ISLAMIC ECONOMY

A Glimpse into The Global Halal Industry [2023]

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2 years ago

February 28, 2023

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The Halal industry is much more than just food on your plate. It’s a way of life that encompasses the entire ecosystem, from food production to consumerism. The Halal industry is a booming global market. The global Islamic economy comprises seven sectors — Islamic finance, Halal food, modest fashion, media and recreation, Muslim-friendly travel, pharmaceutical, and cosmetics.

It is estimated that the global Halal market will be increased by trillions in 2027, making it one of the fastest-growing industries in the world today. Recent years have seen a surge in global awareness of sustainability, ethical consumption, green growth, and digitization, enabling the Halal industry to flourish worldwide.

What is Halal?

The word ‘Halal’ comes from Arabic which means “allowed” or “permissible” according to Islamic law. Therefore, every Muslim must ensure that whatever they consume comes from a Halal source—not just the ingredients but also the entire production and handling process from start to finish (Zakaria, 2008). The definition given by Jabatan Kemajuan Islam Malaysia (JAKIM) in Trade Description Order 2011 covers products and services encompassing all the business operations like packaging, marketing, manufacturing, logistics, supply, maintaining premises, slaughtering, and so on (JAKIM, 2015).

Current Global Halal Food Market Insights and Trends

The global Halal food industry is expected to hit almost $4 trillion by 2028 as it expands at an 11.25% CAGR over the next eight years. In 2019 alone, Halal consumers spent a staggering US$1.17 trillion on Halal food — making it the second largest sector after Islamic finance.

Increasingly, customers are purchasing natural regular food and refreshment items. This trend has led to increased revenue from consumers in the utilization of Halal food products. There is a massive opportunity for Halal food manufacturers to capitalize on this growing interest by developing new products marketed in western-style supermarkets, including grocery stores and hypermarkets.

General stores and food makers in numerous nations have begun catering to Halal customers by offering more Halal refreshment products. The Halal food market is projected to experience significant growth due to the rising demand from Muslim and non-Muslim consumers. This is because of its cleanliness-related benefits, such as liberation from debasements, alcohol, and blood.

In addition, organizations are now following Halal-based planning as it allows for both quality and taste levels, which gives an edge in commercial centers.

What Are the Factors Driving the Global Halal Industry?

Several factors are driving the global Halal industry. Let’s talk about these driving factors in detail below:

Increasing Muslim population

The Muslim population is rapidly expanding, now consisting of 2.2 billion people — almost 28.7% of the global populace! In recent years, immigration and high birth rates have contributed to this growth surge in our communities. As such, there has been an increased demand for Halal products worldwide.

Rising Demand for Certified Halal Products

Religious and ethical values also play a major role in driving the global Halal industry. Customers are increasingly seeking out products that meet their standards and expectations. As the demand for certified Halal products has grown, manufacturers have taken steps to ensure that their products meet the required standards. This has led to the emergence of many certification bodies and Halal product labels. Consequently, this has been increasing trust in Halal products and further propelling the global development of the Halal sector.

ISA (Islamic Services of America) is a US-based Halal certification body that helps businesses go Halal in the United States of America, Canada, and Mexico. ISA’s certification process includes a rigorous review of ingredients and a regular inspection of production facilities to ensure that all products meet the highest standards of Halal compliance.

Growing Awareness of Health and Wellness

Consumer preference towards health and wellness is also driving the Halal industry. Consumers are increasingly looking for fresh, natural, organic alternatives to traditional processed and packaged foods. Organic Halal-certified products provide an attractive substitute as they offer a wider range of benefits, like being free from chemical pesticides, preservatives, and additives. This has led to a rise in demand for certified Halal products free from harmful substances and chemicals.

In addition, the increasing demand for natural and organic meat is also driving the growth of the global Halal industry as customers seek out ethically produced animal products.

The Upsurge of Muslim-Friendly Tourism

Halal tourism is one of the world’s most lucrative and rapidly growing industries. By 2026, annual global spending from Muslim travelers will likely skyrocket to $300 billion according to a report by Mastercard and HalalTrip.

The growth of Halal tourism is due to a combination of factors, including the increasing number of Muslim tourists, changing consumer preferences, and ethical considerations.

Moreover, the increasing demand for luxury holidays among affluent Muslim travelers is driving up the opportunities for Halal-friendly hotels and resorts from the Middle East to Japan, Thailand, South Korea and other countries and regions. These establishments offer special amenities and services tailored for Muslim travelers, such as Halal food options, push shower in toilets, and prayer facilities.

Diversification Of the Global Halal Supply Chain

The global Halal industry also benefits from expanding the global Halal supply chain. Companies are now more capable of sourcing Halal certified ingredients and materials from international markets, allowing them to provide consumers with a wider range of Halal finished products. In addition, the rise of digital e-commerce platforms has made it even easier for buyers to access products from anywhere in the world.

The Domination of Food-Tech Within the Halal Industry

The Halal industry has undergone significant transformations due to the emergence of digital technology, with AI and automation radically altering various aspects. This shift has enabled companies to innovate faster, develop products more efficiently, and scale their businesses more quickly. This increased digitization is transforming the global Halal industry, with Food-tech startups tapping into this growing market.

For example, Halal food-related platforms and apps are rapidly gaining popularity due to the ease of ordering Halal-certified products. With the rapid growth of grocery e-commerce, there is a plethora of opportunities for businesses operating within the Halal sector, from Halal cloud kitchens to ghost kitchens.

Rise of Transparency and Sustainability

Customers are becoming more aware of the environmental impact of their purchases. They are increasingly demanding ethically produced products with a minimal environmental footprint.

As a result, businesses have been investing in transparent supply chains to ensure the traceability of their products, from farm to fork. This has enabled businesses to monitor their production process better and ensure the quality of their products.

Food safety Concerns Are Fueling the Growth of the Halal Industry

Food safety concerns are further fueling the consumer demand for more transparency in the Halal food chain. Companies are looking for ways to address this concern, and blockchain technology is a promising solution.

Halal certification is an important part of global trade. However, it often lacks transparency in who certifies what and where products come from. Unless the Halal certifying body is authentic and can be verified, such as ISA, there is little assurance that the product is actually Halal.

Thanks to blockchain technology, companies can now ensure the traceability of their Halal products through the entire supply chain. This helps businesses meet customer demands for more transparency and makes it easier for them to prove authenticity and compliance with Halal standards.

Blockchain technology is now seen as a promising solution for Halal food traceability and sustainability by Halal industry players.

Blockchain technology, also known as distributed ledger technology (DLT), is a decentralized database that records transactions. It has been used to track food from the farm to store shelves and even in production.

To achieve sustainability and food traceability, Halal industry stakeholders are exploring blockchain technology as a viable solution. They can monitor the origin of their products, document how they were processed, and keep tabs on each ingredient used.

This method could help prevent food fraud or contamination at any stage of the supply chain—from farmers growing crops on land to factories processing meat or other ingredients.

Recently, OneAgrix, a B2B faith-based and quality foods trade ecosystem and digital platform, and its eight partners, unveiled the world’s pioneering and comprehensive farm-to-fork solution that traces beef from DNA to QR code. This revolutionary breakthrough will have significant implications for food supply chain traceability.

The Future of Halal Supply Chains

In the next few years, the global Halal industry will continue to evolve as it learns to meet the needs of consumers and businesses. Thus, there will be an increased focus on transparency and traceability within supply chains.

The Halal supply chain has already become more transparent in recent years through initiatives such as LCA (life cycle assessment). The LCA measures environmental impact throughout each production stage, from raw material extraction through processing and manufacturing into final products.

In addition, we see more efforts towards sustainability by ensuring that carbon footprints and animal health are maintained throughout the production process. More companies now recognize the potential of Halal certification as an international quality assurance standard.

Blockchain technology also plays a major role in helping the Halal industry reach new levels of transparency and trustworthiness, ensuring that customers have access to high-quality food products that comply with Halal standards. The potential for blockchain technology to revolutionize food systems is immense, and its impact on the Halal industry will be felt in the years to come.

Halal is a way of life. It’s about ensuring our consumables and non-consumables are safe, secure, and ethical. Halal food looks and tastes great, but it also keeps us healthy. The expansion of the global Islamic economy provides jobs for millions of people worldwide who directly or indirectly work in the Halal industry. With more than 2 billion Muslims living on Earth today, this trend shows no sign of slowing down—and we can all be part of it!

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ISLAMIC ECONOMY

IsDB and Algeria Enhance Strategic Partnership

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3 days ago

April 15, 2025

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Aamer Yaqub

Ever wonder how global finance shapes the future of nations? Well, this past weekend in Algiers, something really interesting happened that could have big implications for Algeria and beyond! Imagine the top financial minds from the Islamic Development Bank (IsDB) meeting with Algeria’s finance minister – it wasn’t just a routine handshake. These talks, held right in the heart of Algiers, signaled a powerful move to boost their already strong partnership. We’re talking about a deeper dive into how this major financial institution and this key North African country are teaming up. Stick with us as we unpack what this could mean for economic growth, development, and even the everyday lives of people in the region.

New Partnership Framework Takes Center Stage in IsDB-Algeria Talks

The central focus of these constructive talks revolved around the unveiling of a new, comprehensive partnership framework. This ambitious framework is slated for official announcement during the much-anticipated IsDB Group Annual Meetings, a prestigious event scheduled to unfold in Algiers this coming May. The selection of Algeria as the host nation for these annual meetings further underscores the strengthening ties and mutual respect that characterize the relationship between IsDB and Algeria.

This forthcoming partnership framework is strategically designed to inject dynamism into key sectors that are vital for Algeria’s long-term prosperity. The emphasis is squarely on fostering competitiveness across various industries, actively promoting economic diversification to reduce reliance on traditional sectors, and creating a fertile ground for private sector development to flourish. Recognizing the importance of human capital, the framework also prioritizes enhanced partnerships aimed at nurturing skills, education, and overall human development within Algeria. Furthermore, the agreement seeks to leverage the collective strengths of IsDB and Algeria to bolster regional cooperation, fostering greater economic integration and shared prosperity across the wider region.

Beyond the overarching framework, the discussions also delved into the crucial matter of resuming and expanding cooperation in the financing of strategic projects. These projects are envisioned as key drivers in Algeria’s pursuit of the Sustainable Development Goals (SDGs) and in its ongoing efforts to modernize and strengthen its national infrastructure. The commitment from both IsDB and Algeria to these initiatives highlights a shared vision for a more prosperous and sustainable future for the Algerian people.

Railway Expansion: A Key Focus for IsDB and Algeria’s Collaborative Future

A particular area of emphasis during the talks was the critical role of expanding railway infrastructure as a catalyst for multifaceted progress. Both sides unequivocally underscored the potential of a modern and efficient railway network to drive sustainable economic growth by facilitating trade, connecting markets, and reducing transportation costs. Moreover, improved railway infrastructure is seen as a vital element in enhancing the quality of life for Algerian citizens by providing efficient and affordable transportation options. Environmentally, the expansion of rail networks offers a greener alternative to road transport, contributing to a reduction in carbon emissions and a smaller environmental footprint. Finally, enhanced railway connectivity is recognized as a powerful tool for fostering regional integration, both within Algeria and with neighboring countries, promoting greater social and economic cohesion.

Dr. Al Jasser, the President of the IsDB Group, reaffirmed the Bank’s unwavering commitment to supporting these transformative projects. He emphasized the IsDB’s extensive and successful track record in financing similar infrastructure initiatives across its diverse member countries, assuring Algeria of the Bank’s expertise and dedication. This commitment from the IsDB provides a significant boost to Algeria’s ambitious infrastructure development plans.

Furthermore, Dr. Al Jasser warmly commended the Algerian government for its proactive and sustained efforts in strengthening its engagement with the IsDB Group. He also expressed his sincere gratitude to Algeria for its generous offer to host the upcoming IsDB Group Annual Meetings and for its ongoing support in ensuring the resounding success of this important international gathering. This expression of appreciation underscores the mutual respect and collaborative spirit that underpin the deepening relationship between IsDB and Algeria.

A Relationship Built on Mutual Goals:

The partnership between IsDB and Algeria is not a recent development; it is a relationship built on years of shared objectives and a mutual commitment to fostering sustainable socio-economic development. Algeria has been a steadfast member of the IsDB since its inception in 1974, actively participating in the Bank’s various initiatives and benefiting from its diverse range of financing and technical assistance programs.

Over the years, the IsDB has played a significant role in supporting Algeria’s development agenda across a multitude of sectors. This includes financing crucial infrastructure projects in areas such as energy, transportation, water and sanitation, and urban development. The Bank has also supported Algeria’s efforts in promoting agricultural development, enhancing healthcare and education systems, and fostering the growth of small and medium-sized enterprises (SMEs).

The IsDB: A Key Player in Global Development

Established in 1975, the Islamic Development Bank (IsDB) Group is a multilateral development finance institution focused on empowering its 57 member countries, primarily Muslim-majority nations, to achieve socio-economic progress. Guided by the principles of Islamic finance, the IsDB provides a wide array of financial products and services, including loans, grants, equity investments, and trade finance. Beyond financial assistance, the Bank also offers technical expertise and capacity-building support to its member countries.

The IsDB’s strategic priorities are closely aligned with the Sustainable Development Goals (SDGs). The Bank actively supports projects and programs that aim to eradicate poverty, promote inclusive and sustainable economic growth, improve health and education, and address climate change. Its commitment to fostering South-South cooperation and knowledge sharing among its member countries further enhances its impact on global development. As of early 2025, the IsDB Group’s total financing approvals have exceeded $170 billion, demonstrating its significant contribution to development initiatives across the Muslim world and beyond.

Algeria’s Strategic Importance in the Region:

Algeria, with its significant geographical size, substantial natural resources, and growing economy, holds a strategically important position in North Africa and the wider Mediterranean region. The country is actively pursuing economic diversification to reduce its reliance on hydrocarbons and is implementing reforms to attract foreign investment and promote private sector growth.

Algeria’s commitment to sustainable development is evident in its national development plans, which prioritize investments in renewable energy, infrastructure modernization, and human capital development. The country plays a key role in regional stability and is actively engaged in promoting cooperation and dialogue among its neighbors. Its rich cultural heritage and vibrant society further contribute to its significance on the global stage.

The New Partnership Framework: Pillars of Cooperation:

The new partnership framework between IsDB and Algeria, set to be unveiled in May, is expected to be built upon several key pillars of cooperation, reflecting the evolving needs and priorities of Algeria and the strategic objectives of the IsDB.

Boosting Competitiveness: This pillar will likely focus on supporting Algeria’s efforts to enhance the competitiveness of its industries beyond the energy sector. This could involve financing projects that promote innovation, technological upgrades, and the development of new value chains in sectors such as manufacturing, agriculture, and tourism. The IsDB and Algeria will likely collaborate on attracting foreign direct investment and fostering an enabling environment for businesses to thrive.
Fostering Private Sector Development: Recognizing the crucial role of the private sector in driving economic growth and creating employment opportunities, this pillar will aim to support the development of a dynamic and resilient private sector in Algeria. This could involve providing financing and technical assistance to SMEs, promoting entrepreneurship, and supporting the development of capital markets. The IsDB and Algeria may also explore initiatives to improve the business environment and reduce regulatory hurdles.
Enhancing Human Capital Development: Investing in people is fundamental to long-term sustainable development. This pillar will likely focus on strengthening Algeria’s education and training systems, improving healthcare infrastructure, and promoting skills development to meet the demands of a modern economy. The IsDB and Algeria may collaborate on projects that enhance access to quality education, improve healthcare outcomes, and empower youth and women. Recent data from UNESCO indicates that Algeria has made significant strides in improving literacy rates, reaching over 80% in recent years, but continued investment in quality education and skills training remains a priority.
Strengthening Regional Cooperation: Given Algeria’s strategic location and its commitment to regional stability, this pillar will aim to leverage the partnership with the IsDB to promote greater economic integration and cooperation across the region. This could involve supporting cross-border infrastructure projects, facilitating trade and investment flows, and promoting knowledge sharing and best practices among member countries. The IsDB and Algeria may also collaborate on initiatives that address shared challenges such as food security and climate change.

The Strategic Importance of Railway Infrastructure

The emphasis on expanding railway infrastructure during the recent discussions highlights its multifaceted benefits for Algeria’s development. Modern and efficient rail networks are increasingly recognized globally as vital arteries for economic growth and social progress.

Economic Growth: Improved railway infrastructure facilitates the efficient movement of goods and people, reducing transportation costs and enhancing the competitiveness of businesses. It connects production centers with markets, both domestic and international, fostering trade and economic activity. Studies by the World Bank have consistently shown a strong correlation between investment in transport infrastructure and GDP growth.
Quality of Life: Modern railways provide safe, reliable, and affordable transportation options for citizens, improving connectivity between urban and rural areas and enhancing access to employment, education, and healthcare services. This can significantly improve the overall quality of life and reduce social disparities.
Environmental Sustainability: Rail transport is generally more energy-efficient and produces significantly lower carbon emissions per passenger-kilometer or tonne-kilometer compared to road or air transport. Investing in railway infrastructure aligns with Algeria’s commitment to sustainable development and its efforts to mitigate climate change.
Regional Integration: Enhanced railway links can foster greater connectivity and trade between Algeria and its neighboring countries, promoting regional economic integration and strengthening political ties. This is particularly important in North Africa, where greater cooperation can unlock significant economic potential.

IsDB’s Expertise in Infrastructure Development

Dr. Al Jasser’s reaffirmation of the IsDB’s commitment to supporting Algeria’s railway ambitions is backed by the Bank’s extensive experience in financing and providing technical assistance for similar projects across its member countries. The IsDB has a proven track record of supporting the development of large-scale infrastructure projects, including railways, ports, airports, and energy networks.

The Bank’s approach to infrastructure financing goes beyond simply providing funds. It also involves providing technical expertise in project planning, design, implementation, and management. The IsDB often facilitates knowledge sharing and the adoption of best practices from other successful projects in its member countries, ensuring that Algeria can benefit from global experience in railway development.

Hosting the IsDB Annual Meetings: A Symbol of Trust and Cooperation

Algeria’s hosting of the upcoming IsDB Group Annual Meetings in May is a significant event that underscores the strong and growing partnership between IsDB and Algeria. These annual meetings bring together high-level representatives from the IsDB’s 57 member countries, as well as leading figures from the global financial and development community.

Hosting such a prestigious event provides Algeria with a unique platform to showcase its economic progress, investment opportunities, and its commitment to sustainable development. It also offers an invaluable opportunity for Algerian officials and business leaders to engage directly with their counterparts from across the Muslim world, fostering new partnerships and strengthening existing relationships.

The fact that the IsDB has chosen Algiers as the venue for its annual gathering is a testament to the Bank’s confidence in Algeria’s leadership and its recognition of the country’s growing importance within the IsDB community. It also reflects the positive trajectory of the relationship between IsDB and Algeria and the mutual trust that underpins their cooperation.

A Promising Future for IsDB and Algeria

The recent high-level discussions between Minister Bouzred and President Al Jasser, coupled with the upcoming IsDB Group Annual Meetings in Algiers, signal a new chapter in the enduring partnership between IsDB and Algeria. The commitment to a new, comprehensive partnership framework focused on boosting competitiveness, fostering private sector development, enhancing human capital, and strengthening regional cooperation holds immense promise for Algeria’s future socio-economic development.

The strengthened partnership between IsDB and Algeria, spotlighted by talks on a new framework and railway expansion, aims for sustainable development. This collaboration seeks to boost Algeria’s economic competitiveness, diversify its industries, and empower its private sector. Investing in railway infrastructure is key for economic growth, improved living standards, environmental benefits, and stronger regional ties. The IsDB’s expertise, combined with Algeria’s commitment, promises significant benefits. This alliance showcases the power of international cooperation for progress. Watch for updates from the IsDB Annual Meetings in Algiers.

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ISLAMIC ECONOMY

The New Trade War: A Tectonic Shift in the Global Economic Order

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1 week ago

April 11, 2025

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Baba Yunus Muhammad

The recent escalation in trade hostilities between the United States and China marks more than a simple dispute over tariffs. It represents a fundamental realignment of global economic relations. The Islamic world—stretching from Southeast Asia to West Africa—must now confront the reality of a fracturing global economy and seize the opportunity to forge a more sovereign, values-based path.

On April 9, former U.S. President Donald Trump intensified tensions by announcing a dramatic increase in tariffs on Chinese goods, raising duties to 125% and threatening to cut off all negotiations if Beijing responds in kind. China, for its part, has vowed retaliation, raising tariffs to 70% on American imports and signaling a shift toward economic self-sufficiency.

This mutual escalation is not merely a continuation of earlier trade disputes—it is a declaration of economic war. The global economy is now entering an era where the assumptions of interdependence, free trade, and economic globalization no longer hold. Instead, we are witnessing the emergence of competing economic spheres, driven not just by market considerations but by geopolitical strategy and national identity.

The Unraveling of Globalization

The decoupling of the U.S. and Chinese economies has been years in the making. What began as negotiations over trade imbalances and intellectual property rights has grown into a broader ideological contest. Trump’s latest tariffs were framed not as a bargaining tool but as a matter of national defense and political positioning. In Beijing, the message is equally firm: China will not bend under pressure and is prepared for a protracted confrontation.

For the rest of the world, the consequences will be profound. Supply chains will be disrupted. Commodity prices will fluctuate. Investment flows will shrink or shift. Economies deeply reliant on exports or external financing will be particularly vulnerable.

Among these, many Muslim-majority countries find themselves caught in a precarious position. While benefiting from globalization’s promise of open markets and foreign capital, they have remained largely dependent on industrial powers—either Western or Chinese—for critical imports, investment, and technology.

The Islamic World’s Strategic Dilemma

This new trade war should serve as a wake-up call. For too long, Islamic countries have been passive participants in global economic dynamics, rather than architects of their own collective future. The current rupture in global trade offers an unprecedented opportunity to pivot—to rethink priorities, assert sovereignty, and develop resilient, ethical economies grounded in Islamic principles.

First, there is a clear need to strengthen intra-Islamic trade. Despite the presence of the Organisation of Islamic Cooperation (OIC), trade between member states remains far below potential. Structural barriers—ranging from tariff and non-tariff restrictions to poor logistics infrastructure—continue to prevent the emergence of a unified Islamic economic bloc. Efforts must be redoubled to create integrated halal supply chains, harmonized certification systems, and shared development banks.

Second, Islamic finance must play a central role. With assets exceeding $3 trillion, Islamic finance offers a model of ethical, risk-sharing financial systems that emphasize real economic activity, discourage speculative bubbles, and prohibit exploitative interest. In times of global uncertainty, these principles provide a stabilizing foundation for long-term development.

Third, there must be a shift from consumption to production. Many Muslim economies have prioritized raw commodity exports and consumer-driven growth, while neglecting industrialization, technological innovation, and higher education. A coordinated push to invest in science, research, and digital infrastructure—perhaps modeled on joint initiatives between Malaysia, Indonesia, Turkey, and Nigeria—could position the Islamic world as a center for knowledge and creativity in the post-globalization era.

Fourth, the global halal economy represents a major growth frontier. Valued at over $3 trillion across food, cosmetics, pharmaceuticals, and fashion, the halal market is projected to grow significantly. Yet Islamic countries remain underrepresented in its global value chain. Greater cooperation is needed to turn the halal economy into a true engine of industrial development and global trade.

A Call to Leadership and Unity

The stakes are high. As the U.S. and China descend further into economic confrontation, nations across the Global South will be forced to choose sides—or suffer the collateral damage. But the Islamic world need not be a passive victim. With strategic foresight, solidarity, and commitment to its foundational values, it can chart a course that avoids entanglement in great power rivalries while advancing the welfare of its people.

This moment calls for new forms of leadership—visionary leaders who can convene regional economic summits, establish shared development funds, and articulate a coherent strategy for economic self-determination. The time has come for the Islamic world to recognize its collective power—not merely as a bloc of consumers or resource suppliers, but as a civilization with a distinct economic philosophy and global relevance.

In this unfolding global realignment, passivity is not an option. The trade war is real. The consequences are serious. But so too is the opportunity—to build an Islamic economic renaissance rooted in justice, resilience, and strategic independence.

Baba Yunus Muhammad is President of the Africa Islamic Economic Forum, Ghana. He is a researcher and strategic advisor on Islamic economics and geopolitical affairs.

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ISLAMIC ECONOMY

What Will Be the Impact of U.S. Tariffs on the Global Halal Industry?

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2 weeks ago

April 2, 2025

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Hafiz M. Ahmed

Picture this: You’re standing in a bustling market in Jakarta, the air thick with the scent of sizzling satay and the chatter of vendors haggling over prices. A woman next to you picks up a pack of halal beef jerky, imported from the United States, and smiles as she hands over her rupiah. Now imagine that same pack suddenly costs 25 percent more—or disappears from the shelf entirely. That’s the ripple effect of U.S. tariffs, a policy shift that’s sending shockwaves through the global halal industry. As someone who’s spent over two decades chronicling the rise of halal markets—from the slaughterhouses of Iowa to the spice bazaars of Dubai—I can tell you this isn’t just about numbers on a trade ledger. It’s about livelihoods, faith, and the food on millions of tables. With President Donald Trump’s latest tariffs hitting Canada, Mexico, and China in early 2025, and more threatened for April, the halal world is bracing for a storm. So, what does this mean for the $2 trillion industry that feeds a quarter of the planet? Let’s dig in.

The halal industry isn’t some niche corner of the global economy—it’s a powerhouse. Halal, meaning “permissible” in Arabic, governs what 1.9 billion Muslims can eat, wear, and use, according to Islamic law. It’s a system rooted in ethics: animals must be treated humanely, slaughtered with a swift cut while invoking God’s name, and free of anything forbidden, like pork or alcohol. Over my 20-plus years in this field, I’ve watched the halal food market alone balloon from a modest trade into a projected $4.6 trillion giant by 2030, driven by a young, growing Muslim population and even non-Muslims drawn to its promise of quality and cleanliness. The U.S. plays a big role here, exporting halal-certified beef, poultry, and grains to places like Indonesia, Malaysia, and the Gulf states. But now, with tariffs slapping a 25 percent tax on goods from Canada and Mexico, a 10 percent hike on Chinese imports, and whispers of broader “reciprocal” duties looming, the stakes are sky-high.

Let’s start with the basics. Tariffs are taxes the government puts on stuff coming into the country—or, in this case, going out. Trump’s latest moves, rolled out in February 2025, hit Canada and Mexico with a 25 percent tariff and China with an extra 10 percent, citing everything from border security to boosting American jobs. He’s also hinted at a big “liberation day” on April 2, where he might tax every country based on what they charge U.S. goods. The idea? Make foreign products pricier so people buy American instead. It sounds simple, but the halal industry isn’t built on simple. It’s a web of global supply chains—cows raised in Texas, processed in Canada, shipped to Saudi Arabia. Mess with one thread, and the whole thing wobbles.

Take the U.S. beef industry, a halal heavyweight. America’s the world’s second-biggest beef exporter, sending $8 billion worth overseas each year, a chunk of it halal-certified for Muslim markets. I’ve walked the kill floors of plants in Nebraska, where workers in white coats recite “Bismillah” before each cut, ensuring every steak meets Islamic standards. A lot of that beef heads to Canada for processing—think grinding into halal burgers or slicing for shawarma—before crossing oceans. Now, with a 25 percent tariff on Canadian goods coming back into the U.S. or heading elsewhere, costs are spiking. Canadian processors might pass that onto buyers in places like the United Arab Emirates, where a family’s weekly grocery bill could jump. Or they might just say, “Forget it,” and source from Brazil instead, leaving U.S. ranchers high and dry.

Then there’s Mexico, a rising star in halal poultry. Over the years, I’ve seen Mexican firms like Bachoco ramp up halal chicken production, tapping into the U.S.’s neighborly trade perks under the old NAFTA deal. They’d ship birds north for American Muslims or south to Latin America’s growing Muslim communities. That 25 percent tariff changes the math. A halal chicken breast that cost $2 might now hit $2.50, and that’s if Mexico doesn’t retaliate with its own taxes on U.S. goods—which it’s already mulling. I’ve talked to exporters in Guadalajara who say they’re scrambling to find new markets, but it’s not easy. Halal certification takes time, and not every country’s ready to pick up the slack.

China’s a different beast. The 10 percent tariff sounds lighter, but it piles onto existing duties from Trump’s first term. China’s not a halal giant—it’s more about ingredients like soy for animal feed or packaging for halal snacks. I’ve visited factories in Shandong where soybeans get crushed into meal that feeds U.S. cattle, later certified halal. That extra 10 percent could nudge up feed prices here, trickling down to your halal burger at The Halal Guys. China might shrug it off—they’ve got other buyers like Europe—but it’s one more kink in a system that thrives on smooth flow.

So, who feels the pinch? First, American farmers and processors. The U.S. halal export market employs thousands—ranchers in Texas, packers in Iowa, certifiers in New Jersey. I’ve met guys like Ahmed, a halal slaughter supervisor in Kansas, who told me his plant ships 500 tons of beef a month to Malaysia. If tariffs make that too pricey, orders drop, jobs vanish. The American Halal Council, which I’ve worked with for years, estimates the U.S. exports $5 billion in halal goods annually. A trade war could slice that in half, hitting rural towns hardest.

Overseas, Muslim consumers take a hit. In Indonesia, the world’s biggest Muslim country, halal imports from the U.S. are a lifeline—think cereals for breakfast or chicken nuggets for kids. I’ve sat with families in Jakarta who rely on affordable American brands. If prices climb 20 or 30 percent, they’ll switch to local options or competitors like Australia, which isn’t facing U.S. tariffs yet. That’s a win for Aussie farmers, sure, but it’s a loss for U.S. influence in a key market. And in the Gulf, where oil-rich shoppers love American beef, they might just turn to New Zealand instead.

The ripple doesn’t stop there. Halal isn’t just food—it’s trust. Certification bodies, like the Islamic Food and Nutrition Council of America, spend years building standards that brands lean on. I’ve watched auditors pore over supply chains, ensuring every step’s halal. Tariffs mess with that. If a U.S. supplier swaps Canadian processing for, say, Thailand to dodge costs, certifiers have to recheck everything. That takes time and money, and if they miss a beat, consumers lose faith. I’ve seen scandals—like pork-tainted halal labels in Europe—tank entire markets. Uncertainty from tariffs could spark similar chaos.

Now, let’s talk winners. Brazil’s licking its chops. I’ve toured their massive halal plants in São Paulo, where they’ve mastered the art of cheap, compliant meat. They’re already the top halal exporter, shipping $15 billion a year to the Middle East and Asia. If U.S. goods get pricier, Brazil’s ready to flood the gap. Australia’s in the game too, with its grass-fed lamb and beef, a favorite in places like Qatar. I’ve tasted their halal chops in Sydney—juicy, affordable, and tariff-free for now. These countries could snatch market share while the U.S. scrambles.

But it’s not all doom for America. Some say tariffs could force halal production stateside. Trump’s pitch is that higher costs on foreign goods will make companies build here. I’ve heard that before—in 2018, when he taxed Chinese steel, a few U.S. plants perked up. Could halal follow? Maybe. A processor in Michigan might open a new line for halal chicken, hiring local workers. But here’s the catch: building takes years, and halal’s global game moves fast. By the time that plant’s running, Brazil might own the market.

What about the little guy? Small halal businesses—think your corner butcher or the food cart slinging kebabs—feel this too. I’ve chatted with owners like Fatima in Chicago, who imports halal spices from Canada. A 25 percent tariff means she pays more or raises prices, risking customers. Big chains like Nestlé, with halal lines in Malaysia, can absorb some costs. Fatima can’t. Over decades, I’ve seen these mom-and-pop shops anchor Muslim communities. Tariffs could squeeze them out.

Then there’s the trade war wildcard. Canada’s already floating 25 percent taxes on U.S. steel and lumber. Mexico’s eyeing U.S. corn. The EU, Brazil, and South Korea might join the fray if Trump’s April tariffs hit. I’ve covered retaliatory tariffs before—China’s 2018 soybean tax crushed U.S. farmers. In halal, it’s trickier. If Malaysia slaps duties on U.S. beef, American exporters lose a $500 million market. The halal industry hates uncertainty, and this is a tornado of it.

Let’s zoom out. The halal market’s grown because it’s global—open borders, free trade, shared standards. I’ve watched it knit together over 20 years, from halal expos in Dubai to certification talks in Washington. Tariffs threaten that. Higher costs could fragment supply chains, pushing countries to go it alone. Indonesia might lean on local beef, even if it’s pricier to produce. The Gulf might double down on Brazilian imports. The U.S., once a halal leader, risks slipping to the sidelines.

Consumers aren’t powerless, though. I’ve seen boycotts—like when Danish goods tanked in Muslim countries after a 2005 cartoon scandal. If U.S. tariffs jack up prices, shoppers might shun American brands. Social media’s buzzing already—hashtags like #HalalTradeWar are popping up. In my travels, I’ve learned Muslims care about value and ethics. If the U.S. looks greedy, they’ll pivot.

So, what’s the fix? Short-term, U.S. halal firms could lobby for exemptions—Trump’s first term saw Apple dodge some tariffs. Long-term, they might diversify, sourcing from tariff-free zones like ASEAN countries. I’ve seen Malaysia’s halal hubs thrive; they could step up. Certifiers could streamline, too, keeping costs down. But the big fix is trade talks. If Trump’s serious about jobs, he’ll negotiate, not just tax. I’ve sat in on WTO meetings—cooler heads can prevail.

The halal industry’s resilient. I’ve watched it weather mad cow scares, pork scandals, and recessions. Tariffs are a gut punch, but not a knockout. American exporters might lose ground, Brazil might gain, and consumers might grumble, but halal’s core—faith and quality—holds firm. Still, the next few months are critical. April’s “liberation day” could reshape the map. As someone who’s tracked this world from slaughterhouse to supermarket, I’d bet on adaptation over collapse. But the cost? That’s on all of us.

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