ISLAMIC ECONOMY

Exploring Malaysia’s Halal Food Market

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1 year ago

December 18, 2023

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By NURUL SUHAIDI

In Malaysia, the prioritisation of halal food is not seen as a burden but a fundamental aspect ingrained in our society as part of our cultural and majority religious practice that reflects a commitment to Islamic principles.

With the halal food lifestyle and demand for diverse and authentic dining experiences continuing to rise, the significance of obtaining a halal certification for restaurants cannot be overstated.

Navigating the halal restaurant market access is not only about meeting religious dietary requirements but also unlocking opportunities for wider market penetration, especially in the lucrative domain of export markets.

According to Halal Development Bhd (HDC) CEO Hairol Ariffein Sahari, engaging in halal food activities and values are fundamentally religious, they are not merely symbolic.

“This is because adopting halal values and perspectives is increasingly recognised by governmental organisations around the world, as well as by industry players and consumers.

“The rise in global tourism also has contributed to the demand for halal restaurants. Muslim travellers, in particular, seek dining options that adhere to their dietary requirements, creating opportunities for halal restaurants in popular tourist destinations,” he told The Malaysian Reserve (TMR).

Food businesses that embrace halal certification are winning in the export market as it provides them with global market access catering to the growing number of Muslim consumers worldwide.

The certification also will increase consumer confidence in the quality and authenticity of the food and products.

In addition, the halal certification adds to their competitive advantages as it allows Malaysian businesses to differentiate their products and services from competitors while making it easier for Malaysian food and beverage (F&B) businesses to navigate international trade agreements and regulations.

“Halal certification also enhances the credibility of F&B entrepreneurs and their products. It serves as a third-party verification of compliance with Islamic standards, building trust among consumers, retailers and business partners,” Hairol said in an interview with TMR.

Market Value

It is noted that the global Muslim population is growing, creating a larger consumer base for halal products. Estimates indicate that in 2030, global Muslim expenditure on the halal sector is projected to be worth US$3.5 trillion (RM16.34 trillion).

For the year 2022, Malaysia’s halal export for F&B was RM27.84 billion, an increase of 57.8% from 2021. This increase was due to the economic rebound and the overall trade improvement post-Covid-19.

Additionally, according to HDC, the global halal food market is quite promising as the market is forecasted to reach US$2.17 trillion by 2030.

Malaysia has very well-established halal standards that counter all sectors of food industries and the nation’s halal certification is recognised by the Department of Islamic Development Malaysia (Jakim) which is accepted globally, trusted and reliable.

Malaysia’s halal regulation also cannot be simply regulated by any organisation including the provider of halal training.

SIRIM Bhd is one of the technical committees in developing halal standards such as MS 1500, MS 2400, MS 2934, MS 2424, MS 2610, and MS 1900, and businesses may seek training, halal consultancy and explore deeper understanding and significance of having their business halal certified through those bodies.

In overseeing the halal training and consultancy, SIRIM halal department senior consultant Lizawati Mohamad Darwi said the demand for halal food is currently expanding worldwide, and in Malaysia, this is seen as a prerequisite for developing a business system and a foundation of the other system.

According to her, halal certification can streamline other restaurant business processes as it indirectly complements food safety standards such as Good Manufacturing Practice (GMP), Hazard Analysis and Critical Control Points (HACCP) and ISO which are required for food safety and security.

Not only that, given that the concept of halal emphasises not only halal sources but also in terms of hygiene in food production, most companies choose to integrate halal standards with other food standards that emphasise food safety and hygiene.

“For SIRIM, we can see the demand among food industries is increasing by the demand for training and consultancy service we received,” she said.

The increased demand is also due to the acceptance of Muslims only for halal-certified products to prevent “shubhah” or doubt resulting in them purchasing food with a clear halal logo on the label.

“Not only that, non-Muslims started to accept halal (status) due to the belief that halal also provides health benefits by consumption of good sources of food and well-ethical animal slaughtering or practices,” she said.

Product and Business Expansion Opportunity

Halal certification is important to build trust and confidence among consumers, leading to increased sales and brand loyalty. It is also a prerequisite for accessing Muslim-majority markets, which is impartial for exports.

Muslim-majority markets constitute a substantial portion of the global population and halal certification is a good starting point to enter the market, enabling more opportunity to expand product and business potentials.

The impact of gaining halal market access is also significant on the overall halal supply chain and ecosystem which assures that halal products are preserved from contamination hence influencing various stakeholders.

On top of that, the strategies to streamline the certification process benefit not only individual businesses but contribute to the overall efficiency and growth of the halal industry and are important to maintain the integrity of halal until it reaches consumers.

Global Halal Market Challenges

While halal certification plays a crucial role in expanding international market access, food businesses face challenges to meet the global halal standards especially due to the diverse certification standards across countries.

Different countries and regions may have their halal certification standards, including labelling, alcohol, emulsifiers and other food contents which lead to a lack of uniformity and difficulties to enter the export market.

“Businesses face the challenge of navigating and adhering to diverse requirements, making it complex and time-consuming to obtain certifications for multiple markets,” Hairol said.

Due to this, he added that the Malaysian government is currently promoting the principle of halal diplomacy to promote and ease the integration of international halal certification acceptance.

Additionally, the challenge is also in ensuring the entire supply chain complies with halal standards, especially for businesses operating in multiple regions.

“Maintaining consistency from raw material sourcing to production and distribution is crucial for obtaining and retaining halal certification,” he said.

Meeting halal standards also often requires thorough documentation and traceability throughout the production process. Maintaining accurate records can be a challenge and businesses must implement robust systems to track the source and handling of ingredients.

Apart from that, obtaining and maintaining halal certification can involve significant costs, including fees for inspections, audits and ongoing compliance. Whereas for small and medium enterprises (SMEs), the financial burden may be a barrier to entry into certain markets.

“To declare the product is halal, raw materials need to come from halal sources. Certain materials especially imported materials are more difficult to get the halal assurance,” Lizawati added.

Apart from raw materials, manpower issues and resources as well as the business process also pose challenges in maintaining the halal status for those who have obtained it, especially for the smaller food businesses.

Based on the regulations, the company is required to have at least two local Muslim workers in the production and operation. The high turnover among local workers often causes difficulties in complying with the requirements.

“To maintain minimum local workers sometimes is quite difficult, especially for small businesses. They tend to like switching jobs for better options. In that sense, it’s difficult for the company to maintain the local Muslim workers.

“Another challenge will be the auditing by Jakim where the department will conduct spot checks on the business to ensure they can maintain two Muslim workers in the production. Otherwise, it will affect their certifications,” Lizawati added.

Nonetheless, she said businesses need to be aware of the challenges, and requirements, and seek advice from relevant bodies to increase awareness to develop their product to ensure success and eventually contribute to expanding the halal market.

Navigating Halal Principles

GIVEN the growth of the Muslim consumer market, it is of utmost importance for restaurant owners who wish to cater to the Muslim segment to possess a comprehensive understanding.

Here’s how Malaysia’s restaurant and food and beverage (F&B) operators navigate the halal principle in attracting customers.

Mercure Kuala Lumpur Glenmarie GM Fariz Victor said there are no real challenges in coming up with a halal menu as the principle is to have all halal-compliant ingredients and products.

“Our traditional halal cuisine has been elevated by using only all halal-compliant ingredients and products which are then transformed into Western and/or international dishes infused with local and traditional elements.

“As we are not involved in the export market, the challenge in cooking the food for our guests is to ensure the ingredients are from halal sources and cooked in a clean and hygienic area,” he told The Malaysian Reserve (TMR).

The restaurant also builds relationships with halal suppliers and undergoes a stringent process where its halal and hygiene executive will check and verify that all ingredients and products from vendors are halal certified before purchasing the product.

Meanwhile, DoubleTree by Hilton Kuala Lumpur (KL) executive chef Gerald Chong said navigating the dining experience that caters to both halal and non-halal customers requires careful attention to diverse customers’ preferences and expectations.

Despite that, he said as a chef, it is increasingly important to push the boundaries of cuisine by exploring creative culinary techniques, incorporating diverse flavours and embracing global influences.

“Adhering to these principles in the business involves ensuring the entire food production process, from sourcing ingredients to the final product, complies with Islamic certification guidelines, certification of the product and process of handling as well,” he added.

Nonetheless, curating a menu or incorporating halal options into an existing restaurant while maintaining its specificity can present several challenges.

“Therefore, menu engineering needs to be straightforward without any speculation of ingredients or suspicious products.

“They also must be creative in adapting traditional recipes or creating new ones to cater to diverse tastes without diluting the uniqueness of the restaurant’s culinary identity,” Chong told TMR.

Overall, he said DoubleTree by Hilton KL maintains and builds relationships with reputable halal suppliers to cater to diverse guest needs with several specifications and quality enhancements from the chef.

“We have a halal committee who works alongside with our purchasing team to ensure we received the correct product specification, slaughterhouse number- ing and certification verification,” he concluded.

Adding further, KARLS Group’s Skillet KL co-owner and executive chef Raymond Tham said he believes everyone should able to come in to enjoy its foods, and businesses require a lot of halal menu research and development in providing halal options while maintaining their restaurant speciality.

“All our outlets are pork-free and use halal-sourced ingredients. We draw inspiration across Malaysia and some of the dishes are inspired by the classic dishes,” he told TMR.

“Most of the suppliers that we use have been around for many years. They also supply to international hotel chains in Malaysia. So, we are very sure they can guarantee the authenticity,” Tham added.

However, the group so far has no plan to obtain halal certification as many of their guests prefer to have alcoholic beverages to go with fine dining meals. Nonetheless, it might consider opening up a halal-certified outlet in the future.

To ensure compliance among staff in the halal food preparation and avoid cross-contamination, he said sufficient training is needed and the group takes responsibility to inform the guests if they ask.

“Most of our chefs graduated from culinary school. They already have the basics. All the guests who dine with us expect a good and memorable dining experience, from the friendly and welcoming service to the taste and presentation,” he concluded.

This article first appeared in The Malaysian Reserve weekly print edition

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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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7 days 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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