies and tour operators in the Middle East. This collaborative approach could significantly enhance Cambodia’s visibility and appeal within this growing market.

Marketing and Promotion: The Key to Success

Effective marketing will play a crucial role in realizing Cambodia’s tourism ambitions. With a diverse range of attractions—from the ancient temples of Angkor to the pristine beaches of Sihanoukville—Cambodia has much to offer. However, promoting these assets to the right audiences requires strategic planning and execution.

Marketing campaigns tailored for the Middle Eastern market should emphasize Cambodia’s readiness to welcome Muslim travelers. Highlighting the availability of halal-certified food, prayer facilities, and cultural respect can help position the Kingdom as a preferred destination for Muslim tourists. Furthermore, leveraging digital platforms and social media can amplify Cambodia’s reach, engaging potential travelers directly and showcasing the country’s offerings.

Strengthening International Partnerships

Cambodia’s efforts to boost tourism also hinge on its ability to forge strong international partnerships. Trade agreements and collaborative ventures with countries in the Middle East can provide a solid foundation for mutual growth. Beyond bilateral agreements, partnerships with international organizations, airlines, and hospitality brands can enhance Cambodia’s appeal and accessibility.

These partnerships are particularly critical in light of global competition for tourist dollars. By aligning with key stakeholders in the travel and tourism industry, Cambodia can ensure that its offerings resonate with international audiences and remain competitive in a crowded marketplace.

A Bright Future for Cambodian Tourism

The combination of strategic outreach, enhanced connectivity, and targeted marketing is setting the stage for a vibrant tourism sector in Cambodia. While challenges remain—particularly in adapting infrastructure to cater to diverse traveler needs—the country’s proactive approach is a promising sign of its commitment to growth.

As Cambodia continues to rebuild its tourism industry, its focus on inclusivity and cultural sensitivity will undoubtedly play a pivotal role. By embracing the needs of Muslim travelers and fostering strong ties with the Middle East, the Kingdom is not only diversifying its source markets but also paving the way for sustainable tourism development.

Cambodia’s path to revitalizing tourism in 2025 showcases its remarkable resilience and ability to adapt. By capitalizing on new opportunities, strengthening global partnerships, and prioritizing inclusivity, the country is poised to reclaim its position as a leading destination in Southeast Asia. With the support of enhanced air connectivity and targeted marketing, Cambodia’s tourism sector is well on its way to achieving unprecedented success.

Courtesy: Travel & Tour World, Thursday, January 9, 2025


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HALAL ECONOMY

Morocco Livestock Imports Soar Sheep & Cow Shipments Reach 4.8 Billion Dirhams

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Morocco’s dinner tables are a vibrant tapestry of flavors, with fragrant tagines and sizzling skewers showcasing the country’s rich culinary heritage. However, a key ingredient – red meat – has recently become a source of concern for both consumers and policymakers, particularly as Morocco Livestock Imports have surged to meet growing domestic demand.

Morocco witnessed a dramatic surge in livestock imports in 2024 in response to a significant market shortage. This in-depth exploration delves into the factors driving this import boom, its impact on the market, and the long-term implications for Morocco’s agricultural sector, examining this critical issue’s economic, social, and environmental dimensions.

A Booming Appetite for Red Meat

Moroccan cuisine revolves around fresh, flavorful ingredients. Lamb and beef are central to many beloved dishes, from the slow-cooked comfort of méchoui (roasted lamb) to the delicate balance of spices in a pastilla (savory pastry). However, consumer demand for red meat has been steadily outpacing domestic production in recent years, creating a complex challenge with multifaceted origins.

  • Climate Change and Aridity: Morocco’s climate, characterized by arid and semi-arid conditions, poses significant challenges to livestock rearing. Erratic rainfall patterns, prolonged droughts, and rising temperatures have severely impacted grazing lands, leading to diminished forage availability and increased water scarcity. These environmental stressors directly affect livestock health, productivity, and overall herd size.
  • Population Growth and Urbanization: Morocco’s rapidly growing population, coupled with rapid urbanization, has exerted immense pressure on agricultural land. As urban centers expand, arable land is increasingly being converted for housing, industrial development, and infrastructure, reducing the land available for livestock grazing and feed production. This land-use change further exacerbates the challenges faced by livestock farmers.
  • Changing Dietary Habits: Shifting consumer preferences and dietary habits are also contributing to the increased demand for red meat. As incomes rise and urbanization progresses, consumers are increasingly adopting more Westernized diets, which often include a higher proportion of meat. This shift in dietary patterns, coupled with growing consumer awareness of food safety and quality, has fueled demand for higher-quality cuts of meat, further straining domestic supply chains.
  • Social and Cultural Factors: Red meat plays a significant role in Moroccan social and cultural life. It is a central feature of many festive occasions, religious holidays, and social gatherings. These cultural norms contribute to a strong demand for red meat, particularly during peak seasons, further exacerbating market fluctuations.

The result of these converging factors has been a steady increase in red meat prices, putting a significant strain on household budgets, particularly for low-income families. For many Moroccans, red meat is a staple food, and rising prices can force families to reduce their consumption, impacting their nutritional intake and dietary diversity. This can have significant implications for public health, particularly for children and vulnerable populations who rely on red meat as a primary source of protein and essential nutrients.

A Short-Term Solution with Long-Term Implications

To address the escalating market shortage and stabilize prices, the Moroccan government took decisive action in late 2023, authorizing breeders to import sheep and cows from international markets. This move has had a swift and significant impact on the livestock sector.

According to the Exchange Office, Morocco’s livestock import bill ballooned to MAD 4.8 billion (around $480 million) by the end of November 2024. This represents a staggering 83% increase compared to the MAD 2.6 billion spent during the same period in 2023, highlighting the scale of the government’s intervention and the growing reliance on imports to meet domestic demand.

The volume of imports has also witnessed a dramatic surge. Figures indicate that Morocco imported a staggering 110,000 tonnes of livestock (excluding VAT and customs duties) by November 2024, a significant increase compared to the 60,000 tonnes imported in the previous year. Notably, during the crucial Eid al-Adha festival in 2024, Morocco imported around 600,000 sheep for sacrifice from Spain and Romania, underscoring the government’s commitment to ensuring adequate supply during peak demand periods.

Strategic Partnerships and Quality Control

To ensure a steady flow of high-quality livestock, Morocco has established import deals with several countries renowned for their cattle and sheep breeding practices. These include Spain, Brazil, Uruguay, France, Romania, and Portugal. These countries boast advanced agricultural practices, including improved breeding techniques, access to better quality feed, and robust veterinary care systems, leading to higher quality livestock and enhanced production efficiency.

The National Office for Food Safety (ONSSA) plays a crucial role in this process, ensuring that imported meat adheres to strict health standards and Halal certification, aligning with Morocco’s religious dietary requirements. Rigorous inspections are conducted at various stages, from farm to fork, to guarantee the safety and quality of imported meat. This includes checks for foodborne pathogens, antibiotic residues, and adherence to international food safety standards.

The influx of imported meat has had a noticeable impact on market prices. Slaughterhouses have reported a decrease in red meat prices, with prices ranging from MAD 85 to 89 per kilogram ($8-$9). This compares favorably to imported meat from Brazil, which sits between MAD 70 and 75 per kilogram ($7-$7.5). However, retail prices still vary considerably, ranging from MAD 85 to 140 per kilogram ($8.5-$14), indicating a potential disconnect between wholesale and consumer prices.

This price disparity raises concerns about potential market inefficiencies and the need for improved market transparency and regulation to ensure that the benefits of lower import costs are effectively transmitted to consumers.

Long-Term Strategies for Sustainability

While the import surge has provided some immediate relief to market pressures and helped stabilize prices, it is crucial to recognize that imports can only serve as a short-term solution. A sustainable and long-term approach to ensuring a secure and affordable supply of red meat for Morocco requires a multi-pronged strategy that addresses the root causes of the current challenges.

  • Boosting Domestic Production:
    • Investing in Research and Development: Funding research and development initiatives to improve livestock breeds, develop drought-resistant varieties, and enhance feed efficiency is crucial. This includes investing in genetic improvement programs, developing drought-tolerant fodder crops, and exploring alternative feeding strategies to enhance livestock productivity and resilience.
    • Modernizing Livestock Farming: Promoting the adoption of modern farming practices, such as improved grazing management, rotational grazing, and the use of drought-tolerant fodder crops, can enhance productivity and sustainability. This includes investing in infrastructure such as improved water management systems, fencing, and animal shelters to mitigate the impacts of climate change.
    • Supporting Smallholder Farmers: Providing access to credit, technical assistance, and market linkages can empower smallholder farmers, who play a vital role in livestock production, to improve their livelihoods and contribute to domestic meat supply. This includes supporting the development of farmer cooperatives, providing access to modern farming equipment, and facilitating access to markets for their products.
  • Strengthening the Agricultural Value Chain:
    • Investing in Cold Chain Infrastructure: Expanding and modernizing cold storage facilities across the country is crucial to minimize post-harvest losses and ensure the quality and safety of meat throughout the supply chain.
    • Improving Transportation: Investing in refrigerated transport vehicles and improving transportation infrastructure can ensure that meat reaches markets quickly and efficiently, maintaining its freshness and quality and reducing spoilage.
  • Promoting Sustainable Consumption and Production:
    • Diversifying Protein Sources: Educating consumers about sustainable consumption practices, such as reducing meat consumption, choosing locally sourced products, and exploring alternative protein sources such as legumes, pulses, and plant-based meat alternatives, can help to reduce pressure on domestic resources and promote a more balanced and sustainable diet.
    • Raising Awareness about Nutrition: Raising awareness about the nutritional value of different cuts of meat and promoting healthy eating habits can encourage consumers to make informed choices and reduce waste.
  • Strengthening Market Regulation and Transparency:
    • Implementing Robust Market Surveillance: Implementing robust market surveillance mechanisms can help to identify and address price manipulation, ensure fair pricing for both producers and consumers and prevent the exploitation of consumers.
    • Promoting Fair Trade Practices: Fostering fair trade practices and supporting the development of farmer cooperatives can empower producers and ensure they receive a fair share of the value chain.
  • Addressing Climate Change:
    • Implementing Climate-Smart Agricultural Practices: Promoting climate-smart agricultural practices, such as agroforestry, sustainable grazing management, and the use of renewable energy sources, can help mitigate the impacts of climate change on livestock production and reduce the environmental footprint of the sector.

Balancing Short-Term Needs with Long-Term Sustainability

Morocco’s red meat import surge serves as a stark reminder of the complex challenges facing the country’s agricultural sector. While imports offer a temporary solution to address immediate market shortages and stabilize prices, they cannot be considered a long-term solution.

A sustainable and resilient agricultural sector requires a multi-pronged approach that addresses the root causes of the current challenges, including climate change, population growth, and changing consumer demands. By investing in domestic production, strengthening the agricultural value chain, promoting sustainable consumption, and addressing the environmental impacts of livestock production, Morocco can ensure a secure, affordable, and sustainable supply of red meat for future generations.

The surge in Morocco’s livestock imports highlights the complex interplay of economic, social, and environmental factors.


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HALAL ECONOMY

What Are the Key Opportunities for Iran in the Global Halal Market?

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The halal market is no longer just about food—it’s a rapidly expanding global industry worth over $2 trillion and growing. From cosmetics and pharmaceuticals to logistics and tourism, the halal sector now influences nearly every aspect of modern commerce. What’s surprising is that this movement isn’t just for Muslims. Non-Muslim consumers are also driving demand for ethical, sustainable, and high-quality products—the very principles that halal certification stands for.

With its rich natural resources, established production capacities, and commitment to halal compliance, Iran is pivotal in the global halal economy. As global demand for halal-certified products rises, Iran’s strategic geographic location and robust manufacturing base position it as a key player with untapped potential.

What is the Global Halal Market?

The global halal market encompasses the production, certification, and trade of goods and services that comply with Islamic principles. While traditionally centered around food and beverages, the industry now spans cosmetics, pharmaceuticals, tourism, logistics, media, and even financial services.

Consumers, both Muslim and non-Muslim, are increasingly prioritizing ethical, sustainable, and high-quality products. Halal-certified items appeal to this shift, leading to a surge in demand for products that guarantee cleanliness, ethical production, and quality assurance. The global halal market’s current value is estimated to exceed $2 trillion annually, with further growth expected in the coming years.

As an Islamic republic with a predominantly Muslim population, Iran’s foundation for halal production is firmly established. Islamic teachings influence various aspects of life in Iran, including food, cosmetics, pharmaceuticals, and lifestyle products. This natural alignment with halal principles gives Iran an edge in the global market.

Iran’s diverse production capabilities make it a strong contender for global halal exports. The country produces approximately 83% of its food requirements domestically and ranks among the world’s top producers of key halal products, including:

  • Dates: 3rd largest global producer
  • Honey: Major producer with significant export potential
  • Pistachios: A world leader in pistachio production
  • Walnuts: Among the top producers globally

Despite this, Iran’s current share of the global halal market remains below 1%, signaling a significant opportunity for growth.

Key Sectors Where Iran Can Excel
  1. Halal Food and Beverages: Iran’s food production capabilities are well-suited for growth in the global halal market. The production of fruits, nuts, honey, and spices provides a unique opportunity for exports to Muslim-majority and non-Muslim nations with a growing appetite for halal products. Additionally, non-alcoholic beverages, an area witnessing significant growth worldwide, offer another avenue for Iranian producers to capture a larger market share.
  2. Pharmaceuticals and Cosmetics: The halal pharmaceutical and cosmetics sectors are growing rapidly. Consumers are increasingly demanding halal-certified cosmetics and wellness products free from alcohol and animal-derived ingredients. Iran’s established industrial base for herbal medicines and natural cosmetics can be leveraged to meet this demand. The country has issued over 1,000 halal certifications for cosmetics, food, and drugs in recent years, enabling increased exports.
  3. Halal Leather, Footwear, and Textiles: Iran’s leather production industry is another key area of strength. Cities like Tehran, Tabriz, and Mashhad serve as hubs for leather production, with 350 active leather production units producing 2.5 million pieces of cow and calf hides annually. As the world’s 11th largest footwear producer, Iran’s leather products, halal-certified shoes, and raw materials offer significant export potential, especially to countries prioritizing halal-compliant fashion.
  4. Halal Tourism and Hospitality: As demand for halal-friendly tourism rises globally, Iran’s rich history, Islamic heritage, and scenic landscapes position it as a promising destination. Collaborations with other member countries of the Developing Eight (D8) Islamic group, including initiatives to strengthen tourism, offer Iran a chance to become a regional halal tourism hub.
  5. Halal Entertainment and Media: The demand for Islamic-themed content is growing worldwide. Iran’s film industry, television programming, and online media channels have the potential to create culturally aligned content that meets the growing demand for halal media. Islamic-friendly streaming services and educational platforms offer growth opportunities for Iran’s media sector.
  6. Halal Finance and Banking: Islamic finance is a vital part of the global halal economy, and Iran’s banking system is entirely Shariah-compliant. By promoting its financial products globally, Iran can position itself as a key player in the Islamic banking sector, offering investment and financing solutions to Muslim and non-Muslim countries alike.
Iran’s Growth in the Halal Market
  • Export Expansion: Iran’s current halal exports amount to just $2 billion annually, mostly to neighboring countries like Iraq and Afghanistan. By increasing exports to Southeast Asia, Africa, and the Middle East, Iran can expand its market share.
  • Halal Certification: More streamlined certification processes would enhance Iran’s competitiveness in the global halal market. Countries like Malaysia have set the benchmark for halal certification. By learning from these models, Iran can strengthen its certification body and align with global standards.
  • Branding and Marketing: Creating a “Made in Iran” brand for halal products could attract global buyers. Promoting high-quality, ethically sourced, and halal-certified products from Iran would give international buyers more confidence.
  • Technology and Innovation: Embracing technology like blockchain for supply chain transparency can help Iran’s halal industry compete globally. Blockchain ensures the traceability of products from production to end consumers, enhancing trust in the authenticity of halal certifications.
Challenges Facing Iran’s Halal Industry
  1. Global Competition: Countries like Malaysia, Indonesia, and Turkey have already established strong footholds in the halal market. Competing against these established players requires a focused strategy.
  2. Regulatory Barriers: Exporting to new markets requires compliance with international halal standards. Ensuring Iran’s halal certification process aligns with global benchmarks will facilitate access to new markets.
  3. Limited Awareness: Many global consumers and importers are unaware of Iran’s capacity for halal production. Addressing this gap through marketing, exhibitions, and international trade fairs can increase awareness.
A Global Leader in the Halal Market
  1. Strategic Alliances: Iran can build strategic partnerships with top importers of halal products, including Indonesia, Malaysia, and Turkey. Collaborations can open new export routes.
  2. Investment in Infrastructure: Upgrading processing and packaging facilities to meet international standards will help Iran export halal food and cosmetics on a larger scale.
  3. Focus on E-commerce and Digital Platforms: Selling halal products directly to consumers through e-commerce platforms offers a significant growth opportunity. Direct-to-consumer (D2C) models can increase profitability while providing access to consumers worldwide.
  4. Halal Ecosystem Development: Developing a national strategy for a halal ecosystem with a single regulatory body to oversee halal certification and promotion can boost Iran’s reputation in the global market.
Case Studies
  • Malaysia: Malaysia’s halal certification system is seen as the gold standard. Iran could follow this model to establish a unified halal certification body and improve export prospects.
  • Brazil: Brazil’s ability to become a top exporter of halal meat despite being a non-Muslim country showcases the importance of strategic planning and adherence to certification standards.

The growing Muslim population and increasing preference for ethical, halal-certified products present a golden opportunity for Iran. With concerted efforts in marketing, infrastructure development, and strategic alliances with key halal markets like Indonesia, Malaysia, and Turkey, Iran’s vision to be a leading force in the global halal economy is well within reach. As the value of the global halal market is projected to surge in the coming years, Iran’s proactive approach could secure its position as a top player, benefiting not only its economy but also its influence on global halal trade.


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