Hadi DP Mahmud
BANDAR SERI BEGAWAN
analyst Abdalhamid David Evans discusses taking equity position in
existing halal producers as an alternative path to cashing in on the
growing global halal industry. Picture: BT/Ubaidillah Masli ‘Consider
mergers, acquisitions, equity in existing halal producers’
acquisition (M&A) investment opportunities to buy into the big
players in the halal sector, a halal business specialist said.
Taking
ownership or equity position in publicly-listed multi-national
companies could be a very good strategy for any Muslim investor, said
senior analyst for Imarat Consultants Abdalhamid David Evans, citing it
as one of the “next real stages of growth” in the global halal
industry.
“These are the strategies that we will see over the
next few years, because I have watched them coming but they haven’t
really taken off, though there have been some ‘almosts’ and ‘nearlys’.
“I
think the Muslim world in general, because it has a lot of wealth, it
would be a very good strategy to look at merger and acquisition
opportunities to buy into big players in the halal sector. There has
been some discussions about this, but it hasn’t happened yet,” said
Abdalhamid.
Brunei would be “very well-advised” to seriously
look at what kinds of investments could be made in the halal sector
seeing there are already “very good halal businesses” worldwide, even
in “unlikely places, like in the United States, Canada and Europe”.
“They’re
very good, dedicated, they’ve really done their homework, and these
could be potentially very good investments,” he added.
“Those
companies could be turned into global brands, if they were promoted and
pushed and financed in the right way. It would be one way to establish
a strong position in the market. It could certainly be done in
parallel,” he said.
Abdalhamid sees M&A investments taking place in the global halal sector in the next two or three years.
“Now
people are doing business-matching, like they did in MIHAS (Malaysia
International Halal Showcase) in Malaysia. One could also be looking at
investment matching in the future.
“Investment money is going to
start looking for the halal sector. Any investment group would do well
to look at this because there’s a lot of very good potential. Take any
multi-national corporation (MNC), particularly the publicly-listed
ones, whether they’re in food manufacturing, retail, food service,
restaurant chains if they’re MNCs they’re already in the halal market.”
Abdalhamid
is working on a consultancy basis with the Ministry of Industry and
Primary Resources as organiser of the annual International Halal Market
Conference (IHMC), which enters its fourth edition on Aug 1. The
two-day event will be held at the International Convention Centre in
Berakas simultaneously with the 4th International Halal Products Expo.
The Brunei Times
