Halal Economy: From Divine Command to Global Economic Force

Baba Yunus Muhammad

In three powerful verses of the Qur’an, Allāh sets down the ethical and legal framework for what humanity consumes:

“So eat of what Allāh has provided for you, lawful and good, and be grateful for Allah’s favour, if it is Him you worship. He has only forbidden to you dead meat, blood, the flesh of swine, and that over which anything other than Allāh has been invoked. But whoever is forced (by necessity), neither desiring nor transgressing, then indeed Allāh is Forgiving, Merciful. And do not say, regarding the falsehood your tongues describe, ‘This is lawful and this is unlawful,’ so as to invent lies against Allāh. Indeed, those who invent lies against Allāh will never prosper.” (Qur’an 16:114-116)

These verses, as expounded by the eminent mufassir Imām al-Qurṭubī, define ḥalāl not merely as a ritual label but as a comprehensive ethical category: it must be lawful in divine law (ḥalāl) and wholesome (ṭayyib), beneficial rather than harmful, and free of moral corruption in how it is obtained. They also prohibit false claims in the name of divine law, reserving the authority to declare ḥalāl or ḥarām solely for Allāh and His Messenger..

Today, these Qur’anic principles underpin one of the fastest-growing segments of the global economy — the halal economy — yet they are also under pressure from commodification, lax certification, and market opportunism.

Halal: A Dual Concept — Lawful and Wholesome

The Qur’anic pairing of ḥalāl and ṭayyib is deliberate. Ḥalāl is what is permitted in revealed law; ṭayyib adds a qualitative dimension of purity, safety, healthfulness, and ethical sourcing. A food item may technically be slaughtered according to Islamic law but still fail the ṭayyib test if it is unhygienic, laced with harmful additives, or produced through exploitation.

This distinction has significant economic implications: in an era of industrial agriculture, processed foods, and global supply chains, the ṭayyib dimension forces us to interrogate production ethics, environmental sustainability, and labour rights in the halal industry.

The Expanding Global Halal Economy

According to the State of the Global Islamic Economy Report 2024, the halal food and beverage market alone was valued at US $1.3 trillion in 2023 and is projected to reach US $1.9 trillion by 2027, growing at a CAGR of about 7.5%. When expanded to include halal pharmaceuticals, cosmetics, travel, fashion, and media, the global Islamic economy surpasses US $3 trillion.

But the most striking fact is that non-Muslim countries dominate halal exports:

• Brazil is the largest exporter of halal beef and poultry, shipping over US $27.9 billion worth of halal food in 2024.
• India follows closely with US $24.31 billion, largely in processed and frozen meat products.
• New Zealand and Australia lead in halal lamb exports.
• Thailand has become a halal food processing hub for the Asia-Pacific market.

In fact, nearly 85% of halal food consumed in Muslim-majority countries comes from non-Muslim exporters. While this reflects the openness of global supply chains, it also exposes a structural imbalance: much of the halal value chain — from processing to branding and certification — remains under the control of non-Muslim economies.

Market Scale and Future Trajectories

• The halal food market is projected to grow from US $3.3 trillion in 2025 to US $9.45 trillion by 2034 at an estimated CAGR of 12.4%.
• The broader halal industry, including lifestyle sectors, could reach US $10 trillion by 2030.
• Asia-Pacific currently accounts for nearly half of the global halal food market, driven by demographic strength and developed export infrastructure.

Growing non-Muslim interest in halal products — for reasons of hygiene, quality, and ethical appeal — further expands market potential beyond Muslim consumers.

Necessity and Concession in Economic Practice

Verse 115 introduces a vital legal principle: necessity (ḍarūrah) permits the prohibited — but only to the extent needed to preserve life, without excess or preference for the forbidden.

In economic terms, this principle warns against turning necessity into convenience. For instance, allowing interest-based finance or questionable additives in halal products should remain exceptional and temporary, not standard practice justified under “market realities.”

The Ethics of Certification and False Claims

Verse 116 sharply condemns those who declare something lawful or unlawful without divine authority. Applied today, this speaks directly to the halal certification industry. A 2022 study by the Halal Development Corporation Malaysia found inconsistent standards among over 400 halal certifying bodies worldwide, some of which certify without proper audits.

Such gaps in governance facilitate fraud, mislead consumers, undermine genuine halal producers, and erode global trust. Fragmentation is acute in some markets — for example, France has over 50 competing halal labels, creating confusion and mistrust.

Policy Developments in the Halal Sector

• Malaysia: Through its Halal Development Corporation, Malaysia has built one of the most advanced and export-ready halal ecosystems.
• India: Despite lacking a unified regulatory framework, India has become one of the world’s largest halal meat exporters, valued at over US $4.4 billion in 2022.

The Islamic Development Bank (IsDB) now frames halal as part of a broader Halalan-Toyyiban ecosystem, aligning halal standards with ESG principles and the UN Sustainable Development Goals (SDGs).

Policy and Economic Recommendations

1. Strengthen Global Halal Governance
   • Develop mutual recognition agreements among Muslim countries.
   • Root standards in the combined ḥalāl–ṭayyib framework, covering legal, ethical, and environmental aspects.
2. Localize Halal Value Chains
   • Invest in domestic slaughter, processing, branding, and distribution.
   • Support SMEs to gain certification and compete in export markets.
3. Integrate Ṭayyib into Certification
   • Expand scope beyond slaughter and ingredients to include animal welfare, environmental sustainability, and fair labour.
4. Consolidate and Digitize Certification
   • Reduce fragmented certification landscapes.
   • Employ blockchain-based traceability to ensure product authenticity.
5. Educate and Empower Consumers
   • Teach consumers to demand proof of both legality (ḥalāl) and wholesomeness (ṭayyib).
   • Develop trusted mobile applications to verify certification status.
6. Leverage Halal for Sustainable Development
   • Use halal sector growth to address food security, create jobs, and promote ethical trade aligned with SDGs.

Conclusion

From the Qur’anic command to eat what is lawful and good, to the stern warning against inventing false rulings, the halal economy is far more than a market category — it is a divine trust.

If Muslim nations and halal industry stakeholders embrace unified standards, strengthen domestic value chains, and integrate ethical dimensions into certification, the halal economy can evolve into a US $10 trillion force that serves not only Muslims but the global community — all while remaining faithful to its spiritual roots.

Halal is not just about what we eat; it is about how we live, trade, and honour the boundaries Allāh has set. True prosperity in the halal economy, as the Qur’an reminds us, is inseparable from truthfulness, gratitude, and obedience to the One who provides.

Baba Yunus Muhammad is the President of the Africa Islamic Economic Forum, Tamale, Ghana