Al Islami Foods in a report on the Halal market, drew to the importance of “development that commensurate with its expansion to include major countries and communities in the world, the sector provides many possibilities for investors including the areas of food companies to contribute in”.
The Chief Executive Deputy, Hamid Badawi, stressed on the importance of creating global standards for the “Halal” industry as a step towards transforming it to a global economic power, as well as strengthen efforts to provide a “global certificates for Halal” according to these criteria.
He said that “creating legislation to regulate the global “Halal” industry is one of the most prominent factors that enhance the performance of this growing sector worldwide”.
“Meanwhile many countries are preparing themselves to enter the “Halal” industry such as China, France and Japan,” he added.
Noting that the “Halal” Industrial compounds ” are developed in many countries including Malaysia and Britain, through participation of the private sector and the authorities of regional development, which enhance the communication channels between each compound and farmer associations and local authorities in the region in which it works”.
“The availability of such complexes, is the appropriate infrastructure to meet the requirements of the “Halal” market growing at more than 30 countries with Muslim majority in the world, as well as large parts of Africa and the presence of Muslim communities in Russia and the countries of Eastern Europe”.
He believed that the launch of the index of Halal food “SAMI” in Malaysia this year which is the first in the world, represents a great value for investors, as it is an important step for the construction of the sector, and building strong combination of sectors of the Halal Food and Islamic banking, including providing financing channels leading to support the growth of “Halal” food companies and strengthen its position in the world”.
Badawi pointed out that ” the prime motication to drive the growth process and strengthening the position of “Halal” in the global markets, is joining efforts to raise awareness of the health benefits and multilateral trade provided by this sector in light of its growth and attractive returns, and encouraging more investors to enter this area”.
Go Halal: Industry gaining good momentum
4 September 2011 DUBAI — From farm to fork, Halal is simply the better meat and its major health and business benefits help growth in the market, according to industry specialists.
The worldwide Halal food industry is estimated to be over $650 billion, and this segment currently accounts for approximately 16 per cent of the global food market.
Speakers at a recent forum agreed that the immediate potentials for investors of Halal food market are in acquiring high net worth Halal food producers, slaughterhouses, ingredients production, Halal livestock, Halal raw meat and Halal industrial parks.
The forum was jointly organised by Al Islami Foods and CNBC Arabia. Industry experts who were invited to the forum include Al Islami Foods deputy chief executive officer Hamid Badawi, sales and marketing head Alaa Kamal of US-based Midamar Middle East and general manager Wahid Kandil of Canada-based Prairie Halal Foods Middle East.
“From a business point of view, Halal has some major health and business benefits. That is why the market is developing. Attractive growth numbers are grabbing attention of investors,” Badawi said on the fast growth of the market.
“A Global Halal Standard and Global Halal Certification,” Hamid asserted, “is key to resolve the sensitive issues faced by the industry, otherwise the market will remain fragmented and in regional hubs.”
Legislations for Halal certification vary from one Islamic school of thought, called Madhab in Arabic, to another. Each school of thought and country has its own legislations for Halal certification.
Malaysia is one of the key players in the global Halal sector, the others being Australia, Brazil, Thailand, Indonesia and Brunei, with China, France and Japan planning to enter soon. Currently, the market is in its natural evolution process.
However, regions and countries differ on Shariah rules of standards and certifications. At present, the Halal market is in the brain-storming phase of developing Common Halal Standard and Common Halal Certification that are acceptable to all four Madahib of Islamic world.
In recent developments, the Halal industry has diversified into Halal industrial parks and Halal marketing. The Halal park is the Halal supply chain and logistics, ports and shipping part of the industry. Halal parks are being developed in partnership with private sector as well as regional development authorities of Malaysia, the UK, the EU, Brazil and other OIC countries.
Later, these parks will be linked with regional and international Halal parks. Each park will be connected with local livestock farms, enterprise community and the local authorities.
These services Halal parks provide include strong support from the local government; developed infrastructure; vibrant business environment for local and foreign investors; educated and skilled workforce; accessibility to a wide range of Halal finance; Islamic banking and Takaful insurance facilities; availability of research and development facilities; institution of higher learning through strategic partnership; and Halal logistics links in land, sea and air.
Lately, SAMI, the world’s first Halal Food Index, was launched in Kuala Lumpur, Malaysia. It is considered a significant development in the Halal industry. It translates a substantial investing platform being developed.
The Halal market includes food and ingredients, beverages, personal care items including cosmetics, pharmaceuticals, herbal products, Islamic fashion and leather products, tourism and hospitality products, auditing, security and warehousing, banking and insurance.