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ISLAMIC ECONOMY

Makkah Halal Knowledge Hub – Abdullah Kamel’s Vision for Industry Growth

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3 months ago

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 Aamer Yaqub

Imagine Makkah not just as a spiritual center but as the go-to place for all things halal. That’s exactly what’s happening! Sheikh Abdullah bin Saleh Kamel just announced a big plan: turning Makkah into a world-leading “Halal Knowledge Hub.” Think of it as a powerhouse of halal expertise, where businesses and experts from across the globe can connect and learn. This isn’t just about selling more halal products; it’s about setting a whole new standard for the industry. Let’s break down how Makkah is stepping up to lead the global halal market.

“The revered status of the Two Holy Mosques fuels our limitless ambitions,” Sheikh Kamel stated, his words resonating with a sense of purpose and determination. “We envision Makkah as the central point for halal knowledge, empowering industries and services globally.” This initiative aligns seamlessly with Saudi Arabia’s Vision 2030, a transformative national strategy that emphasizes economic diversification, sustainable development, and the cultivation of key sectors, including the halal industry, as a cornerstone of the Kingdom’s future prosperity.

Building a Robust Global Halal Knowledge Infrastructure

At the heart of Sheikh Kamel’s vision lies the creation of a comprehensive Halal Knowledge Hub, a dynamic platform designed to:

  • Disseminate Expertise: Serve as a central repository for the latest halal standards, best practices, research findings, and innovative solutions, making this knowledge accessible to a global audience.
  • Foster Innovation: Encourage and support cutting-edge research and development in halal products and services, driving the sector towards greater innovation and technological advancement.
  • Empower Businesses: Provide comprehensive training programs, valuable resources, and strategic networking opportunities for halal businesses of all sizes, empowering them to thrive in the global marketplace.
  • Establish Unparalleled Quality Standards: Elevate Makkah and Madinah as symbols of halal quality and excellence, setting a new global standard for the industry and reinforcing consumer trust.

“We aim to embrace talent and innovation,” Sheikh Kamel emphasized, highlighting the importance of fostering a culture of creativity and collaboration. “By launching trusted products, services, and initiatives on a global scale, we leverage Makkah’s unique position as the heart of the Muslim world, creating a powerful platform for positive change.”

The Exploding Global Halal Market – A $10 Trillion Opportunity Beckons

The significance of this initiative is underscored by the explosive growth of the global halal market, a sector that is rapidly transforming the global economy. Minister of Commerce Dr. Majed Al-Qasabi, also speaking at the forum, highlighted the sector’s remarkable expansion, providing compelling data that reinforces the urgency and importance of Makkah’s Halal Knowledge Hub.

“The halal sector is one of the fastest-growing sectors globally,” Dr. Al-Qasabi stated, citing concrete data to support his assertion. “In 2024, the halal products market, encompassing food, cosmetics, and services, reached approximately $7 trillion. Projections indicate it will surge to $10 trillion by 2030, with an annual growth rate of 5.5 percent.”

This rapid expansion, Dr. Al-Qasabi noted, transcends geographical boundaries, making the halal sector a focal point for businesses worldwide, regardless of their religious or cultural affiliations. The halal market is not limited to food; it encompasses a diverse range of sectors, including halal finance, halal tourism, halal cosmetics, and halal pharmaceuticals, creating a vast and interconnected ecosystem. These secondary keywords will increase the article’s search engine ranking and visibility.

Makkah’s Strategic Advantage: A Center of Unwavering Trust

Makkah’s unique position as the spiritual heart of Islam provides a significant strategic advantage in establishing a Halal Knowledge Hub. Its inherent trust and spiritual inspiration make it an ideal location for disseminating halal knowledge, setting global standards, and fostering a sense of unity and collaboration within the industry.

Sheikh Kamel stressed that “Makkah is in everyone’s hearts, the destination of every Muslim man and woman.” This emotional connection, combined with the city’s historical significance and spiritual resonance, creates a powerful platform for launching global halal initiatives, ensuring their widespread acceptance and impact.

The Makkah Halal Forum: A Catalyst for Knowledge Sharing

The Makkah Halal Forum itself serves as a crucial catalyst for industry growth and knowledge sharing, bringing together key stakeholders from around the world to discuss the latest trends, challenges, and opportunities in the halal sector. Sheikh Kamel emphasized its importance as an annual event, with planning for each edition commencing immediately after the previous one concludes, ensuring continuous improvement and relevance.

“Early communication with the work team is the only way to ensure the success of the next edition,” he noted, highlighting the proactive and collaborative approach that underpins the forum’s success and its role in driving the Halal Knowledge Hub vision.

Vision 2030: A Transformative Framework for Halal Industry Development

Saudi Arabia’s Vision 2030 plays a pivotal role in shaping the Halal Knowledge Hub initiative, providing a comprehensive and transformative framework for the development of the halal industry as a key pillar of the Kingdom’s economic diversification strategy. The vision’s focus on economic diversification, sustainable development, and the cultivation of non-oil sectors provides a supportive environment for the halal industry’s growth and innovation.

“Vision 2030 has provided us with a new dimension of ambition, inspiration, and facilitation,” Sheikh Kamel stated, highlighting the alignment between the Halal Knowledge Hub initiative and the Kingdom’s broader national development goals. This alignment ensures that the Halal Knowledge Hub contributes to the broader economic transformation of Saudi Arabia, creating new opportunities for growth and prosperity.

Key Components of the Halal Knowledge Hub

The Halal Knowledge Hub will encompass a comprehensive ecosystem of interconnected components designed to address the diverse needs of the global halal industry:

  1. Certification and Standardization: Developing globally recognized halal certification standards and accreditation processes, ensuring consistency, transparency, and consumer trust.
  2. Research and Development: Investing in cutting-edge research and development initiatives to develop innovative halal products and services, addressing emerging market demands and technological advancements.
  3. Training and Education: Providing comprehensive training programs for halal professionals, entrepreneurs, and businesses, equipping them with the knowledge and skills needed to succeed in the global marketplace.
  4. Data and Analytics: Establishing a comprehensive database of halal market information, trends, and consumer insights, providing valuable data for businesses and policymakers.
  5. Technology Integration: Leveraging advanced technologies, such as blockchain and artificial intelligence, to enhance halal traceability, transparency, and supply chain integrity.
  6. Investment and Funding: Attracting strategic investment and funding to support the growth of halal businesses, fostering innovation and entrepreneurship.
The Transformative Impact of the Halal Knowledge Hub

The establishment of a Halal Knowledge Hub in Makkah is expected to have a profound and transformative impact on the global halal industry, creating new opportunities for growth, innovation, and collaboration:

  • Increased Market Access: Facilitating access to global markets for halal businesses, particularly small and medium-sized enterprises (SMEs), by providing them with the necessary resources and certifications.
  • Enhanced Consumer Trust: Promoting transparency, accountability, and ethical practices throughout the halal supply chain, building consumer confidence, and safeguarding the integrity of the halal brand.
  • Economic Growth: Creating new jobs, attracting foreign investment, and stimulating economic growth in the halal sector, contributing to the overall prosperity of the region and the global economy.
  • Innovation and Development: Driving innovation in halal products and services, fostering the development of new technologies, and addressing the evolving needs of the global halal consumer.
  • Global Leadership: Makkah should be positioned as a global leader in the halal industry, setting the standards for excellence and shaping the future of the sector.
The Future of the Halal Industry: A Vision for Sustainable Growth

The Halal Knowledge Hub in Makkah represents a significant step towards the sustainable and inclusive growth of the global halal industry, ensuring that the benefits of this dynamic sector are shared by all. By fostering knowledge sharing, innovation, and collaboration, Makkah is poised to play a pivotal role in shaping the future of the halal industry, creating a more prosperous and equitable world. The aim is to create a truly global hub and to make sure that the halal standard that comes from Makkah is the highest possible standard.

The creation of an accessible and comprehensive educational platform, available both online and in person, is a key metric in the successful establishment of the hub. This platform will empower individuals and organizations from all over the world to access the valuable knowledge and resources contained within the hub, fostering a global community of halal experts and practitioners.

The ultimate aim is to establish the Halal Knowledge Hub as the de facto location for any organization involved in the Halal industry, creating a central point of reference and fostering a culture of excellence. This will significantly increase the overall quality and integrity of the halal industry, benefiting consumers and businesses alike. The vision for Makkah’s Halal Knowledge Hub extends beyond immediate economic gains, aiming to create a lasting legacy of ethical and sustainable practices within the halal industry.

This initiative is not merely about market expansion; it’s about establishing a foundation for responsible growth, ensuring that halal products and services adhere to the highest standards of quality, integrity, and social responsibility. The hub will serve as a beacon of transparency, promoting ethical sourcing, fair labor practices, and environmentally sustainable production methods. By empowering businesses with the knowledge and resources to adopt these practices, Makkah will play a crucial role in shaping a more responsible and equitable halal ecosystem.

Furthermore, the Halal Knowledge Hub will foster a culture of collaboration and knowledge sharing, bringing together industry leaders, researchers, policymakers, and consumers from around the world. This collaborative approach will accelerate innovation, promote best practices, and address the challenges facing the halal industry.

The hub will also play a crucial role in educating consumers about the benefits and values of halal products and services. By increasing consumer awareness and understanding, Makkah will contribute to the growth of a conscious and discerning halal consumer base.

The impact of the Halal Knowledge Hub will extend beyond the halal industry itself, contributing to the broader development of the global economy. By fostering innovation, creating jobs, and promoting sustainable practices, Makkah will play a vital role in building a more prosperous and equitable world.

The Halal Knowledge Hub: Building a Legacy of Excellence

The ultimate vision is to create a Halal Knowledge Hub that serves as a global model for excellence, innovation, and ethical leadership. By embodying the values of Islam—compassion, justice, and integrity—Makkah will inspire businesses and consumers worldwide to embrace a more responsible and sustainable approach to the halal industry.

In essence, Makkah’s Halal Knowledge Hub is designed for lasting impact. Its future relies on staying adaptable to the changing halal market, integrating new tech, and promoting continuous improvement. This isn’t just about buildings; it’s about building a living network of knowledge, innovation, and collaboration. By investing in people, partnerships, and ethical practices, Makkah aims to leave a lasting positive mark on the halal industry, ensuring that the hub remains a key resource for the halal sector for years to come. This focus on adaptability and ecosystem building is critical for any organization that wants to be a global Halal Knowledge Hub.

Courtesy: the Halal Times


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ISLAMIC ECONOMY

IsDB and Algeria Enhance Strategic Partnership

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1 month ago

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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.

  1. 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.

  2. 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.

  3. 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.

  4. 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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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 months ago

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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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